# EDGAR Filing Document

**Accession Number:** 0000836346
**File Stem:** 0000836346-26-000042
**Filing Date:** 2026-4
**Character Count:** 545078
**Document Hash:** 9d79e0fbe1f3b2504abfe2dc9e8e9f56
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000836346-26-000042.hdr.sgml**: 20260407

**ACCESSION NUMBER**: 0000836346-26-000042

**CONFORMED SUBMISSION TYPE**: N-VPFS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260407

**DATE AS OF CHANGE**: 20260407

**EFFECTIVENESS DATE**: 20260407

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ALLIANZ LIFE VARIABLE ACCOUNT B
- **CENTRAL INDEX KEY:** 0000836346

**ORGANIZATION NAME:**
- **EIN:** 411366075
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-VPFS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-05618
- **FILM NUMBER:** 26844475

**BUSINESS ADDRESS:**
- **STREET 1:** 5701 GOLDEN HILLS DRIVE
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55416-1297
- **BUSINESS PHONE:** 800-328-5600

**MAIL ADDRESS:**
- **STREET 1:** 5701 GOLDEN HILLS DRIVE
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55416-1297

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NALAC VARIABLE ACCOUNT B
- **DATE OF NAME CHANGE:** 19920703

## Series and Classes Contracts Data

### ALLIANZ LIFE VARIABLE ACCOUNT B (Series ID: S000002612)

| Class ID   | Class Name                                                                     | Ticker Symbol   |
|:---|:---|:---|
| C000007174 | Valuemark II Variable Annuity                                                  |  |
| C000007175 | Allianz Custom Income Variable Annuity                                         |  |
| C000007176 | Valuemark III Variable Annuity                                                 |  |
| C000007177 | Valuemark Income Plus Immediate Variable Annuity                               |  |
| C000007178 | Valuemark IV Variable Annuity                                                  |  |
| C000007179 | Allianz Alterity Variable Annuity                                              |  |
| C000007180 | Allianz Rewards Variable Annuity                                               |  |
| C000007181 | Allianz High Five Variable Annuity                                             |  |
| C000007182 | Allianz High Five Bonus Variable Annuity                                       |  |
| C000007183 | Allianz High Five L Variable Annuity                                           |  |
| C000027808 | Allianz Charter Variable Annuity                                               |  |
| C000027809 | Allianz Dimensions Variable Annuity                                            |  |
| C000027810 | Allianz Charter II Variable Annuity                                            |  |
| C000034988 | Allianz Elite Variable Annuity                                                 |  |
| C000044001 | Allianz Vision Variable Annuity issued on or prior to April 29, 2011           |  |
| C000054393 | Allianz Connections Variable Annuity                                           |  |
| C000090375 | Retirement Pro                                                                 |  |
| C000093406 | Allianz Connections issued from May 2, 2011 through April 26, 2013             |  |
| C000098186 | Allianz Vision Variable Annuity issued from May 2, 2011 through April 26, 2013 |  |
| C000115834 | Allianz Retirement Advantage                                                   |  |
| C000119016 | Allianz Vision Variable Annuity issued on or after April 29, 2013              |  |
| C000119017 | Allianz Connections issued on or after April 29, 2013                          |  |
| C000124821 | Allianz Index Advantage                                                        |  |
| C000174311 | Allianz Index Advantage ADV                                                    |  |
| C000178978 | Index Advantage NF                                                             |  |
| C000199976 | Allianz Index Advantage Income                                                 |  |
| C000228689 | Allianz Index Advantage Income ADV                                             |  |
| C000241221 | Allianz Index Advantage+ Income Variable Annuity                               |  |
| C000241316 | Allianz Index Advantage+ Variable Annuity                                      |  |
| C000241317 | Allianz Index Advantage+ NF Variable Annuity                                   |  |

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**of** 

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

**Financial Statements**

**December 31, 2025** 

**(With Report of Independent Registered Public Accounting Firm Thereon)**

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**Report of Independent Registered Public Accounting Firm**

To the Board of Directors of Allianz Life Insurance Company of North America and the Contract Owners of Allianz Life Variable Account B

***Opinions on the Financial Statements***

We have audited the accompanying statements of assets and liabilities of each of the subaccounts of Allianz Life Variable Account B indicated in the table below (other than AZL DFA Five-Year Global Fixed Income Fund, AZL Gateway Fund, AZL MetWest Total Return Bond Fund, AZL MSCI Emerging Markets Equity Index Fund Class 1, AZL MSCI Emerging Markets Equity Index Fund Class 2, AZL MVP Fusion Balanced Fund, AZL MVP Fusion Conservative Fund, AZL MVP Fusion Moderate Fund, and JPMorgan Insurance Trust Core Bond Portfolio, which do not present a statement of assets and liabilities) as of December 31, 2025, and the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including 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 of the subaccounts of Allianz Life Variable Account B (other than AZL DFA Five-Year Global Fixed Income Fund, AZL Gateway Fund, AZL MetWest Total Return Bond Fund, AZL MSCI Emerging Markets Equity Index Fund Class 1, AZL MSCI Emerging Markets Equity Index Fund Class 2, AZL MVP Fusion Balanced Fund, AZL MVP Fusion Conservative Fund, AZL MVP Fusion Moderate Fund, and JPMorgan Insurance Trust Core Bond Portfolio, which do not present a statement of assets and liabilities) as of December 31, 2025, and the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

---

| | | |
|:---|:---|:---|
| **Subaccounts of Allianz Life Variable Account B** | **Subaccounts of Allianz Life Variable Account B** | **Subaccounts of Allianz Life Variable Account B** |
| AZL Balanced Index Strategy Fund | AZL Russell 1000 Value Index Fund Class 1 | MFS International Intrinsic Value Portfolio |
| AZL DFA Multi-Strategy Fund | AZL Russell 1000 Value Index Fund Class 2 | MFS VIT Total Return Bond Portfolio |
| AZL Enhanced Bond Index Fund | AZL S&P 500 Index Fund | MFS VIT Utilities Portfolio |
| AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Small Cap Stock Index Fund Class 1 | Nomura VIP Asset Strategy Series |
| AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Small Cap Stock Index Fund Class 2 | Nomura VIP Energy Series |
| AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL T. Rowe Price Capital Appreciation Fund | Nomura VIP Growth Series |
| AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | BlackRock Equity Dividend V.I. Fund | Nomura VIP Mid Cap Growth Series |
| AZL Government Money Market Fund | ClearBridge Variable Growth Portfolio | Nomura VIP Natural Resources Series |
| AZL International Index Fund Class 1 | Columbia Variable Portfolio – Seligman Global Technology Fund | Nomura VIP Science and Technology Series |
| AZL International Index Fund Class 2 | Davis VA Financial Portfolio | PIMCO VIT Balanced Allocation Portfolio |

---

------

---

| | | |
|:---|:---|:---|
| AZL Mid Cap Index Fund Class 1 | Davis VA Real Estate Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio |
| AZL Mid Cap Index Fund Class 2 | Eaton Vance VT Floating-Rate Income Fund | PIMCO VIT Emerging Markets Bond Portfolio |
| AZL Moderate Index Strategy Fund | Fidelity VIP Emerging Markets Portfolio | PIMCO VIT Global Core Bond (Hedged) Portfolio |
| AZL MSCI Global Equity Index Fund Class 1 | Fidelity VIP Mid Cap Portfolio | PIMCO VIT High Yield Portfolio |
| AZL MSCI Global Equity Index Fund Class 2 | Fidelity VIP Strategic Income Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio |
| AZL MVP Balanced Index Strategy Fund | Franklin Rising Dividends VIP Fund | PIMCO VIT Low Duration Portfolio |
| AZL MVP DFA Multi-Strategy Fund | Franklin U.S. Government Securities VIP Fund | PIMCO VIT Real Return Portfolio |
| AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | Invesco V.I. American Value Fund | PIMCO VIT StocksPLUS Global Portfolio |
| AZL MVP Global Balanced Index Strategy Fund | Invesco V.I. Balanced-Risk Allocation Fund | PIMCO VIT Total Return Portfolio |
| AZL MVP Growth Index Strategy Fund | Invesco V.I. Global Strategic Income Fund | T. Rowe Price Blue Chip Growth Portfolio |
| AZL MVP Moderate Index Strategy Fund | Invesco V.I. International Growth Fund | T. Rowe Price Equity Income Portfolio |
| AZL MVP T. Rowe Price Capital Appreciation Plus Fund | Lazard Retirement International Equity Portfolio | T. Rowe Price Health Sciences Portfolio |
| AZL Russell 1000 Growth Index Fund Class 1 | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | Templeton Global Bond VIP Fund |
| AZL Russell 1000 Growth Index Fund Class 2 | LVIP JPMorgan Core Bond Fund |  |

---

***Basis for Opinions***

These financial statements are the responsibility of Allianz Life Insurance Company of North America management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts of Allianz Life Variable Account B 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 each of the subaccounts of Allianz Life Variable Account B 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 of these financial statements 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 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. Our

------

procedures included confirmation of investments owned as of December 31, 2025 by correspondence with the custodians of the investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Minneapolis, Minnesota

April 6, 2026

We have served as the auditor of one or more of the subaccounts of Allianz Life Variable Account B of Allianz Life Insurance Company of North America since 2019.

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Assets and Liabilities

December 31, 2025

(In thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | AZL Balanced Index Strategy Fund | AZL DFA Multi-Strategy Fund | AZL Enhanced Bond Index Fund | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $300579 | $573619 | $18763 | $73939 | $901813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 300579 | 573619 | 18763 | 73939 | 901813 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 300579 | 573619 | 18763 | 73939 | 901813 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 300530 | 572339 | 18763 | 73286 | 900852 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 49 | 1280 |  | 653 | 961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $300579 | $573619 | $18763 | $73939 | $901813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 19620 | 41120 | 1920 | 3790 | 56258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $294541 | $550159 | $19615 | $72920 | $809094 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Government Money Market Fund | AZL International Index Fund Class 1 | AZL International Index Fund Class 2 |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $12295 | $102971 | $489573 | $90380 | $326120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 12295 | 102971 | 489573 | 90380 | 326120 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 12295 | 102971 | 489573 | 90380 | 326120 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 12186 | 102895 | 488089 | 90056 | 325005 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 109 | 76 | 1484 | 324 | 1115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $12295 | $102971 | $489573 | $90380 | $326120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 1494 | 11918 | 489573 | 6795 | 14891 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $13992 | $113106 | $489573 | $70573 | $236449 |

---

See accompanying notes to financial statements

Page 5 of 60

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Assets and Liabilities

December 31, 2025

(In thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 2 | AZL Moderate Index Strategy Fund | AZL MSCI Global Equity Index Fund Class 1 | AZL MSCI Global Equity Index Fund Class 2 |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $42081 | $246170 | $1179809 | $45449 | $107777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 42081 | 246170 | 1179809 | 45449 | 107777 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 42081 | 246170 | 1179809 | 45449 | 107777 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 41940 | 245939 | 1178808 | 45009 | 107475 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 141 | 231 | 1001 | 440 | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $42081 | $246170 | $1179809 | $45449 | $107777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 2511 | 14992 | 78497 | 3935 | 5182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $81414 | $286352 | $1095305 | $37790 | $80877 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | AZL MVP Balanced Index Strategy Fund | AZL MVP DFA Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | AZL MVP Global Balanced Index Strategy Fund | AZL MVP Growth Index Strategy Fund |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $611933 | $1079111 | $234428 | $357904 | $1436759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 611933 | 1079111 | 234428 | 357904 | 1436759 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 611933 | 1079111 | 234428 | 357904 | 1436759 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 611383 | 1078171 | 234348 | 357828 | 1436139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 550 | 940 | 80 | 76 | 620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $611933 | $1079111 | $234428 | $357904 | $1436759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 48222 | 92947 | 17112 | 30000 | 97210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $567488 | $958568 | $200942 | $335676 | $1353629 |

---

See accompanying notes to financial statements

Page 6 of 60

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Assets and Liabilities

December 31, 2025

(In thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | AZL MVP Moderate Index Strategy Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 2 | AZL Russell 1000 Value Index Fund Class 1 |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $261308 | $810615 | $70620 | $518542 | $159807 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 261308 | 810615 | 70620 | 518542 | 159807 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 261308 | 810615 | 70620 | 518542 | 159807 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 261308 | 810615 | 70252 | 517175 | 158901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period |  |  | 368 | 1367 | 906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $261308 | $810615 | $70620 | $518542 | $159807 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 19559 | 65110 | 2860 | 30078 | 8671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $258118 | $780232 | $83578 | $463523 | $159301 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | AZL Russell 1000 Value Index Fund Class 2 | AZL S&P 500 Index Fund | AZL Small Cap Stock Index Fund Class 1 | AZL Small Cap Stock Index Fund Class 2 | AZL T. Rowe Price Capital Appreciation Fund |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $438046 | $722570 | $29073 | $283839 | $459277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 438046 | 722570 | 29073 | 283839 | 459277 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 438046 | 722570 | 29073 | 283839 | 459277 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 436871 | 721547 | 28936 | 283143 | 458629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 1175 | 1023 | 137 | 696 | 648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $438046 | $722570 | $29073 | $283839 | $459277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 30462 | 31337 | 2214 | 25434 | 27241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $396019 | $554974 | $36532 | $301871 | $457517 |

---

See accompanying notes to financial statements

Page 7 of 60

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Assets and Liabilities

December 31, 2025

(In thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | BlackRock Equity Dividend V.I. Fund | ClearBridge Variable Growth Portfolio | Columbia Variable Portfolio – Seligman Global Technology Fund | Davis VA Financial Portfolio | Davis VA Real Estate Portfolio |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $1164 | $531 | $1456 | $36896 | $159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1164 | 531 | 1456 | 36896 | 159 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 1164 | 531 | 1456 | 36896 | 159 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 1164 | 531 | 1412 | 36861 | 159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period |  |  | 44 | 35 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $1164 | $531 | $1456 | $36896 | $159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 102 | 40 | 35 | 2077 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $1130 | $756 | $825 | $27947 | $158 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Eaton Vance VT Floating-Rate Income Fund | Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Mid Cap Portfolio | Fidelity VIP Strategic Income Portfolio | Franklin Rising Dividends VIP Fund |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $819 | $1715 | $3416 | $1099 | $164075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 819 | 1715 | 3416 | 1099 | 164075 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 819 | 1715 | 3416 | 1099 | 164075 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 819 | 1715 | 3416 | 1099 | 163293 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period |  |  |  |  | 782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $819 | $1715 | $3416 | $1099 | $164075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 98 | 108 | 97 | 99 | 5701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $879 | $1283 | $3479 | $1110 | $133142 |

---

See accompanying notes to financial statements

Page 8 of 60

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Assets and Liabilities

December 31, 2025

(In thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Franklin U.S. Government Securities VIP Fund | Invesco V.I. American Value Fund | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Global Strategic Income Fund | Invesco V.I. International Growth Fund |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $83037 | $237 | $175 | $1113 | $671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 83037 | 237 | 175 | 1113 | 671 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 83037 | 237 | 175 | 1113 | 671 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 82694 | 237 | 175 | 1109 | 671 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 343 |  |  | 4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $83037 | $237 | $175 | $1113 | $671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 7867 | 13 | 21 | 243 | 324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $93733 | $203 | $214 | $1176 | $765 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Lazard Retirement International Equity Portfolio | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | LVIP JPMorgan Core Bond Fund | MFS International Intrinsic Value Portfolio | MFS VIT Total Return Bond Portfolio |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $236 | $87 | $10011 | $1361 | $13309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 236 | 87 | 10011 | 1361 | 13309 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 236 | 87 | 10011 | 1361 | 13309 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 236 | 87 | 10011 | 1361 | 13301 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period |  |  |  |  | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $236 | $87 | $10011 | $1361 | $13309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 20 | 7 | 1021 | 38 | 1153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $216 | $84 | $9925 | $977 | $13820 |

---

See accompanying notes to financial statements

Page 9 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Assets and Liabilities

December 31, 2025

(In thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | MFS VIT Utilities Portfolio | Nomura VIP Asset Strategy Series | Nomura VIP Energy Series | Nomura VIP Growth Series | Nomura VIP Mid Cap Growth Series |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $38 | $1291 | $63 | $742 | $589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 38 | 1291 | 63 | 742 | 589 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 38 | 1291 | 63 | 742 | 589 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 38 | 1291 | 63 | 742 | 589 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $38 | $1291 | $63 | $742 | $589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 1 | 129 | 12 | 78 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $35 | $1333 | $66 | $782 | $768 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Nomura VIP Natural Resources Series | Nomura VIP Science and Technology Series | PIMCO VIT Balanced Allocation Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT Emerging Markets Bond Portfolio |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $13 | $1002 | $125090 | $26430 | $44123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 13 | 1002 | 125090 | 26430 | 44123 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 13 | 1002 | 125090 | 26430 | 44123 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 13 | 1002 | 124978 | 26411 | 44044 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period |  |  | 112 | 19 | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $13 | $1002 | $125090 | $26430 | $44123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 2 | 31 | 12312 | 4202 | 3864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $10 | $802 | $117663 | $32651 | $47212 |

---

See accompanying notes to financial statements

Page 10 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Assets and Liabilities

December 31, 2025

(In thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT High Yield Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Low Duration Portfolio | PIMCO VIT Real Return Portfolio |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $64633 | $218713 | $1475 | $5470 | $125187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 64633 | 218713 | 1475 | 5470 | 125187 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 64633 | 218713 | 1475 | 5470 | 125187 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 64472 | 218367 | 1475 | 5470 | 124957 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 161 | 346 |  |  | 230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $64633 | $218713 | $1475 | $5470 | $125187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 7189 | 29516 | 197 | 559 | 10424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $67349 | $223851 | $1793 | $5559 | $133648 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | PIMCO VIT StocksPLUS Global Portfolio | PIMCO VIT Total Return Portfolio | T. Rowe Price Blue Chip Growth Portfolio | T. Rowe Price Equity Income Portfolio | T. Rowe Price Health Sciences Portfolio |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $172703 | $436003 | $4438 | $916 | $526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 172703 | 436003 | 4438 | 916 | 526 |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |  |  |  |
| Net Assets: | 172703 | 436003 | 4438 | 916 | 526 |
| Net Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 172349 | 435293 | 4438 | 916 | 526 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 354 | 710 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $172703 | $436003 | $4438 | $916 | $526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 19233 | 46138 | 73 | 32 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $154057 | $484729 | $2907 | $896 | $413 |

---

See accompanying notes to financial statements

Page 11 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Assets and Liabilities

December 31, 2025

(In thousands)

---

| | | |
|:---|:---|:---|
|  | Templeton Global Bond VIP Fund | &nbsp;&nbsp;&nbsp;Total All Funds |
| &nbsp;&nbsp;&nbsp; Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments at Net Asset Value | $203351 | $13739533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 203351 | 13739533 |
| &nbsp;&nbsp;&nbsp; Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Net Assets: | 203351 | 13739533 |
| &nbsp;&nbsp;&nbsp; Net Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts in Accumulation Period | 203094 | 13719297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts in Annuity Payment Period | 257 | 20236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Assets | $203351 | $13739533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Shares | 15415 | 1449523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at Cost | $247070 | $12975144 |

---

See accompanying notes to financial statements

Page 12 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Balanced Index Strategy Fund | AZL DFA Multi-Strategy Fund | AZL Enhanced Bond Index Fund | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $8141 | $15313 | $862 | $1932 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 6000 | 10934 | 321 | 1057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 2141 | 4379 | 541 | 875 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 18842 | 21241 |  | 1044 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 1298 | 1555 | (328) | (236) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 20140 | 22796 | (328) | 808 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 9433 | 43014 | 782 | 5377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 29573 | 65810 | 454 | 6185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $31714 | $70189 | $995 | $7060 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Government Money Market Fund |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $26117 | $596 | $4488 | $14094 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 16450 | 183 | 1913 | 3763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 9667 | 413 | 2575 | 10331 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 15502 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 15231 | (523) | (2884) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 30733 | (523) | (2884) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 40827 | 886 | 6276 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 71560 | 363 | 3392 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $81227 | $776 | $5967 | $10331 |

---

See accompanying notes to financial statements

Page 13 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL International Index Fund Class 1 | AZL International Index Fund Class 2 | AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 2 |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $3815 | $7816 | $612 | $2837 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 1366 | 6804 | 612 | 5266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 2449 | 1012 |  | (2429) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 1546 | 3515 | 11786 | 70117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 2088 | 17108 | (4916) | (336) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 3634 | 20623 | 6870 | 69781 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 15554 | 56008 | (4534) | (56457) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 19188 | 76631 | 2336 | 13324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $21637 | $77643 | $2336 | $10895 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Moderate Index Strategy Fund | AZL MSCI Global Equity Index Fund Class 1 | AZL MSCI Global Equity Index Fund Class 2 | AZL MVP Balanced Index Strategy Fund |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $30271 | $1131 | $1262 | $17935 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 23010 | 627 | 2242 | 10939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 7261 | 504 | (980) | 6996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds |  | 1301 | 1799 | 36140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 4801 | 752 | 4856 | 10055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 4801 | 2053 | 6655 | 46195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 128766 | 5238 | 11974 | (941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 133567 | 7291 | 18629 | 45254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $140828 | $7795 | $17649 | $52250 |

---

See accompanying notes to financial statements

Page 14 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL MVP DFA Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | AZL MVP Global Balanced Index Strategy Fund | AZL MVP Growth Index Strategy Fund |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $30481 | $6209 | $10387 | $34601 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 19485 | 3935 | 5382 | 25437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 10996 | 2274 | 5005 | 9164 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 89361 | 5858 |  | 126785 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 29792 | 7497 | 1545 | 25250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 119153 | 13355 | 1545 | 152035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (25341) | (1156) | 25758 | (22862) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 93812 | 12199 | 27303 | 129173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $104808 | $14473 | $32308 | $138337 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL MVP Moderate Index Strategy Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 2 |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $7236 | $29260 | $134 | $90 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 3955 | 12774 | 991 | 10536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 3281 | 16486 | (857) | (10446) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 20886 | 42199 | 7003 | 71245 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 1694 | 10333 | (2416) | 11309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 22580 | 52532 | 4587 | 82554 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (1059) | (13557) | 6679 | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 21521 | 38975 | 11266 | 82870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $24802 | $55461 | $10409 | $72424 |

---

See accompanying notes to financial statements

Page 15 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 2 | AZL S&P 500 Index Fund | AZL Small Cap Stock Index Fund Class 1 |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $2433 | $7255 | $7044 | $397 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 2384 | 8985 | 14269 | 549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 49 | (1730) | (7225) | (152) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 9069 | 31411 | 122399 | 3555 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | (588) | 7593 | 46347 | (1296) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 8481 | 39004 | 168746 | 2259 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 11681 | 14364 | (62613) | (1176) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 20162 | 53368 | 106133 | 1083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $20211 | $51638 | $98908 | $931 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Small Cap Stock Index Fund Class 2 | AZL T. Rowe Price Capital Appreciation Fund | BlackRock Equity Dividend V.I. Fund | ClearBridge Variable Growth Portfolio |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $3634 | $10533 | $24 | $— |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 5936 | 10474 | 4 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | (2302) | 59 | 20 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 39990 | 58493 | 97 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | (2028) | 5791 | 6 | (36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 37962 | 64284 | 103 | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (27587) | (23948) | 107 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 10375 | 40336 | 210 | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $8073 | $40395 | $230 | $68 |

---

See accompanying notes to financial statements

Page 16 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Columbia Variable Portfolio – Seligman Global Technology Fund | Davis VA Financial Portfolio | Davis VA Real Estate Portfolio | Eaton Vance VT Floating-Rate Income Fund |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $— | $543 | $4 | $78 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 21 | 758 | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | (21) | (215) | 1 | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 110 | 3183 | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 57 | 1909 | 1 | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 167 | 5092 | 8 | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 210 | 3282 | (22) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 377 | 8374 | (14) | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $356 | $8159 | $(13) | $43 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Mid Cap Portfolio | Fidelity VIP Strategic Income Portfolio | Franklin Rising Dividends VIP Fund |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $20 | $8 | $44 | $1512 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 5 | 4 | 4 | 2908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 15 | 4 | 40 | (1396) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 11 | 262 |  | 15895 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 46 | 2 | (19) | 5010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 57 | 264 | (19) | 20905 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 473 | (73) | 75 | (3841) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 530 | 191 | 56 | 17064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $545 | $195 | $96 | $15668 |

---

See accompanying notes to financial statements

Page 17 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Franklin U.S. Government Securities VIP Fund | Invesco V.I. American Value Fund | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Global Strategic Income Fund |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $2881 | $— | $12 | $63 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 1547 | 1 | 1 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 1334 | (1) | 11 | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds |  | 34 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | (3212) | 8 | (8) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | (3212) | 42 | (8) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 6051 |  | 12 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 2839 | 42 | 4 | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $4173 | $41 | $15 | $114 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Invesco V.I. International Growth Fund | Lazard Retirement International Equity Portfolio | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | LVIP JPMorgan Core Bond Fund |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $— | $4 | $— | $349 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 2 | 1 | 11 | 147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | (2) | 3 | (11) | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 57 | 8 | 617 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | (44) | (4) | 141 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 13 | 4 | 758 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 75 | 55 | (801) | 345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 88 | 59 | (43) | 372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $86 | $62 | $(54) | $574 |

---

See accompanying notes to financial statements

Page 18 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | MFS International Intrinsic Value Portfolio | MFS VIT Total Return Bond Portfolio | MFS VIT Utilities Portfolio | Nomura VIP Asset Strategy Series |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $17 | $610 | $1 | $16 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 4 | 210 |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 13 | 400 | 1 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 72 |  | 1 | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 75 | (416) | 2 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 147 | (416) | 3 | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 210 | 820 | 10 | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 357 | 404 | 13 | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $370 | $804 | $14 | $181 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Nomura VIP Energy Series | Nomura VIP Growth Series | Nomura VIP Mid Cap Growth Series | Nomura VIP Natural Resources Series |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $1 | $— | $— | $— |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges |  | 2 | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 1 | (2) | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds |  | 121 | 130 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | (5) | (2) | (12) | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | (5) | 119 | 118 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 13 | (59) | (103) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 8 | 60 | 15 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $9 | $58 | $13 | $25 |

---

See accompanying notes to financial statements

Page 19 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Nomura VIP Science and Technology Series | PIMCO VIT Balanced Allocation Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT Emerging Markets Bond Portfolio |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $— | $5251 | $748 | $3118 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 3 | 2060 | 591 | 849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | (3) | 3191 | 157 | 2269 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 125 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 6 | 216 | (2155) | (1236) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 131 | 216 | (2155) | (1236) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 117 | 13779 | 6026 | 4397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 248 | 13995 | 3871 | 3161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $245 | $17186 | $4028 | $5430 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT High Yield Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Low Duration Portfolio |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $2742 | $14345 | $64 | $233 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 1215 | 3813 | 33 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 1527 | 10532 | 31 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | (863) | (2070) | (169) | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | (863) | (2070) | (169) | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 2533 | 7251 | 149 | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 1670 | 5181 | (20) | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $3197 | $15713 | $11 | $304 |

---

See accompanying notes to financial statements

Page 20 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Operations

For the year ended December 31, 2025

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | PIMCO VIT Real Return Portfolio | PIMCO VIT StocksPLUS Global Portfolio | PIMCO VIT Total Return Portfolio | T. Rowe Price Blue Chip Growth Portfolio |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $4347 | $7642 | $18829 | $— |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 2301 | 3427 | 7969 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 2046 | 4215 | 10860 | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds |  |  |  | 396 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | (2107) | 983 | (15757) | 228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | (2107) | 983 | (15757) | 624 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 7831 | 27771 | 36257 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 5724 | 28754 | 20500 | 691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $7770 | $32969 | $31360 | $679 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | T. Rowe Price Equity Income Portfolio | T. Rowe Price Health Sciences Portfolio | Templeton Global Bond VIP Fund | Total All Funds |
| Investment Income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends Reinvested in Fund Shares | $13 | $— | $— | $350435 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortality and Expense Risk and Administrative Charges | 3 | 2 | 3512 | 248051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Income (Loss), Net | 10 | (2) | (3512) | 102384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) and Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Capital Gain Distributions on Funds | 88 | 19 |  | 832487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Sales of Investments, Net | 20 | 15 | (15016) | 154925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized Gains (Losses) on Investments, Net | 108 | 34 | (15016) | 987412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 8 | 49 | 46760 | 301837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Realized Gains (Losses) & Changes in |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appreciation (Depreciation) on Investments | 116 | 83 | 31744 | 1289249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets From Operations | $126 | $81 | $28232 | $1391633 |

---

See accompanying notes to financial statements

Page 21 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Balanced Index Strategy Fund | AZL Balanced Index Strategy Fund | AZL DFA Multi-Strategy Fund | AZL DFA Multi-Strategy Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $2141 | $(1761) | $4379 | $(3429) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 20140 | 8417 | 22796 | (7212) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 9433 | 12837 | 43014 | 53931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 31714 | 19493 | 70189 | 43290 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 80 | 216 | 285 | 344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (1575) | 3741 | (6290) | (5219) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (38080) | (35199) | (80401) | (84638) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 2 |  | 3 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (53) | (57) | (100) | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (2087) | (2275) | (7851) | (8476) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (41713) | (33574) | (94356) | (98099) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (9999) | (14081) | (24167) | (54809) |
| Net Assets at Beginning of Period | 310578 | 324659 | 597786 | 652595 |
| Net Assets at End of Period | $300579 | $310578 | $573619 | $597786 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 4 | 222 | 11 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (2070) | (1987) | (3850) | (4297) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (2066) | (1765) | (3839) | (4283) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Enhanced Bond Index Fund | AZL Enhanced Bond Index Fund | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $541 | $572 | $875 | $2141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (328) | (375) | 808 | (890) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 782 | (244) | 5377 | 6214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 995 | (47) | 7060 | 7465 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 9 | 9 | 114 | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 1003 | 1757 | (347) | (183) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (4890) | (4.324) | (9069) | (10537) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (4) | (4) | (18) | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (204) | (242) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (4086) | (2804) | (9320) | (10660) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (3091) | (2851) | (2260) | (3195) |
| Net Assets at Beginning of Period | 21854 | 24705 | 76199 | 79394 |
| Net Assets at End of Period | $18763 | $21854 | $73939 | $76199 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 108 | 164 | 11 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (476) | (421) | (828) | (1006) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (368) | (257) | (817) | (997) |

---

See accompanying notes to financial statements

Page 22 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $9667 | $5147 | $413 | $655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 30733 | 6047 | (523) | (260) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 40827 | 81542 | 886 | (311) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 81227 | 92736 | 776 | 84 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 419 | 890 | 6 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (2058) | (6561) | 324 | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (139140) | (158666) | (3160) | (1347) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  | (5) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 4 | 10 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (211) | (233) | (3) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (11166) | (12387) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (152152) | (176952) | (2833) | (1014) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (70925) | (84216) | (2057) | (930) |
| Net Assets at Beginning of Period | 972738 | 1056954 | 14352 | 15282 |
| Net Assets at End of Period | $901813 | $972738 | $12295 | $14352 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 22 | 47 | 39 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (7125) | (8861) | (325) | (173) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (7103) | (8814) | (286) | (123) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Government Money Market Fund | AZL Government Money Market Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $2575 | $3925 | $10331 | $13379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (2884) | (3722) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 6276 | (367) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 5967 | (164) | 10331 | 13379 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 44 | 93 | 9744944 | 8152233 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 2086 | 3051 | (9605148) | (8011896) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (15576) | (20110) | (115172) | (146550) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  | (16) | (850) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  | 1 | 1 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (27) | (31) | (856) | (769) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (984) | (1112) | (1879) | (2403) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (14457) | (18108) | 21874 | (10208) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (8490) | (18272) | 32205 | 3171 |
| Net Assets at Beginning of Period | 111461 | 129733 | 457368 | 454197 |
| Net Assets at End of Period | $102971 | $111461 | $489573 | $457368 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 203 | 303 | 665425 | 579326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (1585) | (2099) | (665392) | (581835) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (1382) | (1796) | 33 | (2509) |

---

See accompanying notes to financial statements

Page 23 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL International Index Fund Class 1 | AZL International Index Fund Class 1 | AZL International Index Fund Class 2 | AZL International Index Fund Class 2 |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $2449 | $2458 | $1012 | $1488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 3634 | 2411 | 20623 | 13724 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 15554 | (3333) | 56008 | (11652) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 21637 | 1536 | 77643 | 3560 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 63 | 10 | 90 | 338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (243) | (173) | (10099) | 7484 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (9058) | (8666) | (44909) | (46674) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (24) | (28) | (54) | (60) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  | (66) | (86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (9262) | (8857) | (55038) | (39000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | 12375 | (7321) | 22605 | (35440) |
| Net Assets at Beginning of Period | 78005 | 85326 | 303515 | 338955 |
| Net Assets at End of Period | $90380 | $78005 | $326120 | $303515 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 9 | 6 | 51 | 599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (564) | (614) | (3645) | (3375) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (555) | (608) | (3594) | (2776) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 2 | AZL Mid Cap Index Fund Class 2 |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $— | $250 | $(2429) | $(1339) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 6870 | (303) | 69781 | 30979 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (4534) | 5025 | (56457) | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 2336 | 4972 | 10895 | 29622 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 37 | 68 | 24 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (496) | 126 | 2527 | (5270) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (3586) | (4230) | (34806) | (40152) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (8) | (10) | (36) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  | (74) | (104) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (4053) | (4046) | (32365) | (45535) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (1717) | 926 | (21470) | (15913) |
| Net Assets at Beginning of Period | 43798 | 42872 | 267640 | 283553 |
| Net Assets at End of Period | $42081 | $43798 | $246170 | $267640 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 29 | 45 | 94 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (277) | (256) | (1138) | (1505) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (248) | (211) | (1044) | (1498) |

---

See accompanying notes to financial statements

Page 24 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Moderate Index Strategy Fund | AZL Moderate Index Strategy Fund | AZL MSCI Global Equity Index Fund Class 1 | AZL MSCI Global Equity Index Fund Class 1 |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $7261 | $(6186) | $504 | $639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 4801 | (17216) | 2053 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 128766 | 122976 | 5238 | 5860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 140828 | 99574 | 7795 | 6547 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 434 | 937 | 84 | 116 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (16548) | (16527) | (526) | (224) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (162488) | (168886) | (4941) | (4162) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions | (2) | (2) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 3 | 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (259) | (279) | (11) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (15566) | (16758) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (194426) | (201513) | (5394) | (4283) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (53598) | (101939) | 2401 | 2264 |
| Net Assets at Beginning of Period | 1233407 | 1335346 | 43048 | 40784 |
| Net Assets at End of Period | $1179809 | $1233407 | $45449 | $43048 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 36 | 43 | 7 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (7224) | (7938) | (400) | (372) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (7188) | (7895) | (393) | (361) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL MSCI Global Equity Index Fund Class 2 | AZL MSCI Global Equity Index Fund Class 2 | AZL MVP Balanced Index Strategy Fund | AZL MVP Balanced Index Strategy Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(980) | $(781) | $6996 | $(1126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 6655 | 2804 | 46195 | 39577 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 11974 | 14125 | (941) | 5191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 17649 | 16148 | 52250 | 43642 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 25 | 134 | 346 | 577 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (1869) | 433 | 4243 | 1416 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (16364) | (17407) | (91090) | (98659) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  | (1) | (3) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  | 1 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (26) | (30) | (161) | (177) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (21) | (30) | (8176) | (8909) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (18255) | (16901) | (94840) | (105749) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (606) | (753) | (42590) | (62107) |
| Net Assets at Beginning of Period | 108383 | 109136 | 654523 | 716630 |
| Net Assets at End of Period | $107777 | $108383 | $611933 | $654523 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 1 | 18 | 259 | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (695) | (737) | (5787) | (6583) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (694) | (719) | (5528) | (6455) |

---

See accompanying notes to financial statements

Page 25 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL MVP DFA Multi-Strategy Fund | AZL MVP DFA Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $10996 | $(1574) | $2274 | $852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 119153 | 69530 | 13355 | 7540 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (25341) | 22159 | (1156) | 17368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 104808 | 90115 | 14473 | 25760 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 1228 | 1524 | 194 | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (4674) | (7368) | 6121 | (1195) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (160125) | (168806) | (44216) | (50800) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions | (4) | (1) | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 20 | 13 | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (279) | (306) | (63) | (69) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (17136) | (18467) | (3832) | (4315) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (180970) | (193411) | (41794) | (56177) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (76162) | (103296) | (27321) | (30417) |
| Net Assets at Beginning of Period | 1155273 | 1258569 | 261749 | 292166 |
| Net Assets at End of Period | $1079111 | $1155273 | $234428 | $261749 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 86 | 113 | 453 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (12748) | (13963) | (3081) | (3747) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (12662) | (13850) | (2628) | (3734) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL MVP Global Balanced Index Strategy Fund | AZL MVP Global Balanced Index Strategy Fund | AZL MVP Growth Index Strategy Fund | AZL MVP Growth Index Strategy Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $5005 | $549 | $9164 | $(3352) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 1545 | (2753) | 152035 | 94484 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 25758 | 34788 | (22862) | 73636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 32308 | 32584 | 138337 | 164768 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 300 | 404 | 1860 | 2827 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (4430) | (4433) | (1674) | (9285) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (58225) | (68860) | (254165) | (284997) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions | (4) | (3) | (7) | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 1 | 8 | (1) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (79) | (88) | (251) | (279) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (6567) | (7432) | (17190) | (19437) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (69004) | (80404) | (271428) | (311176) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (36696) | (47820) | (133091) | (146408) |
| Net Assets at Beginning of Period | 394600 | 442420 | 1569850 | 1716258 |
| Net Assets at End of Period | $357904 | $394600 | $1436759 | $1569850 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 19 | 28 | 81 | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (4317) | (5328) | (12235) | (14918) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (4298) | (5300) | (12154) | (14788) |

---

See accompanying notes to financial statements

Page 26 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL MVP Moderate Index Strategy Fund | AZL MVP Moderate Index Strategy Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $3281 | $340 | $16486 | $31779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 22580 | 12013 | 52532 | 49860 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (1059) | 13054 | (13557) | 26267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 24802 | 25407 | 55461 | 107906 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 268 | 405 | 1035 | 1363 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (2477) | (3204) | 16364 | 6967 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (45827) | (57516) | (168439) | (177135) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions | (4) | (1) | (3) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 3 | 4 | 1 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (49) | (56) | (117) | (128) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (4442) | (5041) | (15379) | (16955) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (52528) | (65409) | (166538) | (185908) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (27726) | (40002) | (111077) | (78002) |
| Net Assets at Beginning of Period | 289034 | 329036 | 921692 | 999694 |
| Net Assets at End of Period | $261308 | $289034 | $810615 | $921692 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 13 | 20 | 837 | 448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (2546) | (3381) | (8606) | (9670) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (2533) | (3361) | (7769) | (9222) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 2 | AZL Russell 1000 Growth Index Fund Class 2 |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(857) | $(356) | $(10446) | $(9544) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 4587 | 32954 | 82554 | 155595 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 6679 | (15252) | 316 | (14171) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 10409 | 17346 | 72424 | 131880 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 122 | 231 | 110 | 364 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (1157) | (349) | (9202) | (14422) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (7995) | (6663) | (70547) | (71502) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (12) | (13) | (64) | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  | (85) | (121) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (9042) | (6794) | (79788) | (85753) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | 1367 | 10552 | (7364) | 46127 |
| Net Assets at Beginning of Period | 69253 | 58701 | 525906 | 479779 |
| Net Assets at End of Period | $70620 | $69253 | $518542 | $525906 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 48 | 71 | 7 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (390) | (326) | (1273) | (1665) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (342) | (255) | (1266) | (1650) |

---

See accompanying notes to financial statements

Page 27 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 2 | AZL Russell 1000 Value Index Fund Class 2 |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $49 | $2030 | $(1730) | $(2606) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 8481 | 7991 | 39004 | 23581 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 11681 | 8814 | 14364 | 29383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 20211 | 18835 | 51638 | 50358 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 252 | 288 | 210 | 357 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (1137) | (667) | 2596 | 3003 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (18303) | (20862) | (65457) | (68829) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (31) | (37) | (78) | (91) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  | (72) | (104) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (19219) | (21278) | (62801) | (65665) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | 992 | (2443) | (11163) | (15307) |
| Net Assets at Beginning of Period | 158815 | 161258 | 449209 | 464516 |
| Net Assets at End of Period | $159807 | $158815 | $438046 | $449209 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 181 | 200 | 144 | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (1496) | (1570) | (2492) | (2707) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (1315) | (1370) | (2348) | (2536) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL S&P 500 Index Fund | AZL S&P 500 Index Fund | AZL Small Cap Stock Index Fund Class 1 | AZL Small Cap Stock Index Fund Class 1 |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(7225) | $(7055) | $(152) | $233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 168746 | 80236 | 2259 | 1533 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (62613) | 71258 | (1176) | 222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 98908 | 144439 | 931 | 1988 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 158 | 114 | 74 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (5037) | (11516) | (49) | (76) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (105470) | (99130) | (4166) | (4254) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  | (4) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (95) | (109) | (5) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (121) | (156) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (110565) | (110801) | (4146) | (4306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (11657) | 33638 | (3215) | (2318) |
| Net Assets at Beginning of Period | 734227 | 700589 | 32288 | 34606 |
| Net Assets at End of Period | $722570 | $734227 | $29073 | $32288 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 17 | 16 | 10 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (3008) | (3454) | (248) | (263) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (2991) | (3438) | (238) | (238) |

---

See accompanying notes to financial statements

Page 28 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | AZL Small Cap Stock Index Fund Class 2 | AZL Small Cap Stock Index Fund Class 2 | AZL T. Rowe Price Capital Appreciation Fund | AZL T. Rowe Price Capital Appreciation Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(2302) | $(2775) | $59 | $(15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 37962 | 16366 | 64284 | 12098 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (27587) | 3864 | (23948) | 34851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 8073 | 17455 | 40395 | 46934 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 44 | 202 | 266 | 540 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 3929 | 391 | (5840) | 10928 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (34286) | (44569) | (65096) | (70913) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (40) | (48) | (64) | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (66) | (83) | (37) | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (30419) | (44108) | (70771) | (59564) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (22346) | (26653) | (30376) | (12630) |
| Net Assets at Beginning of Period | 306185 | 332838 | 489653 | 502283 |
| Net Assets at End of Period | $283839 | $306185 | $459277 | $489653 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 179 | 15 | 69 | 437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (1367) | (1749) | (2238) | (2410) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (1188) | (1734) | (2169) | (1973) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | BlackRock Equity Dividend V.I. Fund | BlackRock Equity Dividend V.I. Fund | ClearBridge Variable Growth Portfolio | ClearBridge Variable Growth Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $20 | $28 | $(2) | $(1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 103 | 115 | 49 | (88) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 107 | (20) | 21 | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 230 | 123 | 68 | 57 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (23) | 88 | (65) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (403) | (155) | (41) | (345) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (426) | (67) | (106) | (330) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (196) | 56 | (38) | (273) |
| Net Assets at Beginning of Period | 1360 | 1304 | 569 | 842 |
| Net Assets at End of Period | $1164 | $1360 | $531 | $569 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  | 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (11) | (3) | (2) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (11) | (1) | (2) | (11) |

---

See accompanying notes to financial statements

Page 29 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Columbia Variable Portfolio – Seligman Global Technology Fund | Columbia Variable Portfolio – Seligman Global Technology Fund | Davis VA Financial Portfolio | Davis VA Financial Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(21) | $(22) | $(215) | $(132) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 167 | 182 | 5092 | 4234 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 210 | 128 | 3282 | 3868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 356 | 288 | 8159 | 7970 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  | 77 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account |  |  | (844) | (1407) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (126) | (272) | (4831) | (4816) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  | (5) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (126) | (272) | (5603) | (6228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | 230 | 16 | 2556 | 1742 |
| Net Assets at Beginning of Period | 1226 | 1210 | 34340 | 32598 |
| Net Assets at End of Period | $1456 | $1226 | $36896 | $34340 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (2) | (5) | (142) | (190) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (2) | (5) | (140) | (190) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Davis VA Real Estate Portfolio | Davis VA Real Estate Portfolio | Eaton Vance VT Floating-Rate Income Fund | Eaton Vance VT Floating-Rate Income Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $1 | $1 | $75 | $92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 8 | 6 | (33) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (22) | (1) | 1 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | (13) | 6 | 43 | 86 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account |  |  | 33 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (10) | (10) | (508) | (88) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (10) | (10) | (475) | (56) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (23) | (4) | (432) | 30 |
| Net Assets at Beginning of Period | 182 | 186 | 1251 | 1221 |
| Net Assets at End of Period | $159 | $182 | $819 | $1251 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed |  |  | (22) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) |  |  | (21) | (3) |

