Allianz Life Insurance Company of North America How

Allianz Life Insurance Company of North America How the Allianz Life Pro+® Stacks Up Jeremy Bickler, Regionial Vice President For financial professional use only – not for public distribution. PPT-253 7/2013

1 The life insurance industry

The life insurance marketplace Other UL (8%) Term (21%) SGUL (17%) FIUL (15%) Whole Life (32%) Variable/VUL (7%) Source: 4 Q 12 YTD LIMRA U. S. Individual Life Insurance Sales. Data shown represents companies participating in survey 3 For financial professional use only – not for use with the public.

FIUL sales: A growth industry INDUSTRY PREMIUM GROWTH (2012 OVER 2011) Fixed index universal life (FIUL) +34% Term life +0% Whole life +7% Variable universal life +0% Guaranteed universal life +1% Other universal Life +5% Total life insurance industry growth +6% Source: 4 Q 12 YTD LIMRA U. S. Individual Life Insurance Sales. Data shown represents companies participating in survey. 4 For financial professional use only – not for use with the public. 1

FIUL sales: A growth industry Allianz plays in a relatively small segment of the overall market: $1. 31 B 2012 total FIUL sales Total 2012 FIUL sales: $1. 31 B Total nonguaranteed FIUL, independent channel sales: $960 MM AZL Source: Wink’s Sales & Market Report (Q 1 2013) and internal analysis. 5 For financial professional use only – not for public use.

2 How does Allianz Life Pro+ stack up?

Allianz Life Pro+ is a top selling FIUL COMPANY PRODUCT 1. AXA Athena Index Life 2. Western Reserve (AEGON) Freedom Global IUL II 3. Pacific Life Indexed Accumulator 4 4. Allianz Life Pro+ 5. LSW Flex. Life IUL 6. MN Life Eclipse Indexed Life 7. Hartford Life Founders Plus 8. Lincoln Benefit Ultra Index 9. Pacific Life Indexed Performer LT 10. Nationwide Your. Life Indexed UL Source: Wink Sales & Marketing Report and internal analysis, Q 1 2013. 7 For financial professional use only – not for use with the public.

Allianz Life Pro+ target customer High Allianz Life Pro+ can be a solution tailored to consumers needing death benefit protection and seeking the potential for cash value accumulation. Low Wealth Client profile: § Affluent, high wage earners § Looking for the opportunity to build potential cash value accumulation § May have estate planning needs Client needs: § Death benefit protection § Tax deferred cash value accumulation § Ability to access any available cash value in the future Client concerns: § Income replacement and supplemental college funding § Potential cash value accumulation for life events § Uncertainty of future economic environment and taxes 030 Age 75 Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult their tax professional. 8 For financial professional use only – not for use with the public.

What makes Allianz and Allianz Life Pro+ stand out? Indexing experience § § 10 years experience developing and selling FIUL products Ability to leverage indexing experience from our annuities Dynamic hedging § § § In-house dynamic hedging platform Ability to re-allocate our investments throughout the day Gives the opportunity to pass cost savings to our customers Innovation § § § One of the highest annual point-to-point caps Unique trigger method crediting option Built-in Inflation Protection Rider and Chronic Illness Accelerated Death Benefit Riders 1 § § Flexibility Can reallocate on an annual basis § Participating loan rate guaranteed at 5. 3% for the life of the policy 9 index allocation options Locked-in loan rate 1 Riders may be subject to certain restrictions (such as age or underwriting) and are available at an additional cost when exercised. 2 2 Policy loans will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult their tax professional. 9 For financial professional use only – not for use with the public.

Annual point-to-point crediting method (Maximum illustrated rate and highest cap) INDEX ILLUSTRATED RATE CAP CASH VALUE IN YEAR 20 FIXED LOAN IN YEAR 211 Blended 8. 84% 16% $1, 173, 427 $114, 921 S&P 500® Index 8. 10% 13. 5% $1, 143, 665 $109, 230 Blended 8. 85% 16% $1, 152, 853 $108, 853 LSW S&P 500® Index 8. 10% 13% $1, 053, 701 $97, 643 Penn Mutual S&P 500® Index 7. 72% 12. 5% $1, 043, 930 $94, 231 AXA S&P 500® Index 7. 62 12% $984, 031 $88, 486 John Hancock S&P 500® Index 7. 79% 13% $981, 255 $87, 675 Pacific Life S&P 500® Index 7. 75% 12% $911, 588 $85, 500 Aviva S&P 500® Index 7. 00% 11. 5% $997, 905 $85, 220 Allianz S&P 500® Index 7. 17% 12% $961, 967 $82, 849 ALLIANZ North American MN Life Assumptions: 45 year old male, Best Nontobacco Risk Class, $25, 000 annual premium paid to age 65, minimum non-MEC death benefit, Option B switching to Option A at age 65 Information obtained from competitor’s illustration software, July 15, 2013. 1 Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult their tax professional. 10 For financial professional use only – not for use with the public.