---

See accompanying notes to financial statements

Page 30 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Mid Cap Portfolio | Fidelity VIP Mid Cap Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $15 | $13 | $4 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 57 | (6) | 264 | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 473 | 145 | (73) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 545 | 152 | 195 | 86 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (25) | (149) | 2630 | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (262) | (301) |  | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (287) | (450) | 2630 | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | 258 | (298) | 2825 | 51 |
| Net Assets at Beginning of Period | 1457 | 1755 | 591 | 540 |
| Net Assets at End of Period | $1715 | $1457 | $3416 | $591 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  | 23 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (15) | (29) |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (15) | (29) | 23 | (1) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fidelity VIP Strategic Income Portfolio | Fidelity VIP Strategic Income Portfolio | Franklin Rising Dividends VIP Fund | Franklin Rising Dividends VIP Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $40 | $41 | $(1396) | $(1199) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (19) | (14) | 20905 | 15023 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 75 | 45 | (3841) | 1858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 96 | 72 | 15668 | 15682 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  | 105 | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 38 | 71 | (1234) | 752 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (315) | (249) | (21989) | (27149) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  | (26) | (31) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (277) | (178) | (23144) | (26327) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (181) | (106) | (7476) | (10645) |
| Net Assets at Beginning of Period | 1280 | 1386 | 171551 | 182196 |
| Net Assets at End of Period | $1099 | $1280 | $164075 | $171551 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 1 | 3 | 46 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (11) | (11) | (288) | (290) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (10) | (8) | (242) | (238) |

---

See accompanying notes to financial statements

Page 31 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Franklin U.S. Government Securities VIP Fund | Franklin U.S. Government Securities VIP Fund | Invesco V.I. American Value Fund | Invesco V.I. American Value Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $1334 | $1317 | $(1) | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (3212) | (4001) | 42 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 6051 | 2248 |  | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 4173 | (436) | 41 | 89 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 33 | 91 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 1412 | 3798 | (34) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (15022) | (17972) | (13) | (182) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 1 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (36) | (42) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (607) | (684) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (14219) | (14809) | (47) | (189) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (10046) | (15245) | (6) | (100) |
| Net Assets at Beginning of Period | 93083 | 108328 | 243 | 343 |
| Net Assets at End of Period | $83037 | $93083 | $237 | $243 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 58 | 172 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (632) | (778) |  | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (574) | (606) |  | (3) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Global Strategic Income Fund | Invesco V.I. Global Strategic Income Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $11 | $11 | $43 | $13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (8) | (13) | (7) | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 12 | 3 | 78 | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 15 | 1 | 114 | 16 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account |  | 50 | 46 | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (36) | (38) | (173) | (237) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (36) | 12 | (127) | (151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (21) | 13 | (13) | (135) |
| Net Assets at Beginning of Period | 196 | 183 | 1126 | 1261 |
| Net Assets at End of Period | $175 | $196 | $1113 | $1126 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  | 2 | 2 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (2) | (2) | (7) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (2) |  | (5) | (7) |

---

See accompanying notes to financial statements

Page 32 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Invesco V.I. International Growth Fund | Invesco V.I. International Growth Fund | Lazard Retirement International Equity Portfolio | Lazard Retirement International Equity Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(2) | $— | $3 | $6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 13 | 19 | 4 | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 75 | (27) | 55 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 86 | (8) | 62 | 17 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 46 | (41) |  | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (190) | (205) | (1) | (123) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (144) | (246) | (1) | (104) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (58) | (254) | 61 | (87) |
| Net Assets at Beginning of Period | 729 | 983 | 175 | 262 |
| Net Assets at End of Period | $671 | $729 | $236 | $175 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (6) | (7) |  | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (5) | (7) |  | (3) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | LVIP JPMorgan Core Bond Fund | LVIP JPMorgan Core Bond Fund |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(11) | $(15) | $202 | $279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 758 | 195 | 27 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (801) | 328 | 345 | (337) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | (54) | 508 | 574 | 18 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 4 | (8) | 1216 | 1193 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (5023) | (185) | (2008) | (3081) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  | (2) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  | (135) | (148) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (5019) | (193) | (928) | (2037) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (5073) | 315 | (354) | (2019) |
| Net Assets at Beginning of Period | 5160 | 4845 | 10365 | 12384 |
| Net Assets at End of Period | $87 | $5160 | $10011 | $10365 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  | 88 | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (73) | (3) | (162) | (249) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (73) | (3) | (74) | (157) |

---

See accompanying notes to financial statements

Page 33 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | MFS International Intrinsic Value Portfolio | MFS International Intrinsic Value Portfolio | MFS VIT Total Return Bond Portfolio | MFS VIT Total Return Bond Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $13 | $12 | $400 | $463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 147 | 153 | (416) | (346) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 210 | (58) | 820 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 370 | 107 | 804 | 126 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  | 10 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (33) | (38) | (957) | 2223 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (261) | (422) | (4439) | (2696) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  | (3) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  | (189) | (221) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (294) | (460) | (5578) | (695) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | 76 | (353) | (4774) | (569) |
| Net Assets at Beginning of Period | 1285 | 1638 | 18083 | 18652 |
| Net Assets at End of Period | $1361 | $1285 | $13309 | $18083 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  | 1 | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (10) | (17) | (297) | (169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (10) | (17) | (296) | (47) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | MFS VIT Utilities Portfolio | MFS VIT Utilities Portfolio | Nomura VIP Asset Strategy Series | Nomura VIP Asset Strategy Series |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $1 | $3 | $12 | $18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 3 | 6 | 81 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 10 | 11 | 88 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 14 | 20 | 181 | 120 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account |  | 3 | 6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (186) |  |  | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (186) | 3 | 6 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (172) | 23 | 187 | 112 |
| Net Assets at Beginning of Period | 210 | 187 | 1104 | 992 |
| Net Assets at End of Period | $38 | $210 | $1291 | $1104 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (3) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (3) |  |  |  |

---

See accompanying notes to financial statements

Page 34 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Nomura VIP Energy Series | Nomura VIP Energy Series | Nomura VIP Growth Series | Nomura VIP Growth Series |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $1 | $2 | $(2) | $(2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (5) | (1) | 119 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 13 | (5) | (59) | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 9 | (4) | 58 | 125 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account |  |  | 44 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (13) | (6) |  | (41) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (13) | (6) | 44 | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (4) | (10) | 102 | 109 |
| Net Assets at Beginning of Period | 67 | 77 | 640 | 531 |
| Net Assets at End of Period | $63 | $67 | $742 | $640 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (1) | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (1) | (1) |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Nomura VIP Mid Cap Growth Series | Nomura VIP Mid Cap Growth Series | Nomura VIP Natural Resources Series | Nomura VIP Natural Resources Series |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(2) | $(2) | $— | $5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 118 | 3 | 25 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | (103) | 12 |  | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 13 | 13 | 25 | (1) |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (14) | 19 | (9) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (17) | (123) | (96) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (31) | (104) | (105) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (18) | (91) | (80) | 7 |
| Net Assets at Beginning of Period | 607 | 698 | 93 | 86 |
| Net Assets at End of Period | $589 | $607 | $13 | $93 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (1) | (1) | (6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (1) | (1) | (6) | 1 |

---

See accompanying notes to financial statements

Page 35 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Nomura VIP Science and Technology Series | Nomura VIP Science and Technology Series | PIMCO VIT Balanced Allocation Portfolio | PIMCO VIT Balanced Allocation Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(3) | $(2) | $3191 | $3882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 131 | 22 | 216 | (1371) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 117 | 183 | 13779 | 7416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 245 | 203 | 17186 | 9927 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  | 105 | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account |  |  | (3088) | (1536) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (78) | (94) | (18085) | (18585) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  | 3 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  | (35) | (37) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  | (2401) | (2560) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (78) | (94) | (23501) | (22599) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | 167 | 109 | (6315) | (12672) |
| Net Assets at Beginning of Period | 835 | 726 | 131405 | 144077 |
| Net Assets at End of Period | $1002 | $835 | $125090 | $131405 |
| &nbsp;&nbsp;&nbsp; Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  | 7 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemed |  |  | (1566) | (1643) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) |  |  | (1559) | (1634) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT Emerging Markets Bond Portfolio | PIMCO VIT Emerging Markets Bond Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $157 | $(12) | $2269 | $2223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (2155) | (3207) | (1236) | (1820) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 6026 | 3809 | 4397 | 2248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 4028 | 590 | 5430 | 2651 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 11 | 10 | 12 | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (1121) | 2986 | (273) | (276) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (3600) | (3986) | (6976) | (7054) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (7) | (8) | (15) | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (15) | (16) | (494) | (548) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (4732) | (1014) | (7746) | (7839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (704) | (424) | (2316) | (5188) |
| Net Assets at Beginning of Period | 27134 | 27558 | 46439 | 51627 |
| Net Assets at End of Period | $26430 | $27134 | $44123 | $46439 |
| Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issued | 14 | 481 | 1 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (665) | (611) | (402) | (441) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (651) | (130) | (401) | (438) |

---

See accompanying notes to financial statements

Page 36 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT High Yield Portfolio | PIMCO VIT High Yield Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $1527 | $1464 | $10532 | $10965 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (863) | (1450) | (2070) | (3936) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 2533 | 1267 | 7251 | 6018 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 3197 | 1281 | 15713 | 13047 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 101 | 53 | 64 | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 1017 | 3524 | 1770 | 1662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (11334) | (12975) | (40417) | (52650) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  | (3) |  | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 1 | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (21) | (25) | (65) | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (720) | (807) | (2571) | (3008) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (10956) | (10232) | (41219) | (53958) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (7759) | (8951) | (25506) | (40911) |
| Net Assets at Beginning of Period | 72392 | 81343 | 244219 | 285130 |
| Net Assets at End of Period | $64633 | $72392 | $218713 | $244219 |
| Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issued | 115 | 390 | 63 | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (1238) | (1458) | (1602) | (2195) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (1123) | (1068) | (1539) | (2111) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Low Duration Portfolio | PIMCO VIT Low Duration Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $31 | $21 | $215 | $216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (169) | (304) | (24) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 149 | 74 | 113 | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 11 | (209) | 304 | 240 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (21) | 60 | (207) | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (234) | (564) | (750) | (275) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (6) | (13) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (261) | (518) | (957) | (238) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (250) | (727) | (653) | 2 |
| Net Assets at Beginning of Period | 1725 | 2452 | 6123 | 6121 |
| Net Assets at End of Period | $1475 | $1725 | $5470 | $6123 |
| Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issued |  | 2 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (18) | (26) | (46) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (18) | (24) | (46) | (12) |

---

See accompanying notes to financial statements

Page 37 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | PIMCO VIT Real Return Portfolio | PIMCO VIT Real Return Portfolio | PIMCO VIT StocksPLUS Global Portfolio | PIMCO VIT StocksPLUS Global Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $2046 | $1276 | $4215 | $5278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (2107) | (3592) | 983 | (2192) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 7831 | 2924 | 27771 | 15435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 7770 | 608 | 32969 | 18521 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 85 | 191 | 63 | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 2234 | 6286 | (2417) | (376) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (20160) | (27049) | (23682) | (25413) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  | 1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (44) | (50) | (30) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (1472) | (1642) | (7) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (19357) | (22263) | (26073) | (25749) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (11587) | (21655) | 6896 | (7228) |
| Net Assets at Beginning of Period | 136774 | 158429 | 165807 | 173035 |
| Net Assets at End of Period | $125187 | $136774 | $172703 | $165807 |
| Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issued | 150 | 439 | 39 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (1384) | (1899) | (1275) | (1383) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (1234) | (1460) | (1236) | (1342) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | PIMCO VIT Total Return Portfolio | PIMCO VIT Total Return Portfolio | T. Rowe Price Blue Chip Growth Portfolio | T. Rowe Price Blue Chip Growth Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $10860 | $12047 | $(12) | $(12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (15757) | (19176) | 624 | 407 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 36257 | 11184 | 67 | 812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 31360 | 4055 | 679 | 1207 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 238 | 510 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | 2563 | 17152 | 14 | (128) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (83951) | (92078) | (537) | (501) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  | (14) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 2 | 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (145) | (168) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (4989) | (5667) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (86282) | (80263) | (523) | (629) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (54922) | (76208) | 156 | 578 |
| Net Assets at Beginning of Period | 490925 | 567133 | 4282 | 3704 |
| Net Assets at End of Period | $436003 | $490925 | $4438 | $4282 |
| Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issued | 160 | 979 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (4564) | (5204) | (6) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (4404) | (4225) | (6) | (7) |

---

See accompanying notes to financial statements

Page 38 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statements of Changes in Net Assets

For the years ended December 31, 2025 and 2024

(In thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | T. Rowe Price Equity Income Portfolio | T. Rowe Price Equity Income Portfolio | T. Rowe Price Health Sciences Portfolio | T. Rowe Price Health Sciences Portfolio |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $10 | $15 | $(2) | $(2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | 108 | 82 | 34 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 8 | 34 | 49 | (63) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 126 | 131 | 81 | 9 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account |  | (170) | 10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (269) | (112) | (101) | (92) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (269) | (282) | (91) | (92) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (143) | (151) | (10) | (83) |
| Net Assets at Beginning of Period | 1059 | 1210 | 536 | 619 |
| Net Assets at End of Period | $916 | $1059 | $526 | $536 |
| Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issued |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (6) | (6) |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (6) | (6) |  | (1) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Templeton Global Bond VIP Fund | Templeton Global Bond VIP Fund | Total All Funds | Total All Funds |
|  | 2025 | 2024 | 2025 | 2024 |
| Increase (Decrease) in Net Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Income (Loss), Net | $(3512) | $(4055) | $102384 | $58774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized Gains (Losses) on Investments, Net | (15016) | (14928) | 987412 | 599336 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Appreciation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Depreciation) on Investments | 46760 | (13883) | 301837 | 644130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Increase (Decrease) in Net Assets From Operations | 28232 | (32866) | 1391633 | 1302240 |
| Contract Transactions-All Products |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase Payments | 62 | 114 | 9754092 | 8166393 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers Between Funds or (to) from General Account | (131) | 20816 | (9639096) | (8002208) |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders and Terminations | (38695) | (44254) | (2179879) | (2389439) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rescissions | (1) |  | (47) | (939) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus (Recapture) | 2 | 1 | 50 | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract Maintenance Charge | (79) | (91) | (3591) | (3831) |
| &nbsp;&nbsp;&nbsp;&nbsp;Rider charge | (2932) | (3288) | (129539) | (143554) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) in Net Assets Resulting |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From Contract Transactions | (41774) | (26702) | (2198010) | (2373477) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (Decrease) in Net Assets | (13542) | (59568) | (806377) | (1071237) |
| Net Assets at Beginning of Period | 216893 | 276461 | 14545910 | 15617147 |
| Net Assets at End of Period | $203351 | $216893 | $13739533 | $14545910 |
| Changes in Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issued | 11 | 649 | 669236 | 586224 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed | (1203) | (1364) | (773094) | (705250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase (Decrease) | (1192) | (715) | (103858) | (119026) |

---

See accompanying notes to financial statements

Page 39 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

**(1) Organization**

Allianz Life Variable Account B (Variable Account) is a segregated investment account of Allianz Life Insurance Company of North America (Allianz Life) and is registered with the Securities and Exchange Commission as a unit investment trust pursuant to the provisions of the Investment Company Act of 1940 (1940 Act), as amended. Allianz Life applies the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) guidance of Topic 946, Financial Services - Investment Companies. The Variable Account was established on May 31, 1985, and commenced operations January 24, 1989. Accordingly, it is an accounting entity wherein all segregated account transactions are reflected.

The Variable Account's assets are the property of Allianz Life and are held for the benefit of the owners and other persons entitled to payments under variable annuity contracts issued through the Variable Account and underwritten by Allianz Life. The assets of the Variable Account are equal to the reserves and other liabilities of the Variable Account. These assets are not chargeable with liabilities that arise from any other business Allianz Life may conduct. Allianz Life products offered under the Variable Account are listed below. The only product actively being marketed is Allianz Index Advantage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Alterity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Charter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Connections

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Custom Income

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Dimensions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Elite

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz High Five

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Index Advantage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Retirement Advantage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Retirement Pro

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Rewards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Valuemark

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allianz Vision

The Variable Account's subaccounts are invested, at net asset values, in one or more of the funds (investment options) in accordance with the selection made by the contractholder. The contractholder may have the option to invest in the fixed account or other index options in the General Account, based on the product features. The liabilities of the fixed account are included in the General Account, which is not registered as an investment company under the 1940 Act. Not all funds listed are available for all products. Some funds have been closed to accepting new money. Each multiple-class fund is presented on an aggregate basis, however, when mergers occur, the fund will be presented separately by class, to disclose which class received additional money. The funds and investment advisers are:

---

| | |
|:---|:---|
| **Fund** | **Investment Adviser** |
| AZL Balanced Index Strategy Fund † | Allianz Investment Management, LLC |
| AZL DFA Multi-Strategy Fund † | Allianz Investment Management, LLC |
| AZL Enhanced Bond Index Fund \*† | Allianz Investment Management, LLC |
| AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 † | Allianz Investment Management, LLC |
| AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 \*† | Allianz Investment Management, LLC |
| AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 † | Allianz Investment Management, LLC |
| AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 \*† | Allianz Investment Management, LLC |
| AZL Government Money Market Fund \*† | Allianz Investment Management, LLC |
| AZL International Index Fund Class 1 † | Allianz Investment Management, LLC |
| AZL International Index Fund Class 2 \*† | Allianz Investment Management, LLC |
| AZL Mid Cap Index Fund Class 1 † | Allianz Investment Management, LLC |
| AZL Mid Cap Index Fund Class 2 \*† | Allianz Investment Management, LLC |
| AZL Moderate Index Strategy Fund † | Allianz Investment Management, LLC |
| AZL MSCI Global Equity Index Fund Class 1 † | Allianz Investment Management, LLC |
| AZL MSCI Global Equity Index Fund Class 2 \*† | Allianz Investment Management, LLC |
| AZL MVP Balanced Index Strategy Fund † | Allianz Investment Management, LLC |

---

Page 40 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | |
|:---|:---|
| **Fund** | **Investment Adviser** |
| AZL MVP DFA Multi-Strategy Fund † | Allianz Investment Management, LLC |
| AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund † | Allianz Investment Management, LLC |
| AZL MVP Global Balanced Index Strategy Fund † | Allianz Investment Management, LLC |
| AZL MVP Growth Index Strategy Fund † | Allianz Investment Management, LLC |
| AZL MVP Moderate Index Strategy Fund † | Allianz Investment Management, LLC |
| AZL MVP T. Rowe Price Capital Appreciation Plus Fund † | Allianz Investment Management, LLC |
| AZL Russell 1000 Growth Index Fund Class 1 † | Allianz Investment Management, LLC |
| AZL Russell 1000 Growth Index Fund Class 2 \*† | Allianz Investment Management, LLC |
| AZL Russell 1000 Value Index Fund Class 1 † | Allianz Investment Management, LLC |
| AZL Russell 1000 Value Index Fund Class 2 \*† | Allianz Investment Management, LLC |
| AZL S&P 500 Index Fund \*† | Allianz Investment Management, LLC |
| AZL Small Cap Stock Index Fund Class 1 † | Allianz Investment Management, LLC |
| AZL Small Cap Stock Index Fund Class 2 \*† | Allianz Investment Management, LLC |
| AZL T. Rowe Price Capital Appreciation Fund \*† | Allianz Investment Management, LLC |
| BlackRock Equity Dividend V.I. Fund \* | BlackRock Advisors, LLC |
| ClearBridge Variable Growth Portfolio | Franklin Advisers, Inc. |
| Columbia Variable Portfolio – Seligman Global Technology Fund | Columbia Management Investment Advisors, LLC |
| Davis VA Financial Portfolio | Davis Selected Advisers, L.P. |
| Davis VA Real Estate Portfolio | Davis Selected Advisers, L.P. |
| Eaton Vance VT Floating-Rate Income Fund \* | Morgan Stanley Investment Management |
| Fidelity VIP Emerging Markets Portfolio | Fidelity Management & Research Company |
| Fidelity VIP Mid Cap Portfolio | Fidelity Management & Research Company |
| Fidelity VIP Strategic Income Portfolio | Fidelity Management & Research Company |
| Franklin Rising Dividends VIP Fund \* | Franklin Advisers, Inc. |
| Franklin U.S. Government Securities VIP Fund \* | Franklin Advisers, Inc. |
| Invesco V.I. American Value Fund \* | Invesco Advisors, Inc. |
| Invesco V.I. Balanced-Risk Allocation Fund \* | Invesco Advisors, Inc. |
| Invesco V.I. Global Strategic Income Fund | Invesco Advisors, Inc. |
| Invesco V.I. International Growth Fund \* | Invesco Advisors, Inc. |
| Lazard Retirement International Equity Portfolio \* | Lazard Asset Management, LLC |
| Lazard Retirement U.S. Small-Mid Cap Equity Portfolio \* | Lazard Asset Management, LLC |
| LVIP JPMorgan Core Bond Fund \* | Lincoln Financial Group |
| MFS International Intrinsic Value Portfolio \* | Massachusetts Financial Services Company |
| MFS VIT Total Return Bond Portfolio \* | Massachusetts Financial Services Company |
| MFS VIT Utilities Portfolio \* | Massachusetts Financial Services Company |
| Nomura VIP Asset Strategy Series \* | Nomura Investment Management Advisers |
| Nomura VIP Energy Series \* | Nomura Investment Management Advisers |
| Nomura VIP Growth Series \* | Nomura Investment Management Advisers |
| Nomura VIP Mid Cap Growth Series \* | Nomura Investment Management Advisers |
| Nomura VIP Natural Resources Series \* | Nomura Investment Management Advisers |
| Nomura VIP Science and Technology Series \* | Nomura Investment Management Advisers |

---

Page 41 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | |
|:---|:---|
| **Fund** | **Investment Adviser** |
| PIMCO VIT Balanced Allocation Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT CommodityRealReturn Strategy Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT Emerging Markets Bond Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT Global Core Bond (Hedged) Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT High Yield Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT Long-Term U.S. Government Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT Low Duration Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT Real Return Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT StocksPLUS Global Portfolio † | Pacific Investment Management Company, LLC |
| PIMCO VIT Total Return Portfolio † | Pacific Investment Management Company, LLC |
| T. Rowe Price Blue Chip Growth Portfolio \* | T. Rowe Price Associates, Inc. |
| T. Rowe Price Equity Income Portfolio \* | T. Rowe Price Associates, Inc. |
| T. Rowe Price Health Sciences Portfolio \* | T. Rowe Price Associates, Inc. |
| Templeton Global Bond VIP Fund \* | Franklin Advisers, Inc. |

---

---

| | |
|:---|:---|
| \* | Fund contains share classes which assess 12b-1 fees. |
| † | The investment adviser of this fund is an affiliate of Allianz Life and is paid an investment management fee by the fund. |

---

Page 42 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

During the years ended December 31, 2024 and 2025, the following funds had name changes.

---

| | | |
|:---|:---|:---|
| Prior Fund Name | Current Fund Name | Effective Date |
| ClearBridge Variable Aggressive Growth Portfolio | ClearBridge Variable Growth Portfolio | April 28, 2024 |
| Delaware Ivy VIP Asset Strategy | Macquarie VIP Asset Strategy Series | May 1, 2024 |
| Delaware Ivy VIP Energy | Macquarie VIP Energy Series | May 1, 2024 |
| Delaware Ivy VIP Growth | Macquarie VIP Growth Series | May 1, 2024 |
| Delaware Ivy VIP Mid Cap Growth | Macquarie VIP Mid Cap Growth Series | May 1, 2024 |
| Delaware Ivy VIP Natural Resources | Macquarie VIP Natural Resources Series | May 1, 2024 |
| Delaware Ivy VIP Science and Technology | Macquarie VIP Science and Technology Series | May 1, 2024 |
| Invesco Oppenheimer V.I. International Growth Fund | Invesco V.I. International Growth Fund | August 22, 2025 |
| Macquarie VIP Asset Strategy Series | Nomura VIP Asset Strategy Series | December 1, 2025 |
| Macquarie VIP Energy Series | Nomura VIP Energy Series | December 1, 2025 |
| Macquarie VIP Growth Series | Nomura VIP Growth Series | December 1, 2025 |
| Macquarie VIP Mid Cap Growth Series | Nomura VIP Mid Cap Growth Series | December 1, 2025 |
| Macquarie VIP Natural Resources Series | Nomura VIP Natural Resources Series | December 1, 2025 |
| Macquarie VIP Science and Technology Series | Nomura VIP Science and Technology Series | December 1, 2025 |

---

During the years ended December 31, 2024 and 2025, no funds were closed.

During the years ended December 31, 2024 and 2025, no new funds were added

During the years ended December 31, 2024 and 2025, no funds were merged or replaced.

Effective September 19, 2025, a 1:4 reverse split occurred for the AZL Russell 1000 Growth Index Fund Class 1. The effect of this transaction was to divide the number of outstanding shares of the fund by the split ratio, resulting in a corresponding increase in the net asset value per share. The shares presented in the Statements of Assets and Liabilities reflect this reverse split. There were no changes in the net assets, results of operations or total return as a result of this transaction.

Effective September 19, 2025, a 1:2 reverse split occurred for the following funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AZL Russell 1000 Value Index Fund Class 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AZL Small Cap Stock Index Fund Class 1

The effect of these transactions was to divide the number of outstanding shares of the fund by the split ratio, resulting in a corresponding increase in the net asset value per share. The shares presented in the Statements of Assets and Liabilities reflect this reverse split. There were no changes in the net assets, results of operations or total return as a result of these transactions.

Page 43 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

**(2) Significant Accounting Policies** 

**Use of Estimates**

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) 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.

**Investments** 

Investment transactions are recorded by the Variable Account on the trade date. Investments of the Variable Account are valued each day the markets are open at fair value using net asset values provided by the investment advisers of the funds after the 4 PM Eastern Standard Time market close.

The Fair Value Measurement Topic of the FASB ASC establishes a fair value hierarchy that prioritizes the inputs used in the valuation techniques to measure fair value.

Level 1 - &nbsp;&nbsp;&nbsp;&nbsp;Unadjusted quoted prices for identical assets or liabilities in active markets that the Variable Account has the ability to access at the measurement date.

Level 2 – &nbsp;&nbsp;&nbsp;&nbsp;Valuations derived from techniques that utilize observable inputs, other than quoted prices included in Level 1, which are observable for the asset or liability either directly or indirectly, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Quoted prices for similar assets or liabilities in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Quoted prices for identical or similar assets or liabilities in markets that are not active.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Inputs other than quoted prices that are observable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 -&nbsp;&nbsp;&nbsp;&nbsp;Valuations derived from techniques in which the significant inputs are unobservable. Level 3 fair values reflect the Variable Account's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. As of December 31, 2025, all of the Variable Account's investments are in funds for which quoted prices are available in an active market which the Variable Account has the ability to access. Therefore, all investments have been categorized as Level 1. The characterization of the underlying securities held by the funds are accounted for on a trade-date basis and are in accordance with the Fair Value Measurements and Disclosures topic of the FASB ASC.

Realized gains on investments include realized gain distributions received from the respective funds and gains on the sale of fund shares as determined by the average cost method. Realized gain distributions are reinvested in the respective funds. Dividend distributions received from the funds are reinvested in additional shares of the funds and are recorded as income to the Variable Account on the ex-dividend date.

The cost of investments sold and the corresponding capital gains and losses are determined on a specific identification basis. Net investment income (loss) and net realized gains (losses) and unrealized appreciation (depreciation) on investments are allocated to the contracts on each valuation date based on each contract's pro rata share of the assets of the fund as of the beginning of the valuation date.

Transfers between subaccounts, including the fixed account (net), include transfers of all or part of the contractholders' interest to or from another eligible subaccount, or from or to the fixed account option of the general account of Allianz Life.

**Contracts in Annuity Payment Period** 

Net assets allocated to contracts in the payout period are periodically compared to annuity reserves computed for currently payable contracts according to the 1983 and 2000 Individual Annuity Mortality Tables using an assumed investment return (AIR) equal to the AIR of the specific contracts, either 3%, 5% or 7%. The mortality risk is fully borne by Allianz Life and may result in additional amounts reimbursed to Allianz Life if the reserves required are less than originally estimated. If additional reserves are required, Allianz Life reimburses the Variable Account.

Page 44 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

**Segment Disclosure** 

The Variable Account derives revenues from variable annuity products. Allianz Life has identified the Finance Committee, a management committee of Allianz Life, as the chief operating decision maker (CODM) for overseeing the products and the performance of the underlying subaccounts to evaluate the results of the business and make operational decisions. Each subaccount of the Variable Account constitutes a single operating segment and therefore, a single reportable segment. Variable Accounts are structured with a limited purpose by design and their sole purpose, which records and reports the invested funds and activities and performance chosen by contractholders. Investment performance of subaccounts may vary based on the underlying fund's investment objectives specified in the fund prospectuses. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies herein.

Page 45 of 60

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

**(3) Related Party Charges, Expenses and Fees**

Under the terms of the contracts, certain charges, expenses and fees are incurred by the contractholders to cover Allianz Life's expenses in connection with the issuance and administration of the contracts. Following is a summary of these charges, expenses and fees for the period ended December 31, 2025:

**Mortality and Expense Risk Charges**

Allianz Life assumes mortality and expense risks related to the operations of the Variable Account. These charges range from 0.30% to 3.40% annually during the accumulation phase, or from 1.00% to 2.20% annually during the annuity phase for variable annuity payments. These charges are deducted on a daily basis and assessed against the daily net asset value of each fund. These charges are assessed either through a reduction in subaccount accumulation unit values during the accumulation phase, or a reduction in subaccount annuity unit values during the annuity phase for contractholders that selected variable annuity payments.

**Administrative Charges**

A charge to cover administrative expenses of the Variable Account may be deducted from the Variable Account, depending on the contract. This annual charge of 0.15% is calculated and assessed daily as a percentage of each fund's net asset value. This charge is assessed through a reduction in subaccount accumulation unit values during the accumulation phase, or a reduction in subaccount annuity unit values during the annuity phase for contractholders that selected variable annuity payments.

**Contract Maintenance Charges**

For certain contracts, an annual contract maintenance charge of $30 to $50 may be deducted to cover ongoing administrative expenses. These charges are assessed through the redemption of subaccount accumulation units during the accumulation phase, or a redemption in subaccount annuity unit values during the annuity phase if variable annuity payments are selected or a reduction in fixed annuity payments.

**Withdrawal Charges**

For certain contracts, a withdrawal charge (sometimes called a contingent deferred sales charge) is imposed as a percentage, with a range of 0.0% to 8.5%, of each purchase payment if the contract is surrendered or a partial withdrawal is taken during the withdrawal charge period. For certain contracts, a commutation fee or withdrawal charge may also apply during the annuity phase if there are liquidations of variable annuity payments under certain annuity options. These commutation and withdrawal charges are imposed as a percentage, with a range of 1.0% to 8.0% of the amount liquidated. These charges are assessed through the redemption of subaccount accumulation units during the accumulation phase, or a redemption in subaccount annuity units during the annuity phase.

Amounts withdrawn from the Index Advantage Income ADV Index Options may be subject to an MVA (Market Value Adjustment), which can be negative. The maximum negative MVA that we can apply on a full withdrawal is -10% of the Contract Value, and on a partial withdrawal it is -10% of the amount withdrawn.

**Rider Charges and Fees**

For certain contracts, optional benefit riders may be available for an additional charge to the contractholder. The rider charges for Investment Protector, Income Protector and Income Focus are deducted from the contract value. The Maximum Anniversary Value Death Benefit and Income Benefit rider fees are calculated as a percentage of the contract value as of the prior quarterly contract anniversary adjusted for subsequent purchase payments and withdrawals, and are deducted from the contract value. These charges and fees include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investment Protector: 1.05% to 1.35%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income Protector: 1.00% to 1.75%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income Focus: 1.30%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maximum Anniversary Value Death Benefit: 0.20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income Benefit: 0.70%

Page 46 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

**Transfer Fee**

A charge for transfers between funds may be imposed at a rate of up to $25 per transfer. These charges are deducted from the contract value.

**Other Contract Charges**

For certain contracts there are additional fees, as described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Account Fee** - ranges from 0.80% to 1.15% and are imposed as a percentage of the account's guaranteed value and are assessed through the redemption of subaccount accumulation units during the accumulation phase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Product Fee** - ranges from 0.25% to 1.25% annually and are accrued on a daily basis as a percentage of the prior quarterly contract anniversary contract value adjusted for subsequent purchase payments and withdrawals. The fee is deducted from the contract value during the accumulation phase through the redemption of accumulation units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Increased Annuity Payment Benefit charge** - ranges from $0.95 to $9.97 per $100 of the basic annuity payment, depending on the annuitant's age and gender. The charge is assessed by a reduction in the annuity payments during the annuity phase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Guaranteed Value Protection Benefits charge** will not be more than 5% of the contract anniversary value and assessed through the redemption of subaccount accumulation units during the accumulation phase.

Additional details on charges and fees can be found in the respective product prospectus.

**(4) Federal Income Taxes** 

Operations of the Variable Account form a part of Allianz Life, which is taxed as a life insurance company under the Internal Revenue Code (the Code). Under current law, no federal income taxes are payable with respect to the Variable Account. Under the principles set forth in Internal Revenue Service Ruling 81-225 and Section 817(h) of the Code and regulations thereunder, Allianz Life understands that it will be treated as owner of the assets invested in the Variable Account for federal income tax purposes, with the result that earnings and gains, if any, derived from those assets will not be included in an annuitant's gross income until amounts are received pursuant to an annuity.

**(5) Purchases and Sales of Investments (In thousands)** 

The cost of purchases and proceeds from sales of investments for the year or period ended December 31, 2025, are as follows:

---

| | | |
|:---|:---|:---|
|  | Cost of Purchases | Proceeds from Sales |
| AZL Balanced Index Strategy Fund | $39300 | $60031 |
| AZL DFA Multi-Strategy Fund | 52926 | 121661 |
| AZL Enhanced Bond Index Fund | 3902 | 7446 |
| AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | 3105 | 10505 |
| AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | 66083 | 193065 |
| AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | 960 | 3380 |
| AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | 15242 | 27125 |
| AZL Government Money Market Fund | 1565826 | 1533621 |
| AZL International Index Fund Class 1 | 6477 | 11744 |
| AZL International Index Fund Class 2 | 34455 | 84965 |
| AZL Mid Cap Index Fund Class 1 | 13656 | 5923 |
| AZL Mid Cap Index Fund Class 2 | 91619 | 56298 |
| AZL Moderate Index Strategy Fund | 61988 | 249153 |
| AZL MSCI Global Equity Index Fund Class 1 | 2510 | 6100 |
| AZL MSCI Global Equity Index Fund Class 2 | 9068 | 26504 |
| AZL MVP Balanced Index Strategy Fund | 72858 | 124562 |
| AZL MVP DFA Multi-Strategy Fund | 139076 | 219689 |
| AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | 21913 | 55576 |
| AZL MVP Global Balanced Index Strategy Fund | 14709 | 78708 |

---

Page 47 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | |
|:---|:---|:---|
|  | Cost of Purchases | Proceeds from Sales |
| AZL MVP Growth Index Strategy Fund | $195910 | $331388 |
| AZL MVP Moderate Index Strategy Fund | 29984 | 58346 |
| AZL MVP T. Rowe Price Capital Appreciation Plus Fund | 85467 | 193320 |
| AZL Russell 1000 Growth Index Fund Class 1 | 7438 | 10334 |
| AZL Russell 1000 Growth Index Fund Class 2 | 94479 | 113467 |
| AZL Russell 1000 Value Index Fund Class 1 | 12572 | 22673 |
| AZL Russell 1000 Value Index Fund Class 2 | 62993 | 96112 |
| AZL S&P 500 Index Fund | 170056 | 165447 |
| AZL Small Cap Stock Index Fund Class 1 | 4586 | 5330 |
| AZL Small Cap Stock Index Fund Class 2 | 68432 | 61163 |
| AZL T. Rowe Price Capital Appreciation Fund | 99685 | 111903 |
| BlackRock Equity Dividend V.I. Fund | 169 | 478 |
| ClearBridge Variable Growth Portfolio | 85 | 109 |
| Columbia Variable Portfolio – Seligman Global Technology Fund | 133 | 169 |
| Davis VA Financial Portfolio | 5809 | 8444 |
| Davis VA Real Estate Portfolio | 11 | 12 |
| Eaton Vance VT Floating-Rate Income Fund | 107 | 508 |
| Fidelity VIP Emerging Markets Portfolio | 92 | 354 |
| Fidelity VIP Mid Cap Portfolio | 3120 | 224 |
| Fidelity VIP Strategic Income Portfolio | 230 | 466 |
| Franklin Rising Dividends VIP Fund | 20341 | 28986 |
| Franklin U.S. Government Securities VIP Fund | 9441 | 22325 |
| Invesco V.I. American Value Fund | 34 | 49 |
| Invesco V.I. Balanced-Risk Allocation Fund | 32 | 58 |
| Invesco V.I. Global Strategic Income Fund | 367 | 452 |
| Invesco V.I. International Growth Fund | 106 | 195 |
| Lazard Retirement International Equity Portfolio | 53 | 44 |
| Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | 637 | 5049 |
| LVIP JPMorgan Core Bond Fund | 3280 | 4006 |
| MFS International Intrinsic Value Portfolio | 114 | 324 |
| MFS VIT Total Return Bond Portfolio | 2327 | 7505 |
| MFS VIT Utilities Portfolio | 22 | 205 |
| Nomura VIP Asset Strategy Series | 118 | 19 |
| Nomura VIP Energy Series | 14 | 26 |
| Nomura VIP Growth Series | 187 | 24 |
| Nomura VIP Mid Cap Growth Series | 178 | 82 |
| Nomura VIP Natural Resources Series |  | 105 |
| Nomura VIP Science and Technology Series | 131 | 87 |
| PIMCO VIT Balanced Allocation Portfolio | 6647 | 26956 |
| PIMCO VIT CommodityRealReturn Strategy Portfolio | 4059 | 8634 |
| PIMCO VIT Emerging Markets Bond Portfolio | 4893 | 10371 |

---

Page 48 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | |
|:---|:---|:---|
|  | Cost of Purchases | Proceeds from Sales |
| PIMCO VIT Global Core Bond (Hedged) Portfolio | $7766 | $17195 |
| PIMCO VIT High Yield Portfolio | 20521 | 51207 |
| PIMCO VIT Long-Term U.S. Government Portfolio | 3872 | 4103 |
| PIMCO VIT Low Duration Portfolio | 470 | 1211 |
| PIMCO VIT Real Return Portfolio | 10709 | 28020 |
| PIMCO VIT StocksPLUS Global Portfolio | 14761 | 36619 |
| PIMCO VIT Total Return Portfolio | 37696 | 113118 |
| T. Rowe Price Blue Chip Growth Portfolio | 579 | 718 |
| T. Rowe Price Equity Income Portfolio | 111 | 282 |
| T. Rowe Price Health Sciences Portfolio | 32 | 106 |
| Templeton Global Bond VIP Fund | 8952 | 54238 |

---

Page 49 of 60

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

**(6) Financial Highlights**

A summary of units outstanding (in thousands), unit values, net assets (in thousands), ratios, and total returns for variable annuity contracts is as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| AZL Balanced Index Strategy Fund | AZL Balanced Index Strategy Fund | AZL Balanced Index Strategy Fund | AZL Balanced Index Strategy Fund | AZL Balanced Index Strategy Fund | AZL Balanced Index Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 14186 | $17.16 | to | $24.33 | $300579 | 2.69% | 1.00% | to | 3.40% | 9.55% | to | 12.05% |
| 2024 | 16252 | $15.65 | to | $21.71 | $310578 | 1.44% | 1.00% | to | 3.40% | 4.71% | to | 7.12% |
| 2023 | 18017 | $14.93 | to | $20.27 | $324659 | 1.80% | 1.00% | to | 3.40% | 9.44% | to | 11.93% |
| 2022 | 19681 | $13.63 | to | $18.11 | $320069 | 2.27% | 1.00% | to | 3.40% | (17.93)% | to | (16.06)% |
| 2021 | 21289 | $16.59 | to | $21.58 | $416054 | 1.83% | 1.00% | to | 3.40% | 6.41% | to | 8.79% |
| AZL DFA Multi-Strategy Fund | AZL DFA Multi-Strategy Fund | AZL DFA Multi-Strategy Fund | AZL DFA Multi-Strategy Fund | AZL DFA Multi-Strategy Fund | AZL DFA Multi-Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 21883 | $20.85 | to | $29.56 | $573619 | 2.64% | 1.00% | to | 3.40% | 11.18% | to | 13.72% |
| 2024 | 25722 | $18.73 | to | $25.99 | $597786 | 1.35% | 1.00% | to | 3.40% | 5.36% | to | 7.79% |
| 2023 | 30005 | $17.76 | to | $24.12 | $652595 | 2.80% | 1.00% | to | 3.40% | 9.45% | to | 11.94% |
| 2022 | 33567 | $16.21 | to | $21.54 | $657563 | 1.13% | 1.00% | to | 3.40% | (14.37)% | to | (12.42)% |
| 2021 | 37892 | $18.91 | to | $24.60 | $852829 | 1.53% | 1.00% | to | 3.40% | 10.06% | to | 12.52% |
| AZL Enhanced Bond Index Fund | AZL Enhanced Bond Index Fund | AZL Enhanced Bond Index Fund | AZL Enhanced Bond Index Fund | AZL Enhanced Bond Index Fund | AZL Enhanced Bond Index Fund |  |  |  |  |  |  |  |
| 2025 | 1718 | $8.64 | to | $14.40 | $18763 | 4.41% | —% | to | 3.40% | 3.59% | to | 6.86% |
| 2024 | 2086 | $8.34 | to | $13.48 | $21854 | 3.76% | —% | to | 3.40% | (4.12)% | to | 1.19% |
| 2023 | 2343 | $8.82 | to | $13.32 | $24705 | 1.69% | —% | to | 3.40% | 3.31% | to | 5.06% |
| 2022 | 1704 | $9.64 | to | $10.82 | $17671 | 1.42% | 1.15% | to | 2.05% | (15.39)% | to | (14.66)% |
| 2021 | 2027 | $11.39 | to | $12.67 | $24727 | 0.75% | 1.15% | to | 2.05% | (3.89)% | to | (3.06)% |
| AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 1 |  |  |
| 2025 | 6074 | $11.68 | to | $12.11 | $73939 | 2.60% | 1.40% | to | 2.20% | 9.17% | to | 10.05% |
| 2024 | 6891 | $10.70 | to | $11.01 | $76199 | 4.17% | 1.40% | to | 2.20% | 9.11% | to | 9.99% |
| 2023 | 7888 | $9.81 | to | $10.01 | $79394 | 2.99% | 1.40% | to | 2.20% | 11.76% | to | 12.66% |
| 2022 | 8862 | $8.77 | to | $8.88 | $79199 | 1.44% | 1.40% | to | 2.20% | (16.26)% | to | (15.58)% |
| 2021¹ | 9971 | $10.48 | to | $10.52 | $105623 | 0.80% | 1.40% | to | 2.20% | 4.78% | to | 5.23% |
| AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 | AZL Fidelity Institutional Asset Management Multi-Strategy Fund Class 2 |  |  |  |  |
| 2025 | 40152 | $17.62 | to | $30.07 | $901813 | 2.82% | —% | to | 3.40% | 7.50% | to | 11.22% |
| 2024 | 47255 | $16.37 | to | $27.04 | $972738 | 2.29% | —% | to | 3.40% | 7.60% | to | 11.35% |
| 2023 | 56069 | $15.20 | to | $24.28 | $1056954 | 1.61% | —% | to | 3.40% | 10.07% | to | 13.53% |
| 2022 | 60523 | $13.80 | to | $21.76 | $1021220 | 0.93% | 0.30% | to | 3.40% | (17.41)% | to | (14.82)% |
| 2021 | 68178 | $16.69 | to | $26.30 | $1371510 | 0.81% | 0.30% | to | 3.40% | 3.85% | to | 11.32% |
| AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 1 |  |  |  |  |
| 2025 | 1249 | $10.28 | to | $11.02 | $12295 | 4.68% | 1.40% | to | 2.20% | 5.52% | to | 6.32% |
| 2024 | 1535 | $9.74 | to | $10.36 | $14352 | 5.88% | 1.40% | to | 2.20% | (0.12)% | to | 0.63% |
| 2023 | 1658 | $9.72 | to | $10.30 | $15282 | 6.53% | 1.40% | to | 2.20% | 4.60% | to | 5.44% |
| 2022 | 1707 | $9.29 | to | $9.77 | $14908 | 2.84% | 1.40% | to | 2.20% | (15.08)% | to | (14.40)% |
| 2021 | 1871 | $10.94 | to | $11.41 | $19155 | 2.88% | 1.40% | to | 2.20% | (1.60)% | to | (0.81)% |
| AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 | AZL Fidelity Institutional Asset Management Total Bond Fund Class 2 |  |  |  |  |  |
| 2025 | 9641 | $8.70 | to | $13.62 | $102971 | 4.21% | —% | to | 3.40% | 4.10% | to | 7.95% |
| 2024 | 11023 | $8.36 | to | $12.65 | $111461 | 5.10% | —% | to | 3.40% | (1.63)% | to | 1.75% |
| 2023 | 12819 | $8.50 | to | $12.43 | $129733 | 6.16% | —% | to | 3.40% | 3.17% | to | 6.68% |
| 2022 | 11576 | $8.24 | to | $11.65 | $111500 | 2.39% | —% | to | 3.40% | (16.21)% | to | (13.37)% |