S&P 500® Index annual point-to-point (7% illustrated rate) PRODUCT CASH VALUE AT AGE 65 DEATH BENEFIT IN YEAR 20 FIXED LOAN IN YEAR 211 Builder IUL $1, 004, 091 $1, 515, 924 $88, 814 Aviva Lifetime Builder III $997, 905 $1, 550, 977 $85, 220 Penn Mutual Accumulation Builder Choice IUL $958, 231 $1, 431, 674 $82, 036 ALLIANZ Allianz Life Pro+ $947, 927 $1, 469, 962 $80, 108 LSW Flex. Life $925, 469 $1, 493, 125 $79, 115 AXA Athena Indexed UL (153) $914, 807 $1, 449, 891 $78, 679 MN Life Eclipse Indexed Life $924, 996 $1, 461, 136 $76, 197 Accumulation IUL $893, 978 $1, 414, 832 $75, 347 Pacific Indexed Performer LT $848, 050 $1, 373, 707 $73, 802 North American John Hancock Pacific Life Assumptions: 45 year old male, Best Nontobacco Risk Class, $25, 000 annual premium paid to age 65, minimum non-MEC death benefit, Option B switching to Option A at age 65 Information obtained from competitor’s illustration software, July 15, 2013. 1 Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult their tax professional. 11 For financial professional use only – not for use with the public.

Understanding fees and charges Policy fees Monthly expense charges Surrender charges Premium load Asset based charges 12 For financial professional use only – not for use with the public.

Index disclosures S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P marks are trademarks of S&P and Dow Jones marks are trademarks of Dow Jones. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America (“Allianz”). The S&P 500® Index (“the Index”) and Dow Jones Industrial Average. SM (“the DJIA”) are products of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Allianz products are not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices make no representation or warranty, express or implied, to the owners of the Allianz products or any member of the public regarding the advisability of investments generally or in Allianz products particularly or the ability of the Index and Average to track general market performance. S&P Dow Jones Indices’ only relationship to Allianz with respect to the Index and Average is the licensing of the Index and Average and certain trademarks, service marks, and/or trade names of S&P Dow Jones Indices and/or its third-party licensors. The Index and Average are determined, composed, and calculated by S&P Dow Jones Indices without regard to Allianz or the products. S&P Dow Jones Indices have no obligation to take the needs of Allianz or the owners of the products into consideration in determining, composing, or calculating the Index and Average. S&P Dow Jones Indices are not responsible for and have not participated in the design, development, pricing, and operation of the products, including the calculation of any interest payments or any other values credited to the products. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing, or trading of products. There is no assurance that investment products based on the Index and Average will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC and its subsidiaries are not investment advisors. Inclusion of a security or futures contract within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security or futures contract, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to products currently being issued by Allianz, but which may be similar to and competitive with Allianz products. In addition, CME Group Inc. , an indirect minority owner of S&P Dow Jones Indices LLC, and its affiliates may trade financial products which are linked to the performance of the Index and Average. It is possible that this trading activity will affect the value of the products. S&P DOW JONES INDICES DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS, AND/OR THE COMPLETENESS OF THE INDEX AND AVERAGE OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY ALLIANZ, OWNERS OF THE PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX AND AVERAGE OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND ALLIANZ OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. 13 For financial professional use only – not for public use.