---

Page 50 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2021 | 13090 | $9.83 | to | $13.45 | $148293 | 2.51% | —% | to | 3.40% | (2.99)% | to | 0.31% |
| AZL Government Money Market Fund | AZL Government Money Market Fund | AZL Government Money Market Fund | AZL Government Money Market Fund | AZL Government Money Market Fund | AZL Government Money Market Fund |  |  |  |  |  |  |  |
| 2025 | 41351 | $6.20 | to | $14.90 | $489573 | 3.63% | —% | to | 3.40% | 0.78% | to | 3.69% |
| 2024 | 41318 | $6.18 | to | $14.37 | $457368 | 4.33% | —% | to | 3.40% | 0.96% | to | 4.43% |
| 2023 | 43827 | $6.12 | to | $13.76 | $454197 | 4.19% | —% | to | 3.40% | 0.85% | to | 4.28% |
| 2022 | 47669 | $6.06 | to | $13.20 | $466849 | 0.76% | —% | to | 3.40% | (2.54)% | to | 0.77% |
| 2021 | 51168 | $6.22 | to | $13.10 | $511547 | —% | —% | to | 3.40% | (3.29)% | to | —% |
| AZL International Index Fund Class 1 | AZL International Index Fund Class 1 | AZL International Index Fund Class 1 | AZL International Index Fund Class 1 | AZL International Index Fund Class 1 | AZL International Index Fund Class 1 |  |  |  |  |  |  |  |
| 2025 | 5008 | $16.82 | to | $19.31 | $90380 | 4.42% | 1.15% | to | 2.70% | 27.61% | to | 29.54% |
| 2024 | 5563 | $13.12 | to | $14.91 | $78005 | 4.51% | 1.15% | to | 2.70% | 0.37% | to | 1.95% |
| 2023 | 6171 | $13.08 | to | $14.62 | $85326 | 4.26% | 1.15% | to | 2.70% | 14.43% | to | 16.21% |
| 2022 | 5849 | $11.43 | to | $12.58 | $71581 | 4.53% | 1.15% | to | 2.70% | (16.53)% | to | (15.23)% |
| 2021 | 6443 | $13.69 | to | $14.85 | $93430 | 2.52% | 1.15% | to | 2.70% | 7.85% | to | 9.53% |
| AZL International Index Fund Class 2 | AZL International Index Fund Class 2 | AZL International Index Fund Class 2 | AZL International Index Fund Class 2 | AZL International Index Fund Class 2 |  |  |  |  |  |  |  |  |
| 2025 | 18784 | $14.86 | to | $25.37 | $326120 | 2.45% | —% | to | 3.40% | 26.35% | to | 30.72% |
| 2024 | 22378 | $11.75 | to | $21.51 | $303515 | 2.60% | —% | to | 3.40% | (0.57)% | to | 2.89% |
| 2023 | 25154 | $11.81 | to | $21.15 | $338955 | 2.47% | —% | to | 3.40% | 13.42% | to | 17.33% |
| 2022 | 23681 | $10.40 | to | $18.23 | $276987 | 2.67% | —% | to | 3.40% | (17.37)% | to | (14.52)% |
| 2021 | 27246 | $12.57 | to | $21.57 | $385078 | 1.47% | —% | to | 3.40% | 6.85% | to | 10.55% |
| AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 1 | AZL Mid Cap Index Fund Class 1 |  |  |  |  |  |  |  |
| 2025 | 2465 | $20.15 | to | $22.20 | $42081 | 1.45% | 1.15% | to | 2.55% | 4.86% | to | 5.96% |
| 2024 | 2713 | $19.21 | to | $20.61 | $43798 | 2.02% | 1.15% | to | 2.55% | 11.19% | to | 12.15% |
| 2023 | 2924 | $17.28 | to | $18.37 | $42872 | 8.50% | 1.15% | to | 2.55% | 13.64% | to | 14.61% |
| 2022 | 3236 | $15.21 | to | $16.03 | $41230 | 3.26% | 1.15% | to | 2.55% | (15.22)% | to | (14.50)% |
| 2021 | 3503 | $17.94 | to | $18.75 | $53632 | 2.59% | 1.15% | to | 2.55% | 21.33% | to | 22.36% |
| AZL Mid Cap Index Fund Class 2 | AZL Mid Cap Index Fund Class 2 | AZL Mid Cap Index Fund Class 2 | AZL Mid Cap Index Fund Class 2 | AZL Mid Cap Index Fund Class 2 |  |  |  |  |  |  |  |  |
| 2025 | 7476 | $28.08 | to | $46.03 | $246170 | 1.13% | —% | to | 3.40% | 4.47% | to | 5.68% |
| 2024 | 8520 | $27.11 | to | $52.80 | $267640 | 1.64% | —% | to | 3.40% | 9.61% | to | 13.44% |
| 2023 | 10018 | $24.67 | to | $47.09 | $283553 | 0.72% | —% | to | 3.40% | 12.02% | to | 15.88% |
| 2022 | 11381 | $21.97 | to | $41.10 | $284915 | 0.68% | —% | to | 3.40% | (16.43)% | to | (13.55)% |
| 2021 | 13526 | $26.23 | to | $48.09 | $402133 | 0.68% | —% | to | 3.40% | 19.53% | to | 23.66% |
| AZL Moderate Index Strategy Fund | AZL Moderate Index Strategy Fund | AZL Moderate Index Strategy Fund | AZL Moderate Index Strategy Fund | AZL Moderate Index Strategy Fund | AZL Moderate Index Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 40996 | $21.56 | to | $44.09 | $1179809 | 2.53% | —% | to | 3.40% | 10.86% | to | 14.69% |
| 2024 | 48184 | $19.42 | to | $38.44 | $1233407 | 1.45% | —% | to | 3.40% | 6.27% | to | 9.98% |
| 2023 | 56079 | $18.26 | to | $34.95 | $1335346 | 1.92% | —% | to | 3.40% | 10.99% | to | 14.82% |
| 2022 | 63362 | $16.44 | to | $30.44 | $1342710 | 2.18% | —% | to | 3.40% | (18.19)% | to | (15.37)% |
| 2021 | 70698 | $20.07 | to | $35.97 | $1806915 | 0.86% | —% | to | 3.40% | 4.41% | to | 11.72% |
| AZL MSCI Global Equity Index Fund Class 1 | AZL MSCI Global Equity Index Fund Class 1 | AZL MSCI Global Equity Index Fund Class 1 | AZL MSCI Global Equity Index Fund Class 1 | AZL MSCI Global Equity Index Fund Class 1 | AZL MSCI Global Equity Index Fund Class 1 |  |  |  |  |  |  |  |
| 2025 | 3017 | $14.47 | to | $15.00 | $45449 | 2.59% | 1.40% | to | 2.20% | 18.48% | to | 19.43% |
| 2024 | 3410 | $12.21 | to | $12.56 | $43048 | 2.94% | 1.40% | to | 2.20% | 15.88% | to | 16.82% |
| 2023 | 3771 | $10.54 | to | $10.75 | $40784 | 2.70% | 1.40% | to | 2.20% | 20.98% | to | 21.95% |
| 2022 | 4145 | $8.71 | to | $8.82 | $36789 | 1.80% | 1.40% | to | 2.20% | (19.86)% | to | (19.22)% |
| 2021¹ | 4558 | $10.87 | to | $10.92 | $50201 | 1.19% | 1.40% | to | 2.20% | 8.70% | to | 9.17% |
| AZL MSCI Global Equity Index Fund Class 2 | AZL MSCI Global Equity Index Fund Class 2 | AZL MSCI Global Equity Index Fund Class 2 | AZL MSCI Global Equity Index Fund Class 2 | AZL MSCI Global Equity Index Fund Class 2 | AZL MSCI Global Equity Index Fund Class 2 |  |  |  |  |  |  |  |
| 2025 | 3629 | $24.10 | to | $40.36 | $107777 | 1.18% | 0.30% | to | 3.40% | 16.79% | to | 20.40% |

---

Page 51 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2024 | 4323 | $20.64 | to | $33.52 | $108383 | 1.42% | 0.30% | to | 3.40% | 14.24% | to | 17.81% |
| 2023 | 5042 | $18.06 | to | $28.46 | $109136 | 1.27% | 0.30% | to | 3.40% | 19.32% | to | 23.00% |
| 2022 | 5965 | $15.14 | to | $23.13 | $107250 | 1.06% | 0.30% | to | 3.40% | (20.92)% | to | (18.48)% |
| 2021 | 7085 | $19.14 | to | $28.38 | $160173 | 1.35% | 0.30% | to | 3.40% | 6.27% | to | 20.82% |
| AZL MVP Balanced Index Strategy Fund | AZL MVP Balanced Index Strategy Fund | AZL MVP Balanced Index Strategy Fund | AZL MVP Balanced Index Strategy Fund | AZL MVP Balanced Index Strategy Fund | AZL MVP Balanced Index Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 33996 | $14.42 | to | $23.03 | $611933 | 2.86% | —% | to | 3.40% | 7.05% | to | 10.70% |
| 2024 | 39524 | $13.47 | to | $20.81 | $654523 | 1.59% | —% | to | 3.40% | 4.68% | to | 8.28% |
| 2023 | 45979 | $12.86 | to | $19.22 | $716630 | 0.62% | —% | to | 3.40% | 9.15% | to | 12.85% |
| 2022 | 14353 | $11.98 | to | $17.03 | $208108 | 2.15% | —% | to | 3.40% | (17.54)% | to | (14.87)% |
| 2021 | 16299 | $14.53 | to | $20.00 | $281749 | 1.76% | —% | to | 3.40% | 6.56% | to | 10.02% |
| AZL MVP DFA Multi-Strategy Fund | AZL MVP DFA Multi-Strategy Fund | AZL MVP DFA Multi-Strategy Fund | AZL MVP DFA Multi-Strategy Fund | AZL MVP DFA Multi-Strategy Fund | AZL MVP DFA Multi-Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 71254 | $12.81 | to | $17.73 | $1079111 | 2.77% | 0.30% | to | 3.40% | 8.35% | to | 11.71% |
| 2024 | 83916 | $11.82 | to | $15.87 | $1155273 | 1.16% | 0.30% | to | 3.40% | 2.78% | to | 8.38% |
| 2023 | 97766 | $11.50 | to | $14.64 | $1258569 | 0.18% | 0.30% | to | 3.40% | 9.17% | to | 12.41% |
| 2022 | 5965 | $11.27 | to | $12.08 | $70382 | 0.97% | 1.15% | to | 2.05% | (13.54)% | to | (12.76)% |
| 2021 | 6633 | $13.03 | to | $13.85 | $89961 | 1.34% | 1.15% | to | 2.05% | 11.43% | to | 12.45% |
| AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund | AZL MVP Fidelity Institutional Asset Management Multi-Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 14576 | $10.54 | to | $18.20 | $234428 | 2.52% | 0.30% | to | 3.40% | 4.31% | to | 7.59% |
| 2024 | 17204 | $10.11 | to | $17.06 | $261749 | 1.69% | 0.30% | to | 3.40% | 4.68% | to | 10.48% |
| 2023 | 20938 | $9.66 | to | $15.54 | $292166 | 1.60% | 0.30% | to | 3.40% | 10.35% | to | 11.49% |
| 2022 | 11712 | $12.74 | to | $13.96 | $158163 | 0.69% | 1.15% | to | 2.05% | (15.51)% | to | (14.79)% |
| 2021 | 13320 | $15.08 | to | $16.38 | $211749 | 2.49% | 1.15% | to | 2.05% | 8.87% | to | 9.81% |
| AZL MVP Global Balanced Index Strategy Fund | AZL MVP Global Balanced Index Strategy Fund | AZL MVP Global Balanced Index Strategy Fund | AZL MVP Global Balanced Index Strategy Fund | AZL MVP Global Balanced Index Strategy Fund | AZL MVP Global Balanced Index Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 21036 | $15.64 | to | $17.75 | $357904 | 2.79% | 1.15% | to | 2.05% | 8.54% | to | 9.53% |
| 2024 | 25334 | $14.41 | to | $16.21 | $394600 | 1.59% | 1.15% | to | 2.05% | 7.20% | to | 8.18% |
| 2023 | 30634 | $13.44 | to | $14.98 | $442420 | 3.99% | 1.15% | to | 2.05% | 11.55% | to | 12.56% |
| 2022 | 35209 | $12.05 | to | $13.31 | $453058 | 2.84% | 1.15% | to | 2.05% | (17.79)% | to | (17.05)% |
| 2021 | 38936 | $14.66 | to | $16.04 | $605711 | 1.47% | 1.15% | to | 2.05% | 5.86% | to | 6.82% |
| AZL MVP Growth Index Strategy Fund | AZL MVP Growth Index Strategy Fund | AZL MVP Growth Index Strategy Fund | AZL MVP Growth Index Strategy Fund | AZL MVP Growth Index Strategy Fund | AZL MVP Growth Index Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 61117 | $18.63 | to | $29.97 | $1436759 | 2.33% | —% | to | 3.40% | 8.06% | to | 11.80% |
| 2024 | 73271 | $17.24 | to | $26.81 | $1569850 | 1.52% | —% | to | 3.40% | 8.32% | to | 12.10% |
| 2023 | 88059 | $15.91 | to | $23.91 | $1716258 | 1.95% | —% | to | 3.40% | 12.92% | to | 16.81% |
| 2022 | 100561 | $14.09 | to | $20.47 | $1709846 | 1.69% | —% | to | 3.40% | (17.93)% | to | (15.10)% |
| 2021 | 112524 | $17.26 | to | $24.11 | $2291937 | 1.70% | —% | to | 3.40% | 12.56% | to | 16.40% |
| AZL MVP Moderate Index Strategy Fund | AZL MVP Moderate Index Strategy Fund | AZL MVP Moderate Index Strategy Fund | AZL MVP Moderate Index Strategy Fund | AZL MVP Moderate Index Strategy Fund | AZL MVP Moderate Index Strategy Fund |  |  |  |  |  |  |  |
| 2025 | 11878 | $20.24 | to | $22.97 | $261308 | 2.66% | 1.15% | to | 2.05% | 9.00% | to | 10.00% |
| 2024 | 14411 | $18.57 | to | $20.89 | $289034 | 1.58% | 1.15% | to | 2.05% | 7.68% | to | 8.67% |
| 2023 | 17772 | $17.24 | to | $19.22 | $329036 | 1.90% | 1.15% | to | 2.05% | 12.27% | to | 13.29% |
| 2022 | 20800 | $15.36 | to | $16.97 | $341084 | 1.96% | 1.15% | to | 2.05% | (17.09)% | to | (16.34)% |
| 2021 | 23325 | $18.53 | to | $20.28 | $458639 | 1.80% | 1.15% | to | 2.05% | 10.18% | to | 11.18% |
| AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund | AZL MVP T. Rowe Price Capital Appreciation Plus Fund |  |  |  |  |  |  |
| 2025 | 36278 | $20.88 | to | $23.28 | $810615 | 3.40% | 1.15% | to | 2.05% | 6.19% | to | 7.16% |
| 2024 | 44047 | $19.67 | to | $21.72 | $921692 | 4.75% | 1.15% | to | 2.05% | 10.91% | to | 11.93% |
| 2023 | 53269 | $17.73 | to | $19.41 | $999694 | 7.90% | 1.15% | to | 2.05% | 14.98% | to | 16.03% |
| 2022 | 61436 | $15.42 | to | $16.73 | $997418 | 7.34% | 1.15% | to | 2.05% | (15.45)% | to | (14.69)% |

---

Page 52 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2021 | 67066 | $18.24 | to | $19.61 | $1280437 | 3.53% | 1.15% | to | 2.05% | 14.66% | to | 15.71% |
| AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 1 | AZL Russell 1000 Growth Index Fund Class 1 |  |  |  |  |  |  |
| 2025 | 2321 | $40.36 | to | $43.65 | $70620 | 0.20% | 1.15% | to | 2.55% | 15.51% | to | 16.49% |
| 2024 | 2663 | $34.94 | to | $37.47 | $69253 | 0.92% | 1.15% | to | 2.55% | 29.95% | to | 31.07% |
| 2023 | 2918 | $26.89 | to | $28.59 | $58701 | 1.43% | 1.15% | to | 2.55% | 39.95% | to | 41.14% |
| 2022 | 3275 | $19.21 | to | $20.25 | $46789 | 0.60% | 1.15% | to | 2.55% | (30.98)% | to | (30.40)% |
| 2021 | 3495 | $27.84 | to | $29.10 | $74879 | 0.69% | 1.15% | to | 2.55% | 24.37% | to | 25.43% |
| AZL Russell 1000 Growth Index Fund Class 2 | AZL Russell 1000 Growth Index Fund Class 2 | AZL Russell 1000 Growth Index Fund Class 2 | AZL Russell 1000 Growth Index Fund Class 2 | AZL Russell 1000 Growth Index Fund Class 2 | AZL Russell 1000 Growth Index Fund Class 2 | AZL Russell 1000 Growth Index Fund Class 2 |  |  |  |  |  |  |
| 2025 | 7558 | $54.39 | to | $103.64 | $518542 | 0.02% | —% | to | 3.40% | 11.64% | to | 19.43% |
| 2024 | 8824 | $47.77 | to | $87.99 | $525906 | 0.22% | —% | to | 3.40% | 27.99% | to | 32.45% |
| 2023 | 10474 | $37.32 | to | $66.43 | $479779 | 0.37% | —% | to | 3.40% | 37.93% | to | 42.69% |
| 2022 | 12365 | $27.06 | to | $46.55 | $403034 | 0.06% | —% | to | 3.40% | (31.94)% | to | (29.59)% |
| 2021 | 14314 | $39.76 | to | $66.12 | $680974 | 0.25% | —% | to | 3.40% | 22.63% | to | 26.87% |
| AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 1 | AZL Russell 1000 Value Index Fund Class 1 |  |  |  |  |  |  |
| 2025 | 9210 | $19.14 | to | $21.88 | $159807 | 1.54% | 1.15% | to | 2.70% | 12.44% | to | 14.09% |
| 2024 | 10525 | $16.88 | to | $19.18 | $158815 | 2.77% | 1.15% | to | 2.70% | 10.89% | to | 12.64% |
| 2023 | 11895 | $15.22 | to | $17.03 | $161258 | 3.63% | 1.15% | to | 2.70% | 8.73% | to | 10.42% |
| 2022 | 13259 | $14.00 | to | $15.42 | $164072 | 2.10% | 1.15% | to | 2.70% | (10.33)% | to | (8.93)% |
| 2021 | 14710 | $15.62 | to | $16.93 | $201593 | 2.13% | 1.15% | to | 2.70% | 21.23% | to | 23.12% |
| AZL Russell 1000 Value Index Fund Class 2 | AZL Russell 1000 Value Index Fund Class 2 | AZL Russell 1000 Value Index Fund Class 2 | AZL Russell 1000 Value Index Fund Class 2 | AZL Russell 1000 Value Index Fund Class 2 | AZL Russell 1000 Value Index Fund Class 2 | AZL Russell 1000 Value Index Fund Class 2 |  |  |  |  |  |  |
| 2025 | 14525 | $24.17 | to | $46.95 | $438046 | 1.66% | —% | to | 3.40% | 11.26% | to | 16.62% |
| 2024 | 16873 | $21.73 | to | $40.79 | $449209 | 1.52% | —% | to | 3.40% | 9.79% | to | 13.62% |
| 2023 | 19409 | $19.79 | to | $35.90 | $464516 | 2.03% | —% | to | 3.40% | 7.84% | to | 11.56% |
| 2022 | 21887 | $18.35 | to | $32.18 | $482400 | 1.19% | —% | to | 3.40% | (11.24)% | to | (8.18)% |
| 2021 | 26042 | $20.67 | to | $35.05 | $641646 | 1.40% | —% | to | 3.40% | 20.10% | to | 24.25% |
| AZL S&P 500 Index Fund | AZL S&P 500 Index Fund | AZL S&P 500 Index Fund | AZL S&P 500 Index Fund | AZL S&P 500 Index Fund | AZL S&P 500 Index Fund | AZL S&P 500 Index Fund |  |  |  |  |  |  |
| 2025 | 17834 | $32.22 | to | $60.45 | $722570 | 0.99% | —% | to | 3.40% | 13.47% | to | 17.33% |
| 2024 | 20825 | $28.38 | to | $51.67 | $734227 | 1.07% | —% | to | 3.40% | 20.24% | to | 24.37% |
| 2023 | 24263 | $23.59 | to | $41.67 | $700589 | 1.24% | —% | to | 3.40% | 21.55% | to | 25.68% |
| 2022 | 27711 | $19.40 | to | $33.26 | $651166 | 1.03% | —% | to | 3.40% | (21.19)% | to | (18.51)% |
| 2021 | 32352 | $24.60 | to | $40.93 | $958977 | 1.01% | —% | to | 3.40% | 23.90% | to | 28.12% |
| AZL Small Cap Stock Index Fund Class 1 | AZL Small Cap Stock Index Fund Class 1 | AZL Small Cap Stock Index Fund Class 1 | AZL Small Cap Stock Index Fund Class 1 | AZL Small Cap Stock Index Fund Class 1 | AZL Small Cap Stock Index Fund Class 1 |  |  |  |  |  |  |  |
| 2025 | 1693 | $17.47 | to | $20.07 | $29073 | 1.36% | 1.15% | to | 2.70% | 2.95% | to | 4.51% |
| 2024 | 1931 | $16.97 | to | $19.20 | $32288 | 2.60% | 1.15% | to | 2.70% | 5.44% | to | 7.05% |
| 2023 | 2169 | $16.10 | to | $17.94 | $34606 | 2.08% | 1.15% | to | 2.70% | 12.62% | to | 14.32% |
| 2022 | 2394 | $14.29 | to | $15.69 | $33791 | 1.54% | 1.15% | to | 2.70% | (18.63)% | to | (17.40)% |
| 2021 | 2633 | $17.56 | to | $19.00 | $45248 | 1.16% | 1.15% | to | 2.70% | 23.07% | to | 24.93% |
| AZL Small Cap Stock Index Fund Class 2 | AZL Small Cap Stock Index Fund Class 2 | AZL Small Cap Stock Index Fund Class 2 | AZL Small Cap Stock Index Fund Class 2 | AZL Small Cap Stock Index Fund Class 2 | AZL Small Cap Stock Index Fund Class 2 |  |  |  |  |  |  |  |
| 2025 | 10286 | $22.21 | to | $41.15 | $283839 | 1.29% | —% | to | 3.40% | 1.93% | to | 5.46% |
| 2024 | 11474 | $21.77 | to | $39.02 | $306185 | 1.25% | —% | to | 3.40% | 4.35% | to | 7.99% |
| 2023 | 13208 | $20.84 | to | $36.14 | $332838 | 1.01% | —% | to | 3.40% | 11.52% | to | 15.36% |
| 2022 | 14523 | $18.67 | to | $31.32 | $325252 | 0.75% | —% | to | 3.40% | (19.43)% | to | (16.65)% |
| 2021 | 16661 | $23.15 | to | $37.58 | $459022 | 0.62% | —% | to | 3.40% | 21.83% | to | 26.04% |
| AZL T. Rowe Price Capital Appreciation Fund | AZL T. Rowe Price Capital Appreciation Fund | AZL T. Rowe Price Capital Appreciation Fund | AZL T. Rowe Price Capital Appreciation Fund | AZL T. Rowe Price Capital Appreciation Fund | AZL T. Rowe Price Capital Appreciation Fund |  |  |  |  |  |  |  |
| 2025 | 13781 | $26.89 | to | $55.55 | $459277 | 2.23% | 0.30% | to | 3.40% | 7.83% | to | 11.17% |

---

Page 53 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2024 | 15950 | $24.93 | to | $49.96 | $489653 | 2.23% | 0.30% | to | 3.40% | 8.48% | to | 11.87% |
| 2023 | 17923 | $22.97 | to | $44.66 | $502283 | 1.35% | 0.30% | to | 3.40% | 14.58% | to | 18.12% |
| 2022 | 19653 | $20.04 | to | $37.81 | $478943 | 0.68% | 0.30% | to | 3.40% | (14.98)% | to | (12.35)% |
| 2021 | 22482 | $23.55 | to | $43.14 | $642013 | 0.96% | 0.30% | to | 3.40% | 14.23% | to | 17.77% |
| BlackRock Equity Dividend V.I. Fund | BlackRock Equity Dividend V.I. Fund | BlackRock Equity Dividend V.I. Fund | BlackRock Equity Dividend V.I. Fund | BlackRock Equity Dividend V.I. Fund | BlackRock Equity Dividend V.I. Fund |  |  |  |  |  |  |  |
| 2025 | 27 | $43.73 | to | $43.73 | $1164 | 1.91% | 0.30% | to | 0.30% | 20.96% | to | 20.96% |
| 2024 | 38 | $36.15 | to | $36.15 | $1360 | 2.30% | 0.30% | to | 0.30% | 9.37% | to | 9.37% |
| 2023 | 39 | $33.06 | to | $33.06 | $1304 | 1.81% | 0.30% | to | 0.30% | 11.66% | to | 11.66% |
| 2022 | 46 | $29.60 | to | $29.60 | $1359 | 1.44% | 0.30% | to | 0.30% | (4.39)% | to | (4.39)% |
| 2021 | 45 | $30.96 | to | $30.96 | $1380 | 1.31% | 0.30% | to | 0.30% | 19.94% | to | 19.94% |
| ClearBridge Variable Growth Portfolio | ClearBridge Variable Growth Portfolio | ClearBridge Variable Growth Portfolio | ClearBridge Variable Growth Portfolio | ClearBridge Variable Growth Portfolio | ClearBridge Variable Growth Portfolio |  |  |  |  |  |  |  |
| 2025 | 14 | $39.25 | to | $39.25 | $531 | —% | 0.30% | to | 0.30% | 12.76% | to | 12.76% |
| 2024 | 16 | $34.81 | to | $34.81 | $569 | 0.13% | 0.30% | to | 0.30% | 12.08% | to | 12.08% |
| 2023 | 27 | $31.06 | to | $31.06 | $842 | 0.07% | 0.30% | to | 0.30% | 23.76% | to | 23.76% |
| 2022 | 29 | $25.09 | to | $25.09 | $728 | —% | 0.30% | to | 0.30% | (26.81)% | to | (26.81)% |
| 2021 | 31 | $34.28 | to | $34.28 | $1055 | 0.18% | 0.30% | to | 0.30% | 9.71% | to | 9.71% |
| Columbia Variable Portfolio – Seligman Global Technology Fund | Columbia Variable Portfolio – Seligman Global Technology Fund | Columbia Variable Portfolio – Seligman Global Technology Fund | Columbia Variable Portfolio – Seligman Global Technology Fund | Columbia Variable Portfolio – Seligman Global Technology Fund | Columbia Variable Portfolio – Seligman Global Technology Fund |  |  |  |  |  |  |  |
| 2025 | 16 | $79.30 | to | $93.86 | $1456 | —% | 1.15% | to | 2.55% | 32.00% | to | 32.86% |
| 2024 | 18 | $60.07 | to | $70.64 | $1226 | —% | 1.15% | to | 2.55% | 24.32% | to | 25.13% |
| 2023 | 23 | $48.32 | to | $56.46 | $1210 | —% | 1.15% | to | 2.55% | 42.34% | to | 43.27% |
| 2022 | 24 | $33.95 | to | $39.41 | $906 | —% | 1.15% | to | 2.55% | (33.11)% | to | (32.67)% |
| 2021 | 27 | $50.75 | to | $58.53 | $1488 | 0.37% | 1.15% | to | 2.55% | 36.20% | to | 37.09% |
| Davis VA Financial Portfolio | Davis VA Financial Portfolio | Davis VA Financial Portfolio | Davis VA Financial Portfolio | Davis VA Financial Portfolio | Davis VA Financial Portfolio |  |  |  |  |  |  |  |
| 2025 | 785 | $28.23 | to | $60.02 | $36896 | 1.56% | 1.00% | to | 3.40% | 24.87% | to | 27.52% |
| 2024 | 925 | $22.59 | to | $47.07 | $34340 | 1.81% | 1.00% | to | 3.40% | 25.20% | to | 27.87% |
| 2023 | 1115 | $18.04 | to | $36.81 | $32598 | 2.12% | 1.00% | to | 3.40% | 11.50% | to | 13.86% |
| 2022 | 1228 | $16.17 | to | $33.08 | $31901 | 1.75% | 1.00% | to | 3.40% | (11.53)% | to | (9.57)% |
| 2021 | 1411 | $18.27 | to | $36.58 | $41160 | 1.32% | 1.00% | to | 3.40% | 26.30% | to | 29.05% |
| Davis VA Real Estate Portfolio | Davis VA Real Estate Portfolio | Davis VA Real Estate Portfolio | Davis VA Real Estate Portfolio | Davis VA Real Estate Portfolio | Davis VA Real Estate Portfolio | Davis VA Real Estate Portfolio |  |  |  |  |  |  |
| 2025 | 4 | $41.23 | to | $46.94 | $159 | 2.55% | 1.15% | to | 2.55% | (7.49)% | to | (7.02)% |
| 2024 | 4 | $44.57 | to | $50.48 | $182 | 2.01% | 1.15% | to | 2.55% | 2.93% | to | 3.45% |
| 2023 | 4 | $43.30 | to | $48.80 | $186 | 2.51% | 1.15% | to | 2.55% | 8.58% | to | 9.12% |
| 2022 | 4 | $39.88 | to | $44.72 | $184 | 1.68% | 1.15% | to | 2.55% | (28.18)% | to | (27.82)% |
| 2021 | 4 | $55.52 | to | $61.96 | $270 | 1.18% | 1.15% | to | 2.55% | 39.31% | to | 40.01% |
| Eaton Vance VT Floating-Rate Income Fund | Eaton Vance VT Floating-Rate Income Fund | Eaton Vance VT Floating-Rate Income Fund | Eaton Vance VT Floating-Rate Income Fund | Eaton Vance VT Floating-Rate Income Fund | Eaton Vance VT Floating-Rate Income Fund |  |  |  |  |  |  |  |
| 2025 | 37 | $22.25 | to | $22.25 | $819 | 6.77% | 0.30% | to | 0.30% | 3.66% | to | 3.66% |
| 2024 | 58 | $21.46 | to | $21.46 | $1251 | 7.88% | 0.30% | to | 0.30% | 7.38% | to | 7.38% |
| 2023 | 61 | $19.99 | to | $19.99 | $1221 | 8.20% | 0.30% | to | 0.30% | 10.91% | to | 10.91% |
| 2022 | 63 | $18.02 | to | $18.02 | $1136 | 4.60% | 0.30% | to | 0.30% | (3.04)% | to | (3.04)% |
| 2021 | 62 | $18.58 | to | $18.58 | $1159 | 2.90% | 0.30% | to | 0.30% | 3.32% | to | 3.32% |
| Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Emerging Markets Portfolio | Fidelity VIP Emerging Markets Portfolio |  |  |  |  |  |  |  |
| 2025 | 76 | $22.51 | to | $22.51 | $1715 | 1.27% | 0.30% | to | 0.30% | 40.37% | to | 40.37% |
| 2024 | 91 | $16.03 | to | $16.03 | $1457 | 1.12% | 0.30% | to | 0.30% | 9.37% | to | 9.37% |
| 2023 | 120 | $14.66 | to | $14.66 | $1755 | 1.96% | 0.30% | to | 0.30% | 9.16% | to | 9.16% |
| 2022 | 129 | $13.43 | to | $13.43 | $1732 | 1.51% | 0.30% | to | 0.30% | (20.61)% | to | (20.61)% |

---

Page 54 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2021 | 130 | $16.92 | to | $16.92 | $2199 | 1.17% | 0.30% | to | 0.30% | (2.70)% | to | (2.70)% |
| Fidelity VIP Mid Cap Portfolio | Fidelity VIP Mid Cap Portfolio | Fidelity VIP Mid Cap Portfolio | Fidelity VIP Mid Cap Portfolio | Fidelity VIP Mid Cap Portfolio | Fidelity VIP Mid Cap Portfolio |  |  |  |  |  |  |  |
| 2025 | 28 | $122.37 | to | $122.37 | $3416 | 0.56% | 0.30% | to | 0.30% | 11.15% | to | 11.15% |
| 2024 | 5 | $110.09 | to | $110.09 | $591 | 0.35% | 0.30% | to | 0.30% | 16.82% | to | 16.82% |
| 2023 | 6 | $94.24 | to | $94.24 | $540 | 0.35% | 0.30% | to | 0.30% | 14.46% | to | 14.46% |
| 2022 | 7 | $82.34 | to | $82.34 | $562 | 0.27% | 0.30% | to | 0.30% | (15.22)% | to | (15.22)% |
| 2021 | 6 | $97.12 | to | $97.12 | $610 | 0.32% | 0.30% | to | 0.30% | 24.93% | to | 24.93% |
| Fidelity VIP Strategic Income Portfolio | Fidelity VIP Strategic Income Portfolio | Fidelity VIP Strategic Income Portfolio | Fidelity VIP Strategic Income Portfolio | Fidelity VIP Strategic Income Portfolio | Fidelity VIP Strategic Income Portfolio |  |  |  |  |  |  |  |
| 2025 | 41 | $26.92 | to | $26.92 | $1099 | 3.60% | 0.30% | to | 0.30% | 8.25% | to | 8.25% |
| 2024 | 51 | $24.87 | to | $24.87 | $1280 | 3.33% | 0.30% | to | 0.30% | 5.46% | to | 5.46% |
| 2023 | 59 | $23.58 | to | $23.58 | $1386 | 4.23% | 0.30% | to | 0.30% | 8.85% | to | 8.85% |
| 2022 | 67 | $21.66 | to | $21.66 | $1452 | 3.00% | 0.30% | to | 0.30% | (11.78)% | to | (11.78)% |
| 2021 | 82 | $24.56 | to | $24.56 | $2017 | 2.34% | 0.30% | to | 0.30% | 3.22% | to | 3.22% |
| Franklin Rising Dividends VIP Fund | Franklin Rising Dividends VIP Fund | Franklin Rising Dividends VIP Fund | Franklin Rising Dividends VIP Fund | Franklin Rising Dividends VIP Fund | Franklin Rising Dividends VIP Fund |  |  |  |  |  |  |  |
| 2025 | 2058 | $96.66 | to | $231.50 | $164075 | 0.91% | 0.30% | to | 2.70% | 8.83% | to | 9.76% |
| 2024 | 2300 | $88.82 | to | $207.68 | $171551 | 1.10% | 0.30% | to | 2.70% | 7.81% | to | 10.45% |
| 2023 | 2538 | $82.39 | to | $188.03 | $182196 | 1.01% | 0.30% | to | 2.70% | 9.10% | to | 11.74% |
| 2022 | 2789 | $75.52 | to | $168.27 | $186200 | 0.93% | 0.30% | to | 2.70% | (12.95)% | to | (10.84)% |
| 2021 | 3043 | $86.75 | to | $188.72 | $240532 | 0.94% | 0.30% | to | 2.70% | 23.41% | to | 26.41% |
| Franklin U.S. Government Securities VIP Fund | Franklin U.S. Government Securities VIP Fund | Franklin U.S. Government Securities VIP Fund | Franklin U.S. Government Securities VIP Fund | Franklin U.S. Government Securities VIP Fund | Franklin U.S. Government Securities VIP Fund |  |  |  |  |  |  |  |
| 2025 | 3330 | $13.82 | to | $47.44 | $83037 | 3.31% | —% | to | 3.40% | 4.74% | to | 4.95% |
| 2024 | 3904 | $13.39 | to | $44.47 | $93083 | 3.10% | —% | to | 3.40% | (2.00)% | to | 1.37% |
| 2023 | 4510 | $13.66 | to | $43.87 | $108328 | 2.76% | —% | to | 3.40% | 1.03% | to | 4.47% |
| 2022 | 5123 | $13.52 | to | $41.99 | $119567 | 2.42% | —% | to | 3.40% | (12.72)% | to | (9.75)% |
| 2021 | 5955 | $15.50 | to | $46.53 | $157809 | 2.50% | —% | to | 3.40% | (5.06)% | to | (1.83)% |
| Invesco V.I. American Value Fund | Invesco V.I. American Value Fund | Invesco V.I. American Value Fund | Invesco V.I. American Value Fund | Invesco V.I. American Value Fund | Invesco V.I. American Value Fund |  |  |  |  |  |  |  |
| 2025 | 3 | $93.51 | to | $93.51 | $237 | 0.22% | 0.30% | to | 0.30% | 20.39% | to | 20.39% |
| 2024 | 3 | $77.67 | to | $77.67 | $243 | 0.56% | 0.30% | to | 0.30% | 29.70% | to | 29.70% |
| 2023 | 6 | $59.88 | to | $59.88 | $343 | 0.39% | 0.30% | to | 0.30% | 14.95% | to | 14.95% |
| 2022 | 6 | $52.10 | to | $52.10 | $322 | 0.47% | 0.30% | to | 0.30% | (3.15)% | to | (3.15)% |
| 2021 | 7 | $53.79 | to | $53.79 | $376 | 0.24% | 0.30% | to | 0.30% | 27.24% | to | 27.24% |
| Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Balanced-Risk Allocation Fund | Invesco V.I. Balanced-Risk Allocation Fund |  |  |  |  |  |  |
| 2025 | 6 | $26.95 | to | $26.95 | $175 | 6.18% | 0.30% | to | 0.30% | 8.36% | to | 8.36% |
| 2024 | 8 | $24.87 | to | $24.87 | $196 | 6.78% | 0.30% | to | 0.30% | 3.25% | to | 3.25% |
| 2023 | 8 | $24.09 | to | $24.09 | $183 | —% | 0.30% | to | 0.30% | 6.08% | to | 6.08% |
| 2022 | 11 | $22.71 | to | $22.71 | $248 | 6.81% | 0.30% | to | 0.30% | (14.77)% | to | (14.77)% |
| 2021 | 15 | $26.64 | to | $26.64 | $396 | 2.96% | 0.30% | to | 0.30% | 8.93% | to | 8.93% |
| Invesco V.I. Global Strategic Income Fund | Invesco V.I. Global Strategic Income Fund | Invesco V.I. Global Strategic Income Fund | Invesco V.I. Global Strategic Income Fund | Invesco V.I. Global Strategic Income Fund | Invesco V.I. Global Strategic Income Fund |  |  |  |  |  |  |  |
| 2025 | 42 | $20.41 | to | $33.34 | $1113 | 5.62% | 1.15% | to | 2.70% | 10.03% | to | 11.69% |
| 2024 | 47 | $18.55 | to | $29.85 | $1126 | 2.92% | 1.15% | to | 2.70% | 0.44% | to | 1.97% |
| 2023 | 54 | $18.47 | to | $29.27 | $1261 | —% | 1.15% | to | 2.70% | 6.04% | to | 7.64% |
| 2022 | 60 | $17.16 | to | $27.19 | $1321 | —% | 1.15% | to | 2.70% | (13.81)% | to | (12.47)% |
| 2021 | 73 | $19.91 | to | $31.07 | $1840 | 4.57% | 1.15% | to | 2.70% | (5.99)% | to | (4.52)% |
| Invesco V.I. International Growth Fund | Invesco V.I. International Growth Fund | Invesco V.I. International Growth Fund | Invesco V.I. International Growth Fund | Invesco V.I. International Growth Fund | Invesco V.I. International Growth Fund |  |  |  |  |  |  |  |
| 2025 | 18 | $36.73 | to | $36.73 | $671 | 0.06% | 0.30% | to | 0.30% | 15.18% | to | 15.18% |

---

Page 55 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2024 | 23 | $31.89 | to | $31.89 | $729 | 0.33% | 0.30% | to | 0.30% | (2.11)% | to | (2.11)% |
| 2023 | 30 | $32.57 | to | $32.57 | $983 | 0.28% | 0.30% | to | 0.30% | 20.28% | to | 20.28% |
| 2022 | 37 | $27.08 | to | $27.08 | $998 | —% | 0.30% | to | 0.30% | (27.38)% | to | (27.38)% |
| 2021 | 40 | $37.30 | to | $37.30 | $1477 | —% | 0.30% | to | 0.30% | 9.79% | to | 9.79% |
| Lazard Retirement International Equity Portfolio | Lazard Retirement International Equity Portfolio | Lazard Retirement International Equity Portfolio | Lazard Retirement International Equity Portfolio | Lazard Retirement International Equity Portfolio | Lazard Retirement International Equity Portfolio |  |  |  |  |  |  |  |
| 2025 | 7 | $34.88 | to | $34.88 | $236 | 2.07% | 0.30% | to | 0.30% | 32.72% | to | 32.72% |
| 2024 | 7 | $26.28 | to | $26.28 | $175 | 2.85% | 0.30% | to | 0.30% | 5.31% | to | 5.31% |
| 2023 | 10 | $24.96 | to | $24.96 | $262 | 1.31% | 0.30% | to | 0.30% | 15.53% | to | 15.53% |
| 2022 | 10 | $21.60 | to | $21.60 | $223 | 3.63% | 0.30% | to | 0.30% | (15.26)% | to | (15.26)% |
| 2021 | 11 | $25.49 | to | $25.49 | $273 | 0.94% | 0.30% | to | 0.30% | 5.52% | to | 5.52% |
| Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio |  |  |  |  |  |  |  |
| 2025 | 1 | $71.05 | to | $71.05 | $87 | —% | 0.30% | to | 0.30% | 1.88% | to | 1.88% |
| 2024 | 74 | $69.74 | to | $69.74 | $5160 | —% | 0.30% | to | 0.30% | 10.78% | to | 10.78% |
| 2023 | 77 | $62.95 | to | $62.95 | $4845 | —% | 0.30% | to | 0.30% | 9.70% | to | 9.70% |
| 2022 | 5 | $57.39 | to | $57.39 | $289 | —% | 0.30% | to | 0.30% | (15.77)% | to | (15.77)% |
| 2021 | 5 | $68.13 | to | $68.13 | $349 | 0.05% | 0.30% | to | 0.30% | 19.51% | to | 19.51% |
| LVIP JPMorgan Core Bond Fund | LVIP JPMorgan Core Bond Fund | LVIP JPMorgan Core Bond Fund | LVIP JPMorgan Core Bond Fund | LVIP JPMorgan Core Bond Fund | LVIP JPMorgan Core Bond Fund |  |  |  |  |  |  |  |
| 2025 | 748 | $8.88 | to | $14.73 | $10011 | 3.33% | 0.30% | to | 2.05% | 5.03% | to | 6.83% |
| 2024 | 822 | $8.31 | to | $13.91 | $10365 | 3.82% | 0.30% | to | 2.05% | (0.57)% | to | 1.15% |
| 2023² | 979 | $8.22 | to | $13.87 | $12384 | 1.34% | 0.30% | to | 2.05% | 0.31% | to | 1.46% |
| MFS International Intrinsic Value Portfolio | MFS International Intrinsic Value Portfolio | MFS International Intrinsic Value Portfolio | MFS International Intrinsic Value Portfolio | MFS International Intrinsic Value Portfolio | MFS International Intrinsic Value Portfolio |  |  |  |  |  |  |  |
| 2025 | 39 | $34.98 | to | $34.98 | $1361 | 1.28% | 0.30% | to | 0.30% | 32.56% | to | 32.56% |
| 2024 | 49 | $26.39 | to | $26.39 | $1285 | 1.13% | 0.30% | to | 0.30% | 6.64% | to | 6.64% |
| 2023 | 66 | $24.74 | to | $24.74 | $1638 | 0.46% | 0.30% | to | 0.30% | 17.02% | to | 17.02% |
| 2022 | 79 | $21.15 | to | $21.15 | $1670 | 0.50% | 0.30% | to | 0.30% | (23.98)% | to | (23.98)% |
| 2021 | 89 | $27.82 | to | $27.82 | $2463 | 0.14% | 0.30% | to | 0.30% | 9.95% | to | 9.95% |
| MFS VIT Total Return Bond Portfolio | MFS VIT Total Return Bond Portfolio | MFS VIT Total Return Bond Portfolio | MFS VIT Total Return Bond Portfolio | MFS VIT Total Return Bond Portfolio | MFS VIT Total Return Bond Portfolio |  |  |  |  |  |  |  |
| 2025 | 701 | $16.41 | to | $25.42 | $13309 | 4.10% | 0.30% | to | 2.05% | 4.82% | to | 6.62% |
| 2024 | 997 | $15.65 | to | $23.84 | $18083 | 4.03% | 0.30% | to | 2.05% | 0.29% | to | 2.02% |
| 2023 | 1044 | $15.61 | to | $23.37 | $18652 | 2.97% | 0.30% | to | 2.05% | 5.01% | to | 6.81% |
| 2022 | 1301 | $14.86 | to | $21.88 | $21800 | 2.40% | 0.30% | to | 2.05% | (15.88)% | to | (14.44)% |
| 2021 | 1551 | $17.67 | to | $25.57 | $30750 | 2.47% | 0.30% | to | 2.05% | (3.03)% | to | (1.36)% |
| MFS VIT Utilities Portfolio | MFS VIT Utilities Portfolio | MFS VIT Utilities Portfolio | MFS VIT Utilities Portfolio | MFS VIT Utilities Portfolio | MFS VIT Utilities Portfolio |  |  |  |  |  |  |  |
| 2025 | 1 | $55.76 | to | $55.76 | $38 | 1.16% | 0.30% | to | 0.30% | 14.41% | to | 14.41% |
| 2024 | 4 | $48.73 | to | $48.73 | $210 | 2.10% | 0.30% | to | 0.30% | 11.01% | to | 11.01% |
| 2023 | 4 | $43.90 | to | $43.90 | $187 | 3.28% | 0.30% | to | 0.30% | (2.62)% | to | (2.62)% |
| 2022 | 3 | $45.08 | to | $45.08 | $142 | 2.30% | 0.30% | to | 0.30% | 0.18% | to | 0.18% |
| 2021 | 2 | $45.00 | to | $45.00 | $93 | 1.58% | 0.30% | to | 0.30% | 13.48% | to | 13.48% |
| Nomura VIP Asset Strategy Series | Nomura VIP Asset Strategy Series | Nomura VIP Asset Strategy Series | Nomura VIP Asset Strategy Series | Nomura VIP Asset Strategy Series | Nomura VIP Asset Strategy Series |  |  |  |  |  |  |  |
| 2025 | 11 | $118.08 | to | $118.08 | $1291 | 1.30% | 0.30% | to | 0.30% | 16.31% | to | 16.31% |
| 2024 | 11 | $101.52 | to | $101.52 | $1104 | 1.94% | 0.30% | to | 0.30% | 12.10% | to | 12.10% |
| 2023 | 11 | $90.57 | to | $90.57 | $992 | 2.14% | 0.30% | to | 0.30% | 13.60% | to | 13.60% |
| 2022 | 11 | $79.73 | to | $79.73 | $898 | 1.58% | 0.30% | to | 0.30% | (14.99)% | to | (14.99)% |
| 2021 | 11 | $93.79 | to | $93.79 | $1073 | 1.62% | 0.30% | to | 0.30% | 10.11% | to | 10.11% |
| Nomura VIP Energy Series | Nomura VIP Energy Series | Nomura VIP Energy Series | Nomura VIP Energy Series | Nomura VIP Energy Series | Nomura VIP Energy Series |  |  |  |  |  |  |  |
| 2025 | 5 | $12.04 | to | $12.04 | $63 | 1.00% | 0.30% | to | 0.30% | 11.55% | to | 11.55% |

---

Page 56 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2024 | 6 | $10.79 | to | $10.79 | $67 | 3.06% | 0.30% | to | 0.30% | (5.88)% | to | (5.88)% |
| 2023 | 7 | $11.47 | to | $11.47 | $77 | 3.32% | 0.30% | to | 0.30% | 3.70% | to | 3.70% |
| 2022 | 7 | $11.06 | to | $11.06 | $77 | 3.14% | 0.30% | to | 0.30% | 50.02% | to | 50.02% |
| 2021 | 7 | $7.37 | to | $7.37 | $51 | 1.38% | 0.30% | to | 0.30% | 41.57% | to | 41.57% |
| Nomura VIP Growth Series | Nomura VIP Growth Series | Nomura VIP Growth Series | Nomura VIP Growth Series | Nomura VIP Growth Series | Nomura VIP Growth Series |  |  |  |  |  |  |  |
| 2025 | 1 | $664.70 | to | $664.70 | $742 | —% | 0.30% | to | 0.30% | 8.09% | to | 8.09% |
| 2024 | 1 | $614.96 | to | $614.96 | $640 | —% | 0.30% | to | 0.30% | 23.52% | to | 23.52% |
| 2023 | 1 | $497.86 | to | $497.86 | $531 | —% | 0.30% | to | 0.30% | 37.51% | to | 37.51% |
| 2022 | 1 | $362.05 | to | $362.05 | $398 | —% | 0.30% | to | 0.30% | (27.41)% | to | (27.41)% |
| 2021 | 1 | $498.75 | to | $498.75 | $594 | —% | 0.30% | to | 0.30% | 29.64% | to | 29.64% |
| Nomura VIP Mid Cap Growth Series | Nomura VIP Mid Cap Growth Series | Nomura VIP Mid Cap Growth Series | Nomura VIP Mid Cap Growth Series | Nomura VIP Mid Cap Growth Series | Nomura VIP Mid Cap Growth Series |  |  |  |  |  |  |  |
| 2025 | 8 | $70.99 | to | $70.99 | $589 | —% | 0.30% | to | 0.30% | 0.87% | to | 0.87% |
| 2024 | 9 | $70.38 | to | $70.38 | $607 | —% | 0.30% | to | 0.30% | 1.89% | to | 1.89% |
| 2023 | 10 | $69.07 | to | $69.07 | $698 | —% | 0.30% | to | 0.30% | 19.26% | to | 19.26% |
| 2022 | 11 | $57.92 | to | $57.92 | $634 | —% | 0.30% | to | 0.30% | (31.00)% | to | (31.00)% |
| 2021 | 12 | $83.94 | to | $83.94 | $968 | —% | 0.30% | to | 0.30% | 16.01% | to | 16.01% |
| Nomura VIP Natural Resources Series | Nomura VIP Natural Resources Series | Nomura VIP Natural Resources Series | Nomura VIP Natural Resources Series | Nomura VIP Natural Resources Series | Nomura VIP Natural Resources Series |  |  |  |  |  |  |  |
| 2025 | 1 | $19.19 | to | $19.19 | $13 | —% | 0.30% | to | 0.30% | 37.34% | to | 37.34% |
| 2024 | 7 | $13.98 | to | $13.98 | $93 | 5.54% | 0.30% | to | 0.30% | (0.88)% | to | (0.88)% |
| 2023 | 6 | $14.10 | to | $14.10 | $86 | 2.46% | 0.30% | to | 0.30% | 1.28% | to | 1.28% |
| 2022 | 6 | $13.92 | to | $13.92 | $86 | 1.57% | 0.30% | to | 0.30% | 17.42% | to | 17.42% |
| 2021 | 7 | $11.86 | to | $11.86 | $80 | 1.45% | 0.30% | to | 0.30% | 26.30% | to | 26.30% |
| Nomura VIP Science and Technology Series | Nomura VIP Science and Technology Series | Nomura VIP Science and Technology Series | Nomura VIP Science and Technology Series | Nomura VIP Science and Technology Series | Nomura VIP Science and Technology Series |  |  |  |  |  |  |  |
| 2025 | 2 | $537.64 | to | $537.64 | $1002 | —% | 0.30% | to | 0.30% | 32.97% | to | 32.97% |
| 2024 | 2 | $404.34 | to | $404.34 | $835 | —% | 0.30% | to | 0.30% | 30.20% | to | 30.20% |
| 2023 | 2 | $310.56 | to | $310.56 | $726 | —% | 0.30% | to | 0.30% | 38.65% | to | 38.65% |
| 2022 | 3 | $224.00 | to | $224.00 | $623 | —% | 0.30% | to | 0.30% | (32.04)% | to | (32.04)% |
| 2021 | 3 | $329.62 | to | $329.62 | $1020 | —% | 0.30% | to | 0.30% | 14.82% | to | 14.82% |
| PIMCO VIT Balanced Allocation Portfolio | PIMCO VIT Balanced Allocation Portfolio | PIMCO VIT Balanced Allocation Portfolio | PIMCO VIT Balanced Allocation Portfolio | PIMCO VIT Balanced Allocation Portfolio | PIMCO VIT Balanced Allocation Portfolio |  |  |  |  |  |  |  |
| 2025 | 7762 | $12.71 | to | $20.09 | $125090 | 4.10% | —% | to | 3.40% | 12.39% | to | 16.22% |
| 2024 | 9321 | $11.38 | to | $17.29 | $131405 | 4.40% | —% | to | 3.40% | 5.38% | to | 8.95% |
| 2023 | 10955 | $10.80 | to | $15.87 | $144077 | 2.78% | —% | to | 3.40% | 11.36% | to | 15.09% |
| 2022 | 12701 | $9.70 | to | $13.79 | $147616 | 0.97% | —% | to | 3.40% | (18.84)% | to | (16.12)% |
| 2021 | 14111 | $11.95 | to | $16.44 | $198686 | 0.09% | —% | to | 3.40% | 2.50% | to | 9.70% |
| PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio | PIMCO VIT CommodityRealReturn Strategy Portfolio |  |  |  |  |  |  |  |
| 2025 | 3469 | $6.32 | to | $12.50 | $26430 | 2.82% | —% | to | 3.40% | 14.88% | to | 18.79% |
| 2024 | 4120 | $5.50 | to | $10.53 | $27134 | 2.19% | —% | to | 3.40% | 0.70% | to | 4.16% |
| 2023 | 4250 | $5.46 | to | $10.11 | $27558 | 16.27% | —% | to | 3.40% | (10.88)% | to | (7.85)% |
| 2022 | 4273 | $6.12 | to | $10.97 | $31764 | 21.58% | —% | to | 3.40% | 5.05% | to | 8.61% |
| 2021 | 5630 | $5.82 | to | $10.10 | $39437 | 4.15% | —% | to | 3.40% | 28.95% | to | 33.34% |
| PIMCO VIT Emerging Markets Bond Portfolio | PIMCO VIT Emerging Markets Bond Portfolio | PIMCO VIT Emerging Markets Bond Portfolio | PIMCO VIT Emerging Markets Bond Portfolio | PIMCO VIT Emerging Markets Bond Portfolio | PIMCO VIT Emerging Markets Bond Portfolio |  |  |  |  |  |  |  |
| 2025 | 2160 | $15.31 | to | $30.31 | $44123 | 6.94% | —% | to | 3.40% | 11.25% | to | 15.04% |
| 2024 | 2561 | $13.76 | to | $26.35 | $46439 | 6.43% | —% | to | 3.40% | 3.98% | to | 7.55% |
| 2023 | 2999 | $13.22 | to | $30.49 | $51627 | 5.70% | —% | to | 3.40% | 7.49% | to | 11.14% |
| 2022 | 3452 | $12.30 | to | $27.86 | $54602 | 4.82% | —% | to | 3.40% | (18.50)% | to | (15.73)% |

---

Page 57 of 60

------

**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2021 | 3790 | $15.08 | to | $33.58 | $72587 | 4.48% | —% | to | 3.40% | (5.78)% | to | (2.57)% |
| PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT Global Core Bond (Hedged) Portfolio | PIMCO VIT Global Core Bond (Hedged) Portfolio |  |  |  |  |  |  |  |
| 2025 | 6472 | $7.95 | to | $13.01 | $64633 | 4.05% | —% | to | 3.40% | 3.23% | to | 6.74% |
| 2024 | 7595 | $7.70 | to | $12.19 | $72392 | 3.71% | —% | to | 3.40% | 0.12% | to | 3.56% |
| 2023 | 8663 | $7.69 | to | $11.77 | $81343 | 2.30% | —% | to | 3.40% | 4.43% | to | 7.98% |
| 2022 | 9672 | $7.37 | to | $10.90 | $85804 | 1.60% | —% | to | 3.40% | (14.45)% | to | (11.55)% |
| 2021 | 11150 | $8.61 | to | $12.32 | $113863 | 2.00% | —% | to | 3.40% | (4.76)% | to | (0.23)% |
| PIMCO VIT High Yield Portfolio | PIMCO VIT High Yield Portfolio | PIMCO VIT High Yield Portfolio | PIMCO VIT High Yield Portfolio | PIMCO VIT High Yield Portfolio | PIMCO VIT High Yield Portfolio |  |  |  |  |  |  |  |
| 2025 | 7970 | $17.46 | to | $42.97 | $218713 | 6.29% | —% | to | 3.40% | 5.34% | to | 8.99% |
| 2024 | 9509 | $16.57 | to | $39.43 | $244219 | 5.85% | —% | to | 3.40% | 3.30% | to | 6.90% |
| 2023 | 11620 | $16.04 | to | $36.88 | $285130 | 5.68% | —% | to | 3.40% | 8.51% | to | 12.25% |
| 2022 | 14204 | $14.79 | to | $32.86 | $317238 | 5.04% | —% | to | 3.40% | (13.29)% | to | (10.30)% |
| 2021 | 16580 | $17.05 | to | $36.63 | $420245 | 4.44% | —% | to | 3.40% | 0.17% | to | 3.63% |
| PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio | PIMCO VIT Long-Term U.S. Government Portfolio |  |  |  |  |  |  |  |
| 2025 | 67 | $17.70 | to | $31.00 | $1475 | 3.26% | —% | to | 2.60% | 3.79% | to | 6.00% |
| 2024 | 85 | $17.05 | to | $29.25 | $1725 | 2.71% | —% | to | 2.60% | (8.26)% | to | (6.30)% |
| 2023 | 109 | $19.29 | to | $31.21 | $2452 | 2.36% | —% | to | 2.60% | 1.68% | to | 3.68% |
| 2022 | 127 | $18.97 | to | $30.11 | $2885 | 2.04% | —% | to | 2.60% | (30.47)% | to | (29.10)% |
| 2021 | 130 | $26.67 | to | $42.47 | $4225 | 1.58% | —% | to | 2.60% | (6.99)% | to | (5.07)% |
| PIMCO VIT Low Duration Portfolio | PIMCO VIT Low Duration Portfolio | PIMCO VIT Low Duration Portfolio | PIMCO VIT Low Duration Portfolio | PIMCO VIT Low Duration Portfolio | PIMCO VIT Low Duration Portfolio |  |  |  |  |  |  |  |
| 2025 | 259 | $21.14 | to | $21.14 | $5470 | 3.95% | 0.30% | to | 0.30% | 5.22% | to | 5.22% |
| 2024 | 305 | $20.09 | to | $20.09 | $6123 | 3.99% | 0.30% | to | 0.30% | 4.19% | to | 4.19% |
| 2023 | 317 | $19.28 | to | $19.28 | $6121 | 3.61% | 0.30% | to | 0.30% | 4.66% | to | 4.66% |
| 2022 | 320 | $18.42 | to | $18.42 | $5901 | 1.70% | 0.30% | to | 0.30% | (6.02)% | to | (6.02)% |
| 2021 | 321 | $19.60 | to | $19.60 | $6294 | 0.52% | 0.30% | to | 0.30% | (1.22)% | to | (1.22)% |
| PIMCO VIT Real Return Portfolio | PIMCO VIT Real Return Portfolio | PIMCO VIT Real Return Portfolio | PIMCO VIT Real Return Portfolio | PIMCO VIT Real Return Portfolio | PIMCO VIT Real Return Portfolio |  |  |  |  |  |  |  |
| 2025 | 7941 | $11.24 | to | $23.91 | $125187 | 3.32% | —% | to | 3.40% | 4.32% | to | 7.87% |
| 2024 | 9175 | $10.77 | to | $22.51 | $136774 | 2.63% | —% | to | 3.40% | (1.26)% | to | 2.13% |
| 2023 | 10635 | $10.90 | to | $22.39 | $158429 | 2.99% | —% | to | 3.40% | 0.26% | to | 3.67% |
| 2022 | 12091 | $10.87 | to | $21.93 | $176935 | 7.05% | —% | to | 3.40% | (14.80)% | to | (11.91)% |
| 2021 | 13984 | $12.75 | to | $25.29 | $236784 | 4.93% | —% | to | 3.40% | 2.13% | to | 5.61% |
| PIMCO VIT StocksPLUS Global Portfolio | PIMCO VIT StocksPLUS Global Portfolio | PIMCO VIT StocksPLUS Global Portfolio | PIMCO VIT StocksPLUS Global Portfolio | PIMCO VIT StocksPLUS Global Portfolio | PIMCO VIT StocksPLUS Global Portfolio |  |  |  |  |  |  |  |
| 2025 | 7474 | $10.96 | to | $32.58 | $172703 | 4.53% | 0.30% | to | 3.40% | 20.16% | to | 23.88% |
| 2024 | 8710 | $9.02 | to | $26.30 | $165807 | 5.09% | 0.30% | to | 3.40% | 9.61% | to | 13.03% |
| 2023 | 10052 | $8.13 | to | $23.27 | $173035 | 2.77% | 0.30% | to | 3.40% | 18.80% | to | 22.47% |
| 2022 | 11407 | $6.77 | to | $19.00 | $163479 | 1.15% | 0.30% | to | 3.40% | (21.45)% | to | (19.03)% |
| 2021 | 12684 | $8.52 | to | $23.46 | $232366 | 0.09% | 0.30% | to | 3.40% | 15.40% | to | 18.97% |
| PIMCO VIT Total Return Portfolio | PIMCO VIT Total Return Portfolio | PIMCO VIT Total Return Portfolio | PIMCO VIT Total Return Portfolio | PIMCO VIT Total Return Portfolio | PIMCO VIT Total Return Portfolio |  |  |  |  |  |  |  |
| 2025 | 21920 | $12.58 | to | $31.88 | $436003 | 4.11% | —% | to | 3.40% | 6.12% | to | 7.40% |
| 2024 | 26324 | $11.94 | to | $29.27 | $490925 | 4.04% | —% | to | 3.40% | (0.87)% | to | 2.54% |
| 2023 | 30549 | $12.04 | to | $28.54 | $567133 | 3.56% | —% | to | 3.40% | 2.46% | to | 5.94% |
| 2022 | 34883 | $11.74 | to | $26.94 | $624283 | 2.60% | —% | to | 3.40% | (17.12)% | to | (14.31)% |
| 2021 | 38985 | $14.16 | to | $31.44 | $828615 | 1.82% | —% | to | 3.40% | (4.52)% | to | (1.27)% |
| T. Rowe Price Blue Chip Growth Portfolio | T. Rowe Price Blue Chip Growth Portfolio | T. Rowe Price Blue Chip Growth Portfolio | T. Rowe Price Blue Chip Growth Portfolio | T. Rowe Price Blue Chip Growth Portfolio | T. Rowe Price Blue Chip Growth Portfolio |  |  |  |  |  |  |  |
| 2025 | 39 | $112.95 | to | $112.95 | $4438 | —% | 0.30% | to | 0.30% | 18.08% | to | 18.08% |

---

Page 58 of 60

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At December 31 | At December 31 | At December 31 | At December 31 | At December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 | For the years or periods ended December 31 |
|  | Units Outstanding \*\*\*\* | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Unit Fair Value lowest to highest | Net Assets \*\*\*\* | Investment Income Ratio\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Expense Ratio<br> lowest to highest\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* | Total Return <br> lowest to highest\*\*\* |
| 2024 | 45 | $95.66 | to | $95.66 | $4282 | —% | 0.30% | to | 0.30% | 34.76% | to | 34.76% |
| 2023 | 52 | $70.98 | to | $70.98 | $3704 | —% | 0.30% | to | 0.30% | 48.51% | to | 48.51% |
| 2022 | 57 | $47.80 | to | $47.80 | $2720 | —% | 0.30% | to | 0.30% | (38.85)% | to | (38.85)% |
| 2021 | 61 | $78.16 | to | $78.16 | $4737 | —% | 0.30% | to | 0.30% | 16.98% | to | 16.98% |
| T. Rowe Price Equity Income Portfolio | T. Rowe Price Equity Income Portfolio | T. Rowe Price Equity Income Portfolio | T. Rowe Price Equity Income Portfolio | T. Rowe Price Equity Income Portfolio | T. Rowe Price Equity Income Portfolio |  |  |  |  |  |  |  |
| 2025 | 17 | $53.51 | to | $53.51 | $916 | 1.38% | 0.30% | to | 0.30% | 13.73% | to | 13.73% |
| 2024 | 23 | $47.05 | to | $47.05 | $1059 | 1.61% | 0.30% | to | 0.30% | 11.04% | to | 11.04% |
| 2023 | 29 | $42.37 | to | $42.37 | $1210 | 1.82% | 0.30% | to | 0.30% | 8.99% | to | 8.99% |
| 2022 | 36 | $38.88 | to | $38.88 | $1405 | 1.70% | 0.30% | to | 0.30% | (3.87)% | to | (3.87)% |
| 2021 | 34 | $40.44 | to | $40.44 | $1389 | 1.45% | 0.30% | to | 0.30% | 24.84% | to | 24.84% |
| T. Rowe Price Health Sciences Portfolio | T. Rowe Price Health Sciences Portfolio | T. Rowe Price Health Sciences Portfolio | T. Rowe Price Health Sciences Portfolio | T. Rowe Price Health Sciences Portfolio | T. Rowe Price Health Sciences Portfolio |  |  |  |  |  |  |  |
| 2025 | 4 | $140.45 | to | $140.45 | $526 | —% | 0.30% | to | 0.30% | 17.45% | to | 17.45% |
| 2024 | 4 | $119.58 | to | $119.58 | $536 | —% | 0.30% | to | 0.30% | 1.11% | to | 1.11% |
| 2023 | 5 | $118.27 | to | $118.27 | $619 | —% | 0.30% | to | 0.30% | 2.38% | to | 2.38% |
| 2022 | 8 | $115.52 | to | $115.52 | $881 | —% | 0.30% | to | 0.30% | (12.95)% | to | (12.95)% |
| 2021 | 8 | $132.70 | to | $132.70 | $1051 | —% | 0.30% | to | 0.30% | 12.49% | to | 12.49% |
| Templeton Global Bond VIP Fund | Templeton Global Bond VIP Fund | Templeton Global Bond VIP Fund | Templeton Global Bond VIP Fund | Templeton Global Bond VIP Fund | Templeton Global Bond VIP Fund |  |  |  |  |  |  |  |
| 2025 | 5600 | $18.87 | to | $66.46 | $203351 | —% | —% | to | 3.40% | 11.46% | to | 15.73% |
| 2024 | 6792 | $16.87 | to | $57.42 | $216893 | —% | —% | to | 3.40% | (14.36)% | to | (11.37)% |
| 2023 | 7507 | $19.70 | to | $64.79 | $276461 | —% | —% | to | 3.40% | (0.55)% | to | 2.88% |
| 2022 | 8678 | $19.80 | to | $62.98 | $316928 | —% | —% | to | 3.40% | (8.12)% | to | (4.95)% |
| 2021 | 10147 | $21.55 | to | $66.26 | $396914 | —% | —% | to | 3.40% | (8.17)% | to | (4.99)% |

---

<br>1. Period from June 18, 2021 (fund commencement) to December 31, 2021 <br> 2. Period from April 28, 2023 (fund commencement) to December 31, 2023

\* These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying fund, net of management fees assessed by the fund manager, divided by the average daily net assets. These ratios exclude those expenses, such as mortality and expense risk and administrative charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.

\*\* These ratios represent the annualized contract expenses of the Variable Account, consisting primarily of mortality and expense risk and administrative charges, for each period indicated, based on the products available to the contractholders. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contractholder accounts through the redemption of units such as the contract maintenance charges and rider charges for the optional benefits, the account fee for the Income Advantage Account, and expenses of the underlying funds are excluded. Mortality and expense risk and administrative charges for all funds in annuitized contracts are excluded from the expense ratio.

\*\*\* These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect contract expenses of the Variable Account for products held at the time by contractholders. The total return does not include any expenses assessed through the redemption of units. Inclusion of these expenses in the calculation would result in a reduction in the total return presented. Funds with a date notation, as shown above, indicate the effective date of that fund in the Variable Account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. The total return is presented as a range of minimum to maximum values. Based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract returns are not within the ranges presented and are not annualized. Adjustments were made to contractholder units and unit values in May and June 2025 within certain funds, to streamline the administration, processing and service to contractholders. These adjustments resulted in no impact to account balances.

Page 59 of 60

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**ALLIANZ LIFE VARIABLE ACCOUNT B**

**OF ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to the Financial Statements

December 31, 2025

\*\*\*\* Units Outstanding excludes units for annuitized contracts. Total Net Assets includes the net assets of the annuitized contracts. Total net assets of annuitized contracts at December 31, 2025, 2024, 2023, 2022 and 2021, are $20,236, $19,682, $14,063, $15,614, and $10,473, respectively.

**(7) Subsequent Events**

No material subsequent events have occurred since December 31, 2025 through April 6, 2026, the date at which the financial statements were issued, that would require adjustment to the financial statements.

Page 60 of 60

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statutory Financial Statements

December 31, 2025 and 2024

(With Report of Independent Auditors Thereon)

------

**Report of Independent Auditors**

To the Board of Directors of Allianz Life Insurance Company of North America

***Opinions***

We have audited the accompanying statutory financial statements of Allianz Life Insurance Company of North America (the "Company"), which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2025 and 2024, and the related statutory statements of operations, of capital and surplus, and of cash flow for each of the three years in the period ended December 31, 2025, including the related notes (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 admitted assets, liabilities and capital and surplus of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in accordance with the accounting practices prescribed or permitted by the Minnesota Department of Commerce Insurance Division described in Note 2.

*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 section of our report, the accompanying 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 as of December 31, 2025 and 2024, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2025.

***Basis for Opinions***

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US 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 audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

*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 Minnesota Department of Commerce Insurance Division, 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.

***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 Minnesota Department of Commerce Insurance Division. 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 Company's ability to continue as a going concern for one year after the date the financial statements are available to be issued.

Statutory Financial Statements as of December 31, 2025

Page 1 of 74

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***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 US 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 US GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 Company's internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's 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.

/s/PricewaterhouseCoopers LLP

Minneapolis, Minnesota

April 6, 2026

Statutory Financial Statements as of December 31, 2025

Page 2 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus

December 31, 2025 and 2024

(Dollars in millions, except share data)

---

| | | |
|:---|:---|:---|
| **Admitted Assets** | **2025** | **2024** |
| Cash and invested assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | $93425 | 87377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks | 352 | 329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiaries | 968 | 1530 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans on real estate | 12020 | 17639 |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate | 122 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents and short-term investments | 3036 | 2390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Policy loans | 1033 | 835 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative assets | 4868 | 3413 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 4993 | 4482 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and invested assets | 120817 | 118094 |
| Investment income due and accrued | 1739 | 1592 |
| Current federal and foreign income tax recoverable | 517 | 738 |
| Deferred tax asset, net | 659 | 594 |
| Other assets | 2899 | 1819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admitted assets, exclusive of separate account assets | 126631 | 122837 |
| Separate account assets | 75127 | 62629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total admitted assets | $201758 | 185466 |
| See accompanying notes to statutory financial statements. |  |  |

---

Statutory Financial Statements as of December 31, 2025

Page 3 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus

December 31, 2025 and 2024

(Dollars in millions, except share data)

---

| | | |
|:---|:---|:---|
| **Liabilities and Capital and Surplus** | **2025** | **2024** |
| Policyholder liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life policies and annuity contracts | $89042 | 92041 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accident and health policies | 3075 | 2831 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposit-type contracts | 5754 | 3557 |
| &nbsp;&nbsp;&nbsp;&nbsp;Life policy and contract claims | 10 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accident and health policy and contract claims | 36 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Funds held under reinsurance treaties | 12041 | 8556 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other policyholder funds | 178 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total policyholder liabilities | 110136 | 107199 |
| Interest maintenance reserve | 58 | 63 |
| General expenses due and accrued | 229 | 228 |
| Due from separate accounts | (1014) | (2422) |
| Current income taxes payable | 4 | 4 |
| Borrowed money |  | 2515 |
| Asset valuation reserve | 1524 | 1493 |
| Derivative liabilities | 3910 | 2673 |
| Other liabilities | 4600 | 3919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities, exclusive of separate account liabilities | 119447 | 115672 |
| Separate account liabilities | 75127 | 62629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 194574 | 178301 |
| Capital and surplus: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A, Series A preferred stock, $1 par value. Authorized, issued, and outstanding, 8,909,195 shares; liquidation preference of $9 and $6 at December 31, 2025 and 2024, respectively | 9 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A, Series B preferred stock, $1 par value. Authorized, 10,000,000 shares; issued and outstanding, 9,994,289 shares; liquidation preference of $9 and $5 at December 31, 2025 and 2024, respectively" | 10 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $1 par value. Authorized, 40,000,000 shares; issued and outstanding, 20,000,001 shares at December 31, 2025 and 2024, respectively | 20 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 3676 | 3676 |
| &nbsp;&nbsp;&nbsp;&nbsp;Special surplus funds | 565 | 373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unassigned surplus | 2904 | 3077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital and surplus | 7184 | 7165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and capital and surplus | $201758 | 185466 |
| See accompanying notes to statutory financial statements. |  |  |

---

Statutory Financial Statements as of December 31, 2025

Page 4 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statutory Statements of Operations

Years ended December 31, 2025, 2024, and 2023

(Dollars in millions)

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums and annuity considerations | $17153 | 21596 | 17503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consideration for supplementary contracts | 108 | 116 | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income | 5412 | 5057 | 4822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commissions and expense allowances on reinsurance ceded | 719 | 716 | 736 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reserve adjustments related to reinsurance ceded | (2235) | (2343) | (2271) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fees from separate accounts | 389 | 433 | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 215 | 213 | 248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income | 21761 | 25788 | 21604 |
| Benefits and other expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Policyholder benefits | 1999 | 1986 | 1860 |
| &nbsp;&nbsp;&nbsp;&nbsp;Surrenders | 15117 | 15134 | 10584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in aggregate reserves and deposit funds | (1780) | 2316 | 3482 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commissions and other agent compensation | 2165 | 2109 | 1820 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 969 | 978 | 862 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net transfers to separate accounts | 2167 | 2060 | 834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total benefits and other expenses | 20637 | 24583 | 19442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations before federal income taxes and net realized capital gain | 1124 | 1205 | 2162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 279 | 471 | 574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income from operations before net realized capital gain | 845 | 734 | 1588 |
| &nbsp;&nbsp;&nbsp;Net realized capital (loss) gain, net of taxes and interest maintenance reserve | (362) | 1040 | (797) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $483 | 1774 | 791 |
| See accompanying notes to statutory financial statements. |  |  |  |

---

Statutory Financial Statements as of December 31, 2025

Page 5 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statutory Statements of Capital and Surplus

Years ended December 31, 2025, 2024, and 2023

(Dollars in millions)

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Capital and surplus at beginning of year | $7165 | 7034 | 6515 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change due to correction of accounting error (Note 3) |  |  | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change due to statutory merger (Note 15) | 4 |  |  |
| Adjusted balance at beginning of year | 7169 | 7034 | 6549 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 483 | 1774 | 791 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized capital gain (loss) | 251 | (893) | 522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in net deferred income tax | 142 | 263 | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in asset valuation reserve | (31) | (51) | (176) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid to parent | (650) | (650) | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unamortized gain on reinsurance transactions | (111) | (165) | (305) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other changes in capital and surplus | (69) | (147) | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital and surplus at end of year | $7184 | 7165 | 7034 |
| See accompanying notes to statutory financial statements. |  |  |  |

---

Statutory Financial Statements as of December 31, 2025

Page 6 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statutory Statements of Cash Flow

Years ended December 31, 2025, 2024, and 2023

(Dollars in millions)

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Cash flow from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums and annuity considerations, net | 17371 | 19271 | 15681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income | 5300 | 5000 | 4663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions and expense allowances on reinsurance ceded | 413 | 397 | 431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees from separate accounts | 389 | 433 | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (25) | (12) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by operating activities | 23448 | 25089 | 21220 |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits and expenses paid: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit and loss-related payments | 14863 | 17158 | 11632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net transfers to separate accounts | 759 | 3158 | 1408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions, expenses paid, and aggregate write-ins for deductions | 3783 | 3970 | 3036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (received) paid, net | (48) | 586 | 833 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash used in operating activities | 19357 | 24872 | 16909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 4091 | 217 | 4311 |
| Cash flow from investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from investments sold, matured or repaid: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | 17847 | 20825 | 14591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stocks | 145 | 124 | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | 6448 | 1612 | 781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate | 6 | 5 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 315 | 118 | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives | 68 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous proceeds | 27 | 719 | 264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by investing activities | 24856 | 23403 | 15938 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of investments acquired: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | 23279 | 19889 | 14777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stocks | 204 | 167 | 219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans | 934 | 1261 | 1223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate |  | 8 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 807 | 616 | 956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives |  | 105 | 410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous applications | 179 |  | 785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash used in investing activities | 25403 | 22046 | 18382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase in policy loans and premium notes | 198 | 326 | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (745) | 1031 | (2644) |
| Cash flow from financing and miscellaneous activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in borrowed money |  |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on deposit-type contracts and other insurance liabilities, net of deposits | (997) | (1077) | (1135) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid to parent | (650) | (650) | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other cash (used) provided | (1053) | (562) | 667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing and miscellaneous activities | (2700) | (2289) | (468) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in cash, cash equivalents, and short-term investments | 646 | (1041) | 1199 |
| Cash, cash equivalents, and short-term investments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of year | 2390 | 3431 | 2232 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of year | 3036 | 2390 | 3431 |
| See accompanying notes to statutory financial statements. |  |  |  |

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Statutory Financial Statements as of December 31, 2025

Page 7 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Statutory Statements of Cash Flow

Years ended December 31, 2025, 2024, and 2023

(Dollars in millions)

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Supplemental disclosure of cash flow information for non-cash transactions: |  |  |  |
| &nbsp;&nbsp;Initial funds withheld ceded premium – premiums and benefits (Operating) | 4166 |  |  |
| &nbsp;&nbsp;Bond exchanges - proceeds and cost (Investing) | (1125) | (351) | (491) |

---

Statutory Financial Statements as of December 31, 2025

Page 8 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

**(1)&nbsp;&nbsp;&nbsp;&nbsp;Organization and Nature of Operations**

Allianz Life Insurance Company of North America (the Company) is a wholly-owned subsidiary of Allianz of America, Inc. (AZOA or parent company), which is a wholly-owned subsidiary of Allianz Europe, B.V. Allianz Europe, B.V. is a wholly-owned subsidiary of Allianz SE. Allianz SE is a European company registered in Munich, Germany, and is the Company's ultimate parent. The Company has a wholly-owned life insurance company subsidiary, Allianz Life Insurance Company of New York (AZNY). The Company also wholly owns a captive reinsurer, Allianz Life Insurance Company of Missouri (AZMO).

The Company is a life insurance company licensed to sell annuity, group and individual life, and group and individual accident and health policies in the United States and several U.S. territories. Based on statutory net premium written, the Company's business is predominately annuity. The annuity business consists of fixed-indexed, variable-indexed, variable, and fixed annuities. The life business consists of both individual and group life. Life business includes products with guaranteed premiums and benefits and consists principally of fixed-indexed universal life (FIUL) policies and closed blocks of universal life policies, term insurance policies, and limited payment contracts. Accident and health business is primarily comprised of closed blocks of long-term care (LTC) insurance. The Company's primary distribution channels are through independent agents, broker-dealers, banks, and third-party marketing organizations.

After evaluating the Company's ability to continue as a going concern, management is not aware of any conditions or events which raise substantial doubt concerning the Company's ability to continue as a going concern as of the date of filing these Statutory Financial Statements.

**(2)&nbsp;&nbsp;&nbsp;&nbsp;Summary of Significant Accounting Policies**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***&nbsp;&nbsp;&nbsp;&nbsp;***Basis of Presentation***

The Statutory Financial Statements have been prepared in accordance with accounting practices prescribed or permitted by the Minnesota Department of Commerce (the Department). The Department recognizes statutory accounting practices prescribed or permitted by the state of Minnesota for determining and reporting the financial condition and results of operations of an insurance company and its solvency under Minnesota insurance law. The state of Minnesota has adopted the National Association of Insurance Commissioners (NAIC) *Accounting Practices and Procedures Manual* as its prescribed basis of statutory accounting principles (SAP), without significant modification. The Company has no material statutory accounting practices that differ from those of the Department or NAIC SAP. These practices differ in some respects from accounting principles generally accepted in the United States of America (U.S. GAAP). The effects of these differences, while not quantified, are presumed to be material to the Statutory Financial Statements. The more significant of these differences are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Acquisition costs, such as commissions and other costs incurred in connection with acquiring new and renewal business, are charged to current operations as incurred. Under U.S. GAAP, acquisition costs that are directly related to the successful acquisition of insurance contracts are capitalized and charged to operations on a straight-line basis over the expected term of the related contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Aggregate reserves for life policies and annuity contracts, excluding variable annuities, are based on statutory mortality and interest assumptions without consideration for lapses or withdrawals. Under U.S. GAAP, aggregate reserves consider lapses and withdrawals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Certain reinsurance transactions, primarily used for annuity business, are recognized as reinsurance for statutory purposes only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Ceded reinsurance recoverable are netted against their related reserves within Policyholder liabilities, Life policies and annuity contracts and Life policy and contract claims, on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Under U.S. GAAP, these ceded reserves are presented on a gross basis as an asset.

Statutory Financial Statements as of December 31, 2025

Page 9 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;The Company reinsures a portion of its in-force block of business through several reinsurance agreements. Under NAIC SAP, the after-tax gains associated with these indemnity reinsurance transactions are recorded in Unassigned surplus and recognized through income as future earnings of the books of business emerge. Under U.S. GAAP, the pretax gains associated with such transactions that qualify as reinsurance, are deferred as liabilities and are amortized into operations over the revenue-producing period of the policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;Bonds are carried at values prescribed by the NAIC, generally amortized cost, except for those with an NAIC rating of 6, which are reported at the lower of amortized cost or fair value. Under U.S. GAAP, bonds classified as "available-for-sale" are carried at fair value, with unrealized gains and losses recorded in stockholder's equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7)&nbsp;&nbsp;&nbsp;&nbsp;Changes in deferred income taxes are recorded directly to Unassigned surplus. Under U.S. GAAP, these items are generally recorded as an item of income tax benefit or expense in operations. Moreover, under NAIC SAP, a valuation allowance may be recorded against the deferred tax asset (DTA) and admittance testing may result in an additional charge to capital and surplus for nonadmitted portions of DTAs. Under U.S. GAAP, a valuation allowance may be recorded against the DTA and reflected as an expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;Investments in subsidiaries are carried at net equity values as prescribed by the NAIC. Changes in equity values are reflected in Unassigned surplus within the Statutory Statements of Capital and Surplus as credits or charges to Unassigned surplus. Under U.S. GAAP, wholly owned subsidiary results are consolidated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&nbsp;&nbsp;&nbsp;The Company is required to establish an asset valuation reserve (AVR) liability and an interest maintenance reserve (IMR) liability. The AVR provides for a standardized statutory investment valuation reserve for certain invested assets. Changes in this reserve are recorded as direct charges or credits to Unassigned surplus. The IMR is designed to defer net realized capital gains and losses, net of tax, resulting from changes in the level of prevailing market interest rates and amortize them into income within the Statutory Statements of Operations over the remaining life of the investment sold. The IMR represents the unamortized portion of applicable investment gains and losses as of the balance sheet date. There is no such concept under U.S. GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;&nbsp;&nbsp;&nbsp;Certain assets designated as "nonadmitted assets" are not recognized and are charged directly to Unassigned surplus within the Statutory Statements of Capital and Surplus. These include, but are not limited to, investments in unaudited subsidiary, controlled, and affiliated (SCA) entities, electronic data processing (EDP) software, furniture and fixtures, prepaid expenses, receivables outstanding greater than 90 days, and portions of DTAs. There is no such concept under U.S. GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)&nbsp;&nbsp;&nbsp;&nbsp;A provision is made for amounts ceded to unauthorized reinsurers in excess of collateral in the form of a trust or letter of credit through a direct charge to Unassigned surplus within the Statutory Statements of Capital and Surplus. There is no such requirement under U.S. GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)&nbsp;&nbsp;&nbsp;&nbsp;Revenues for universal life policies and annuity contracts, excluding deposit-type contracts, are recognized as revenue when received within the Statutory Statements of Operations. Under U.S. GAAP, policy and contract fees charged for the cost of insurance, policy administrative charges, amortization of policy initiation fees, and surrender contract charges are recorded as revenues when earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)&nbsp;&nbsp;&nbsp;&nbsp;Benefits for universal life policies and annuity contracts within the Statutory Statements of Operations, excluding deposit-type contracts, consist of payments made to policyholders. Under U.S. GAAP, benefits represent interest credited, and claims and benefits incurred in excess of the policyholder's contract balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)&nbsp;&nbsp;&nbsp;&nbsp;Derivatives are reported at fair value in accordance with SSAP No. 86, Derivatives (SSAP No. 86) and SSAP No. 108, Derivatives Hedging Variable Annuity Guarantees (SSAP No. 108). See additional information in section (k) of this note and note 5. Changes in the fair value of derivatives, except those

Statutory Financial Statements as of December 31, 2025

Page 10 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

reported under SSAP No. 108, are recorded as direct adjustments to Unassigned surplus as a component of Change in unrealized capital gains (losses) within the Statutory Statements of Capital and Surplus. For derivatives reported under SSAP No. 108, changes in fair value are recognized as net deferred assets or liabilities within Other assets or Other liabilities, respectively, in the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus, for fluctuations in fair value that do not offset the changes in the hedged item. The deferred asset or liability is amortized over the timeframe required under SSAP No. 108. Under U.S. GAAP, changes in the fair value of derivatives are recorded in derivative income (loss) as part of operating income and the hedged derivatives are carried at fair value. In addition, the effective and ineffective portions of a hedge are accounted for separately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15)&nbsp;&nbsp;&nbsp;&nbsp;Commissions allowed by reinsurers on business ceded are reported as income when received within the Statutory Statements of Operations. Under U.S. GAAP, such commissions are deferred and amortized as a component of deferred acquisition costs to the extent recoverable.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16)&nbsp;&nbsp;&nbsp;&nbsp;The Statutory Financial Statements do not include a statement of comprehensive income as required under U.S. GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17)&nbsp;&nbsp;&nbsp;&nbsp;The Statutory Statements of Cash Flow do not classify cash flows consistent with U.S. GAAP and a reconciliation of net income to net cash provided from operating activities is not provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18)&nbsp;&nbsp;&nbsp;&nbsp;The calculation of reserves and transfers in the separate account statement requires the use of a Commissioners Annuity Reserve Valuation Method (CARVM) allowance on annuities for NAIC SAP. There is no such requirement under U.S. GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19)&nbsp;&nbsp;&nbsp;&nbsp;Sales inducements and premium bonuses are included in Life policies and annuity contracts in the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus, and are charged to current operations as incurred. Under U.S. GAAP, deferred sales inducements and premium bonuses are similarly reserved; however, the costs are capitalized as assets and charged to operations as future profits are recognized in a manner similar to acquisition costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20)&nbsp;&nbsp;&nbsp;&nbsp;Negative cash balances are presented as a negative asset within the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. These balances are presented as a liability under U.S. GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21)&nbsp;&nbsp;&nbsp;&nbsp;Embedded derivatives are not separated from the host contract and accounted for separately as a derivative instrument. Under U.S. GAAP, entities must separate the embedded derivative from the host contracts and separately account for those embedded derivatives at fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)&nbsp;&nbsp;&nbsp;&nbsp;For certain annuity products with a market value adjustment feature sold to Minnesota residents (MN MVA) and variable-indexed annuities, the Department requires the Company to maintain a separate asset portfolio to back related reserves. These assets and liabilities are required to be included as part of the Separate account assets and Separate account liabilities presented on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Under U.S. GAAP, there is no such requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***&nbsp;&nbsp;&nbsp;&nbsp;***Permitted and Prescribed Statutory Accounting Practices***

The Company is required to file annual statements with insurance regulatory authorities, which are prepared on an accounting basis permitted or prescribed by such authorities. Prescribed statutory accounting practices include state laws, regulations, and general administrative rules, as well as a variety of publications of the NAIC. Permitted statutory accounting practices encompass all accounting practices that are not prescribed; such practices differ from state to state, may differ from company to company within a state, and may change in the future. The Company has no permitted or prescribed practices that differ from NAIC SAP that had an impact on net income or surplus as of December 31, 2025, 2024, and 2023.