Index disclosures Allianz products are not sponsored, endorsed, sold, or promoted by Barclays Capital makes no representation or warranty, express or implied, to the owners of Allianz products or any member of the public regarding the advisability of investing in securities generally or in Allianz products particularly or the ability of the Barclays Capital Indices, including without limitation, the Barclays Capital U. S. Aggregate Bond Index, to track general bond market performance. Barclays Capital's only relationship to Allianz Life Insurance Company and its affiliates (“Allianz”) is the licensing of the Barclays Capital U. S. Aggregate Bond Index which is determined, composed and calculated by Barclays Capital without regard to Allianz or Allianz products. Barclays Capital has no obligation to take the needs of Allianz or the owners of Allianz products into consideration in determining, composing or calculating the Barclays Capital U. S. Aggregate Bond Index. Barclays Capital is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of Allianz products to be issued or in the determination or calculation of the equation by which Allianz products are to be converted into cash. Barclays Capital has no obligation or liability in connection with the administration, marketing or trading of Allianz products. BARCLAYS CAPITAL DOES NOT GUARANTEE THE QUALITY, ACCURACY AND/OR THE COMPLETENESS OF THE BARCLAYS CAPITAL INDICES, OR ANY DATA INCLUDED THEREIN, OR OTHERWISE OBTAINED BY ALLIANZ, OWNERS OF ALLIANZ PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITAL U. S. AGGREGATE BOND INDEX, IN CONNECTION WITH THE RIGHTS LICENSED HEREUNDER OR FOR ANY OTHER USE. BARCLAYS CAPITAL MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BARCLAYS CAPITAL INDICES, INCLUDING WITHOUT LIMITATION, THE BARCLAYS CAPITAL U. S. AGGREGATE BOND INDEX, OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL BARCLAYS CAPITAL HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. Russell 2000® Index is an equity index that measures the performance of the 2, 000 smallest companies in the Russell 3000® Index, which is made up of 3, 000 of the biggest U. S. stocks. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index. The Russell 2000 Index is a trademark of Russell Investments and has been licensed for use by Allianz Life Insurance Company of North America. The product is not sponsored, endorsed, sold, or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in the product. The EURO STOXX 50 is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland. Allianz products based on the Index are in no way sponsored, endorsed, sold, or promoted by STOXX and shall not have any liability with respect thereto. 14 For financial professional use only – not for public use.

Access to any available cash value income tax-free through policy loans. 1 Access for: § Supplemental retirement income § Supplemental college funding § Emergencies § Business planning OUR POLICY LOANS: ¹ § Participating: 5. 3% guaranteed loan rate Policy can still receive indexed interest to offset the loan rate. § Standard: Net 2% cost May be taken from fixed interest allocations. § Preferred: Net 0% cost May be taken from fixed interest allocations after the first 10 policy years. 1 Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult their tax professional. 15 For financial professional use only – not for public use.

How a variable rate loan works 1 § Rate varies based on a market index (often used is Moody’s Corporate Bond Yield Average) § Potential cash value is credited with any indexed interest § As long as the credited interest is higher than the variable loan rate, the policy will earn interest § May be more volatile because rate can fluctuate from month-to-month § Allianz does not offer variable rate loans 1 Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult their tax professional. 16 For financial professional use only – not for use with the public.

Moody’s corporate bond yield history Combined AAA AND BAA CORPORATE BOND YIELD AVERAGE OVER THE LAST 29 Years (January 1993 – December 2012) Allianz Life Pro+ has a 5. 3% guaranteed participating loan rate. 11% 9% 7% 5% 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 3% Source: Board of Governors of the Federal Reserve System, www. federalreserve. gov, May, 31 2013. 17

MOODY’S CORPORATE BOND YIELD: Interesting facts § The Moody’s averages shown generally exceed the fixed participating loan rates of most carriers § The average only gets higher as you go back 50 years 10 -year average 25 -year average 50 -year average (1/1/2003 – 12/31/2012) (1/1/1993 – 12/31/2012) (1/1/1988 – 12/31/2012) (1/1/1963 – 12/31/2012) 5. 79% 6. 70% 7. 27% 8. 19% Past performance is not indicative of future results. Source: Board of Governors of the Federal Reserve System, www. federalreserve. gov, May, 31 2013. ¹Policy loans will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loan sin excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult their tax professional. 18 For financial professional use only – not for public use.

3 Understanding illustrations

Look beyond the illustrated rate and show your clients the BIG PICTURE. Current cap Annual point-topoint S&P 500® Index 20 -year historical (1/1/1993 – 12/31/2012) 12% Past performance is not indicative of future results. 20 For financial professional use only – not for public distribution. 6. 99% 20 -year historical (4/1/1992 – 3/31/2012) 7. 39% 25 -year historical (1/1/88 – 25 -year historical 12/31/12) (4/1/87 – 3/31/12) 7. 19% 7. 57%

Look-back periods What is the look-back period? How is it determined? Is it consistent from year to year? Cherry picking 21 For financial professional use only – not for public use.

Accumulation bonuses – what you need to know § Several carriers offer accumulation bonuses § Generally 25 -75 bps § Typically offered in years 10+ § May affect long-term illustration results § Carriers may review the product and make changes to support the accumulation bonus 22 For financial professional use only – not for use with the public.