The Company's subsidiary, AZMO, has adopted an accounting practice that is prescribed by the Missouri Department of Commerce and Insurance (the Missouri Department). The effect of the accounting practice allows a letter of credit to be carried as an admitted asset. The balance of the letter of credit asset at

Statutory Financial Statements as of December 31, 2025

Page 11 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

December 31, 2025 and 2024 was $78 and $86, respectively. Under NAIC SAP, this letter of credit would not be allowed as an admitted asset.

This prescribed practice does not impact the net income of AZMO and results in increases to surplus of $78 and $86 as of December 31, 2025 and 2024, respectively. The Company's carrying value of its investment in AZMO per the statutory surplus was $$403 and $395, and the carrying value of its investment in AZMO would have been $325 and $309 if AZMO had completed Statutory Financial Statements in accordance with the NAIC SAP as of December 31, 2025 and 2024, respectively. AZMO maintains an adequate amount of surplus such that if it had not adopted the prescribed practice, surplus would still exceed the risk-based capital requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)***&nbsp;&nbsp;&nbsp;&nbsp;***Use of Estimates***

The preparation of Statutory Financial Statements in conformity with NAIC SAP requires management to make certain estimates and assumptions that affect reported amounts of admitted assets and liabilities, including reporting or disclosure of contingent assets and liabilities as of December 31, 2025 and 2024, and the reported amounts of revenues and expenses during the reporting period. Future events, including changes in mortality, morbidity, interest rates, capital markets, and asset valuations could cause actual results to differ from the estimates used within the Statutory Financial Statements. Such changes in estimates are recorded in the period they are determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)***&nbsp;&nbsp;&nbsp;&nbsp;***Premiums and Annuity Considerations***

Life premiums are recognized as income over the premium paying period of the related policies. Nondeposit-type annuity considerations are recognized as revenue when received. Accident and health premiums are earned ratably over the terms of the related insurance and reinsurance contracts or policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)***&nbsp;&nbsp;&nbsp;&nbsp;***Aggregate Reserves for Life Policies and Annuity Contracts***

Reserves are principally calculated as the minimum reserves permitted by the state where the contract is issued for the year in which the contract is issued.

For the Company's fixed annuity product lines, reserves are calculated using CARVM. The Company uses both issue year and change in fund basis for the calculation method, on a curtate basis, using the maximum allowable interest rate. Deferred fixed-interest and fixed-indexed annuities typically have a two-tier structure to encourage annuitization, or a single-tier structure, which may include a market value adjustment. Either two-tier or single-tier annuities may include bonuses.

For the Company's variable and variable-indexed annuity product lines, reserves are calculated using VM-21, *Requirements for Principle-Based Reserves for Variable Annuities* (VM-21). Variable deferred annuities include a wide range of guaranteed minimum death benefits and living benefits (income, accumulation, and withdrawal).

Reserves for immediate annuities are calculated using current prescribed mortality tables.

Aggregate reserves for life insurance policies are principally calculated using the Commissioners Reserve Valuation Method (CRVM) or VM-20, *Requirements for Principle-Based Reserves for Life Products*, depending on the policy's issue date. Additional reserves are held for supplemental benefits and for contracts with secondary guarantees, consistent with prescribed regulations and actuarial guidelines.

Statutory capital volatility arises on the FIUL products due to the timing mismatch between when changes in the Company's derivative instruments and the hedged statutory reserve are recognized in income. To reduce the Company's capital sensitivity, the Company records a voluntary reserve, which accounts for policyholder index credits that are not included in minimum reserves minus expected investment income before credits are paid (floored at zero). The voluntary reserve balance was $407 and $296 as of December 31, 2025 and 2024, respectively.

Statutory Financial Statements as of December 31, 2025

Page 12 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

The Company performs an annual asset adequacy analysis as required by regulation covering substantially all of its reserves. These tests are not only performed under the required interest rate scenarios, but also under additional stochastically generated interest and equity growth scenarios. Sensitivity tests, including policy lapse, annuitization, maintenance expenses, and investment return, are performed to evaluate potential insufficiencies in reserve adequacy. The results of these tests and analysis resulted in $0 of additional reserves at December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)***&nbsp;&nbsp;&nbsp;&nbsp;***Aggregate Reserves for Accident and Health Policies***

For accident and health business, reserves consist of active life reserves (mainly reserves for unearned premiums and reserves for contingent benefits on individual LTC business) and claim reserves (the present value of amounts not yet due). Claim reserves represent incurred but unpaid claims under group policies. For the Accident & Health products, the asset adequacy analysis was performed through a gross premium valuation. At December 31, 2025 and 2024, the results of these tests and analysis supported the establishment of additional reserves of $650 and $545, respectively. The anticipated investment income was utilized in the calculation of this liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)***&nbsp;&nbsp;&nbsp;&nbsp;***Deposit-type Contracts***

Deposit-type contracts represent liabilities to policyholders in a payout status, who have chosen a fixed payout option without life contingencies. The premiums and claims related to deposit-type contracts are not reflected in the Statutory Statements of Operations as they do not have insurance risk. The Company accounts for the contract as a deposit-type contract in the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

Beginning in 2025, amounts borrowed from the Federal Home Loan Bank (FHLB) are included within Deposit-type contracts with the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. See Notes 2 (m) and 3 for further information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h)***&nbsp;&nbsp;&nbsp;&nbsp;***Policy and Contract Claims***

Policy and contract claims include the liability for claims reported but not yet paid, claims incurred but not yet reported (IBNR), and claim settlement expenses on the Company's accident and health business. Actuarial reserve development methods are generally used in the determination of IBNR liabilities. In cases of limited experience or lack of credible claims data, loss ratios are used to determine an appropriate IBNR liability. Claim and IBNR liabilities of a short-term nature are not discounted, but those claim liabilities resulting from disability income or LTC benefits include interest and mortality discounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i)***&nbsp;&nbsp;&nbsp;&nbsp;***Reinsurance***

The Company assumes and cedes business with other insurers. Reinsurance premium and benefits paid or provided are accounted for in a manner consistent with the basis used in accounting for original policies issued and the terms of the reinsurance contracts. Amounts recoverable from reinsurers represent account balances and unpaid claims covered under reinsurance contracts. Amounts paid or deemed to have been paid for claims covered by reinsurance contracts are recorded as a reinsurance recoverable and are included in Other assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

Included in Unassigned surplus is the gain recognized when the Company enters into a reinsurance agreement on existing business. The gain is deferred and amortized into operations on a basis consistent with how the future earnings emerge on the underlying business.

Reserve adjustments related to reinsurance ceded in the Statutory Statements of Operations include reserve changes received from reinsurers on modified coinsurance (modco) and funds withheld (FWH) treaties. Under a modco or FWH agreement, the ceded reserves and a portfolio of assets remain on the Company's Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Ceded reserves for modco are presented within Life policies and annuity contracts on the Statutory Statements of Admitted Assets, Liabilities, and

Statutory Financial Statements as of December 31, 2025

Page 13 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

Capital and Surplus, while ceded reserves for FWH are presented within Funds held under reinsurance treaties. Assets supporting these treaties are considered restricted as they are not under the full control of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(j)***&nbsp;&nbsp;&nbsp;&nbsp;***Investments***

Investment values are determined in accordance with methods prescribed by the NAIC.

**Bonds and Stocks**

The Securities Valuation Office (SVO) of the NAIC evaluates the credit quality of the Company's bond investments. Bonds rated at "1" (highest quality), "2" (high quality), "3" (medium quality), "4" (low quality), or "5" (lower quality) are reported at cost adjusted for the amortization of premiums, accretion of discounts, and any impairment. Bonds rated at "6" (lowest quality) are carried at the lower of amortized cost or fair value with any adjustments to fair value recorded to Unassigned surplus within the Statutory Statements of Capital and Surplus.

In accordance with its investment policy, the Company invests primarily in high-grade marketable securities. Dividends are accrued on the date declared and interest is accrued as earned. Premiums or discounts on bonds are amortized using the constant-yield method.

Asset-backed securities and structured securities are amortized using anticipated prepayments, in addition to other less significant factors. Prepayment assumptions for asset-backed and structured securities are obtained from various external sources or internal estimates. The Company believes these assumptions are consistent with those a market participant would use. The Company recognizes income using the modified scientific method based on prepayment assumptions and the estimated economic life of the securities. For structured securities, except for collateralized debt obligations (CDOs) and impaired bonds, when actual prepayments differ significantly from anticipated prepayments, the effective yield is recalculated to reflect actual payments to date and anticipated future payments retrospectively. Any resulting adjustment is included in Net investment income on the Statutory Statements of Operations. For CDOs and impaired bonds, when adjustments are made for anticipated prepayments and other expected changes in future cash flows, the effective yield is recalculated using the prospective method as required by Statement of Statutory Accounting Principles (SSAP) No. 43 – *Asset Backed and Structured Securities* (SSAP No. 43).

Common stocks, other than investments in subsidiaries and FHLB stock, are carried at fair value. FHLB stock is carried at cost, which approximates fair value.

Gross realized gains and losses are computed based on the average amortized cost of all lots held for a particular CUSIP.

The fair value of bonds and common stocks is obtained from third-party pricing sources whenever possible. Management completes its own independent price verification (IPV) process, which ensures security pricing is obtained from a third-party source other than the sources used by the Company's internal and external investment managers. The IPV process supports the reasonableness of price overrides and challenges by the internal and external investment managers and reviews pricing for appropriateness. Results of the IPV process are reviewed by the Company's Pricing Committee.

The Company reviews its combined investment portfolio, including subsidiaries, in aggregate each quarter to determine if declines in fair value are other than temporary.

For bonds for which the fair value is less than amortized cost, the Company evaluates whether a credit loss exists by considering primarily the following factors: (a) the length of time and extent to which the fair value has been less than the amortized cost of the security; (b) changes in the financial condition, credit rating, and near-term prospects of the issuer; (c) whether the issuer is current on contractually obligated interest and principal payments; (d) changes in the financial condition of the security's underlying collateral, if any; and (e) the payment structure of the security. For asset-backed securities, the Company must allocate other-than-temporary impairments (OTTI) between interest and noninterest-related declines in fair value. Interest-related impairments are considered other than temporary when the Company has the intent to sell the investment prior

Statutory Financial Statements as of December 31, 2025

Page 14 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

to recovery of the cost of the investment. The Company maintains a prohibited disposal list that restricts the ability of the investment managers to sell securities in a significant unrealized loss position and requires formal attestations from investment managers regarding their lack of intent to sell certain securities.

The Company evaluates whether equity securities are other-than-temporarily impaired through a review process which includes, but is not limited to, market analysis, analyzing current events, assessing recent price declines, and management's judgment related to the likelihood of recovery within a reasonable period of time.

Impairments considered to be other-than-temporary are recorded as a reduction of the cost of the security, and a corresponding realized loss is recognized on the Statutory Statements of Operations in the period in which the impairment is determined. Recognition of the realized loss is subject to potential offset by AVR and IMR.

The Company holds certain cash equivalents which receive bond treatment based on their underlying securities. These are classified as Other assets receiving bond treatment in Note 5.

**Investment in Subsidiaries**

Common stock of the Company's insurance subsidiaries is carried at SAP capital and surplus, and investments in non-insurance subsidiaries are carried at U.S. GAAP equity value adjusted for certain items that are considered to be non-admitted. Unaudited subsidiaries are fully non-admitted.

**Mortgage Loans on Real Estate**

Mortgage loans on real estate, including commercial mortgage loans (CMLs) and residential mortgage loans (RMLs), are carried at the outstanding principal balance, adjusted for any impairment. The fair value of CMLs is calculated by analyzing individual loans and assigning ratings to each loan based on a combination of loan-to-value ratios and debt service coverage ratios. Fair value is determined based on these factors as well as the contractual cash flows of each loan and the current market interest rates for similar loans. The fair value of RMLs is calculated by discounting estimated cash flows, with discount rates based on current market conditions. The Company evaluates loans quarterly to assess whether there is an impairment based on the likelihood of receiving all contractual cash flows. The Company accounts for interest income on impaired loans on a cash basis. Interest accrual is discontinued for impaired loans and interest income is only recognized when received. Payments received on impaired loans are applied to accrued interest, and payments received in excess of accrued interest are applied to principal.

**Real Estate**

Real estate primarily represents the Company's home office property, and is carried at depreciated cost less encumbrances in accordance with SSAP No. 40 – *Real Estate Investments*. Real estate income, including income received from home office property, is included in Net investment income on the Statutory Statements of Operations. Real estate, exclusive of land, is depreciated on a straight-line basis over estimated useful lives ranging from 3 to 40 years. At December 31, 2025 and 2024, accumulated depreciation was $97 and $92, respectively. Furthermore, as of December 31, 2025 and 2024, real estate was presented net of encumbrances of $0 and $0, respectively, as discussed in Note 7.

The Company had real estate classified as held for sale that was transferred from RMLs of $34 and $7 as of December 31, 2025 and 2024, respectively. Allianz Life sold real estate classified as held for sale with a book value of $8, $5 and $1 during the years ended December 31, 2025, 2024 and 2023, respectively, and recognized a (loss) gain of $(1), $1, and $0 during the years ended December 31, 2025, 2024 and 2023, respectively.

**Cash, Cash Equivalents and Short-term Investments**

Cash and cash equivalents may include cash on hand, demand deposits, money market funds, reverse repurchase agreements (repo), and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the carrying value is deemed to approximate fair value.

Statutory Financial Statements as of December 31, 2025

Page 15 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

In the normal course of business, the Company enters into bilateral and tri-party repos, whereby the Company purchases securities and simultaneously agrees to resell the same securities at a stated price on a specified date in the future, for the purpose of earning a specified rate of return. An affiliate of the Company serves as the agent in the bilateral agreements and an unaffiliated bank serves as the custodian in the tri-party agreements. The bilateral agreements require purchases of specifically identified securities. If at any time the fair value of those purchased securities falls below the purchase price, additional collateral in the form of cash or additional securities is required to be transferred to ensure margin maintenance. The tri-party agreements allow for the purchase of certain bonds and structured securities, and require a minimum of 102% of fair value of the securities purchased to be maintained as collateral.

The Company's repos are accounted for as collateralized lending in accordance with SSAP No. 103 – *Transfers and Servicing of Financial Assets and Extinguishments of Liabilities* (SSAP No. 103), whereby the amounts paid for the securities are reported as cash equivalents within Cash and cash equivalents on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. The difference between the amount paid and the amount at which the securities will be resold is reported as interest income within Net investment income on the Statutory Statements of Operations.

Short-term investments are comprised of bonds due in one year or less at original purchase. Due to the short-term nature of these investments, the carrying value is deemed to approximate fair value.

**Policy Loans**

Policy loans are supported by the underlying cash value of the policies. Policy loans are carried at unpaid principal balances plus accrued interest income on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. The unpaid principal balances are not in excess of the cash surrender values of the related policies.

**Other Invested Assets**

The Company participates in securities lending arrangements whereby specific securities are loaned to other institutions. The Company receives collateral from these arrangements including cash and cash equivalents, which can be reinvested based on the Company's discretion, and noncash collateral, which may not be sold or re-pledged unless the counterparty is in default. The Company accounts for its securities lending transactions as secured borrowings, in which the cash collateral received and the related obligation to return the cash collateral are recorded in Other invested assets and Other liabilities, respectively, on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Noncash collateral received is not reflected on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Securities on loan remain on the Company's Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus, and interest and dividend income earned by the Company on loaned securities is recognized in Net investment income on the Statutory Statements of Operations.

Company policy requires a minimum of 102% of fair value of securities loaned under securities lending agreements to be maintained as collateral. The Company's sources of cash used to return cash collateral is dependent upon the liquidity of current market conditions. The Company has policies in place to manage reinvested collateral at appropriate levels of liquidity.

The Company invests in low income housing tax credit (LIHTC) investments for tax benefits. In accordance with SSAP No. 93 – *Investments in Tax Credit Structures*, the LIHTC investments are carried at cost and adjusted for amortization based on the proportion of total tax credits and other tax benefits expected to be received over the life of the investments. The Company records an asset for the full unfunded investment amount upon entering into a LIHTC agreement; amortization decreases the asset balance over time. A corresponding liability is recorded for the unfunded commitment balance beginning when the LIHTC investment is initially funded, which decreases as the Company provides capital to fund. The asset and liability are recorded in Other invested assets and Other liabilities, respectively, on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. The tax benefit is recognized within Income tax expense within the Statutory Statements of Operations. The amortization of the investment is recorded as Net

Statutory Financial Statements as of December 31, 2025

Page 16 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

investment income and any impairments are included in Net realized capital gain (loss) within the Statutory Statements of Operations.

The Company invests in limited partnerships (LPs) which are recorded using the equity method in line with SSAP No. 48, Joint Ventures, Partnerships, and Limited Liability Companies. The assets are recorded in Other invested assets and Other liabilities, respectively, on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. The Company recognizes income in Net investment income on the Statutory Statements of Operations for distributions deemed to be income distributions by the LP if the accumulated earnings balance is positive, and if it is zero, it reduces the book value. For distributions deemed to be a return of capital by the LP, the book value is reduced regardless of whether the undistributed accumulated earnings balance is positive.

Receivables and payables for securities are carried at fair value on the trade date and represent a timing difference on securities that are traded at the balance sheet date but not settled until subsequent to the balance sheet date. Receivables and payables for securities are included in Other invested assets and Other liabilities, respectively, on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(k)&nbsp;&nbsp;&nbsp;&nbsp;Derivatives***

The Company utilizes derivatives within certain actively managed investment portfolios for hedging purposes.

**Hedge Accounting**

The Company elects hedge accounting under SSAP No. 86 and SSAP No. 108 for certain qualifying derivative instruments. To qualify for hedge accounting, at inception, the Company formally documents the risk management objective and strategy for undertaking the hedging transaction. The documentation links a specific derivative to a specific asset or liability on the Statutory Statements of Assets, Liabilities, and Capital and Surplus, identifies how the derivative is expected to offset the exposure to changes in the hedged item's fair value or variability in cash flows attributable to the designated hedge risk, and the effectiveness testing methods to be used. Hedge effectiveness is formally assessed at inception and on a quarterly basis throughout the life of the designated hedging relationships.

Hedge effectiveness is assessed using qualitative and quantitative methods. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Quantitative methods include analysis of changes in fair value or cash flows associated with the hedge relationship. Hedge effectiveness may be measured using either the dollar offset method or regression analysis. The dollar offset method compares changes in fair value or cash flows of the hedging instrument with changes in the fair value or cash flows of the hedged item attributable to the hedged risk. Regression analysis is a statistical technique used to measure the relationships between the fair values or cash flows of a derivative and a hedged item and how each reacts to changes in the designated hedge risk (i.e., interest rates, foreign currency rates).

A derivative instrument is either classified as an effective hedge or an ineffective hedge. Entities must account for the derivative at fair value if deemed to be ineffective or becomes ineffective. For those derivatives qualifying as effective for hedge accounting under SSAP No. 86, the change in the carrying value or cash flow of the derivative shall be recorded consistently with the way that changes in the carrying value or cash flows of the hedged item are recorded. For those derivatives qualifying as effective for hedge accounting under SSAP No. 108, the derivative is carried at fair value.

*Foreign Currency Swaps* 

The Company utilizes foreign currency swaps to hedge cash flows and applies hedge accounting. Specifically, the Company uses foreign currency swaps to hedge foreign currency and interest rate fluctuations on certain underlying foreign currency denominated fixed-maturity securities. The foreign currency swaps are reported at amortized cost from the date hedge accounting is designated and deemed to be effective, which is consistent with the accounting for the bonds that are the subject of the hedge accounting transactions.

Statutory Financial Statements as of December 31, 2025

Page 17 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

*Interest Rate Swaps on Variable Annuity Insurance Liabilities* 

The Company utilizes interest rate swaps (IRS) to hedge the interest rate risk on certain variable annuity

guarantee benefits. These are accounted for as a cash flow hedge under SSAP No. 86 and a fair value hedge under SSAP No. 108.

Prior to January 1, 2020, the Company had IRS that hedge the interest rate risk on certain variable annuity guarantee benefits held at amortized cost in accordance with SSAP No. 86. The initial book value of the IRS represented the book value created from inception until the designation of hedge accounting. These IRS were held at amortized cost and changes were recognized to the extent they offset changes in the AG43 reserve for the hedged item due to interest rate movement. The initial book value and subsequent changes due to the hedged item or realized gains or losses recorded under hedge accounting (hedge adjustment) are amortized over the duration of the hedge program, approximated by AG43 standard scenario revenues.

Effective January 1, 2020, the Company de-designated its previous hedging relationship under SSAP No. 86 and simultaneously designated the hedging relationship described above under SSAP No. 108. The remaining balance of the SSAP No. 86 hedge adjustment is recorded within Other liabilities on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus, and will be amortized over the life of the former hedge program.

The table below represents the hedge adjustment balance under SSAP No. 86:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Hedge adjustment balance - beginning of year | $308 | 352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | (39) | (44) |
| Hedge adjustment balance - end of year | $269 | 308 |

---

Effective January 1, 2020, the Company designated the hedging relationship described above under SSAP No. 108. The hedged item consists of a portion of the Company's variable annuity block of business minimum benefit guarantees that are sensitive to interest rate movement. The hedged portion of the block is determined on a monthly basis based on the percentage of the economic liability being hedged. The related hedging instrument is a portfolio of interest rate swap derivatives which follows a dynamic hedging strategy. Changes in interest rates impact the present value of the future product cash flows.

The Company recognizes a net deferred asset or liability within Other assets or Other liabilities, respectively, on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus for fluctuations in fair value that do not offset the changes in the hedged liability. Beginning July 1, 2021, the Company elected to amortize the deferred balance that existed as of June 30, 2021 over five years, in accordance with SSAP No. 108, paragraph 14.c. Changes in the deferred balance after July 1, 2021 will be amortized over the timeframe required under SSAP No. 108, paragraph 14, which is the Macaulay duration of guarantee benefit cash flows, capped at 10 years.

The hedge strategy is compliant with VM-21 Clearly Defined Hedge Strategy (CDHS) requirements and meets all the criteria to be defined as an effective hedge relationship as required by SSAP No. 108. The Company entered into this hedging relationship effective January 1, 2020 and no changes in hedging strategy have occurred since inception. Hedge effectiveness is measured in accordance with SSAP No. 108 on a quarterly basis, both prospectively and retrospectively, and remains highly effective as of December 31, 2025.

In accordance with SSAP No. 108, an amount equal to the net deferred asset and deferred liability is allocated from Unassigned funds to Special surplus funds on the Statutory Statements of Admitted Assets,

Statutory Financial Statements as of December 31, 2025

Page 18 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

Liabilities, and Capital and Surplus. The following table shows the deferred activity for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Net deferred liability (asset) - beginning of year | $(373) | $13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | (203) | (210) |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional amounts deferred | 11 | (176) |
| Net deferred liability (asset) - end of year | $(565) | $(373) |

---

The net deferred balance will amortize over the next 10 years, as shown below:

---

| | | |
|:---|:---|:---|
| **Amortization year** | **Deferred assets** | **Deferred liabilities** |
| 2026 | $(252) | $300 |
| 2027 | (158) | 55 |
| 2028 | (158) | 54 |
| 2029 | (158) | 55 |
| 2030 | (158) | 54 |
| 2031 | (158) | 55 |
| 2032 | (112) | 45 |
| 2033 | (56) | 38 |
| 2034 | (24) | 15 |
| 2035 | (3) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $(1237) | $672 |

---

The company did not have other changes related to open derivatives removed from SSAP No. 86 and captured in scope of SSAP No. 108 for the years ended December 31, 2025 and 2024. During the years ended December 31, 2025 and 2024, the fair value changes available for application under SSAP No. 108 was $70 and $(180), respectively.

The Company did not have any hedging strategies identified as no longer highly effective and did not terminate any hedging strategies during the years ended December 31, 2025 and 2024.

**Nonqualifying hedging**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Futures and Options Contracts*

The Company provides benefits through certain life and annuity products which are linked to the fluctuation of various market indices, and certain variable annuity contracts that provide minimum guaranteed benefits. The Company has analyzed the characteristics of these benefits and has entered into over-the-counter (OTC) option contracts, exchange-traded option (ETO) contracts, and exchange-traded futures contracts tied to an underlying index with similar characteristics with the objective to economically hedge these benefits. Management monitors in-force amounts as well as option and futures contract values to ensure satisfactory matching and to identify unsatisfactory mismatches. If actual persistency deviated, management would purchase or sell option and futures contracts as deemed appropriate or take other actions.

The OTC option contracts and ETO contracts are reported at fair value in Derivative assets and Derivative liabilities on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. The fair value of the OTC options is derived internally and deemed by management to be reasonable via performing an IPV process. The process of deriving internal derivative prices requires the Company to calibrate Monte Carlo scenarios to actual market information. The calibrated scenarios are applied to derivative cash flow models to calculate fair value prices for the derivatives. The fair value of the ETO contacts is based on quoted market prices. Incremental gains and losses from expiring options are included in Net realized capital gain (loss) on the Statutory Statements of Operations. The liability for the related

Statutory Financial Statements as of December 31, 2025

Page 19 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

policyholder benefits is reported in Life policies and annuity contracts on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. The unrealized gain or loss on open OTC option contracts is recognized as a direct adjustment to Unassigned surplus within the Statutory Statements of Capital and Surplus. Any unrealized gains or losses on open OTC option contracts are recognized as realized when the contracts mature (see Note 5 for further discussion).

Futures contracts do not require an initial cash outlay, and the Company has agreed to daily net settlement based on movements of the representative index. Therefore, no asset or liability is recorded as of the end of the reporting period. A derivative asset or liability and an offsetting variation margin payable or receivable is recorded in Derivative assets or Derivative liabilities in the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus for the outstanding unpaid variation margin representing market movements on the last trading day of the year.

Gains and losses are not considered realized until the termination or expiration of the futures contract. Unrealized gains and losses on futures contracts are reflected in the Statutory Statements of Capital and Surplus in Unassigned surplus, within Change in unrealized capital gains (loss). Realized gains and losses on futures contracts are included in the Statutory Statements of Operations, Net realized capital gain (loss), net of taxes and interest maintenance reserve.

*Interest Rate Swaps, Credit Default Swaps, Total Return Swaps, and To Be Announced Securities*

The Company utilizes IRS, credit default swaps (CDS), total return swaps (TRS), and To Be Announced (TBA) securities to economically hedge market risks embedded in certain life and annuity products. The IRS, CDS, TRS and TBA securities are reported at fair value in Derivative assets or Derivative liabilities on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. The fair value of the IRS, CDS, and TBA securities are derived using a third-party vendor software program and deemed by management to be reasonable. Centrally cleared IRS fair values are obtained from the exchange on which they are traded. The fair value of the TRS is based on counterparty pricing and deemed by management to be reasonable. Changes in unrealized gains and losses on the swaps are recorded as a direct adjustment to Unassigned surplus within the Statutory Statements of Capital and Surplus. Gains and losses on exchange cleared IRS are recorded as unrealized until the contracts mature or are disposed at which time they are recorded as realized, subject to offset by IMR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(l)&nbsp;&nbsp;&nbsp;&nbsp;Corporate-Owned Life Insurance***

Corporate-owned life insurance (COLI) is recognized initially as the amount of premiums paid. Subsequent measurement of the contract is based upon the amount that could be realized assuming the surrender of an individual-life policy (or certificate in a group policy), otherwise known as the cash surrender value (CSV), in accordance with SSAP No. 21 – *Other Admitted Assets* (SSAP No. 21). Changes in CSV resulting from subsequent measurement of the contract are recognized as a component of Other income on the Statutory Statements of Operations. The Company's COLI policies are reported in Other assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(m)&nbsp;&nbsp;&nbsp;&nbsp;Borrowed Money***

The Company is a member of the FHLB of Des Moines, primarily for the purpose of participating in the FHLB's mortgage collateralized loan advance program with short-term and long-term funding agreements. Members are required to purchase and hold a minimum amount of FHLB capital stock plus additional stock based on outstanding advances. Through its membership, the Company has issued funding agreements to the FHLB in exchange for cash advances. It is part of the Company's strategy to utilize funds borrowed from the FHLB in an investment spread capacity. The Company's current funding agreements are not subject to prepayment obligations.

Prior to 2025, funds obtained from the FHLB and accrued interest were included within Borrowed money within the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus in accordance with SSAP No. 15 – *Debt and Holding Company Obligations*, as borrowed money. Beginning in 2025, these

Statutory Financial Statements as of December 31, 2025

Page 20 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

liabilities were reclassified to Deposit-type contracts within the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus and are accounted for in accordance with SSAP No. 22 - *Deposit-type contracts*, as funding agreements. See Note 2(g) and 3 for more information. The collateral pledged to FHLB is reported as admitted assets within the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus in accordance with admissibility testing under SSAP No. 30 – *Unaffiliated Common Stock*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(n)&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes***

The Company and its subsidiaries file a consolidated federal income tax return with AZOA and all of its wholly-owned subsidiaries. The consolidated tax allocation agreement stipulates that each company participating in the return will bear its share of the tax liability pursuant to certain tax allocation elections under the Internal Revenue Code (IRC) and its related regulations and reimbursement will be in accordance with an intercompany tax reimbursement arrangement. The Company, and its insurance subsidiaries, generally will be paid for the tax benefit of any of their tax attributes used by any member of the consolidated group.

The Company provides for federal income taxes based on amounts the Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to significantly change the provision for federal income taxes recorded in the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Any such change could significantly affect the amounts reported in the Statutory Statements of Operations. Management uses best estimates to establish reserves based on current facts and circumstances regarding tax exposure items where the ultimate deductibility is open to interpretation. Quarterly, management evaluates the appropriateness of such reserves based on any new developments specific to their fact patterns. Information considered includes results of completed tax examinations, Technical Advice Memorandums, and other rulings issued by the Internal Revenue Service or the tax courts.

The Company utilizes the asset and liability method of accounting for income taxes. DTAs and deferred tax liabilities (DTLs), net of the nonadmitted portion are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Gross DTAs and DTLs are measured using enacted tax rates and are considered for admitted tax asset status according to the admissibility test as set forth by the NAIC. Changes in DTAs and DTLs, including changes attributable to changes in tax rates, are recognized as a component of Unassigned surplus on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

SSAP No. 101, Income Taxes, provides that gross DTAs must be reduced by a statutory valuation allowance adjustment if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50 percent) that some portion or all of the gross DTAs will not be realized. The statutory valuation adjustment, determined in a manner consistent with ASC 740, shall reduce the gross DTAs to the amount that is more likely than not to be realized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(o)****&nbsp;&nbsp;&nbsp;&nbsp;****Separate Accounts***

Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable and variable-indexed annuity contract holders. Separate account assets are reported at fair value in accordance with SSAP No. 56 – *Separate Accounts* (SSAP No. 56), with the exception of certain bonds, mortgage loans, other invested assets, cash, cash equivalents, securities lending reinvested collateral assets and investment income due and accrued. Certain assets that are allocated to the index options for the Allianz Index Advantage Variable Annuity (VIA), as listed above, are carried at amortized cost in accordance with the product filing requirements in the state of Minnesota.

Amounts due from separate accounts primarily represent the difference between the assets held to back the VIA portfolio and the VIA liabilities. Amounts due also include differences between surrender value of the contracts and the Separate account liability as disclosed on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. This receivable represents the surrender fee that would be paid to the Company upon the surrender of the policy or contract by the policyholder or contract holder as of

Statutory Financial Statements as of December 31, 2025

Page 21 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

December 31. Amounts charged to the contract holders for mortality and contract maintenance, and other administrative services fees are included in income within Fees from separate accounts on the Statutory Statements of Operations. These fees have been earned and assessed against contract holders on a daily or monthly basis throughout the contract period and are recognized as revenue when assessed and earned. Transfers to (from) separate accounts within the Statutory Statements of Operations primarily includes transfers for new premium and annuity considerations, benefit payments, surrender charge wear-off, realized and unrealized investment gains/losses, investment income, and other contractholder behavior.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(p)****&nbsp;&nbsp;&nbsp;&nbsp;****Receivables***

Receivable balances approximate estimated fair values. This is based on pertinent information available to management as of year-end, including the financial condition and creditworthiness of the parties underlying the receivables. Any balances outstanding more than 90 days are nonadmitted on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(q)&nbsp;&nbsp;&nbsp;&nbsp;Reclassifications***

Prior year balances have not been reclassified to conform to the current year presentation.

**(3)**&nbsp;&nbsp;&nbsp;&nbsp;**Accounting Changes and Corrections of Errors**

***Accounting Changes***

During 2025, the Company changed its method of applying accounting principles related to the classification of arrangements issued by the FHLB in exchange for cash advances. Funds obtained from the FHLB were previously accounted for in accordance with SSAP No. 15 - *Debt and Holding Company Obligations*, as borrowed money. In 2025, the Company determined that the arrangements can be accounted for in accordance with SSAP No. 52 - Deposit-Type Contracts, as funding agreements, to reflect the Company's current intention to use funds from outstanding and future FHLB arrangements in an investment spread capacity. This change in the Company's intention resulted in a reclassification from Borrowed money to Deposit-type contracts on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus of $2,510 as of December 31, 2025. In addition, $120 of related FHLB interest expense for the year ended December 31, 2025 was reclassified from Net Investment Income to Change in aggregate reserves and deposit-type contracts on the Statutory Statements of Operations. There was no prior period impact recorded as surplus was correct as of December 31, 2024.

***Recently Issued Accounting Standards – Adopted in 2025***

In March 2024, the NAIC adopted revisions to SSAP No. 93 - *Low Income Housing Tax Credit Property Investments* and SSAP No. 94 - *Transferable and Non-Transferable State Tax Credits* through Ref #2022-14. In August 2024, the NAIC adopted additional revisions clarifying Ref #2022-14 through Ref #2024-18. The revisions expand the application of the Proportional Amortization Method beyond just LIHTC investments to all tax credit structures, including New Market Tax Credit investments. The revisions are effective January 1, 2025. The Company has adopted these revisions, resulting in additional disclosures in Note 5(n) and the application of the "prospective utilization assessment" for investments within the scope of SSAP No. 93. There was no impact on net income or surplus during the year ended December 31, 2025, as a result of adopting the revisions.

In August 2023 and throughout 2024, the NAIC adopted revisions to SSAP No. 2R, SSAP No. 21R, SSAP No. 26R, SSAP No. 43R, and updated references for various SSAPs as well as standalone adoptions relating to and effective at the same time as Ref #2019-21, including Ref #2023-17, Ref #2024-08, Ref #2024-09, Ref #2024-01, Ref #2024-26, Ref #2023-16, Ref #2024-28, and INT 24-01. The revised SSAPs as well as the updated references were adopted as part of SAPWG's Principles-Based Bond Definition (PBBD) project. This adoption fundamentally redefines a bond under Statutory accounting as either an Issuer Credit Obligation or an Asset-Backed Security. Debt securities that do not meet the definition of a bond under the PBBD are now within scope of and accounted for in accordance with SSAP No. 21. The revised standards were effective January 1, 2025. The Company adopted these revisions as of January 1, 2025 resulting in the reclassification of its existing balance sheet. As a result of implementation, assets of $61 were reclassified from Bonds to Other invested assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. In accordance with the transition guidance associated with this project, there was no impact

Statutory Financial Statements as of December 31, 2025

Page 22 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

on net income or surplus upon implementation. However, as a result of adopting the revisions to SSAP No. 21 and the Company electing to utilize the practical expedient for its portfolio of residual tranches, the Company realized a one-time net gain of $81 that was previously unrealized. In addition, the Company has modified disclosures in Note 5 to reflect more granular reporting classifications.

In March 2025, the NAIC adopted revisions to SSAP No. 1 - *Accounting Policies, Risks & Uncertainties, and Other Disclosures*, related to the Restricted Asset Disclosure Clarification. The revisions specify how modco and FWH assets should be captured as restricted assets. The revisions are effective December 31, 2025. The Company has adopted these revisions, resulting in additional disclosures captured within Note 5(m). There was no impact on net income or surplus during the year ended December 31, 2025, as a result of adopting the revisions.

In August 2025, the NAIC adopted revisions to INT 23-01: Net Negative (Disallowed) Interest Maintenance Reserve. The revisions extend the automatic nullification date of the INT to January 1, 2027, add additional guidance relating to the calculation of a reporting entity's maximum admitted net negative (disallowed) IMR balance, require that entities capture any amount of net negative (disallowed) IMR within the PBR calculation or Asset Adequacy Testing and/or Cash Flow Testing pursuant to the NAIC Valuation Manual, and enhance existing data capture disclosure information relating to derivative gains and losses that flow through IMR. The revisions are effective as of August 11, 2025, and will now be automatically nullified on January 1, 2027. The Company has adopted these revisions into its existing IMR monitoring and reporting processes. There was no impact on net income or surplus during the year ended December 31, 2025, as a result of adopting the revisions to this INT.

***Recently Issued Accounting Standards – Adopted in 2024***

In December 2023, the NAIC adopted revisions to the Annual Statement Instructions through Ref #2023-15: IMR/AVR Specific Allocations. The revisions clarify the treatment of realized gains or losses in the context of allocating those gains and losses to either AVR or IMR. While the amendment reflects a SAP clarification, the amendment addresses a new concept in basing the allocation of realized gains or losses on an "Acute Credit Event." The amendment was effective beginning January 1, 2024, and the Company adopted these revisions as of that date. There was no impact on net income or surplus during the year ended December 31, 2024, as a result of adopting the revisions.

In August 2024, the NAIC adopted revisions to SSAP No. 15 and SSAP No. 86, Debt and Holding Company Obligations and Derivatives, respectively, through Ref #2023-26. The revisions enhance existing disclosures related to unfunded commitments available to a reporting entity, as well as additional granularity related to a reporting entity's accounting policy for derivative cash flows. The revisions are effective August 13, 2024. The Company has adopted these revisions, resulting in additional disclosures detailing outstanding commitments and the accounting policy for derivative cash flows. Both of these disclosures can be found in Note 5. There was no impact on net income or surplus during the year ended December 31, 2024, as a result of adopting the revisions.

***Recently Issued Accounting Standards – Adopted in 2023***

In March 2020, the NAIC adopted NS 2020-12, Reference Rate Reform, which provides optional guidance for a limited period of time to ease the potential burden on accounting for reference rate reform. The expedients outlined in the amendment are for modifications solely related to reference rate reform and optionally suspend assessments for re-measuring a contract. The Company adopted these amendments effective March 12, 2020. In August 2023, the NAIC adopted NS 2023-05, whereby the sunset date for relief afforded by NS 2020-12, was deferred until December 31, 2024. The Company has evaluated the impact of the new guidance and has identified financial assets which have terms related to reference rates that are expected to be discontinued. As of December 31, 2023, the Company has utilized the optional expedient to account for all modifications to financial assets occurring as a result of reference rate reform as a continuation of the existing financial asset. There was no impact on net income or surplus during the year ended December 31, 2023, as a result of adopting the revisions.

Statutory Financial Statements as of December 31, 2025

Page 23 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

In August 2023**,** the NAIC adopted INT 23-01 Negative IMR. The temporary relief, which is optional for all companies required to maintain an AVR and IMR, allows for those entities to admit a limited amount of a net negative IMR balance as an admitted asset on a reporting entity's balance sheet. The revisions were effective as of August 13, 2023, and will be automatically nullified on January 1, 2026. Although the Company currently has a net positive IMR balance, the Company has adopted this item for the purposes of December 31, 2023 reporting. There was no impact on net income or surplus during the year ended December 31, 2023, as a result of adopting the INT.

***Recently Issued Accounting Standards – To Be Adopted***

In February 2025, the NAIC adopted revisions to SSAP No. 56 - *Book Value Separate Accounts*. The revisions clarify measurement method guidance as well as prescribe guidance for how transfers to/from the general account and separate account should be recognized. The amendments are effective January 1, 2026. The company is currently working to assess the full impacts of this adoption.

In December 2025, the NAIC adopted revisions to SSAP No. 2, SSAP No. 21, SSAP No. 26, SSAP No. 43, and the Annual Statement Instructions relating to Debt Security & Residual Interest Disclosures. The revisions improve utilization of existing disclosures, clarify guidance, and incorporate consistent locations and frequency for debt security disclosures while also adding additional disclosures related to residuals. The amendments are effective December 31, 2026. The Company is still assessing the impacts associated with this adoption.

In December 2025, the NAIC adopted revisions to SSAP No. 2, SSAP No. 21, SSAP No. 26, SSAP No. 30, SSAP No. 32, SSAP No. 43, and the Annual Statement Instructions relating to Private Placement Securities. The revisions incorporate a new electronic reporting column to identify private placement securities in the investment schedules and incorporate an aggregate disclosure that details key investment information by type of security (public and private placement type). The amendments are effective December 31, 2026. The Company is still assessing the impacts associated with this adoption.

In December 2025, the NAIC adopted revisions to SSAP No. 2, SSAP No. 37, SSAP No. 40, and the Annual Statement Instructions relating to Residential Mortgage Loans Held in Statutory Trusts. The revisions allow for residential mortgage loans held in qualifying trusts to be reported on Schedule B - Mortgage Loans and establish guidance for the reporting of cash, cash equivalents, and real estate held within a qualifying trust as well. The amendments are effective January 1, 2027. The Company is still assessing the impacts associated with this adoption.

In December 2025, the NAIC adopted revisions to the Annual Statement Instructions, Investment Subsidiaries Classification. The revisions communicate support to the Blanks (E) Working Group for the adoption of agenda item 2025-20BWG, which updates the classifications of investment subsidiaries. The amendments are effective December 31, 2026. The Company is still assessing the impacts associated with this adoption.

In December 2025, the NAIC adopted revisions to SSAP No. 61 and Paragraph A-791 relating to Risk Transfer Analysis on Combination Reinsurance Contracts. The revisions clarify risk transfer requirements on combination reinsurance contracts with interdependent contract features, noting they must be evaluated together and cannot be evaluated separately. The amendments are effective immediately for new and newly revised contracts, and permit the continuation of interpretation for existing contracts until December 31, 2026. The Company is still assessing the impacts associated with this adoption on existing contracts, and has no new or revised agreements within the scope of this adoption.

***Corrections of Errors***

The Company records corrections of errors in accordance with SSAP No. 3 – *Accounting Changes and Correction of Errors* (SSAP No. 3). SSAP No. 3 prescribes that the correction of errors in previously issued Statutory Financial Statements will be reported as an adjustment to capital and surplus in the period the error is detected. These errors are shown within Correction of errors, net of tax, on the Statutory Statements of Capital and Surplus.

During the year ended December 31, 2025 and 2024 there were no corrections of errors recorded on the Statutory Statements of Capital and Surplus.

Statutory Financial Statements as of December 31, 2025

Page 24 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

During 2023, an error was identified related to the Company's calculation of reserves for certain long-term care (LTC) products. Joint policies were incorrectly labeled within the LTC experience studies used by management to set morbidity-related assumptions for unlocking. Had the correct experience studies been used when setting assumptions, management determined they would have set their best estimate morbidity-related assumptions differently for 2022. This error resulted in a $43 pre-tax decrease of Accident and health policies on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus and a $34 increase in after-tax surplus within the Statutory Statements of Capital and Surplus for periods ended prior to January 1, 2023.

**(4)**&nbsp;&nbsp;&nbsp;&nbsp;**Risk Disclosures** 

The following is a description of the significant risks facing the Company and how it attempts to mitigate those risks:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***&nbsp;&nbsp;&nbsp;&nbsp;***Credit Risk***

Credit risk is the risk that issuers of fixed-income securities, borrowers of mortgages on commercial or residential real estate, or other parties with whom the Company has transactions, such as reinsurers and derivative counterparties, default on their contractual obligations, resulting in unexpected credit losses.

The Company mitigates this risk by adhering to investment policies and limits that provide portfolio diversification on an asset class, asset quality, creditor, and geographical basis, and by complying with investment limitations from applicable state insurance laws and regulations. The Company considers all relevant objective information available in estimating the cash flows related to structured securities. The Company actively monitors and manages exposures, and determines whether any securities are impaired. The aggregate credit risk is influenced by management's risk/return preferences, the economic and credit environment, and the ability to manage this risk through liability portfolio management.

For derivative counterparties, the Company mitigates credit risk by tracking and limiting exposure to each counterparty through limits that are reported regularly and, once breached, restricts further trades; establishing relationships with counterparties rated BBB+ and higher; and monitoring the CDS of each counterparty as an early warning signal to cease trading when credit default swap spreads imply severe impairment in credit quality.

The Company executes Credit Support Annexes (CSA) with all active and new counterparties which further limits credit risk by requiring counterparties to post collateral to a segregated account to cover any counterparty exposure. Additionally most transactions are cleared through a clearinghouse thereby transferring counterparty risk from the bank to the clearinghouse that tends to have stronger credit. This often leads to increased collateralization and lower counterparty risk for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)&nbsp;&nbsp;&nbsp;&nbsp;Credit Concentration Risk***

Credit concentration risk is the risk of increased exposure to significant asset defaults (of a single security issuer); economic conditions (if business is concentrated in a certain industry sector or geographic area); or adverse regulatory or court decisions (if concentrated in a single jurisdiction) affecting credit.

The Company's Finance Committee, responsible for asset/liability management (ALM) issues, recommends an investment policy to the Company's Board of Directors (BOD) and approves the strategic asset allocation and accompanying investment mandates for an asset manager with respect to asset class. The investment policy and accompanying investment mandates specify asset allocation among major asset classes and the degree of asset manager flexibility for each asset class. The investment policy complies, at a minimum, with state statutes. Compliance with the policy is monitored by the Finance Committee who is responsible for implementing internal controls and procedures. Deviations from the policy are monitored and addressed. The Finance Committee and, subsequently, the BOD review the investment policy at least annually.

To further mitigate this risk, internal concentration limits based on credit rating and sector are established and are monitored regularly. Any ultimate obligor group exceeding these limits is placed on a restricted list to prevent further purchases, and the excess exposure may be actively sold down to comply with concentration limit guidelines. Any exceptions require Chief Risk Officer approval and monitoring by the Risk Committee.

Statutory Financial Statements as of December 31, 2025

Page 25 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

Further, the Company performs a quarterly concentration risk calculation to ensure compliance with the State of Minnesota insurance regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)&nbsp;&nbsp;&nbsp;&nbsp;Liquidity Risk***

Liquidity risk is the risk that unexpected timing or amounts of cash needed will require liquidation of assets in a market that will result in a realized loss or an inability to sell certain classes of assets such that an insurer will be unable to meet its obligations and contractual guarantees. Liquidity risk also includes the risk that in the event of a company liquidity crisis, refinancing is only possible at higher interest rates. Liquidity risk can be affected by the maturity of liabilities, the presence of withdrawal penalties, the breadth of funding sources, and terms of funding sources. It can also be affected by counterparty collateral triggers as well as whether anticipated liquidity sources, such as credit agreements, are cancelable.

The Company manages liquidity within four specific domains: (1) monitoring product development, product management, business operations, and the investment portfolio; (2) setting ALM strategies; (3) managing the cash requirements stemming from the Company's derivative dynamic economic hedging activities; and (4) establishing liquidity facilities to provide additional liquidity. The Company has established liquidity risk limits, which are approved by the Company's Risk Committee, and the Company monitors its liquidity risk regularly. The Company also sets target levels for the liquid securities in its investment portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Risk***

Interest rate risk is the risk that movements in interest rates or interest rate volatility will cause a decrease in the value of an insurer's assets relative to the value of its liabilities and/or an unfavorable change in prepayment activity resulting in compressed interest margins.

The Company has an ALM strategy to align cash flows and duration of the investment portfolio with policyholder liability cash flows and duration. The Company further limits interest rate risk on variable annuity guarantees through interest rate hedges. The Company monitors the economic and accounting impacts of interest rate sensitivities on assets and liabilities regularly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)&nbsp;&nbsp;&nbsp;&nbsp;Equity Market Risk***

Equity market risk is the risk that movements in equity prices or equity volatility will cause a decrease in the value of an insurer's assets relative to the value of its liabilities.

The policy value of the fixed-indexed universal life, fixed-indexed annuity, and variable-indexed annuity products is generally linked to equity market indices. The Company economically hedges this exposure with derivatives.

Variable annuity products guarantee minimum payments regardless of market movements. The Company has adopted an economic hedging program to manage the equity risk of these products.

The Company monitors the impacts of equity sensitivities on assets and liabilities regularly.

Basis risk is the risk that variable annuity hedge asset values change unexpectedly relative to the value of the underlying separate account funds of the variable annuity contracts. Basis risk may arise from the Company's inability to directly hedge the underlying investment options of the variable annuity contracts. The Company regularly reviews and synchronizes fund mappings, product design features, hedge design, and manages funds line-up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)&nbsp;&nbsp;&nbsp;&nbsp;Operational Risk***

Operational risk is the risk of loss resulting from inadequate or failed internal processes and systems, from human misbehavior or error, or from external events. Operational risk is comprised of the following seven risk categories: (1) external fraud; (2) internal fraud; (3) employment practices and workplace safety; (4) clients/third-party, products and business practices; (5) damage to physical assets; (6) business disruption and system failure; and (7) execution, delivery, and process management. Operational risk is comprehensively managed through a combination of core qualitative and quantitative activities.

Statutory Financial Statements as of December 31, 2025

Page 26 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

The Operational Risk Management framework includes the following key activities: (1) an Operational Risk Capital Model covering all material types of operational risks, under which the Company quantifies and regularly monitors operational risk; (2) a loss data capture policy to create transparency and gather information about losses that meet a designated threshold, requiring business owners to identify and resolve the root cause of operational loss events; and (3) a bottom-up risk assessment process for operational risk to proactively manage operational risk throughout the organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Change Risk***

Regulatory change risk is the risk that regulatory changes and imposed regulation may materially impact the Company's business model, sales levels, company financials and ability to effectively comply with regulations.

The Company actively monitors all regulatory changes and participates in national and international discussions relating to legal, regulatory, and accounting changes. The Company maintains active membership with various professional and industry trade organizations. A formal process exists to review, analyze, and implement new legislation as it is enacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h)&nbsp;&nbsp;&nbsp;&nbsp;Rating Agency Risk*** 

Rating agency risk is the risk that rating agencies change their outlook or rating of the Company or a subsidiary of the Company. The rating agencies generally utilize proprietary capital adequacy models in the process of establishing ratings for the Company. The Company is at risk of changes in these models and the impact that changes in the underlying business that it is engaged in can have on such models. To mitigate this risk, the Company maintains regular communications with the rating agencies and evaluates the impact of significant transactions on such capital adequacy models and considers the same in the design of transactions to minimize the adverse impact of this risk. Rating agency capital is calculated and analyzed at least annually. Rating agency risk is also addressed in the Top Risk Assessment process and on an ad hoc basis as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i)***&nbsp;&nbsp;&nbsp;&nbsp;***Mortality/Longevity Risk***

Mortality/longevity risk is the risk that mortality experience differs from assumptions used by the Company to reserve and price its products.

The Company mitigates mortality risk primarily through reinsurance, whereby the Company cedes a significant portion of its mortality risk to third parties. The Company also manages mortality risk through the underwriting process. Both mortality and longevity risks are managed through the review of life expectancy assumptions and experience in conjunction with active product management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(j)&nbsp;&nbsp;&nbsp;&nbsp;Lapse Risk***

Lapse risk is the risk that actual lapse experience evolves differently than the assumptions used for pricing and valuation exercises leading to a significant loss in Company value and/or income.

The Company mitigates this risk by performing sensitivity analysis at the time of pricing to affect product design, adding Market Value Adjustments, bonus recaptures, and surrender charges when appropriate, regular ALM analysis, and exercising management levers at issue, as well as post-issue as experience evolves. Policyholder experience is monitored regularly. The Company manages lapse risk by reviewing assumptions at least annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(k)&nbsp;&nbsp;&nbsp;&nbsp;Cyber Security Risk***

Cyber security risk is the risk of losses due to external and/or internal attacks impacting the confidentiality, integrity, and/or availability of key systems, data, and processes reliant on digital technology. The Company has implemented preventative, detective, response, and recovery measures including firewalls, intrusion detection and prevention, advanced malware detection, spyware and anti-virus software, email protection, network and laptop encryption, web content filtering, web application firewalls, and regular scanning of all

Statutory Financial Statements as of December 31, 2025

Page 27 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

servers and network devices to identify vulnerabilities. Controls are implemented to prevent and review unauthorized access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(l)&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance Risk***

Reinsurance risk is the risk that reinsurance companies default on their obligation where the Company has ceded a portion of its insurance risk. The Company uses reinsurance to limit its risk exposure to certain business lines and to enable better capital management.

Reinsurance contracts do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company.

The Company mitigates this risk by requiring certain counterparties to post collateral to cover the exposure and to meet thresholds related to the counterparty's credit rating, exposure, or other factors. For counterparties that are not initially required to post collateral, if the thresholds are not met by those counterparties, they are required to establish a trust or letter of credit backed by assets meeting certain quality criteria. All arrangements are regularly monitored to determine whether trusts or letters of credit are sufficient to support the ceded liabilities and that their terms are being met. In addition, the Company reviews the financial standings and ratings of its reinsurance counterparties and monitors concentrations of credit risk to minimize its exposure to significant losses from reinsurer insolvencies regularly.

Statutory Financial Statements as of December 31, 2025

Page 28 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

**(5)**&nbsp;&nbsp;&nbsp;&nbsp;**Investments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)&nbsp;&nbsp;&nbsp;&nbsp;Bonds, Other Assets Receiving Bond Treatment, and Stocks***

At December 31, the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investments, excluding investments in affiliates, are shown below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** |
|  | **Amortized cost** | **Gross unrealized gains** | **Gross unrealized losses** | **Fair value** |
| Bonds: |  |  |  |  |
| Issuer Credit Obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Government Obligations (Exempt from RBC) | $5927 | 16 | 481 | 5462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other U.S. Government Obligations (Not Exempt from RBC) | 51 | 2 |  | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. Sovereign Jurisdiction Securities | 6062 | 104 | 431 | 5735 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal Bonds - General Obligations (Direct and Guaranteed) | 341 | 3 | 37 | 307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal Bonds - Special Revenue | 4046 | 34 | 420 | 3660 |
| &nbsp;&nbsp;&nbsp;&nbsp;Project Finance Bonds Issued by Operating Entities | 9880 | 160 | 464 | 9576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate securities | 44491 | 499 | 4433 | 40557 |
| &nbsp;&nbsp;&nbsp;&nbsp;Single Entity Backed Obligations | 1350 | 13 | 55 | 1308 |
| &nbsp;&nbsp;&nbsp;&nbsp;SVO-Identified Bond Exchange Traded Funds - Systematic Valuation | 1616 | 4 | 157 | 1463 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds Issued by Funds Representing Operating Entities | 443 | 19 |  | 462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank Loans - Acquired | 60 |  |  | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Issuer Credit Obligations | 63 |  | 1 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Issuer Credit Obligations: | 74330 | 854 | 6479 | 68705 |
| Asset-Backed Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency Residential Mortgage-Backed Securities – Fully Guaranteed (Exempt from RBC) | 22 |  | 3 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency Residential Mortgage-Backed Securities – Not/Partially Guaranteed (Not Exempt from RBC) | 971 |  | 99 | 872 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency Commercial Mortgage-Backed Securities – Not/Partially Guaranteed (Not Exempt from RBC) | 146 |  | 21 | 125 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Agency Residential Mortgage-Backed Securities | 139 | 6 | 8 | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Agency Commercial Mortgage-Backed Securities | 1401 | 6 | 40 | 1367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Agency – CLOs/CBOs/CDO | 5356 | 13 | 11 | 5358 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Financial Asset-Backed Securities – Self Liquidating | 3317 | 26 | 43 | 3300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial Asset-Backed Securities – Not Self-Liquidating | 5822 | 47 | 39 | 5830 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Financial Asset-Backed – Not Self-Liquidating | 38 |  |  | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Financial Asset-Backed Securities (Full Analysis) | 946 | 8 | 19 | 935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Non-Financial Asset-Backed Securities (Full Analysis) | 1542 | 32 | 26 | 1548 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Asset-Backed Securities: | 19700 | 138 | 309 | 19529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds | 94030 | 992 | 6788 | 88234 |
| Common stocks | 303 | 37 | 2 | 338 |
| Preferred stocks | 14 |  |  | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $94347 | 1029 | 6790 | 88586 |

---

Statutory Financial Statements as of December 31, 2025

Page 29 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** |
|  | **Amortized cost** | **Gross unrealized gains** | **Gross unrealized losses** | **Fair value** |
| Bonds: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government | $5067 | 1 | 614 | 4454 |
| &nbsp;&nbsp;&nbsp;&nbsp; Agencies not backed by the full faith and credit of the U.S. government | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;States and political subdivisions | 4877 | 28 | 575 | 4330 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign governments | 3892 | 5 | 498 | 3399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate securities | 70552 | 471 | 6724 | 64299 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 3086 | 29 | 281 | 2834 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized debt obligations | 12 | 6 |  | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds | 87487 | 540 | 8692 | 79335 |
| Common stocks | 310 | 25 | 6 | 329 |
| Preferred stocks | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $87798 | 565 | 8698 | 79665 |

---

At December 31, 2025, amortized cost differed from the carrying value of bonds on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus due to NAIC-6 rates bonds where the market value was lower than amortized cost. The total unrealized losses recorded by the Company for these bonds was $8 and $1 as of December 31, 2025 and 2024, respectively.

The Company had NAIC-6 rated bonds with a statement value of $39 and $28 as of December 31, 2025 and 2024, respectively. There was no interest due on bonds in default, which was excluded from investment income due and accrued as of December 31, 2025 and 2024.

The Company had no hybrid securities at December 31, 2025 or 2024.

As of December 31, 2025 and 2024, investments with a statement value of $6 and $6, respectively, were held on deposit with various insurance departments and in other trusts as required by statutory regulations.&nbsp;&nbsp;&nbsp;&nbsp;

The amortized cost and fair value of bonds and other assets receiving bond treatment reported in the statutory Annual Statement Schedule D Part 1A at December 31, 2025, by contractual maturity, are shown below:

---

| | | |
|:---|:---|:---|
|  | **Carrying<br> value** | **Fair value** |
| Due in 1 year or less | $1836 | $1833 |
| Due after 1 year through 5 years | 8970 | 8841 |
| Due after 5 years through 10 years | 15323 | 15022 |
| Due after 10 years through 20 years | 31273 | 29668 |
| Due after 20 years | 32426 | 28990 |
| No maturity date | 1616 | 1463 |
| Mortgage-backed and other structured securities | 2577 | 2414 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total bonds and other assets receiving bond treatment | $94021 | $88231 |

---

Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Statutory Financial Statements as of December 31, 2025

Page 30 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

Proceeds from sales of bonds includes sales, maturities, paydowns, and other redemptions of bonds and other assets receiving bond treatment. Proceeds from sales of bonds for the years ended December 31 are shown below:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Proceeds from sales | $17847 | 20825 | 14591 |
| Gross gains | 248 | 135 | 111 |
| Gross losses | 383 | 988 | 487 |

---

Proceeds from sales of common stocks for the years ended December 31 are shown below:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Proceeds from sales | $129 | 124 | 144 |
| Gross gains | 9 | 20 | 5 |
| Gross losses | 3 | 1 | 2 |

---

Proceeds from sales of preferred stocks for the years ended December 31 are shown below:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Proceeds from sales | $16 |  |  |
| Gross gains |  |  |  |
| Gross losses |  |  |  |

---

For the years ended December 31, 2025 and 2024, there were 288 and 145 CUSIPs sold, disposed, or otherwise redeemed as a result of a callable feature, respectively. The aggregate amount of investment income generated as a result of these transactions was $12 and $15 for 2025 and 2024, respectively.

The Company's bond portfolio includes mortgage-backed securities. Due to the high quality of these investments and the lack of subprime loans within the securities, the Company does not have a material exposure to subprime mortgages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)&nbsp;&nbsp;&nbsp;&nbsp;Unrealized Investment Losses***

To determine whether or not declines in fair value are other than temporary, the Company performs a quarterly review of its entire combined investment portfolio, including investments held by subsidiaries, using quoted market prices by third-party sources. For further discussion, see Notes 2 and 6.

Statutory Financial Statements as of December 31, 2025

Page 31 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

Unrealized losses and the related fair value of investments held by the Company for the years ended December 31 are shown below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **12 months or less** | **12 months or less** | **Greater than 12 months** | **Greater than 12 months** | **Total** | **Total** |
|  | **Fair value** | **Unrealized losses** | **Fair value** | **Unrealized losses** | **Fair value** | **Unrealized losses** |
| Bonds: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Issuer Credit Obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Government Obligations (Exempt from RBC) | $563 | 9 | 3737 | 472 | 4300 | 481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other U.S. Government Obligations (Not Exempt from RBC) |  |  | 1 |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. Sovereign Jurisdiction Securities | 637 | 12 | 2616 | 419 | 3253 | 431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal Bonds - General Obligations (Direct and Guaranteed) |  |  | 250 | 37 | 250 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal Bonds - Special Revenue | 154 | 5 | 2830 | 415 | 2984 | 420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project Finance Bonds Issued by Operating Entities | 580 | 17 | 4457 | 447 | 5037 | 464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate securities | 4167 | 138 | 23945 | 4295 | 28112 | 4433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Single Entity Backed Obligations | 351 | 9 | 624 | 46 | 975 | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SVO-Identified Bond Exchange Traded Funds - Systematic Valuation | 250 | 7 | 1184 | 150 | 1434 | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds Issued by Funds Representing Operating Entities | 24 |  |  |  | 24 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Issuer Credit Obligations | 25 |  | 13 | 1 | 38 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Issuer Credit Obligations: | 6751 | 197 | 39657 | 6282 | 46408 | 6479 |
| &nbsp;&nbsp;&nbsp;Asset-Backed Securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency Residential Mortgage-Backed Securities – Fully Guaranteed (Exempt from RBC) |  |  | 19 | 3 | 19 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency Residential Mortgage-Backed Securities – Not/Partially Guaranteed (Not Exempt from RBC) | 238 | 1 | 593 | 98 | 831 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency Commercial Mortgage-Backed Securities – Not/Partially Guaranteed (Not Exempt from RBC) |  |  | 125 | 21 | 125 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Agency Residential Mortgage-Backed Securities | 32 | 1 | 43 | 7 | 75 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Agency Commercial Mortgage-Backed Securities | 25 |  | 1042 | 40 | 1067 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Agency – CLOs/CBOs/CDO | 526 | 2 | 313 | 9 | 839 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Financial Asset-Backed Securities – Self Liquidating | 620 | 9 | 498 | 34 | 1118 | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Asset-Backed Securities – Not Self-Liquidating | 337 | 11 | 1098 | 28 | 1435 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Financial Asset-Backed – Not Self-Liquidating | 4 |  |  |  | 4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Financial Asset-Backed Securities (Full Analysis) | 111 | 2 | 241 | 17 | 352 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Non-Financial Asset-Backed Securities (Full Analysis) | 62 | 1 | 409 | 25 | 471 | 26 |
| &nbsp;&nbsp;&nbsp;Total Asset-Backed Securities: | $1955 | $27 | $4381 | $282 | $6336 | $309 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total bonds | 8706 | 224 | 44038 | 6564 | 52744 | 6788 |
| Common stock | 18 | 1 | 7 | 1 | 25 | 2 |
| Preferred stock | $1 |  |  |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total temporarily impaired securities | $8725 | 225 | 44045 | 6565 | 52770 | 6790 |

---

Statutory Financial Statements as of December 31, 2025

Page 32 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | **12 months or less** | **12 months or less** | **Greater than 12 months** | **Greater than 12 months** | **Total** | **Total** |
|  | **Fair value** | **Unrealized losses** | **Fair value** | **Unrealized losses** | **Fair value** | **Unrealized losses** |
| Bonds: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. government | $993 | 56 | 3344 | 557 | 4337 | 613 |
| &nbsp;&nbsp;&nbsp;Agencies not backed by the full faith and credit of the U.S. government |  |  | 1 |  | 1 |  |
| &nbsp;&nbsp;&nbsp;Foreign government | 1983 | 132 | 1213 | 366 | 3196 | 498 |
| &nbsp;&nbsp;&nbsp;States and political subdivisions | 599 | 28 | 3093 | 547 | 3692 | 575 |
| &nbsp;&nbsp;&nbsp;Corporate securities | 14765 | 588 | 30538 | 6136 | 45303 | 6724 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities | 156 | 4 | 2330 | 278 | 2486 | 282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total bonds | 18496 | 808 | 40519 | 7884 | 59015 | 8692 |
| Common stock | 18 | 1 | 21 | 5 | 39 | 6 |
| Preferred stock | 1 |  |  |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total temporarily impaired securities | $18515 | 809 | 40540 | 7889 | 59055 | 8698 |

---

As of December 31, 2025 and 2024, the number of investment holdings that were in an unrealized loss position was 4,110, 21 and 1 for bonds, common stocks, and preferred stocks, respectively, and 4,816, 24 and 1 for bonds, common stocks, and preferred stocks, respectively.

As of December 31, 2025 and 2024, of the total amount of unrealized losses, $6,686, or 98.2%, and $8,485, or 97.6%, respectively, are related to unrealized losses on investment grade securities. Investment grade is defined as a security having an NAIC SVO credit rating of 1 or 2. Unrealized losses on securities are principally related to changes in interest rates or changes in sector spreads from the date of purchase. As contractual payments continue to be met, management continues to expect all contractual cash flows to be received and does not consider these investments to be other-than-temporarily impaired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)&nbsp;&nbsp;&nbsp;&nbsp;Realized Investment Gains (Losses)***

Net realized capital gains (losses) for the years ended December 31 are shown below:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Bonds | $(153) | (853) | (449) |
| Stocks | 7 | 19 | 3 |
| Mortgage Loans | (47) | (141) | (46) |
| Real estate | (1) | 1 |  |
| Derivatives | (369) | 1420 | (819) |
| Other | (15) | (170) | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total realized capital gains (losses) | (578) | 275 | (1248) |
| Income tax benefit on net realized gains (losses) | 108 | 103 | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total realized capital gains (losses), net of taxes | (470) | 378 | (1146) |
| Net (losses) gains transferred to IMR, net of taxes | (108) | (662) | (349) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gains (losses), net of taxes and IMR | $(362) | 1040 | (797) |

---

Statutory Financial Statements as of December 31, 2025

Page 33 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)&nbsp;&nbsp;&nbsp;&nbsp;Net Investment Income***

Major categories of net investment income for the years ended December 31 are shown below:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Interest: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | $4545 | 4226 | 4078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans on real estate | 557 | 762 | 743 |
| &nbsp;&nbsp;&nbsp;&nbsp;Policy loans | 40 | 28 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents, and short-term investments | 133 | 193 | 162 |
| Dividends: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks | 20 | 16 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiaries | 164 | 30 | 101 |
| Rental income on real estate | 28 | 27 | 21 |
| Derivatives | 29 | (62) | (65) |
| Other | 35 | 129 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross investment income | 5551 | 5349 | 5092 |
| Investment expenses | (174) | (314) | (304) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income before amortization of IMR | 5377 | 5035 | 4788 |
| Amortization of IMR | 35 | 22 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income | $5412 | 5057 | 4822 |

---

All investment income due and accrued with amounts over 90 days past due is nonadmitted from surplus with the exception of mortgage loan investment income, which is nonadmitted after 180 days, or if the underlying loan is in the process of foreclosure.

As of December 31, 2025 and 2024, the Company excluded interest income due and accrued of $3 and $2, respectively, from its capital and surplus.

Interest income due and accrued for the years ended December 31 was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Gross | $1739 | 1592 |
| Nonadmitted |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admitted | $1739 | 1592 |

---

The Company had aggregate deferred interest of $5 and $2 as of December 31, 2025 and 2024 respectively.

The Company had the following cumulative amounts of paid-in-kind (PIK) interest included in the current principal balance as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Cumulative amounts of PIK interest included in the current principal balance | $38 | 27 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)&nbsp;&nbsp;&nbsp;&nbsp;Mortgage Loans on Real Estate***

The Company's investment in mortgage loans on real estate includes CMLs and RMLs at December 31, 2025 and 2024.

At December 31, 2025 and 2024, the Company's CML portfolio includes concentrations exceeding 10% for the following states:

Statutory Financial Statements as of December 31, 2025

Page 34 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Concentration Amount** | **Concentration %** | **Concentration Amount** | **Concentration %** |
| California | $1594 | 15.1% | $3449 | 21.7% |
| Texas | 1238 | 11.7% | 1394 | 8.8% |

---

The maximum lending rates for CMLs made during 2025 and 2024 were 7.8% and 8.9%, respectively. The minimum lending rates for CMLs made during 2025 and 2024 were 5.4% and 5.5%, respectively. The maximum percentage of any one loan to the value of security at the time of the loan extension exclusive of insured, guaranteed or purchased money mortgages was 61.2% and 73.2% during 2025 and 2024, respectively.

At December 31, 2025 and 2024, the Company's RML portfolio includes concentrations exceeding 10% for the following states:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Concentration Amount** | **Concentration %** | **Concentration Amount** | **Concentration %** |
| California | $465 | 31.3% | $521 | 30.0% |
| New York | 223 | 15.0% | 226 | 13.0% |

---

The maximum lending rates for RMLs made during 2025 and 2024 were 11.1% and 12.1%, respectively. The minimum lending rates for RMLs made during 2025 and 2024 were 5.7% and 5.9%, respectively. The maximum percentage of any one loan to the value of security at the time of the loan extension exclusive of insured, guaranteed or purchased money mortgages for RMLs was 302.2% and 93.4% during 2025 and 2024, respectively.

As of December 31, 2025 and 2024, there were $1 and $8, respectively of taxes, assessments, or amounts advanced that were excluded from the mortgage loan investment total.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(1)&nbsp;&nbsp;&nbsp;&nbsp;Age Analysis of Mortgage Loans***

The following table presents an age analysis of the Company's mortgage loan investments as of December 31, 2025 and 2024 by type:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Residential** | **Commercial** | **Residential** | **Commercial** |
| Current | $1406 | 10481 | 1632 | 15863 |
| 30-59 Days Past Due | 28 |  | 32 |  |
| 60-89 Days Past Due | 4 |  | 8 |  |
| 90-179 Days Past Due | 12 |  | 25 | 34 |
| 180+ Days Past Due | 33 | 56 | 42 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $1483 | 10537 | 1739 | 15900 |

---

The Company had the following allowance for credit losses as of December 31:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Balance at beginning of period | $10 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions charged to operations | 4 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct write-downs charged against the allowances | (10) | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries of amounts previously charged off |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period | $4 | 10 |

---

There were no mortgage loan investments greater than 90 days past due and still accruing interest as of December 31, 2025 and 2024.

Statutory Financial Statements as of December 31, 2025

Page 35 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

There were no mortgage loan investments for which interest was reduced as of December 31, 2025 and 2024.

As of December 31, 2025 and 2024 there were no RMLs in which the Company participated as a co-lender in a mortgage loan agreement. As of December 31, 2025 and 2024, for CML investments, the recorded investment for which the Company participated as a co-lender in a mortgage loan agreement was $1,408 and $2,053, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(2) Impaired Mortgage Loans&nbsp;&nbsp;&nbsp;&nbsp;***

For the years ended December 31, 2025, and 2024, there were impairments of $35 and $140 on recorded investment in impaired CMLs of $130, and $196, respectively. There were $89 and $52 of co-lender loans with allowances for credit losses and $41 and $98 co-lender loans without an allowance for credit losses for the years ended December 31, 2025 and 2024, respectively. The average recorded investment in impaired mortgage loans for the year ended December 31, 2025, and 2024 was $26 and $49, respectively. There was no recorded investment in impaired CMLs in nonaccrual status for the years ended December 31, 2025 and 2024, respectively. There was no recorded investment in impaired RMLs for the years ended December 31, 2025, and 2024.

There was $3, $20 and $7 interest income recognized on impaired mortgage loans for the years ended December 31, 2025, 2024 and 2023, respectively. For impaired mortgage loans that are not in default, the Company recognizes and records interest income as earned. For impaired mortgage loans that are in default, the accrued interest on the loan is recorded as investment income due and accrued if deemed collectible by the Company. If an impaired mortgage loan in default has any investment income due and accrued which is 180 days past due and collectible, the investment income continues to accrue, but all interest related to the loan is reported as a nonadmitted asset. If accrued interest on an impaired mortgage loan in default is not collectible, the accrued interest is written off immediately and no further interest is accrued.

As of December 31, 2025 and 2024, the Company derecognized mortgage loans as a result of foreclosure of $33 and $9, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(3) Credit Quality Indicators***

The Company analyzes certain financing receivables for credit risk by using specific credit quality indicators. The Company has determined the loan-to-value ratio and the debt service coverage ratio are the most reliable indicators in analyzing the credit risk of its CML portfolio. The loan-to-value ratio is based on the Company's internal valuation methodologies, including discounted cash flow analysis and comparative sales, depending on the characteristics of the property being evaluated. The debt service coverage ratio analysis is normalized to reflect a 25 year amortization schedule.

The credit quality of CMLs as of December 31 is shown below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Debt Service Coverage Ratios** | **Debt Service Coverage Ratios** | **Debt Service Coverage Ratios** | **Debt Service Coverage Ratios** |  |  |
| **2025** | **Greater than 1.4x** | **1.2x – 1.4x** | **1.0x – 1.2x** | **Less than 1.0x** | **Total** | **Percent of Total** |
| Loan-to-value ratios: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Less than 50% | $1620 | 35 | 490 | 19 | 2164 | 20.5% |
| &nbsp;&nbsp;&nbsp;50% – 60% | 2011 | 163 | 343 | 2 | 2519 | 23.9% |
| &nbsp;&nbsp;&nbsp;60% – 70% | 1546 | 230 | 319 | 36 | 2131 | 20.2% |
| &nbsp;&nbsp;&nbsp;70% – 80% | 850 | 385 | 425 |  | 1660 | 15.8% |
| &nbsp;&nbsp;&nbsp;80% – 90% | 516 | 20 | 64 | 30 | 630 | 6.0% |
| &nbsp;&nbsp;&nbsp;90% – 100% | 385 | 194 |  |  | 579 | 5.5% |
| &nbsp;&nbsp;&nbsp;Greater than 100% | 549 | 137 | 13 | 155 | 854 | 8.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $7477 | 1164 | 1654 | 242 | 10537 | 100.0% |

---

Statutory Financial Statements as of December 31, 2025

Page 36 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Debt Service Coverage Ratios** | **Debt Service Coverage Ratios** | **Debt Service Coverage Ratios** | **Debt Service Coverage Ratios** |  |  |
| **2024** | **Greater than 1.4x** | **1.2x – 1.4x** | **1.0x – 1.2x** | **Less than 1.0x** | **Total** | **Percent of Total** |
| Loan-to-value ratios: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Less than 50% | $3596 | 131 | 195 | 38 | 3960 | 24.8% |
| &nbsp;&nbsp;&nbsp;50% – 60% | 3170 | 255 | 172 |  | 3597 | 22.6% |
| &nbsp;&nbsp;&nbsp;60% – 70% | 2061 | 363 | 323 | 8 | 2755 | 17.3% |
| &nbsp;&nbsp;&nbsp;70% – 80% | 1924 | 327 | 260 | 58 | 2569 | 16.2% |
| &nbsp;&nbsp;&nbsp;80% – 90% | 1208 | 345 | 56 | 38 | 1647 | 10.4% |
| &nbsp;&nbsp;&nbsp;90% – 100% | 264 |  | 159 | 29 | 452 | 2.8% |
| &nbsp;&nbsp;&nbsp;Greater than 100% | 380 | 64 | 246 | 230 | 920 | 5.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $12603 | 1485 | 1411 | 401 | 15900 | 99.9% |

---

The Company has determined the delinquency status and the loan-to-value ratio are the most reliable indicators in analyzing the credit risk of its RML portfolio. The loan-to-value ratio is based on the Company's internal valuation methodologies, including discounted cash flow analysis and comparative sales, depending on the characteristics of the property being evaluated.

The loan-to-value ratios of RMLs as of December 31 are shown below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Percent of Total** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | &nbsp;&nbsp;**Percent of Total** |
| Loan-to-value ratios: |  |  |  |  |
| &nbsp;&nbsp;Below 70% | $617 | 41.6% | $662 | 38.1% |
| &nbsp;&nbsp;70% to 79% | 550 | 37.1% | 779 | 44.8% |
| &nbsp;&nbsp;80% to 89% | 266 | 17.9% | 283 | 16.3% |
| &nbsp;&nbsp;90% to 95% | 23 | 1.6% | 13 | 0.7% |
| &nbsp;&nbsp;Above 95% | 27 | 1.8% | 2 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $1483 | 100.0% | $1739 | 100.0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(4) Restructured Mortgage Loans***

For impaired mortgage loans that are not in default, the Company recognizes and records interest income as earned. For impaired mortgage loans that are in default, the accrued interest on the loan is recorded as investment income due and accrued if deemed collectible by the Company. If an impaired mortgage loan in default has any investment income due and accrued which is 180 days past due and collectible, the investment income continues to accrue, but all interest related to the loan is reported as a nonadmitted asset. If accrued interest on an impaired mortgage loan in default is not collectible, the accrued interest is written off immediately and no further interest is accrued.

Statutory Financial Statements as of December 31, 2025

Page 37 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

During 2025, no CMLs were modified in a way that met the definition of a troubled debt restructuring under SSAP No. 36.

During 2024, four CMLs, which were each supported by a single property and with a total principal balance at time of restructure of $425, were modified in a way that met the definition of a troubled debt restructuring under SSAP No. 36. The modification of the CMLs resulted in a portion of the existing carrying values of the loans being written off, and in some cases a partial principal paydown on the remaining principal of the loans. Additionally, the loans were modified to reflect either a new interest rate and a new term for the loan. Upon modification, the Company wrote off $96 of the existing loans' principal, while receiving an immediate principal paydown of $14, resulting in a single loan with a new principal balance of $315. As a part of the modifications on one of the loans, a construction loan was entered into by the new debtor for future capital expenditures on the property up to $111. As a part of the modifications on one of the loans, the Company agreed to contractual commitments to extend additional credit in the amount of $35. Two of the four mortgage loans had defaulted prior to being restructured.

The Company had the following recorded investments, realized capital losses, and contractual commitments related to restructured loans that were modified within the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Total recorded investment in restructured loans, as of year-end | $204 | 315 |
| Total realized capital losses related to these loans | 12 | 96 |
| Total contractual commitments to extend credit to debtors owing receivables whose terms have been modified in troubled debt restructuring | 24 | 35 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)&nbsp;&nbsp;&nbsp;&nbsp;Asset-Backed Securities***

SSAP No. 43 requires the bifurcation of impairment losses on asset-backed or structured securities into interest and noninterest-related portions. The noninterest portion is the difference between the present value of cash flows expected to be collected from the security and the amortized cost basis of the security. The interest portion is the difference between the present value of cash flows expected to be collected from the security and its fair value at the balance sheet date.

The Company recognized asset-backed securities in OTTI for the years ended December 31, 2025, 2024, and 2023 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **OTTI Recognized in Loss** | **OTTI Recognized in Loss** | |
| <br>**Year ended** | <br>**Amortized Cost Basis Before OTTI** | **Interest** | **Non-Interest** | <br>**Fair Value** |
| OTTI Recognized: |  |  |  |  |
| December 31, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intent to sell | $— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual aggregate total | $— |  |  |  |
| December 31, 2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intent to sell | $— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual aggregate total | $— |  |  |  |
| December 31, 2023 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intent to sell | $81 | 20 | (1) | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual aggregate total | $81 | 20 | (1) | 62 |

---

Statutory Financial Statements as of December 31, 2025

Page 38 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)&nbsp;&nbsp;&nbsp;&nbsp;Derivatives and Hedging Instruments***

The Company uses exchange-traded and OTC derivative instruments as a risk management strategy to economically hedge its exposure to various market risks associated with both its products and operations. Derivative assets and liabilities that do not qualify for hedge accounting treatment are recorded at fair value in the Statutory Financial Statements using valuation techniques further discussed in Note 6.

The Company does not have derivative contracts with financing premium as of December 31, 2025 and 2024.

Derivatives held by the Company are designated as either a fair value hedging instrument (fair value hedge), a cash flow hedging instrument (cash flow hedge), or a nonqualified hedging instrument (nonqualifying strategies).

Within the Statutory Statements of Cash Flow, net realized and unrealized gains on derivative instruments are reported in the Derivatives line of the Proceeds from investments sold, matured, or repaid section. Net realized and unrealized losses on derivative instruments are reported in the Derivatives line of the Cost of investments acquired section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(1) Cash Flow Hedges***

**Foreign Currency Swaps on Debt Securities** 

Foreign currency swaps have notional amounts and maturity dates equal and offsetting to the underlying debt securities and are determined to be highly effective as of December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(2) Fair Value Hedges***

**Interest Rate Swaps on Variable Annuity Insurance Liabilities**

IRS traded after June 2013 are centrally cleared through an exchange. For IRS traded prior to June 2013 the IRS exposure was netted with other OTC derivatives upon settlement and were subject to the rules of the International Swaps and Derivatives Association, Inc. agreements. The fair values of the collateral posted for OTC and exchange traded derivatives are discussed in the derivative collateral management section below.

Prior to January 1, 2020, the Company designated hedge accounting for these IRS as a cash flow hedge under SSAP No. 86. The amounts previously recorded under the SSAP No. 86 relationship continue to be deferred and amortized over the life of the former hedge program. Effective January 1, 2020, the Company de-designated its previous hedging relationship under SSAP No. 86 and simultaneously designated the hedging relationship under SSAP No. 108 as a fair value hedge. The relationship is deemed to be highly effective at December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(3) Nonqualifying Strategies***

**Futures and Options Contracts**

OTC options and ETO are cleared through the Options Clearing Corporation, which operates under the jurisdiction of both the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission. The fair values of the collateral posted for futures, OTC options, and ETO are discussed in the derivative collateral management section below.

**Interest Rate Swaps**

The Company can receive the fixed or variable rate; IRS are traded in varying maturities. The fair values of the collateral posted and variation margin for OTC and centrally cleared IRS are discussed in the derivative collateral management section below.

**Credit Default Swaps** 

The CDS within the investment portfolios assume credit risk from a referenced index for the purpose of synthetically replicating policyholder liability exposure. The Company can be required to pay or be the net receiver on the contract depending on the net position. Credit events include bankruptcy of the reference and

Statutory Financial Statements as of December 31, 2025

Page 39 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

failure to pay by the reference. As the potential future exposure (PFE) is not determinable, the PFE is zero for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) CDS are used to hedge indices allocated to products by policyholders. Fluctuations in value of the CDS are offset by credits provided to policyholders and results in a minimal amount of hedge inefficiency. It is impossible to determine the potential future amount of hedge inefficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The CDS used are exchange traded and daily variation margin is required to settle market movements. This minimizes counterparty credit risk. It also makes it impossible to determine what the potential future exposure related to counterparty risk, net of variation margin received could be.

The fair value of the collateral posted for centrally cleared CDS is discussed in the derivative collateral management section below.

**Total Return Swaps**

The Company engages in the use of OTC TRS, which allow the parties to exchange cash flows based on a variable reference rate such as the three-month SOFR and the return of an underlying index. The fair value of the collateral posted for OTC TRS is discussed in the derivative collateral management section below.

**To Be Announced Securities**

The Company uses OTC TBA forward contracts to gain exposure to the investment risk and return of mortgage-backed securities. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The fair value of the collateral posted for OTC TBA securities is discussed in the derivative collateral management section below.

The following table presents a summary of the aggregate notional amounts and fair values of the Company's derivative instruments reported on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus as of December 31: &nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | | **Gross Fair Value** | **Gross Fair Value** | | **Gross Fair Value** | **Gross Fair Value** |
|  | <br>**Notional** <sup>(1)</sup> | **Assets** | **Liabilities** | <br>**Notional** <sup>(1)</sup> | **Assets** | **Liabilities** |
| **Cash flow hedging instruments** |  |  |  |  |  |  |
| Foreign currency swaps | $3899 | 74 | (93) | 3121 | 236 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash flow hedging instruments |  | $74 | (93) |  | 236 | (1) |
| **Fair value hedging instruments** |  |  |  |  |  |  |
| IRS | $73079 | 11 | (215) | 76064 | 18 | (299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fair value hedging instruments |  | $11 | (215) |  | $18 | (299) |
| **Nonqualifying hedging instruments** |  |  |  |  |  |  |
| OTC options | $62485 | 4067 | (3072) | 60983 | 3042 | (2186) |
| ETO | 22352 | 710 | (520) | 29741 | 96 | (115) |
| TBA securities | 863 | 1 |  | 1162 | 3 | (6) |
| IRS | 4865 | 5 | (8) | 3604 | 5 | (9) |
| Futures | 21614 |  |  | 21653 |  |  |
| TRS | 1095 |  | (2) | 4194 | 13 | (57) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonqualifying hedging instruments |  | 4783 | (3602) |  | 3159 | (2373) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative instruments |  | $4868 | (3910) |  | 3413 | (2673) |
| <sup>(1)</sup> Notional amounts are presented on an absolute basis. | <sup>(1)</sup> Notional amounts are presented on an absolute basis. | <sup>(1)</sup> Notional amounts are presented on an absolute basis. | <sup>(1)</sup> Notional amounts are presented on an absolute basis. | <sup>(1)</sup> Notional amounts are presented on an absolute basis. | <sup>(1)</sup> Notional amounts are presented on an absolute basis. | <sup>(1)</sup> Notional amounts are presented on an absolute basis. |

---

**Derivative Collateral Management**

The Company manages derivative collateral for the general account and separate account combined. Additionally, said derivative collateral is managed separately between exchange-traded and OTC derivatives.

Statutory Financial Statements as of December 31, 2025

Page 40 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

The total collateral posted for exchange-traded derivatives at December 31, 2025 and 2024, had a fair value of $2,395 and $2,195, respectively, and is included in Bonds on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus and recorded at amortized cost. The Company retains ownership of the exchange-traded collateral, but the collateral resides in an account designated by the exchange. The collateral is subject to specific exchange rules regarding rehypothecation. The total collateral posted for OTC derivatives at December 31, 2025 and 2024, had a fair value of $37 and $107, respectively, and is included in Bonds on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus and recorded at amortized cost. The Company posts collateral to OTC counterparties based upon exposure amounts. The Company retains ownership of the OTC collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h)&nbsp;&nbsp;&nbsp;&nbsp;Offsetting Assets and Liabilities***

The Company elects to disclose derivative assets and liabilities eligible for offset under SSAP No. 64 – *Offsetting and Netting of Assets and Liabilities* on a gross basis on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus in accordance with the provisions set forth in SSAP No. 86. This treatment is consistent with the Company's historical reporting presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i)&nbsp;&nbsp;&nbsp;&nbsp;Securities Lending***

The Company loaned securities with a carrying value of $3,401 and $2,962 and a fair value of $3,188 and $2,654 as of December 31, 2025 and 2024, respectively. The aggregate amount of collateral received through securities lending at December 31 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Fair Value** | **Fair Value** |
|  | **2025** | **2024** |
| Cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Open | 2256 | 2227 |
| &nbsp;&nbsp;&nbsp;&nbsp;30 days or less |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;31 to 60 days |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;61 to 90 days |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Greater than 90 days |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 2256 | 2227 |
| Securities received | 1010 | 490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total collateral received | $3266 | 2717 |

---

The aggregate amount of cash collateral reinvested through securities lending at December 31 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amortized cost** | **Fair value** | **Amortized cost** | **Fair value** |
| Open |  |  |  |  |
| 30 days or less | 740 | 740 | 903 | 903 |
| 31 to 60 days | 388 | 388 | 437 | 437 |
| 61 to 90 days | 8 | 8 | 12 | 12 |
| 91 to 120 days | 267 | 267 | 245 | 245 |
| 121 to 180 days | 220 | 220 | 151 | 151 |
| 181 to 365 days | 633 | 634 | 407 | 409 |
| Greater than 1 year |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total collateral reinvested | $2256 | 2257 | 2155 | 2157 |

---

There were no borrowings outstanding from collateral securities lending as of December 31, 2025. As of December 31, 2024 the Company had borrowings outstanding from collateral securities lending of $72.