Determine which illustrated rate may be appropriate backcasting tool. Past performance is not an indication of future results. 23 For financial professional use only – not for public use. SHOW YOUR CLIENTS: § What percent of the time an illustrated rate would have been reached § Historical returns based on rolling periods § How often an index reached the floor or cap

HYPOTHETICAL EXAMPLE Blended index and 16% cap Assumptions: Start date: 1/1/1988, End date: 12/31/2012 INDEX ALLOCATION WEIGHT CAP PARTICIPATION RATE ANNUAL FLOOR 100% 16% 100% 0% Blended index Annual point-to-point Historical index returns over a period of time YEARS WORST HISTORICAL RETURN 75% OF THE TIME HISTORICAL RETURN 50% OF THE TIME 5 year 3. 04% 6. 17% or better 8. 08% or better 10 year 4. 33% 6. 80% or better 8. 80% or better 20 year 7. 38% 8. 19% or better 8. 53% or better Specific illustrated rate (7. 5%) YEARS HISTORICAL ILLUSTRATED RATE OF 7. 5% 5 year Reached 58. 75% of the time 10 year Reached 67. 77% of the time 20 year Reached 99. 88% of the time This hypothetical example is provided for illustrative purposes only. Past performance is not an indication of future results. 24 For financial professional use only – not for public use.

HYPOTHETICAL EXAMPLE S&P 500® Index and 12% cap Assumptions: Start date: 1/1/1988, End date: 12/31/2012 INDEX ALLOCATION WEIGHT CAP PARTICIPATION RATE ANNUAL FLOOR 100% 12% 100% 0% S&P 500® Index Annual point-to-point Historical index returns over a period of time YEARS WORST HISTORICAL RETURN 75% OF THE TIME HISTORICAL RETURN 50% OF THE TIME 5 year 2. 44% 5. 65% or better 7. 15% or better 10 year 3. 66% 6. 43% or better 7. 37% or better 20 year 6. 35% 7. 04% or better 7. 28% or better Specific illustrated rate (7. 5%) YEARS HISTORICAL ILLUSTRATED RATE OF 7. 5% 5 year Reached 45. 03% of the time 10 year Reached 47. 26% of the time 20 year Reached 30. 68% of the time This hypothetical example is provided for illustrative purposes only. Past performance is not an indication of future results. 25 For financial professional use only – not for public use.

4 Strength and innovation

We‘re part of the global financial powerhouse of Allianz SE § Largest company in the diversified insurance industry (by sales)¹ § 2 nd largest company in the diversified insurance industry (by assets)¹ § 2 nd largest money manager² § 28 th largest company 3 ¹Data from “Forbes Global 2000“: The World‘s Biggest Public Companies, Forbes April 20, 2012. ²The P&I/ Towers Watson World 500: The World‘s Larges Money Managers, “ Pensions & Investments, October 29, 2012 (www. pionline. com). Ranked by total assets under management. ³Fortune Global 500, Fortune, July 23, 2012. Fortune’s ranking is based on revenue. Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America. Products are issued by Allianz Life Insurance Company of North America 5701 Golden Hills Drive, Minneapolis, MN 55416 -1297. 800. 5427 www. allianzlife. com For financial professional use only – not for public distribution. 27

If you’re looking for stability and reliability … look to Allianz. Our ratings prove it. For a full description of how rating categories are assigned, please refer to the rating agencies’ Web sites: www. AMBest. com www. standardandpoors. com www. moodys. com A. M. Best¹ A (Excellent) Standard & Poor’s² AA (Very Strong) Moody’s³ A 2 (Good) ¹The A. M. Best rating of A (Excellent) is the 3 rd highest of 16 possible ratings, and was affirmed June 2012 ²The Standard and Poor’s rating of AA (Very Strong) is the 3 rd highest of 21 possible ratings, and was affirmed March 2013 ³The Moody’s rating of A 2 (Good) is the 6 th highest of 21 possible ratings, and was affirmed for March 2013 The ratings of independent rating agencies are a measure of financial strength and claims paying ability. The ratings are based on an analysis of financial results and evaluation of management objectives and strategies. The ratings do not pertain to investment options, which fluctuate with market conditions. The ratings do not indicate approval by the analysts and are subject to change. 28 For financial professional use only – not for public distribution.

Hedging allows us to REACT to changes in the market § A way of making strategic investments intended to reduce impact of market downturns § Helps us manage volatility § Helps us keep the promises we make to our customers 29 For financial professional use only – not for public distribution.

In-house risk management let’s us monitor and manage risk in real time 30 For financial professional use only – not for public distribution. We do this through: § In-house dynamic hedging § Competitive caps and participation rates that help pass savings to policyholders § Purchasing higher-grade bonds § Designing innovative products and features

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America. P 53450 is issued by Allianz Life Insurance Company of North America. Product availability and features may vary by state. OUR MISSION: Allianz Life Insurance Company of North America is the trusted authority in insured retirement solutions for consumers working with a financial professional. For financial professional use only – not for public use.