Statutory Financial Statements as of December 31, 2025

Page 41 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

Reinvested collateral is recorded in Other invested assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. The amount and type of reinvested collateral at December 31 is as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Cash and cash equivalents | $1958 | 1841 |
| Short-term investments | 298 | 314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $2256 | 2155 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(j) &nbsp;&nbsp;&nbsp;&nbsp;Reverse Repurchase Agreements***

The Company participates in both bilateral and tri-party repos. As of December 31, 2025 and 2024, the Company did not sell or acquire any securities that resulted in default. The Company did not recognize a liability to return cash collateral as of December 31, 2025 and 2024.

As of December 31, 2025, $1,380 and $200 of collateral received were bonds with a designated NAIC-1 and NAIC-2 rating respectively. All collateral received, as of December 31, 2024, were bonds with a designated NAIC-1 rating. Further information related to repos for the years ended December 31, 2025 and 2024, is as follows:&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| **As of year end** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;1. Maturity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Overnight | $1580 | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. 2 Days to 1 Week |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2. Collateral Pledged and Securities Acquired Under Repo |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Cash Collateral Pledged - Secured Borrowing | $1580 | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Fair Value of Securities Acquired Under Repo - Secured Borrowing | 1580 | 915 |

---

---

| | | |
|:---|:---|:---|
| **Maximum Amount** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;1. Maturity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Overnight | $1580 | 4180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. 2 Days to 1 Week |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Greater than one week and less than one month |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2. Collateral Pledged and Securities Acquired Under Repo |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Cash Collateral Pledged - Secured Borrowing | $1580 | 4180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Fair Value of Securities Acquired Under Repo - Secured Borrowing | 1580 | 4180 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(k)&nbsp;&nbsp;&nbsp;&nbsp;Non-insurance SCA Investments***

A summary of the Company's SSAP No. 97 – *Investments in Subsidiary, Controlled and Affiliated Entities*, non-insurance SCA investments, including their respective asset value and NAIC filing information, as of December 31, 2025 and 2024 is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **2025:** | **Gross Asset** | **Non-Admitted Asset** | **Net Admitted Assets** | **NAIC Filing Date** | **NAIC Filing Type** | **NAIC Filing Balance** | **Re-submission Required?** |
| Allianz Fund Investments | $141 |  | 141 | 5/14/2025 | S2 | 141 | N |
| Questar Capital Corporation | 2 | 2 |  | N/A | N/A |  | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $143 | 2 | 141 | XXX | XXX | 141 | XXX |

---

Statutory Financial Statements as of December 31, 2025

Page 42 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **2024:** | **Gross Asset** | **Non-Admitted Asset** | **Net Admitted Assets** | **NAIC Filing Date** | **NAIC Filing Type** | **NAIC Filing Balance** | **Re-submission Required?** |
| AZL PF Investments Inc. | $731 |  | 731 | 6/28/2024 | S2 | 707 | N |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $731 |  | 731 | XXX | XXX | 707 | XXX |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(l)&nbsp;&nbsp;&nbsp;&nbsp;FHLB Agreements***

The Company held Class A FHLB membership stock of $10 and $10 at December 31, 2025 and 2024 and activity stock of $113 and $113 at December 31, 2025 and 2024, respectively. The Company has fully collateralized funding agreements of $2,500 and $2,500 as of December 31, 2025 and 2024. All FHLB transaction activity occurs in the Company's general account.

Securities collateral pledged to FHLB at December 31 is as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Carrying value | $2920 | 3038 |
| Fair value | 2500 | 2500 |

---

The maximum of collateral pledged to FHLB during the year ended December 31 was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Carrying value | $3361 | 3152 |
| Fair value | 2500 | 2501 |

---

As of December 31, 2025 and 2024, the Company had $5,620 and $2,500, respectively, in total borrowing capacity under its agreement with the FHLB. The maximum amount of aggregate borrowing from FHLB during the years ended December 31, 2025 and 2024 was $2,500 and $2,500, respectively. Borrowings are not subject to prepayment penalties. Outstanding borrowings as of December 31, 2025, were issued on various dates ranging from November 09, 2020 to December 15, 2025 and interest rates on those borrowings range from 3.67% to 4.90%. Interest paid on borrowings was $125 and $145 for the years ended December 31, 2025 and 2024, respectively.

Statutory Financial Statements as of December 31, 2025

Page 43 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(m)&nbsp;&nbsp;&nbsp;&nbsp;Restricted Assets***

As of December 31, 2025 and 2024, the Company had the following restricted assets, including assets pledged to others as collateral:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | | | **Percentage** | **Percentage** |
|  | **Total general account** | **Total separate account** | **Total current year** | **Total prior year** | <br>**Increase (decrease)** | <br>**Total current year admitted restricted** | **Gross restricted to total assets** | **Admitted restricted to total admitted assets** |
| Collateral held under security lending arrangements | $3266 | 982 | 4248 | 3570 | 678 | 4248 | 2.1% | 2.1% |
| FHLB Capital Stock | 123 |  | 123 | 123 |  | 123 | 0.1 | 0.1 |
| On deposit with states | 4 |  | 4 | 4 |  | 4 |  |  |
| On deposit with other regulatory bodies | 1 |  | 1 | 1 |  | 1 |  |  |
| Pledged as collateral to FHLB (including assets backing funding agreements) | 2920 |  | 2920 | 3038 | (118) | 2920 | 1.4 | 1.4 |
| Pledged as collateral not captured in other categories | 2618 |  | 2618 | 2683 | (65) | 2618 | 1.3 | 1.3 |
| Assets held under modco reinsurance agreements | 8405 |  | 8405 | 10131 | (1726) | 8405 | 4.2 | 4.2 |
| Assets held under funds withheld reinsurance agreements | 11298 |  | 11298 | 8088 | 3210 | 11298 | 5.6 | 5.6 |
| Total Restricted Assets | $28635 | 982 | 29617 | 27638 | 1979 | 29617 | 14.7% | 14.7% |

---

As of December 31, 2025 the Company had the following assets held under modco and FWH reinsurance agreements, all of which is held in the general account.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Assets: | **Modco<br> Carrying value** | **FWH<br> Carrying value** | **Modco<br> Fair value** | **FWH<br> Fair value** | **% of carrying value to total assets (Admitted and Nonadmitted)** | **% of carrying value to total assets (Admitted Assets)** |
| Cash, cash equivalents and short-term investments | $282 | 492 | 282 | 492 | 0.6% | 0.6% |
| Issuer credit obligations | 5298 | 6329 | 4729 | 5447 | 9.1 | 9.2 |
| Asset backed securities | 1819 | 3351 | 1835 | 3340 | 4.1 | 4.1 |
| Preferred stock | 1 | 13 | 1 | 13 |  |  |
| Mortgage loans | 828 | 947 | 823 | 876 | 1.4 | 1.4 |
| Other long-term invested assets | 176 | 167 | 201 | 177 | 0.3 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 8404 | 11299 | 7871 | 10345 | 15.5% | 15.6% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(n)&nbsp;&nbsp;&nbsp;&nbsp;Investments in Tax Credit Structures (tax credit investments)***

As of December 31, 2025 the Company had various investments in tax credit structures with a range of 4 to 12 remaining years of unexpired tax credits and no required holding period.

The amount of tax credits and other tax benefits recognized during the years ended December 31, 2025, 2024 and 2023 is $63, $62, and $57, respectively.

The amount of investment amortization and non-income tax related activity recognized as a component of net investment income during the years ended December 31, 2025, 2024 and 2023 is $(58), $(55), and $(55), respectively.

The balance of the investment recognized in the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus for the years ended December 31, 2025 and 2024 is $281 and $339, respectively.

Statutory Financial Statements as of December 31, 2025

Page 44 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

The expected schedule of generated tax credits as of December 31, 2025 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Transferable/Certificated** | **Non-transferable** |
| Year 1 |  | 59 |
| Year 2 |  | 53 |
| Year 3 |  | 46 |
| Year 4 |  | 40 |
| Year 5 |  | 33 |
| Thereafter |  | 63 |

---

Additionally, the Company's investments in tax credit structures require a commitment of capital. The Company has open capital commitments of $40 and $67 at December 31, 2025 and 2024, respectively, which are recorded as an unfunded commitment liability in other liabilities. Commitments for investments in tax credit structures are considered an open capital commitment beginning when the Company formally commits to fund the investment, but they are not recorded as an unfunded commitment asset and liability until the Company has begun funding the investment.

The underlying projects of the Company's tax credit investments are not currently subject to any regulatory reviews and there have not been any significant modifications or events that resulted in a change in the nature of the investment or a change in the relationship with the underlying project for the investments in scope.

The Company did not recognize any impairment losses on tax credit investments during the the years ended December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(o)&nbsp;&nbsp;&nbsp;&nbsp;Joint Ventures***

The Company has no investments in joint ventures, partnerships or limited liability companies that exceed 10% of its admitted assets. The Company recognized no impairments on joint ventures for the years ended December 31, 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(p)&nbsp;&nbsp;&nbsp;&nbsp;5GI Securities***

As of December 31, 2025, the Company had no investments classified as 5GI Securities.

As of December 31, 2024, the Company had the following investments that were classified as 5GI Securities:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** |
|  | **Number of Securities** | **Aggregate Book Adjusted Carrying Value** | **Aggregate Fair Value** |
| Bonds | 2 | $13 | 13 |
| Asset-backed & structured securities |  |  |  |
| Preferred Stock (amortized cost) |  |  |  |
| Preferred Stock (fair value) |  |  |  |
| **Total** | 2 | $13 | 13 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(q)&nbsp;&nbsp;&nbsp;&nbsp;Negative IMR***

Fixed-income investments generating IMR losses comply with the the Company's documented investment and liability management policies. IMR losses for fixed-income-related derivatives are all in accordance with prudent and documented risk management procedures, in accordance with the Company's derivative use plans and reflect symmetry with historical treatment in which unrealized derivative gains were reversed to IMR and amortized in lieu of being recognized as realized gains upon derivative termination. Asset sales that generated admitted negative IMR were not compelled by liquidity pressures.

Statutory Financial Statements as of December 31, 2025

Page 45 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

As of December 31, 2025, the Company had the following net negative IMR and admitted negative IMR balances:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** |
|  | General Account | Insulated Separate Account | Non-Insulated Separate Account |
| Net Negative IMR | $— |  | 34 |
| Admitted Negative IMR |  |  | 34 |
| Calculated Adjusted Capital and Surplus | 6266 | 6266 | 6266 |
| Percentage of Admitted Negative IMR to Adjusted Capital | —% | —% | 0.5% |

---

As of December 31, 2024, the Company had the following net negative IMR and admitted negative IMR balances:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** |
|  | General Account | Insulated Separate Account | Non-Insulated Separate Account |
| Net Negative IMR | $— |  |  |
| Admitted Negative IMR |  |  | 23 |
| Calculated Adjusted Capital and Surplus | 6674 | 6674 | 6674 |
| Percentage of Admitted Negative IMR to Adjusted Capital | —% | —% | 0.3% |

---

As of December 31, 2025, and 2024, the Company had no unamortized balances in IMR from the allocation of gains/losses from derivatives in IMR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(r)&nbsp;&nbsp;&nbsp;&nbsp;Unused Commitments and Lines of Credit***

The Company has a letter of credit with Allianz Life as the beneficiary, Chubb LTD as the applicant and Wells Fargo as the issuer, to support reserve credit taken as a result of a reinsurance transaction. The Company's borrowing capacity under this agreement is limited to $5 as of December 31, 2025. Borrowed amounts can be prepaid at any time with no prepayment penalty. There are no commitment fees associated with this arrangement. There was no outstanding balance under the letter of credit agreement as of December 31, 2025 and 2024, respectively.

The Company has a letter of credit with Allianz Life as the beneficiary, Allianz SE as the applicant, and BayernLB as the issuer, to support reserve credit taken as a result of a reinsurance transaction. The Company's borrowing capacity under the agreement is limited to an immaterial amount as of December 31, 2025. Borrowed amounts can be prepaid at any time with no prepayment penalty. There are no commitment fees associated with this arrangement. There was no outstanding balance under the letter of credit agreement as of December 31, 2025 and 2024, respectively.

The Company does not have any long or short-term unused commitments or long-term lines of credit.

**(6)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements**

SSAP No. 100 – *Fair Value* establishes a fair value hierarchy that prioritizes the inputs used in the valuation techniques to measure fair value.

Level 1 – &nbsp;&nbsp;&nbsp;&nbsp;Unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date.

Level 2 – &nbsp;&nbsp;&nbsp;&nbsp;Valuations derived from techniques that utilize observable inputs, other than quoted prices included in Level 1, which are observable for the asset or liability either directly or indirectly, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Quoted prices for similar assets or liabilities in active markets.

Statutory Financial Statements as of December 31, 2025

Page 46 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Quoted prices for identical or similar assets or liabilities in markets that are not active.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Inputs other than quoted prices that are observable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – &nbsp;&nbsp;&nbsp;&nbsp;Valuations derived from techniques in which the significant inputs are unobservable. Level 3 fair values reflect the Company's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).

The Company has analyzed the valuation techniques and related inputs, evaluated its assets and liabilities reported at fair value, and determined an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Based on the results of this evaluation and investment class analysis, each financial asset and liability was classified into Level 1, 2, or 3.

The following presents the assets and liabilities measured at fair value on a recurring basis and their corresponding level in the fair value hierarchy at December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** |
|  | **Level 1** | **Level 2** <sup>(a)</sup> | **Level 3** | **Total** |
| *Assets at fair value:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuer credit obligations |  | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities |  | 13 | 4 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds |  | 14 | 4 | 18 |
| &nbsp;&nbsp;&nbsp;Common stocks | 215 |  |  | 215 |
| &nbsp;&nbsp;&nbsp;Preferred stocks |  | 6 |  | 6 |
| &nbsp;&nbsp;&nbsp;Derivative assets | 710 | 4157 |  | 4867 |
| &nbsp;&nbsp;&nbsp;Separate account assets | 15458 | 16640 |  | 32098 |
| &nbsp;&nbsp;&nbsp;Other invested assets |  | 7 | 191 | 198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets reported at fair value | $16383 | 20824 | 195 | 37402 |
| *Liabilities at fair value:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | $519 | 3388 | 2 | 3909 |
| &nbsp;&nbsp;&nbsp;Separate account derivative liabilities |  | 11044 |  | 11044 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities reported at fair value | $519 | 14432 | 2 | 14953 |
| &nbsp;&nbsp;&nbsp;&nbsp;<sup>(a)</sup> The Company does not have any assets or liabilities measured at net asset value (NAV) that are included in Level 2 within this table. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(a)</sup> The Company does not have any assets or liabilities measured at net asset value (NAV) that are included in Level 2 within this table. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(a)</sup> The Company does not have any assets or liabilities measured at net asset value (NAV) that are included in Level 2 within this table. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(a)</sup> The Company does not have any assets or liabilities measured at net asset value (NAV) that are included in Level 2 within this table. | &nbsp;&nbsp;&nbsp;&nbsp;<sup>(a)</sup> The Company does not have any assets or liabilities measured at net asset value (NAV) that are included in Level 2 within this table. |

---

Statutory Financial Statements as of December 31, 2025

Page 47 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** |
|  | **Level 1** | **Level 2** <sup>(a)</sup> | **Level 3** | **Total** |
| *Assets at fair value:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | $1 | 1 | 2 | 4 |
| &nbsp;&nbsp;&nbsp;Common stocks | 202 |  | 4 | 206 |
| &nbsp;&nbsp;&nbsp;Preferred stocks |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Derivative assets | 96 | 3305 | 13 | 3414 |
| &nbsp;&nbsp;&nbsp;Separate account assets | 15363 | 11074 |  | 26437 |
| &nbsp;&nbsp;&nbsp;Other invested assets |  |  | 57 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets reported at fair value | $15662 | 14380 | 77 | 30119 |
| *Liabilities at fair value:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | $115 | 2501 | 57 | 2673 |
| &nbsp;&nbsp;&nbsp;Separate account derivative liabilities |  | 6574 |  | 6574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities reported at fair value | $115 | 9075 | 57 | 9247 |
| <sup>(a)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table. | <sup>(a)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table. | <sup>(a)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table. | <sup>(a)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table. | <sup>(a)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table. |

---

The following is a discussion of the methodologies used to determine fair values for the assets and liabilities listed in the above table. These fair values represent an exit price (i.e., what a buyer in the marketplace would pay for an asset in a current sale or charge to transfer a liability). The Company has not made changes to valuation techniques in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)&nbsp;&nbsp;&nbsp;&nbsp;Valuation of Bonds and Unaffiliated Stock***

The fair value of bonds is based on quoted market prices in active markets when available. Based on the market data, the securities are categorized into asset class, and based on the asset class of the security, appropriate pricing applications, models and related methodology, and standard inputs are utilized to determine what a buyer in the marketplace would pay for the security in a current sale. When quoted prices are not readily available or in an inactive market, standard inputs used in the valuation models, listed in approximate order of priority, include, but are not limited to, benchmark yields, reported trades, Municipal Securities Rulemaking Board reported trades, Nationally Recognized Municipal Securities Information Repository material event notices, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. In some cases, including private placement securities and certain difficult-to-price securities, internal pricing models may be used that are based on market proxies. Internal pricing models based on market spread and U.S. Treasury rates are used to value private placement holdings. The primarily unobservable input used in the discounted cash flow models for states and political subdivisions, foreign government, and corporate bonds is a corporate index option adjusted spread (OAS). CDO and certain mortgage-backed securities are priced by a third-party vendor and the Company internally reviews the valuation for reasonableness. The Company does not have insight into the specific inputs; however, the key unobservable inputs would generally include default rates.

Generally, U.S. Treasury securities and exchange-traded stocks are included in Level 1. Most bonds for which prices are provided by third-party pricing sources, including private placement securities that are priced by asset managers, are included in Level 2, because the inputs used are market observable. Bonds for which prices were obtained from broker quotes, certain bonds without active trading markets, and internally priced private placements are included in Level 3.

The fair value of unaffiliated common stocks is based on quoted market prices in active markets when available and included in Level 1. When quoted prices are not readily available or in an inactive market, the Company arrives at fair value utilizing internal pricing models based on available market inputs or obtains valuations from third party brokers or investment managers. Such investments may be categorized in Level 2

Statutory Financial Statements as of December 31, 2025

Page 48 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

or Level 3. The primary unobservable input used to value common stock are indicative quotes received from third-party vendors.

The fair value of unaffiliated preferred stocks is based on quoted market prices in active markets. When available, such investments are included in Level 1. When quoted prices are not readily available or in an inactive market, the Company arrives at fair value utilizing internal pricing models based on available market inputs. Such investments may be categorized in Level 2 or Level 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)&nbsp;&nbsp;&nbsp;&nbsp;Valuation of Derivatives***

Active markets for OTC options do not exist. The fair value of OTC options is derived internally, by calculating their expected discounted cash flows, using a set of calibrated, risk-neutral stochastic scenarios, including a market data monitor, a market data model generator, a stochastic scenario calibrator, and the actual asset pricing calculator. The valuation results are reviewed by Management via the Pricing Committee. OTC options that are internally priced, foreign currency swaps, credit default swaps (CDS), To Be Announced (TBA) securities, and interest rate swaps (IRS) are included in Level 2, because they use market observable inputs. TRS are included in Level 3 because they use valuation techniques in which significant inputs are unobservable. The fair value of ETOs and futures are based on quoted market prices and are generally included in Level 1.

Certain derivatives are priced using external third-party vendors. The Company has controls in place to monitor the valuations of these derivatives. Using market observable inputs, IRS prices are derived from a third-party source and are independently recalculated internally and reviewed for reasonableness at the position level on a monthly basis. TRS prices are obtained from the respective counterparties. These prices are also internally recalculated and reviewed for reasonableness at the position level on a monthly basis. The Company does not have insight into the specific inputs used by third-party vendors; however, the key unobservable input would generally include the spread.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)&nbsp;&nbsp;&nbsp;&nbsp;Valuation of Separate Account Assets and Separate Account Derivative Liabilities***

Separate account assets and Separate account derivative liabilities, with the exception of certain bonds, mortgage loans, cash, cash equivalents, securities lending reinvested collateral assets and investment income due and accrued, are carried at fair value, which is based on the fair value of the underlying assets which are described throughout this note. Funds in the separate accounts are primarily invested in variable investment option funds with the following investment types: bond, domestic equity, international equity, or specialty. Variable investment option funds are included in Level 1 because their fair value is based on quoted prices in active, observable markets. The remaining investments are categorized similar to the investments held by the Company in the general account (e.g., if the separate account invested in bonds, short-term investments and derivatives, that portion could be classified within Level 2 or Level 3). Assets carried at amortized cost within the separate account have an amortized cost of $43,107 and $35,366 as of December 31, 2025 and 2024, respectively, and a fair value of $40,376 and $31,959 as of December 31, 2025 and 2024, respectively. Separate account assets carried at amortized cost are included in the table in section 6(h) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)&nbsp;&nbsp;&nbsp;&nbsp;Level 3 Rollforward***

The following table provides a reconciliation of the beginning and ending balances for the Company's Level 3 assets and liabilities measured at fair value on a recurring basis:

Statutory Financial Statements as of December 31, 2025

Page 49 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | January 1, 2025 | Transfers into<br> Level 3 | Transfers out<br> of Level 3 | Total gains<br> and (losses)<br> included in<br> Net Income | Total gains<br> and (losses)<br> included in<br> Surplus | Purchases, issuances, sales and settlements | December 31, 2025 |
| Asset-backed securities | $2 | 4 | (2) |  |  |  | 4 |
| Preferred stocks | 1 |  | (1) |  |  |  |  |
| Common stocks | 4 |  |  | (3) | 3 | (4) |  |
| TRS assets | 13 |  |  | 201 | (13) | (201) |  |
| Other invested assets | 57 | 292 | (196) | (2) | 6 | 34 | 191 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Level 3 Assets | $76 | 296 | (199) | 196 | (4) | (171) | 194 |
| TRS liabilities | $(57) |  |  | (166) | 54 | 166 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Level 3 Liabilities | $(57) |  |  | (166) | 54 | 166 | (3) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | January 1, 2024 | Transfers into<br> Level 3 | Transfers out<br> of Level 3 | Total gains<br> and (losses)<br> included in<br> Net Income | Total gains<br> and (losses)<br> included in<br> Surplus | Purchases, issuances, sales and settlements | December 31, 2024 |
| Bonds | $— | 2 |  |  |  |  | 2 |
| Preferred stocks |  |  |  |  |  | 1 | 1 |
| Common stocks | 4 |  |  |  |  |  | 4 |
| TRS assets | 137 |  |  | 444 | (124) | (444) | 13 |
| Other invested assets | 242 | 10 | (200) | 1 | 3 | 1 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Level 3 Assets | $383 | 12 | (200) | 445 | (121) | (443) | 76 |
| TRS liabilities | $(42) |  |  | (301) | (15) | 301 | (57) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Level 3 Liabilities | $(42) |  |  | (301) | (15) | 301 | (57) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)&nbsp;&nbsp;&nbsp;&nbsp;Transfers***

The Company reviews its fair value hierarchy classifications quarterly. Transfers between levels occur when there are changes in the observability of inputs and market activity.

All transfers into Level 3 were a result of observable inputs no longer being considered reliable or could no longer be validated against an alternative source. The transfers out of Level 3 were a result of securities no longer being carried at fair value as a result of new availability of reliable observable inputs or the ability to validate market price of the security against an alternative source.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)&nbsp;&nbsp;&nbsp;&nbsp;Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs***

**Bonds:** The primary unobservable input used in the discounted cash flow models for states and political subdivisions, foreign government, and corporate bonds is a corporate index option adjusted spread (OAS). The corporate index OAS used is based on a security's sector, rating, and average life. A significant increase (decrease) of the corporate index OAS in isolation could result in a decrease (increase) in fair value.

CDO and certain mortgage-backed securities are priced by a third-party vendor and the Company internally reviews the valuation for reasonableness. The Company does not have insight into the specific inputs used; however, the key unobservable inputs would generally include default rates. A significant increase (decrease) in default rates in isolation could result in an decrease (increase) in fair value.

**Common and preferred stocks:** The primary unobservable inputs used to value common and preferred stock are indicative quotes received from third-party vendors and subsequent offering prices. A significant increase (decrease) in either the indicative quotes or offering prices in isolation could result in an increase (decrease) in fair value.

**Derivative assets and liabilities:** The TRS are priced by a third-party vendor and the Company internally reviews the valuation for reasonableness. The key unobservable input would generally include the spread. For

Statutory Financial Statements as of December 31, 2025

Page 50 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

a long position, a significant increase (decrease) in the spread used in the fair value of the TRS in isolation could result in higher (lower) fair value. For a short position, a significant increase (decrease) in the spread used in the fair value of the TRS in isolation could result in lower (higher) fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g)&nbsp;&nbsp;&nbsp;&nbsp;Estimates***

The Company has been able to estimate the fair value of all financial assets and liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h)&nbsp;&nbsp;&nbsp;&nbsp;Aggregate Fair Value of Financial Instruments***

The following tables present the carrying amounts and fair values of all financial instruments at December 31 <sup>(b)</sup>:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | | | **Fair Value** | **Fair Value** | **Fair Value** |
|  | <br>**Aggregate Fair Value** | <br>**Admitted Assets/<br> Carrying Value** | **Level 1** | **Level 2** | **Level 3** |
| *Financial Assets* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuer credit obligations | 68105 | 73731 | 6414 | 42554 | 19137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 19529 | 19694 |  | 7839 | 11690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds | 87634 | 93425 | 6414 | 50393 | 30827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks, unaffiliated | 14 | 14 |  | 14 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks, unaffiliated | 338 | 338 | 215 |  | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans on real estate | 10992 | 12020 |  |  | 10992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | 3044 | 3044 | 1315 | 1580 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 7 | 7 |  |  | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets | 4866 | 4868 | 709 | 4157 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities lending reinvested collateral assets | 2257 | 2256 |  | 2257 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 2602 | 2472 |  | 332 | 2270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COLI | 1332 | 1332 |  | 1332 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate account assets | 71415 | 75127 | 17357 | 38318 | 15740 |
| *Financial Liabilities* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit-type contracts | $5956 | 5754 |  |  | 5956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investment contracts | 82074 | 75576 |  |  | 82074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities | 3909 | 3910 | 519 | 3388 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for securities lending | 2256 | 2256 |  | 2256 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for securities | 40 | 40 |  |  | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate account liabilities | 71415 | 75127 | 17357 | 38318 | 15740 |
| <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. |

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Statutory Financial Statements as of December 31, 2025

Page 51 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | | | **Fair Value** | **Fair Value** | **Fair Value** |
|  | <br>**Aggregate Fair Value** | <br>**Admitted Assets/ Carrying Value** | **Level 1** | **Level 2** | **Level 3** |
| *Financial Assets* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | $79227 | 87377 | 5618 | 48186 | 25423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks, unaffiliated | 1 | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks, unaffiliated | 328 | 328 | 202 |  | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans on real estate | 16104 | 17639 |  |  | 16104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | 2596 | 2596 | 1606 | 915 | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 17 | 17 |  |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets | 3413 | 3413 | 95 | 3305 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities lending reinvested collateral assets | 2156 | 2155 |  | 2156 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other invested assets | 2134 | 2108 |  | 153 | 1981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COLI | 814 | 814 |  | 814 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate account assets | 59223 | 62629 | 16481 | 33231 | 9511 |
| *Financial Liabilities* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit-type contracts | $3657 | 3557 |  |  | 3657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investment contracts | 83129 | 79992 |  |  | 83129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowed money | 2557 | 2515 |  |  | 2557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities | 2673 | 2673 | 115 | 2501 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for securities lending | 2227 | 2227 |  | 2227 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable for securities | 67 | 67 |  |  | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate account liabilities | 59223 | 62629 | 16481 | 33231 | 9511 |
| <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. | <sup>(b)</sup> The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value. |

---

A description of the Company's valuation techniques for financial instruments not reported at fair value and categorized within the fair value hierarchy is shown below:

**Valuation of FHLB Stock**

FHLB stock, included in Common stocks, is not traded in an active market and is categorized in Level 3. FHLB stock is carried at cost, which approximates fair value unless it is impaired, based on provisions within the Company's FHLB agreement that allow for return of outstanding shares of FHLB stock at the Company's cost basis.

**Valuation of Mortgage Loans on Real Estate** 

The fair value of commercial mortgage loans on real estate is calculated by analyzing individual loans and assigning ratings to each loan based on a combination of loan-to-value ratios and debt service coverage ratios. Fair value is determined based on these factors as well as the contractual cash flows of each loan and the current market interest rates for similar loans. The fair value of residential mortgage loans on real estate is calculated by discounting estimated cash flows, with discount rates based on current market conditions.

Statutory Financial Statements as of December 31, 2025

Page 52 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

**Valuation of Cash Equivalents**

Cash equivalents are primarily comprised of money market mutual funds, cash equivalent bonds, and reverse repurchase agreements. The fair value of money market mutual funds are based on quoted market prices in active markets and included in Level 1. Reverse repurchase prices are provided by third-party pricing sources and included in Level 2, because the inputs used to determine fair value are market observable. Certain investments with a maturity of three months or less may incorporate significant unobservable inputs resulting in a Level 3 classification.

**Valuation of Short-term Investments**

Short-term investments are comprised of bonds due in one year or less at original purchase. Due to the short-term nature of these investments, the carrying value is deemed to approximate fair value. The fair value leveling of short-term investments is determined similarly as bonds as discussed above.

**Valuation of Securities Lending Reinvested Collateral Assets** 

Collateral held from securities lending agreements is primarily comprised of short-term and long-term highly liquid fixed-maturity securities. Fair values are determined and classified within the fair value hierarchy in a manner consistent with the method utilized to determine the fair value of similar securities (fixed-income securities, equity securities, cash and cash equivalents) held within the Company's general account investment portfolio.

**Valuation of Other Invested Assets**

Other invested assets include surplus notes, residuals on asset-backed securities, investments in tax credit structures, limited partnership investments, loans to affiliates, and restricted stock unit (RSU) assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Surplus notes and residuals on asset-backed securities for which prices are provided by third-party pricing sources using observable inputs are included in Level 2. Prices provided by third-party pricing sources that do not have observable market data or are determined internally are included in Level 3. Residuals are carried at the lower of amortized cost or market value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Investments in tax credit structures (including the unfunded commitment asset) fair value is set equal to carrying value, as there is no observable market data on which to calculate fair value. Due to the use of unobservable inputs, they are categorized as Level 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Limited partnership investments are recorded using the equity method in line with SSAP No. 48, Joint Ventures, Partnerships, and Limited Liability Companies, using unobservable inputs. Due to the use of unobservable inputs, they are categorized as Level 3. The Company believes the equity method approximates fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Loans to affiliates are carried at cost. Due to the lack of an active market, the current carrying value is the only market price at which the transaction could be settled, and therefore the Company believes cost approximates fair value. Due to the use of unobservable inputs, they are categorized as Level 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ RSU assets are tied to the share price of Allianz SE stock but does not participate in an active market and therefore, it is categorized as Level 2.

**Valuation of COLI**

The COLI policies held by the Company are carried at their respective cash surrender values, which approximates fair value or book value if held in a stable value wrap. The cash surrender value of the policies without a stable value wrap is based on the value of the underlying assets, which are regularly priced utilizing observable inputs. The cash surrender value of the policy with a stable value wrap is based on the book value as calculated and defined within the stable value wrap agreement, calculated using a crediting rate and market value adjustment based on the value of the underlying assets. COLI assets are included within Other assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. At December 31, 2025 and

Statutory Financial Statements as of December 31, 2025

Page 53 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

2024, the COLI carrying value is $1,332 and $814, respectively, and is allocated into the following categories based on primary underlying investment characteristics:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Bonds | 58.0% | 45.0% |
| Stocks | 20.0% | 19.0% |
| Other invested assets | 22.0% | 36.0% |

---

**Valuation of Deposit-Type Contracts** 

Fair values of deposit-type contracts are based on discounted cash flows using internal inputs, including the discount rate and consideration of the Company's own credit standing and a risk margin for actuarial inputs. The fair value of the FHLB funding agreements is calculated on a discounted cash flow basis. Each position includes a monthly interest rate, a maturity payment amount, and a maturity date. The interest and maturity payments are projected as of the valuation date, and the expected cash flows are discounted using the valuation date swap curve.

**Valuation of Other Investment Contracts** 

Other investment contracts are included within Life policies and annuity contracts within the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Other investment contracts include certain reserves related to deferred annuities and other payout annuities that may include life contingencies, but do not have significant mortality risk due to substantial periods certain. Fair values are based on discounted cash flows using internal inputs, including the discount rate and consideration of the Company's own credit standing and a risk margin for market inputs.

**Valuation of Payable for Securities Lending**

Securities lending payable is set equal to the cash collateral received. Due to the short-term nature of these loans, the carrying value is deemed to approximate fair value.

**Valuation of Payable for Securities**

Included in Payable for securities is the LIHTC investments unfunded commitment liability. As there is no observable market data on which to calculate fair value of the LIHTC investment unfunded commitment asset and liability, fair value is set equal to carrying value, and the balance is categorized as Level 3.

**Valuation of Separate Account Liabilities**

The fair value of separate account liabilities approximates the fair value of separate account assets.

**(7)&nbsp;&nbsp;&nbsp;&nbsp;Mortgage Notes Payable**

The Company had a mortgage loan on its headquarters that matured on August 1, 2024. As of December 31, 2025 and 2024, the loan had a balance of $0 and $0, respectively. Interest expense for the loan is $0, $0, and $1, in 2025, 2024, and 2023, respectively, and is presented in Net investment income on the Statutory Statements of Operations. The Company does not have any future principal payments required under the loan.

Statutory Financial Statements as of December 31, 2025

Page 54 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

**(8)&nbsp;&nbsp;&nbsp;&nbsp;Electronic Data Processing Equipment and Software (EDP)** 

EDP at December 31 and the changes in the balance for the years then ended are as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Amortization: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Software amortization | 29 | 25 |
| Net EDP balance, by major classes of assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Software | 40 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net EDP balance | 40 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonadmitted | (40) | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net admitted EDP balance | $— |  |

---

The Company has a gross EDP asset of $40 and $56 and accumulated depreciation and amortization of $0 and $(3) at December 31, 2025 and 2024, respectively. Servers, computers and peripherals are depreciated over the lesser of their useful life or three years and the net balance is nonadmitted. Software is amortized over the lesser of its useful life or five years. Nonoperating software is nonadmitted and operating software is admitted to the extent it meets the criteria defined in SSAP No. 16 *- Electronic Data Processing Equipment and Software*.

 **(9)&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)&nbsp;&nbsp;&nbsp;&nbsp;Deferred Tax Assets and Liabilities***

The components of the net DTA or net DTL are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Ordinary** | **Capital** | **Total** |
|  Total gross deferred tax assets | $1364 | 86 | 1450 |
|  Statutory valuation allowance adjustments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross deferred tax assets | 1364 | 86 | 1450 |
|  Deferred tax assets nonadmitted | (467) |  | (467) |
| &nbsp;&nbsp;&nbsp;&nbsp; Subtotal net admitted deferred tax assets | 897 | 86 | 983 |
|  Deferred tax liabilities | (307) | (17) | (324) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net admitted deferred tax assets (liabilities) | $590 | 69 | 659 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Ordinary** | **Capital** | **Total** |
|  Total gross deferred tax assets | $1204 | 160 | 1364 |
|  Statutory valuation allowance adjustments |  | (65) | (65) |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross deferred tax assets | 1204 | 95 | 1299 |
|  Deferred tax assets nonadmitted | (368) |  | (368) |
| &nbsp;&nbsp;&nbsp;&nbsp; Subtotal net admitted deferred tax assets | 836 | 95 | 931 |
|  Deferred tax liabilities | (330) | (7) | (337) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net admitted deferred tax assets (liabilities) | $506 | 88 | 594 |

---

Statutory Financial Statements as of December 31, 2025

Page 55 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | |
|:---|:---|:---|:---|
|  | **Change** | **Change** | **Change** |
|  | **Ordinary** | **Capital** | **Total** |
|  Total gross deferred tax assets | $160 | (75) | 85 |
|  Statutory valuation allowance adjustments |  | 65 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross deferred tax assets | 160 | (10) | 150 |
|  Deferred tax assets nonadmitted | (99) |  | (99) |
| &nbsp;&nbsp;&nbsp;&nbsp; Subtotal net admitted deferred tax assets | 61 | (10) | 51 |
|  Deferred tax liabilities | 23 | (10) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net admitted deferred tax assets (liabilities) | $84 | (20) | 64 |

---

As of December 31, 2024, the Company established a $65 valuation allowance related to the capital loss carryforward and other capital DTAs due to the lack of available future gains and tax planning to offset the gross capital DTA of $161. The valuation allowance resulted in a reduction of the Deferred tax asset, net reflected in the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus and a reduction of Surplus recognized as part of the Change in net deferred income tax on the Statutory Statements of Capital and Surplus. As of December 31, 2025, no valuation allowance was required related to capital DTAs of $86, due to an increase in unrealized gains and change in tax planning strategy during the year ended December 31, 2025.

The amount of admitted adjusted gross DTAs allowed under each component of SSAP No. 101 – *Income Taxes* (SSAP No. 101) as of December 31 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Ordinary** | **Capital** | **Total** |
| Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $— |  |  |
|  Adjusted gross DTAs expected to be realized after application of the threshold limitations |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lesser of 11.b.i or 11.b.ii: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross DTAs expected to be realized following the balance sheet date (11.b.i.) | 590 | 85 | 675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross DTAs allowed per limitation threshold (11.b.ii) | N/A | N/A | 979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lesser of 11.b.i or 11.b.ii | 590 | 85 | 675 |
|  Adjusted gross DTAs offset by gross DTLs (11.c) | 307 | 1 | 308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets admitted | $897 | 86 | 983 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Ordinary** | **Capital** | **Total** |
| Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $— |  |  |
|  Adjusted gross DTAs expected to be realized after application of the threshold limitations |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lesser of 11.b.i or 11.b.ii: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross DTAs expected to be realized following the balance sheet date (11.b.i.) | 506 | 95 | 601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross DTAs allowed per limitation threshold (11.b.ii) | N/A | N/A | 987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lesser of 11.b.i or 11.b.ii | 506 | 95 | 601 |
|  Adjusted gross DTAs offset by gross DTLs (11.c) | 330 |  | 330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets admitted | $836 | 95 | 931 |

---

Statutory Financial Statements as of December 31, 2025

Page 56 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | |
|:---|:---|:---|:---|
|  | **Change** | **Change** | **Change** |
|  | **Ordinary** | **Capital** | **Total** |
| Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $— |  |  |
|  Adjusted gross DTAs expected to be realized after application of the threshold limitations |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lesser of 11.b.i or 11.b.ii: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross DTAs expected to be realized following the balance sheet date (11.b.i.) | 84 | (10) | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted gross DTAs allowed per limitation threshold (11.b.ii) | N/A | N/A | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lesser of 11.b.i or 11.b.ii | 84 | (10) | 74 |
|  Adjusted gross DTAs offset by gross DTLs (11.c) | (23) | 1 | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets admitted | $61 | (9) | 52 |

---

Ratios used for threshold limitation as of December 31 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31** | **December 31** | |
|  | **2025** | **2024** | <br>**Change** |
| Ratio percentage used to determine recovery period and threshold limitation amount | 645% | 603% | 42% |
| Amount of adjusted capital and surplus used to determine recovery period threshold limitation | $6524 | 6571 | (47) |

---

The impact of tax planning strategies on the determination of net admitted adjusted gross DTAs is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** |
|  | **Ordinary** | **Capital** |
| &nbsp;&nbsp;&nbsp;Net admitted adjusted gross DTAs- (percentage of total net admitted adjusted gross DTAs) | 5.1% | 99.0% |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** |
|  | **Ordinary** | **Capital** |
| &nbsp;&nbsp;&nbsp;Net admitted adjusted gross DTAs- (percentage of total net admitted adjusted gross DTAs) | —% | 100.0% |

---

---

| | | |
|:---|:---|:---|
|  | **Change** | **Change** |
|  | **Ordinary** | **Capital** |
| &nbsp;&nbsp;&nbsp;&nbsp;Net admitted adjusted gross DTAs- (percentage of total net admitted adjusted gross DTAs) | 5.1% | (1.0)% |

---

The Company's tax planning strategies include the use of reinsurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)&nbsp;&nbsp;&nbsp;&nbsp;Unrecognized Deferred Tax Liabilities***

There are no temporary differences for which DTLs are not recognized.

Statutory Financial Statements as of December 31, 2025

Page 57 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)&nbsp;&nbsp;&nbsp;&nbsp;Current and Deferred Income Taxes***

The significant components of income taxes incurred (i.e. Current income tax expense) include:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31** | **December 31** | **December 31** | **2025-2024 Change** | **2024-2023 Change** |
|  | **2025** | **2024** | **2023** | **2025-2024 Change** | **2024-2023 Change** |
| Current year federal tax expense (benefit) - ordinary income | $279 | 471 | 574 | (192) | (103) |
| Current year foreign tax expense (benefit) - ordinary income |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 279 | 471 | 574 | (192) | (103) |
| Current year tax expense - net realized capital gains (losses) | (108) | (103) | (102) | (5) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal and foreign income taxes incurred | $171 | 368 | 472 | (197) | (104) |

---

DTAs and DTLs consist of the following major components:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31** | **December 31** | |
| <br>**Deferred tax assets** | **2025** | **2024** | <br>**Change** |
| Ordinary: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses | $69 | 14 | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred acquisition costs | 324 | 287 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expense accruals | 81 | 99 | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Policyholder reserves | 765 | 686 | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable hedging | 113 | 104 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonadmitted assets | 12 | 14 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 1364 | 1204 | 160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory valuation allowance adjustment |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonadmitted ordinary deferred tax assets | (467) | (369) | (98) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admitted ordinary tax assets | 897 | 835 | 62 |
| Capital: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Impaired assets | 53 | 52 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses | 1 | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital loss carryforward | 32 | 108 | (76) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 86 | 161 | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory valuation allowance adjustment |  | (65) | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonadmitted capital deferred tax assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admitted capital deferred tax assets | 86 | 96 | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admitted deferred tax assets | $983 | 931 | 52 |

---

Statutory Financial Statements as of December 31, 2025

Page 58 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | |
|:---|:---|:---|:---|
| | **December 31** | **December 31** | |
| <br>**Deferred tax liabilities** | **2025** | **2024** | <br>**Change** |
| Ordinary: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments | $(66) | (61) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed assets | (4) | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Policyholder reserves |  | (89) | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;Software capitalization | (8) | (3) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains | (128) | (114) | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;VM-21 Reserves | (74) | (19) | (55) |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable Hedging | (27) | (40) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | (307) | (330) | 23 |
| Capital: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains | (17) | (7) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | (17) | (7) | (10) |
| Deferred tax liabilities | $(324) | (337) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets (liabilities) | $659 | 594 | 65 |

---

The realization of the Ordinary DTAs is dependent upon the Company's ability to generate sufficient taxable income in future periods and the realization of Capital DTAs is dependent on tax planning strategies. Based on historical results and the prospects for future current operations, including tax planning strategies, management anticipates that it is more likely than not that future taxable ordinary and capital income will be sufficient for the realization of the remaining DTAs.

The Inflation Reduction Act was enacted on August 16, 2022. The Company has determined as of December 31, 2025 that it is an applicable corporation with respect to the Corporate Alternative Minimum Tax ("CAMT"), but that it will not incur a CAMT liability in 2025. The financial statements, therefore, do not include any impact related to CAMT. The Company has made an accounting election to disregard CAMT when evaluating the need for a Valuation Allowance for its non-CAMT DTAs.

The One Big Beautiful Bill Act (OBBBA) was enacted into law on July 4, 2025, which introduced changes to the tax treatment of a number of items. The most significant item was the immediate deductibility of domestic research expenses under Section 174. The Company reversed previously established deferred tax assets related to capitalized Section 174 costs and recognized a current tax benefit for the deductibility of previously deferred amounts. No other material impacts of OBBBA for the Company have been identified.

In computing taxable income, life insurance companies are allowed a deduction attributable to their life insurance and accident and health reserves. The Tax Act of 2017 significantly changed the methodology by which these reserves are computed for tax purposes. The changes are effective for tax years beginning after 2017 and are subject to a transition rule that spreads the additional income tax liability over the subsequent eight years beginning in 2018. Due to complexities in the new methodology and limited guidance from the Internal Revenue Service and U.S. Treasury, the Company has recorded provisional amounts for the deferred tax revaluation associated with the changes in the computation of life insurance tax reserves based on information available at December 31, 2017. Pursuant to Interpretation of the SAP Working Group 18-01: *Updated Tax Estimates under the Tax Cuts and Jobs Act*, provisional tax computations related to these amounts were reasonably estimated as of December 31, 2017 and have been adjusted based on guidance received from Internal Revenue Service and U.S. Treasury. Adjusted amounts are reflected in the Company's results of operations for the years ended December 31, 2025, 2024, and 2023.

The Change in net deferred income tax is comprised of the following (this analysis is exclusive of the nonadmitted DTAs as the Change in nonadmitted assets is reported separately from the Change in net deferred income tax in the Unassigned surplus section of the Statutory Statements of Capital and Surplus):

Statutory Financial Statements as of December 31, 2025

Page 59 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31** | **December 31** | |
|  | **2025** | **2024** | <br>**Change** |
|  Net deferred tax assets (liabilities) | $1126 | 1028 | 98 |
|  Statutory valuation allowance adjustment |  | (65) | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax assets (liabilities) after statutory valuation allowance | 1126 | 963 | 163 |
|  Tax effect of unrealized gains (losses) | 200 | 221 | (21) |
|  Statutory valuation allowance adjustment allocated to unrealized gains (losses) |  |  |  |
| Tax impact due to correction of error |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in net deferred income tax | $1326 | $1184 | $142 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d)&nbsp;&nbsp;&nbsp;&nbsp;Reconciliation of Federal Income Tax Rate to Actual Effective Rate***

The provision for federal income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The significant items causing this difference are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal income tax rate | 21.0% | 21.0% | 21.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of IMR | (0.7) | (0.4) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends received deduction | (2.9) | (0.5) | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Nondeductible expenses | 1.8 | 7.3 | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Affiliated LLC income | (0.3) | (0.2) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;COLI | (0.9) | (1.1) | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax hedges | 11.5 | (15.5) | 8.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax hedge reclassification | (7.3) | 25.7 | (7.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax credits | (6.2) | (5.4) | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior period adjustments | 9.7 | (3.4) | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes on impairments | (0.2) | 0.9 | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes on nonadmitted assets | 0.2 | 0.3 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred tax reclassified to change due to correction of accounting error |  |  | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance | (2.1) | (2.9) | (3.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Correction of error surplus |  |  | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital loss carryforward | (3.0) | (9.0) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | (6.2) | 5.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax contingencies | (3.0) | (4.7) | (1.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized capital gains tax | (10.2) | (8.6) | (4.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1.5 | (0.2) | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effective tax rate | 2.7% | 8.7% | 11.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal and foreign income taxes incurred | 26.3% | 39.1% | 26.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized capital gains tax | (10.2) | (8.6) | (4.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in net deferred tax | (13.4) | (21.8) | (10.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effective tax rate | 2.7% | 8.7% | 11.0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e)&nbsp;&nbsp;&nbsp;&nbsp;Carryforwards, Recoverable Taxes, and IRC Section 6603 Deposits***

As of December 31, 2025, there are no operating losses and foreign tax credit carryforwards available for tax purposes.

As of December 31, 2025 and 2024, there was $0 and $0, respectively of Federal income taxes available for recoupment in the event of future net losses.

As of December 31, 2025 and 2024, the Company admitted deposits under Section 6603 of the IRC in the amounts of $0, and $0, respectively, which are within Current federal and foreign income tax recoverable on the

Statutory Financial Statements as of December 31, 2025

Page 60 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

The Company had tax contingencies computed in accordance with SSAP No. 5, Liabilities, Contingencies and Impairment of Assets, and SSAP No. 101 as of December 31, 2025 and 2024. The Company does not believe the tax contingencies will significantly increase within the next 12 months.

In 2024, the Company released all previously held tax contingency and interest accrual related to variable annuity hedging, due to an agreement with the IRS regarding method of recognition. In addition, there was a one-time nondeductible tax payment and additional accrual for the R&D credit taken on the 2023 Federal Tax Return. The net result was a tax benefit of $57 in 2024. In 2025, an additional $1 of tax expense related to R&D credit was accrued and taken on the 2024 Federal Tax Return.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits in federal income tax expense. During the years ended December 31, 2025, 2024, and 2023 the Company recognized expenses of $(1), $(21), and $(12) in interest and penalties, respectively. The Company had $1 and $1 for the unrecognized tax benefits and related accrued interest at December 31, 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f)&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Federal Income Tax Return***

The Company's federal income tax return is consolidated with its parent, AZOA. The method of allocation among companies is subject to a written agreement with AZOA, approved by the Board of Directors of AZOA, that provides for computation of federal income taxes primarily on a separate company basis with the Company receiving reimbursement by AZOA for the benefit of all tax attributes, including credits and losses, when such attributes are utilized in the AZOA consolidated federal income tax return. In 2023, the Company amended the agreement to include the corporate alternative minimum tax applying principles described above. Intercompany tax balances are settled annually after the consolidated return is filed.

The Company is included in the consolidated group for which AZOA files a federal income tax return on behalf of all group members. As a member of the AZOA consolidated group, the Company is no longer subject to U.S. Federal income tax examinations, or examinations of State combined returns filed by AZOA, for years prior to 2018. In the second quarter of 2025, the Internal Revenue Service (IRS) examination of AZOA for the 2016 and 2017 income tax returns was closed after reaching a final agreement with the IRS Appeals Office regarding an issue related to variable annuity hedging income recognition. The IRS has also initiated an examination of AZOA's 2018-2022 income tax returns. The examination of the 2018-22 returns is expected to close by the end of 2026.

As of December 31, 2025, the companies included in the consolidated group for which AZOA files a federal income tax return are included below:

---

| | |
|:---|:---|
| **Members of Consolidated Tax Group** | **Members of Consolidated Tax Group** |
| Allianz Life Insurance Company of North America | Allianz Life Insurance Company of Missouri |
| Allianz Life Insurance Company of New York | Allianz Underwriters Insurance Company |
| AZOA Services Corporation | AGCS Marine Insurance Company |
| Allianz Global Risks US Insurance Company | Fireman's Fund Insurance Company |
| Allianz Reinsurance of America, Inc. | Fireman's Fund Indemnity Corporation |
| Allianz Technology of America, Inc. | National Surety Corporation |
| Allianz Renewable Energy Partners of America LLC | Chicago Insurance Company |
| Allianz Renewable Energy Partners of America 2 LLC | Interstate Fire & Casualty Company |
| Allianz Fund Investments, Inc. | American Automobile Insurance Company |
| Questar Capital Corporation | Allianz Risk Transfer, Inc. |
| Allianz Risk Transfer (Bermuda), Ltd. |  |

---

Statutory Financial Statements as of December 31, 2025

Page 61 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

**(10)&nbsp;&nbsp;&nbsp;&nbsp;Accident and Health Claim Reserves**

Accident and health claim reserves are based on estimates that are subject to uncertainty. Uncertainty regarding reserves of a given accident year is gradually reduced as new information emerges each succeeding year, thereby allowing more reliable reevaluations of such reserves. While management believes that reserves as of December 31, 2025 are appropriate, uncertainties in the reserving process could cause reserves to develop favorably or unfavorably in the near term as new or additional information emerges. Any adjustments to reserves are reflected in the operating results of the periods in which they are made. Movements in reserves could significantly impact the Company's future reported earnings.

Activity in the accident and health claim reserves is summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Balance at January 1, net of reinsurance recoverables of $1,080, $1,000, and $845, respectively | $585 | 531 | 437 |
| Incurred related to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current year | 279 | 252 | 242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior years | (1) | (39) | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total incurred | 278 | 213 | 227 |
| Paid related to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current year | 19 | 13 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior years | 165 | 146 | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total paid | 184 | 159 | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31, net of reinsurance recoverables of $1,309, $1,080, and $1,000, respectively | $679 | 585 | 531 |

---

Claim reserves related to prior years incurred in for 2025, 2024, and 2023 were favorable as a result of re-estimation of unpaid claims and claim adjustment expenses, principally on the individual LTC line of business.

**(11)&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance**

The Company primarily enters into reinsurance agreements to manage risk resulting from its life, annuity, and accident and health businesses, as well as businesses the Company has chosen to exit. In the normal course of business, the Company seeks to limit its exposure to loss by ceding risks using various types of reinsurance agreements.

The Company monitors the financial exposure and financial strength of the reinsurers on an ongoing basis. The Company attempts to mitigate risk by securing recoverable balances with various forms of collateral, including arranging trust accounts and letters of credit with certain reinsurers.

The effect of reinsurance on reserves, deposit-type contracts, and claims, for amounts recoverable from other insurers, was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
| Reduction in: | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Aggregate reserves \* | $27995 | 25508 |
| &nbsp;&nbsp;&nbsp;Deposit-type contracts | 627 | 524 |
| &nbsp;&nbsp;&nbsp;Policy and contract claims | 52 | 42 |
| &nbsp;&nbsp; \*Aggregate reserves are reduced by funds withheld agreements that results in a reclassification of reserves to Funds held under reinsurance treaties on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus in the amount of $12,041 and $8,556 as of December 31, 2025 and 2024, respectively. | &nbsp;&nbsp; \*Aggregate reserves are reduced by funds withheld agreements that results in a reclassification of reserves to Funds held under reinsurance treaties on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus in the amount of $12,041 and $8,556 as of December 31, 2025 and 2024, respectively. | &nbsp;&nbsp; \*Aggregate reserves are reduced by funds withheld agreements that results in a reclassification of reserves to Funds held under reinsurance treaties on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus in the amount of $12,041 and $8,556 as of December 31, 2025 and 2024, respectively. |

---

Reinsurance reserves, recoverables, and receivables at December 31, 2025 and 2024, are covered by collateral of $13,141 and $13,164, respectively, in addition to the letter of credit on behalf of AZMO, as noted in Note 2.

Life insurance, annuities, and accident and health business assumed from and ceded to other companies are as follows:

Statutory Financial Statements as of December 31, 2025

Page 62 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year ended** | **Direct amount** | **Ceded to other companies** | **Assumed from other companies** | **Net amount** |
| December 31, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Life insurance in-force | $97352 | 54576 | 33 | 42809 |
| &nbsp;&nbsp;&nbsp;Premiums: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life | 1925 | 109 |  | 1816 |
| &nbsp;&nbsp;&nbsp;&nbsp;Annuities | 21336 | 6195 |  | 15141 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accident and health | 182 | 75 | 89 | 196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total premiums | $23443 | 6379 | 89 | 17153 |
| December 31, 2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Life insurance in-force | $93215 | 52811 | 39 | 40443 |
| &nbsp;&nbsp;&nbsp;Premiums: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life | 1790 | 104 |  | 1686 |
| &nbsp;&nbsp;&nbsp;&nbsp;Annuities | 21130 | 1397 |  | 19733 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accident and health | 182 | 75 | 70 | 177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total premiums | $23102 | 1576 | 70 | 21596 |
| December 31, 2023 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Life insurance in-force | $89951 | 52123 | 42 | 37870 |
| &nbsp;&nbsp;&nbsp;Premiums: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life | 1649 | 102 |  | 1547 |
| &nbsp;&nbsp;&nbsp;&nbsp;Annuities | 16985 | 1208 |  | 15777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accident and health | 177 | 73 | 75 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total premiums | $18811 | 1383 | 75 | 17503 |

---

The Company holds securities backing term life and universal life with secondary guarantees ceded reserves in compliance with Actuarial Guideline 48. As of both December 31, 2025 and 2024, the Company had 8 reinsurance contracts in which risks under covered policies have been ceded. The Company held primary securities in an amount at least equal to the required level of primary securities for all of these contracts.

There are no nonaffiliated reinsurers owned in excess of 10% or controlled, either directly or indirectly, by the Company or by a representative, officer, trustee, or director of the Company.

There are no policies issued by the Company that have been reinsured with a company chartered in a country other than the United States that is owned in excess of 10% or controlled directly or indirectly by an insured, a beneficiary, a creditor, or any other person not primarily engaged in the insurance business.

The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel any reinsurance for reasons other than for nonpayment of premium or other similar credits.

The Company does not have reinsurance agreements in effect such that the amount of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts that, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsured policies.

The Company did not write off any uncollectible recoverables during 2025, 2024, or 2023.

The Company executed or amended the following agreements during the current year, that included policies or contracts that were in force as of the effective date of the agreement:

Effective January 1, 2025, the Company entered into a funds withheld reinsurance agreement with Sconset Re LTD., that covers an inforce block of fixed annuity contracts. As as result of the agreement, the Company recognized an

Statutory Financial Statements as of December 31, 2025

Page 63 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

initial ceded premium of $4,166 and a ceded option allowance of $62, offset by a ceded reserve of $4,228. This agreement did not result in any net reinsurance credit as this agreement is funds withheld coinsurance.

Effective January 1, 2025, the Company entered into a reinsurance agreement with Hannover Life Reassurance Company of America that covered an inforce block of fixed annuity contracts. This agreement is a renegotiation of an existing agreement with Hannover which increases the ceded reserve to the reinsurer while simultaneously reducing the quota share which results in the same reserve relief provided before and after the new agreement.

Effective March 29, 2024, Allianz Life used assumptive reinsurance to reinsure its entire Canadian block of business to Assumption Mutual Life Insurance Company. As a result, the Company has no insurance liabilities remaining on its Canadian block of business as of December 31, 2024. Prior to the reinsurance agreement, the Company had gross policyholder liabilities of $8, inclusive of separate account liabilities.

Effective April 1, 2024, the Company amended and restated a reinsurance agreement with Hannover Life Reassurance Company of America, originally effective September 1, 2021, that covers certain in force fixed annuity policies. This resulted in $154 of reserve credit as of April 1, 2024.

**(12)&nbsp;&nbsp;&nbsp;&nbsp;Annuity Actuarial Reserves and Deposit Liabilities by Withdrawal Characteristics**

Information regarding the Company's annuity actuarial reserves and deposit liabilities by withdrawal characteristics at December 31 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **Percentage of total** | **2024** | **Percentage of total** |
| Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;With market value adjustment | $69502 | 42% | $66807 | 42% |
| &nbsp;&nbsp;&nbsp;&nbsp;At book value less current surrender charges of 5% or more | 52614 | 31 | 45505 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;At market value | 13648 | 8 | 14454 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total with adjustment or at market value | 135764 | 81 | 126766 | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;At book value without adjustment (minimal or no charge or adjustment) | 22488 | 13 | 25400 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Not subject to discretionary withdrawal | 9741 | 6 | 7476 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross | 167993 | 100% | 159642 | 100% |
| Reinsurance ceded | 23796 |  | 21406 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net | $144197 |  | $138236 |  |
| Amount included in At book value less current charges of 5% or more that will move to At book value without adjustment in the year after the statement date: | $6837 |  | $4981 |  |

---

---

| | | |
|:---|:---|:---|
| Reconciliation of total annuity actuarial reserves and deposit fund liabilities: | **2025** | **2024** |
| Life, Accident and Health Annual Statement: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annuities, net (excluding supplementary contracts with life contingencies) | $75587 | 80006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supplemental contracts with life contingencies, net | 1844 | 1925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit-type contracts | 5754 | 3557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 83185 | 85488 |
| Separate Accounts Annual Statement: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annuities, net (excluding supplementary contracts with life contingencies) | 60990 | 52727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supplemental contracts with life contingencies, net | 22 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 61012 | 52748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total annuity actuarial reserves and deposit fund liabilities | $144197 | 138236 |

---

Statutory Financial Statements as of December 31, 2025

Page 64 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

**(13)&nbsp;&nbsp;&nbsp;&nbsp;Life Actuarial Reserves by Withdrawal Characteristics**

Information regarding the Company's life actuarial reserves by withdrawal characteristics at December 31 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** |
| <br>**General Account** | **Account value** | **Cash value** | **Reserve** |
| Subject to discretionary withdrawal, surrender values, or policy loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Universal life | $682 | 681 | 686 |
| &nbsp;&nbsp;&nbsp;&nbsp;Universal life with secondary guarantees | 54 | 52 | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Indexed life | 12058 | 10711 | 10774 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other permanent cash value life insurance | 79 | 79 | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable universal life | 2 | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous reserves |  |  | 407 |
| Not subject to discretionary withdrawal or no cash values: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Term policies without cash value | XXX | XXX | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disability, active lives | XXX | XXX | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disability, disabled lives | XXX | XXX | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous reserves | XXX | XXX | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross | 12875 | 11525 | 12317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance ceded | 500 | 500 | 706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net | $12375 | 11025 | 11611 |
|  | **2024** | **2024** | **2024** |
| **General Account** | **Account value** | **Cash value** | **Reserve** |
| Subject to discretionary withdrawal, surrender values, or policy loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Universal life | $720 | 719 | 724 |
| &nbsp;&nbsp;&nbsp;&nbsp;Universal life with secondary guarantees | 56 | 53 | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Indexed life | 10539 | 9307 | 9357 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other permanent cash value life insurance | 80 | 80 | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable universal life | 2 | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous reserves |  |  | 296 |
| Not subject to discretionary withdrawal or no cash values: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Term policies without cash value | XXX | XXX | 161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disability, active lives | XXX | XXX | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disability, disabled lives | XXX | XXX | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous reserves | XXX | XXX | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross | 11397 | 10161 | 10850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance ceded | 526 | 526 | 740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net | $10871 | 9635 | 10110 |
| The Company does not have any life policies with guarantees in the separate account. | The Company does not have any life policies with guarantees in the separate account. | The Company does not have any life policies with guarantees in the separate account. | The Company does not have any life policies with guarantees in the separate account. |

---

Statutory Financial Statements as of December 31, 2025

Page 65 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** |
| <br>**Separate Account Nonguaranteed** | **Account value** | **Cash value** | **Reserve** |
| &nbsp;&nbsp;&nbsp;&nbsp;Subject to discretionary withdrawal, surrender values, or policy loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable universal life | $19 | 19 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross | 19 | 19 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance ceded |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net | $19 | 19 | 19 |
|  | **2024** | **2024** | **2024** |
| **Separate Account Nonguaranteed** | **Account Value** | **Cash Value** | **Reserve** |
| &nbsp;&nbsp;&nbsp;&nbsp;Subject to discretionary withdrawal, surrender values, or policy loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable universal life | $18 | 18 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross | 18 | 18 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinsurance ceded |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net | $18 | 18 | 18 |

---

---

| | | |
|:---|:---|:---|
| Reconciliation of total life actuarial reserves: | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life, Accident, and Health Annual Statement: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life insurance, net | $11140 | $9747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disability, active lives, net | 44 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disability, disabled lives, net | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous reserves, net | 426 | 317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 11611 | 10110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate Accounts Annual Statement: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life insurance, net | 19 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 19 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total life actuarial reserves | $11630 | $10128 |

---

Statutory Financial Statements as of December 31, 2025

Page 66 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

**(14)**&nbsp;&nbsp;&nbsp;&nbsp;**Separate Accounts**

The Company's separate accounts represent funds held for the benefit of contract holders entitled to payments under variable annuity contracts, variable life policies and market value adjusted annuity contracts issued through the Company's separate accounts and underwritten by the Company. Information regarding the Company's separate accounts for the years ended December 31 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
|  | **Indexed** | **Non guaranteed separate accounts** | **Non guaranteed separate accounts** |
| Premiums, considerations, or deposits | $9006 | $7 | 7616 |
| Reserves: |  |  |  |
| &nbsp;&nbsp;&nbsp;Reserves for accounts with assets at fair value | 11 | 13749 | 14599 |
| &nbsp;&nbsp;&nbsp;Reserves for accounts with assets at amortized cost | 47271 |  | 38167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total reserves | $47282 | $13749 | 52766 |
| By withdrawal characteristics: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;At book value without MV adjustment and with current surrender charge of 5% or more | $38552 | $— | 32001 |
| &nbsp;&nbsp;&nbsp;&nbsp;At fair value | 11 | 13713 | 14562 |
| &nbsp;&nbsp;&nbsp;&nbsp;At book value without MV adjustment and with current surrender charge of less than 5% | 8719 |  | 6166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 47282 | 13713 | 52729 |
| &nbsp;&nbsp;&nbsp;&nbsp;Not subject to discretionary withdrawal |  | 36 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $47282 | $13749 | 52766 |

---

For the year ended December 31, 2025, the Company began classifying its variable-indexed premium as Indexed in the table above due to the nature of the variable-indexed products.

As of December 31, 2025 and 2024, the Company's separate accounts included legally insulated assets and non-insulated assets attributed to the following products/transactions:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** |
| <br>**Product/transaction** | **Legally insulated** | **Not legally insulated** | **Legally insulated** | **Not legally insulated** |
| Variable Annuities | $13502 |  | 14339 |  |
| Variable Life | 19 |  | 18 |  |
| Variable Annuities (Non-Unitized Insulated) | 463 |  | 458 |  |
| Variable Annuities (Non-Unitized Non-Insulated) |  | 61129 |  | 47797 |
| Variable Annuities (MN MVA) |  | 14 |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $13984 | 61143 | 14815 | 47814 |

---

The Company's separate account liabilities contain guaranteed benefits. The liabilities for guaranteed benefits are supported by the Company's general account assets. To compensate the general account for the risk taken, the separate account paid risk charges of $130, $143, $155, $163, and $171 during the past five years, respectively. The general account of the Company paid $18, $10, $59, $59, and $4 towards separate account guarantees during the past five years, respectively.

Statutory Financial Statements as of December 31, 2025

Page 67 of 74

------

**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

As of December 31, 2025 and 2024, the Company has lent assets with a carrying value of $1,025 and $934, and a fair market value of $956 and $830, respectively. The Company lends the securities and the borrower provides cash collateral and short term securities to support the loan. The aggregate amount of collateral received was $982 and $852 as of December 31, 2025 and 2024, which was comprised of $981 and $852 of cash collateral and $0 of non-cash collateral, respectively. The Company's separate account securities lending program is the same as the general account program.

A reconciliation of net transfers to (from) separate accounts for the years ended December 31 is included in the following table:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Transfers as reported in the Summary of Operations of the Separate Accounts Annual Statement: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers to separate accounts | $9014 | 7616 | 5405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers from separate accounts | (6846) | (5557) | (4579) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net transfers to separate accounts | 2168 | 2059 | 826 |
| Reconciling adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other adjustments | (1) | 1 | 8 |
| Transfers as reported in the Statutory Statements of Operations | $2167 | 2060 | 834 |

---

**(15)Related-Party Transactions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) &nbsp;&nbsp;&nbsp;&nbsp;Organization Changes***

The Company wholly owned AZL PF Investments, Inc. (AZL PF), a non-insurance company, and AZL PF wholly owns Dresdner Kleinwort Pfandbriefe Investments II Inc. (DKPII), a non-insurance company. Effective November 17, 2025, DKPII merged into AZL PF resulting in the elimination of DKPII. Effective November 19, 2025, AZL PF merged into the Company resulting in the elimination of AZL PF. The merger of AZL PF into the Company utilized the statutory merger method, with AZL PF having previously not employed the statutory basis of accounting. No shares or stock were included in the transaction. Allianz Fund Investments, Inc. (AFI) was previously a wholly-owned subsidiary of DKPII and is a wholly-owned subsidiary of the Company after the mergers. The Company recognized a one-time adjustment to beginning capital and surplus of $4 as a result of the migration of assets held at fair value accounting to book value accounting under the statutory merger method. All income previously recorded on AZL PF Investments, Inc. from January 1, 2025 to the date of merger has been calculated under SAP and included in the income of the Company.

The Company wholly owned Yorktown Financial Companies, Inc. (Yorktown), and Yorktown wholly owns Questar Capital Corporation (QCC) and Questar Agency, Inc. (QAI). Effective December 8, 2025, QAI merged into QCC resulting in the elimination of QAI. Effective December 9, 2025, Yorktown merged into QCC resulting in the elimination of Yorktown. There was no financial impact on the Company as a result of the mergers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)&nbsp;&nbsp;&nbsp;&nbsp;Related-Party Invested Assets***

The Company has an agreement to lend AZOA $39. The remaining loan balance was $25 and $25 as of December 31, 2025 and 2024, respectively, and is included in Other invested assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Repayment of this loan began in 2021 and has a final maturity date of August 30, 2026. The interest rate is a fixed rate of 4.49%. Interest income earned was $1 and $1 and $0 in 2025, 2024, and 2023 respectively.

The Company invests in limited partnerships that are managed by its affiliate Pacific Investment Management Company (PIMCO). The total committed capital for the limited partnerships is $394 and $278 of which $257 and $110 is unfunded as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, the fair value of the investment is $166 and $173 respectively, and is recorded in Other invested assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

Statutory Financial Statements as of December 31, 2025

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

The Company has a seed money investment in exchange traded funds that are managed by PIMCO with reported balances of $30 and $29 as of December 31, 2025 and 2024, respectively, within Other invested assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. There is no additional commitment related to these investments.

The Company invests in bonds that are managed by PIMCO. The Company's committed capital for the PIMCO bonds was $2,171 and $1,360 as of December 31, 2025 and 2024, respectively, of which $964 and $406 was unfunded as of December 31, 2025 and 2024, respectively. The Company reported balances of $1,247 and $925 as of December 31, 2025 and 2024, respectively, related to the PIMCO bonds within Bonds on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

The Company has a seed money investment in exchange traded funds that are managed by a related party, Allianz Investment Management LLC (AIM). The Company reported a balance of $74 and $81 as of December 31, 2025 and 2024 related to the seed money investment within Stocks on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. There is no additional commitment related to these investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c) &nbsp;&nbsp;&nbsp;&nbsp;Service Fees***

The Company incurred fees for services provided by affiliated companies of $466, $428, and $409 in 2025, 2024, and 2023, respectively. The Company's liability for these expenses was $47 and $44 at December 31, 2025 and 2024, respectively, and is included in Other liabilities on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. In the normal course of business, the outstanding amount is settled in cash.

The Company earned revenues for various services provided to affiliated companies and subsidiaries of $122, $117, and $99 in 2025, 2024, and 2023, respectively. The receivable for these revenues was $6 and $5 as of December 31, 2025 and 2024, respectively, and is included in Other assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. In the normal course of business, the outstanding amount is settled in cash.

The Company has agreements with its affiliates PIMCO and with certain other related parties whereby (1) specific investment options managed by PIMCO are made available through the Company's separate accounts to holders of the Company's variable annuity products, and (2) the Company receives compensation for providing administrative and recordkeeping services relating to the investment options managed by PIMCO. Income recognized by the Company from this affiliate for distribution and in-force related costs as a result of providing investment options to the contractholders was $3, $3, and $4 during 2025, 2024, and 2023, respectively, which is included in Fees from separate accounts on the Statutory Statements of Operations. At December 31, 2025 and 2024, $0 and $0, respectively, were included for related receivables of these fees in Other assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

The Company has incurred commission expense related to the distribution of variable annuity products from Allianz Life Financial Services, LLC (ALFS) in the amount of $600, $523, and $402 for the years ended December 31, 2025, 2024, and 2023, respectively. The Company has an agreement with ALFS, whereby interest receivable is assigned to the Company and 12b-1 fee receivables are assigned to the Company and AZNY. The Company has also agreed with AZNY to share in reimbursing ALFS for direct and indirect expenses incurred in performing services for the Company and AZNY. In the event that assigned receivables exceed expenses, ALFS records a dividend-in-kind to the Company and a loss on the transaction with AZNY. The Company recorded a net (expense) revenue from this agreement of $(86), $(72), and $(51) for the years ended December 31, 2025, 2024, and 2023, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d) &nbsp;&nbsp;&nbsp;&nbsp;Dividends to Parent***

The Company paid cash dividends to AZOA of $650, $650, and $500 in 2025, 2024, and 2023, respectively. Based on the ordinary dividend limitations set forth under Minnesota Insurance Law, the dividends paid in 2025 were considered extraordinary which were approved by the state of Minnesota, and the dividends paid in 2024 and 2023 were considered ordinary.

Statutory Financial Statements as of December 31, 2025

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e) &nbsp;&nbsp;&nbsp;&nbsp;Capital Contributions and Dividends with Subsidiaries***

During the years ended December 31, the Company received dividends from its subsidiaries as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| AIM | $50 | 30 | 34 |
| ALFS |  | 10 |  |
| Yorktown | 1 |  |  |
| AZL PF | 113 |  | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $164 | 40 | 101 |
| Dividends received from AZL PF in 2025 and 2023 includes $113 and $38, respectively, of dividends that originated from AFI, which paid dividends to its immediate parent, DKPII. DKPII then paid dividends to AZL PF, which subsequently paid dividends to the Company. See further information about the mergers of these entities within note 15 (a). | Dividends received from AZL PF in 2025 and 2023 includes $113 and $38, respectively, of dividends that originated from AFI, which paid dividends to its immediate parent, DKPII. DKPII then paid dividends to AZL PF, which subsequently paid dividends to the Company. See further information about the mergers of these entities within note 15 (a). | Dividends received from AZL PF in 2025 and 2023 includes $113 and $38, respectively, of dividends that originated from AFI, which paid dividends to its immediate parent, DKPII. DKPII then paid dividends to AZL PF, which subsequently paid dividends to the Company. See further information about the mergers of these entities within note 15 (a). | Dividends received from AZL PF in 2025 and 2023 includes $113 and $38, respectively, of dividends that originated from AFI, which paid dividends to its immediate parent, DKPII. DKPII then paid dividends to AZL PF, which subsequently paid dividends to the Company. See further information about the mergers of these entities within note 15 (a). |
| Dividends received from AZL PF in 2025 and 2023 includes $113 and $38, respectively, of dividends that originated from AFI, which paid dividends to its immediate parent, DKPII. DKPII then paid dividends to AZL PF, which subsequently paid dividends to the Company. See further information about the mergers of these entities within note 15 (a). | Dividends received from AZL PF in 2025 and 2023 includes $113 and $38, respectively, of dividends that originated from AFI, which paid dividends to its immediate parent, DKPII. DKPII then paid dividends to AZL PF, which subsequently paid dividends to the Company. See further information about the mergers of these entities within note 15 (a). | Dividends received from AZL PF in 2025 and 2023 includes $113 and $38, respectively, of dividends that originated from AFI, which paid dividends to its immediate parent, DKPII. DKPII then paid dividends to AZL PF, which subsequently paid dividends to the Company. See further information about the mergers of these entities within note 15 (a). | Dividends received from AZL PF in 2025 and 2023 includes $113 and $38, respectively, of dividends that originated from AFI, which paid dividends to its immediate parent, DKPII. DKPII then paid dividends to AZL PF, which subsequently paid dividends to the Company. See further information about the mergers of these entities within note 15 (a). |

---

During the years ended December 31, the Company made capital contributions to subsidiaries as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| AZNY | $60 | 60 | 30 |
| ALFS | 86 | 72 | 51 |
| Allianz Strategic Investments, LLC (ASI) | 17 | 19 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $163 | 151 | 88 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f) &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance***

The Company wholly-owns AZMO, a Special Purpose Life Reinsurance Captive Insurance Company domiciled in Missouri. The Company cedes to AZMO, and AZMO provides reinsurance on a coinsurance basis and modified coinsurance basis, a 100% quota share of the Company's net liability of level term life insurance policies and certain universal life insurance policies written directly by the Company. The total premium and associated reserve amounts ceded from the Company to AZMO for the years ended December 31, 2025, 2024, and 2023 were $3, $1, and $3, respectively. The Company recorded a ceding commission of $1, $0, and $1, for 2025, 2024, and 2023, respectively. In addition, the Company recorded a deferred gain of $97 upon execution of the reinsurance agreement in 2009, of which $3, $3 and $3 was amortized in 2025, 2024, and 2023, respectively, and included in Commissions and expense allowances on reinsurance ceded on the Statutory Statements of Operations.

The Company has reinsurance recoverables and receivables related to reinsurance agreements with affiliated entities. Total affiliated reinsurance recoverables and receivables were $1 and $0 as of December 31, 2025 and 2024, respectively, and are included in Other assets on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g) &nbsp;&nbsp;&nbsp;&nbsp;Line of Credit Agreement***

The Company has a line of credit agreement with its subsidiary, AZNY, to provide liquidity, as needed.The Company's lending capacity under the agreement is limited to 5% of the general account admitted assets of

Statutory Financial Statements as of December 31, 2025

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

AZNY as of the preceding year end. There was no outstanding balance under the line of credit agreement as of December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(h) &nbsp;&nbsp;&nbsp;&nbsp;SCA or SSAP 48 Entity Loss Tracking***

The Company had losses from the following entity for the year ended December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Entity | Reporting Entity's Share of Entity's Net Income (Loss) | Accumulated Share of Net Income (Losses) | Reporting Entity's Share of Equity, Including Negative Equity | Guaranteed Obligation / Commitment for Financial Support (Yes / No) | Reported Value |
| Allianz Investment Management U.S. LLC | $1 | (5) | (5) | YES | $— |

---

The Company had total losses of $(5) and $(11) for the years ended December 2024 and 2023, respectively.

SCA or SSAP 48 entity losses did not have any impact on other investments for the years ended December 31, 2025, 2024, and 2023 respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i) &nbsp;&nbsp;&nbsp;&nbsp;Intercompany Balances***

The Company reported a $44 receivable and $49 payable with parent, subsidiaries and affiliates at December 31, 2025. The Company reported a $47 receivable and $43 payable with parent, subsidiaries and affiliates at December 31, 2024. Intercompany balances are settled in the normal course of business.

**(16)&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans**

The Company participates in the Allianz Asset Accumulation Plan (AAAP), a defined contribution plan sponsored by Allianz of America Corporation (AZOAC). Eligible employees are immediately enrolled in the AAAP on their first day of employment. The AAAP will accept participants' pretax, Roth 401(k), and/or after-tax contributions up to 80% of the participants' eligible compensation, although contributions remain subject to annual limitations set by the Internal Revenue Service. The Company matches up to a maximum of 7.5% of the employees' eligible compensation. Participants are 100% vested in the Company's matching contribution after three years of service.

The AAAP administration expenses and the trust fund, including trustee fees, investment manager fees, and audit fees, are payable from the trust fund but may, at the Company's discretion, be paid by the Company. All legal fees are paid by the Company. It is the Company's policy to fund the AAAP costs as incurred. The Company has expensed $18, $16, and $15 in 2025, 2024, and 2023, respectively, toward the AAAP matching contributions and administration expenses.

A defined group of highly compensated employees is eligible to participate in the AZOAC Deferred Compensation Plan. The purpose of the plan is to provide tax planning opportunities, as well as supplemental funds upon retirement. The plan is unfunded, meaning no assets of the Company have been segregated or defined to represent the liability for accrued assets under the plan. Employees are 100% vested upon enrollment in the plan for funds they have deferred. Employees' funds are invested on a pay period basis and are immediately vested. Participants and the Company share the administrative fee. The accrued liability of $117 and $93 as of December 31, 2025 and 2024, respectively, is recorded in Other liabilities on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

The Company sponsors a nonqualified deferred compensation plan for a defined group of agents. The Company can make discretionary contributions to the plan in the form and manner the Company determines reasonable. Discretionary contributions are currently determined based on production. The accrued liability of $41 and $42 as of December 31, 2025 and 2024, respectively, is recorded in Other liabilities on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

The Company participates in a stock-based compensation plan sponsored by Allianz SE, which awards certain employees Restricted Stock Units (RSU) that are tied to Allianz SE stock. Allianz SE determines the number of RSU granted to each participant. The Company records expense equal to the change in fair value of the units during the

Statutory Financial Statements as of December 31, 2025

Page 71 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

reporting period, which includes the Company's estimate of the number of awards expected to be forfeited. A change in value of $41, $24, and $17 was recorded in 2025, 2024, and 2023, respectively, and is included in General and administrative expenses on the Statutory Statements of Operations. The related liability of $80 and $50 as of December 31, 2025 and 2024, respectively, is recorded in Other liabilities on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus.

**(17)**&nbsp;&nbsp;&nbsp;&nbsp;**Statutory Capital and Surplus**

Statutory accounting practices prescribed or permitted by the Company's state of domicile are directed toward insurer solvency and protection of policyholders. As such, the Company is required to meet minimum statutory capital and surplus requirements. The Company's statutory capital and surplus as of December 31, 2025 and 2024, were in compliance with these requirements. The maximum amount of ordinary dividends that can be paid by Minnesota insurance companies to the stockholder without prior approval of the Department is subject to restrictions relating to statutory earned surplus, also known as unassigned funds. Unassigned funds are determined in accordance with the accounting procedures and practices governing preparation of the statutory annual statement. In accordance with Minnesota Statutes, the Company may declare and pay from its Unassigned surplus cash dividends of no more than the greater of 10% of its prior year-end statutory surplus, or the net gain from operations before net realized capital gain of the insurer for the 12-month period ending the 31st day of the next preceding year. Based on these limitations, ordinary dividends of $845 can be paid in 2026 without prior approval of the Department.

***Regulatory Risk-Based Capital***

An insurance enterprise's state of domicile imposes minimum risk-based capital requirements that were developed by the NAIC. The formulas for determining the amount of risk-based capital specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of an enterprise's regulatory total adjusted capital to its authorized control level risk-based capital, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. This ratio for the Company significantly exceeds required minimum thresholds as of December 31, 2025 and 2024.

**(18)&nbsp;&nbsp;&nbsp;&nbsp;Direct Premiums Written by Third-Party Administrators**

The Company has direct premiums written by third-party administrators (TPAs). The types of business written by the TPAs include life, accidental death and dismemberment, medical, disability, excess risk, and LTC. The authority granted to the TPAs includes binding authority, claims payment, claims adjustment, underwriting, and premium collection. Total premiums written by TPAs were $275, $272, and $255 for 2025, 2024, and 2023, respectively. For the years ended December 31, 2025, 2024, and 2023, there were no individual TPAs that wrote premiums that equaled at least 5% of the capital and surplus of the Company.

**(19)**&nbsp;&nbsp;&nbsp;&nbsp;**Capital Structure**

The Company is authorized to issue three types of capital stock, as outlined in the table below:

Statutory Financial Statements as of December 31, 2025

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Authorized** | **Issued and outstanding** | **Par value, per share** | **Redemption and liquidation rights** |
| Common stock | 40000000 | 20000001 | $1.00 |  |
| Preferred stock: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A (consisting of Series A and B below) | 200000000 | 18903484 | $1.00 | Designated by Board for each series issued |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A, Series A | 8909195 | 8909195 | $1.00 | $35.02 per share plus an amount to yield a compounded annual return of 6%, after actual dividends paid |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A, Series B | 10000000 | 9994289 | $1.00 | $35.02 per share plus an amount to yield a compounded annual return of 6%, after actual dividends paid |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B | 400000000 |  | $1.00 | Designated by Board for each series issued |

---

Holders of Class A preferred stock and of common stock are entitled to one vote per share with respect to all matters presented to or subject to the vote of shareholders. Holders of Class B preferred stock have no voting rights. All issued and outstanding shares are owned by AZOA. See Note 1 for further discussion.

Each share of Class A preferred stock is convertible into one share of the Company's common stock. The Company may redeem any or all of the Class A preferred stock at any time. Dividends will be paid to each class of stock only when declared by the BOD. In the event a dividend is declared, dividends must be paid to holders of Class A preferred stock, Class B preferred stock, and common stock, each in that order.

As discussed in Note 15 to these Statutory Financial Statements, the Company carried out various capital transactions with related parties during 2025, 2024, and 2023.

**(20)**&nbsp;&nbsp;&nbsp;&nbsp;**Reconciliation to the Annual Statement**

The Company is required to file an Annual Statement with the Department. For the year ended December 31, 2025, there are differences between the audited Statutory Financial Statements and the Annual Statement within the Statement of Operations as a result of an adjustment to the accounting for a new funds withheld reinsurance transaction. See note 11 for additional details around the reinsurance agreement. As a result, the Company has adjusted certain line items in the audited Statutory Financial Statements, and the differences compared to the Annual Statement are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As reported in the Audited Statutory Financial Statements** | **As reported in Annual Statement** | **Difference** |
| Statutory statements of operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums and annuity considerations | 17153 | 21319 | (4166) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in aggregate reserves and deposit funds | (1780) | 2448 | (4228) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized capital (loss) gain, net of taxes and interest maintenance reserve | (362) | (300) | (62) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | 483 | 483 |  |

---

As of December 31, 2025 and 2024, there is no difference in admitted assets or liabilities between this report and the Annual Statement. As of December 31, 2025, 2024 and 2023, there is no difference in capital and surplus or net income between this report and the Annual Statement.

Statutory Financial Statements as of December 31, 2025

Page 73 of 74

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**ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA**

Notes to Statutory Financial Statements

(Dollars in millions, except share data and security holdings quantities)

**(21)&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

The Company and its subsidiaries are named as defendants in various pending or threatened legal proceedings on an ongoing basis, arising from the conduct of business, including putative class action proceedings: Small v Allianz Life Ins. Co. of North America (Superior Court of California, L.A. County, 22STCV17838), Cope v. Allianz Life Ins. Co. of North America (United States District Court, District of Minnesota, Case No.0:25-cv-02003), In Re Allianz Life Insurance Company of North America Data Incident Litigation (United States District Court, District of Minnesota, Case No. 0:25-cv-2777-KMM-JFD; consolidated multiple putative class actions arising from July 2025 data breach). None of the referenced class action lawsuits have been certified. The Company generally intends to vigorously contest the lawsuits, but may pursue settlement negotiations in some cases, if appropriate. The outcome of the cases is uncertain at this time, and there can be no assurance that such litigation, or any future litigation, will not have a material adverse effect on the Company and/or its subsidiaries. The Company recognizes legal costs as incurred.

The Company is contingently liable for possible future assessments under regulatory requirements pertaining to insolvencies and impairments of unaffiliated insurance companies. Provision has been made for assessments currently received and assessments anticipated for known insolvencies.

The financial services industry, variable and fixed annuities, life insurance, distribution companies, and broker-dealers, are subject to close scrutiny by regulators, legislators, and the media.

Federal and state regulators, such as state insurance departments, state securities departments, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Internal Revenue Service, and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning various selling practices, including suitability reviews, product exchanges, sales to seniors, and compliance with, among other things, insurance and securities law. The Company is and may become subject to ongoing market conduct examinations, inquiries, and investigations by regulators, which may result in fines and/or otherwise have a material adverse effect on the Company.

It can be expected that annuity and life product designs, management, and sales practices will be an ongoing source of regulatory scrutiny and enforcement actions, litigation, and rulemaking.

These matters could result in legal precedents and new industry-wide legislation, rules, and regulations that could significantly affect the financial services industry, including life insurance and annuity companies. It is unclear at this time whether any such litigation or regulatory actions will have a material adverse effect on the Company in the future.

Certain obligations of the Company provide for the maintenance of a subsidiary's regulatory capital, surplus levels and liquidity sufficient to meet certain obligations. Those unlimited obligations are made on behalf of certain wholly owned subsidiaries (AZNY, AZMO, ALFS and QCC). These obligations are not limited and cannot be estimated as of the balance sheet date. From time to time, the Company makes capital contributions to these subsidiaries as needed under the obligations. Capital contributions made during the years ended December 31, 2025, 2024, and 2023 are detailed in Note 15.

The Company had investments in limited partnerships that required a commitment of capital of $729 and $654 for the years ended December 31, 2025 and 2024, respectively. The Company had commitments to fund private placement investments of $4,393 and $2,327 as of December 31, 2025 and 2024, respectively.

**(22)&nbsp;&nbsp;&nbsp;&nbsp;Subsequent Events**

The Company has evaluated subsequent events through April 6, 2026, which is the date the Statutory Financial Statements were available to be issued. No material subsequent events have occurred since December 31, 2025 that require adjustment to the Statutory Financial Statements.

Statutory Financial Statements as of December 31, 2025

Page 74 of 74

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