American National Group Inc 8-K, filed May 8, 2023
American National Group Inc. (ANG-PD)
8-K
2023-05-08
For: 2023-05-08
View Original
Added on
April 06, 2026
About this 8-K
American National Group Inc filed this 8-K on May 8, 2023.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 08, 2023
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices and zip code)
(515 ) 221-0002
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On May 8, 2023, the registrant issued a press release announcing its financial results for the quarter ended March 31, 2023, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The registrant's financial supplement for the quarter ended March 31, 2023, is attached as Exhibit 99.2 and is incorporated herein by reference.
The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.
Item 9.01. Financial Statements and Exhibits
Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 8, 2023
| AMERICAN EQUITY | |||||||||||
| INVESTMENT LIFE HOLDING COMPANY | |||||||||||
| By: | /s/ Axel Andre | ||||||||||
| Axel Andre | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
Exhibit 99.1
 | For more information, contact: | |||||||
| Steven D. Schwartz, Vice President-Investor Relations | ||||||||
| (515) 273-3763, sschwartz@american-equity.com | ||||||||
| FOR IMMEDIATE RELEASE | ||||||||
| May 8, 2023 | ||||||||
American Equity Reports Strong Earnings Driven by Ramping Private Asset Allocation to 24% while Growing Total Sales to $1.4 Billion
Company Highlights
•Q1 2023 net loss available to common stockholders of $(166.9) million, or $(2.00) per diluted common share compared to net income of $668.5 million, or $6.83 per diluted common share for Q1 2022 restated for the adoption of Accounting Standards Update 2018-12 — more commonly known as Long Duration Targeted Improvements or LDTI.
•Non-GAAP operating income available to common stockholders1 for the first quarter 2023 was $124.3 million, or $1.47 per diluted common share; Notable items2 negatively impacted results in the quarter by $9.6 million, or $0.11 per share, after-tax.
•On a trailing twelve-month basis GAAP return on equity of 30.1% and non-GAAP operating return on equity1 of 13.0%
•Total sales4 of $1.4 billion including almost $1 billion of FIA sales reflecting a sequential quarterly sales increase of 23%
•Private asset deployment ramp continues with approximately $1.3 billion sourced in the quarter, bringing total portfolio allocation to 24%
•Ceded $634 million of flow reinsurance to reinsurance partners creating "fee-like" revenues and growing account value subject to recurring fees to $10.2 billion
WEST DES MOINES, Iowa (May 8, 2023) – American Equity Investment Life Holding Company (NYSE: AEL), a leading issuer of fixed index annuities (FIAs), today reported its first quarter 2023 results. Investment spread increased from the fourth quarter of 2022, while sales momentum continued in both the independent agent channel and bank and broker-dealer channel.
American Equity's President and CEO, Anant Bhalla stated: "Our strong first quarter results across all aspects of our Virtuous Flywheel reflect the power of AEL 2.0 as it gains momentum. Strong new money yields enabled by our robust asset sourcing capabilities and reinsurance structures empowered the front-end of the Flywheel to sell nearly $1.4 billion of annuities. I am thankful to our American Equity teammates and our partners in the AEL Network who have embraced our ways of working to deliver financial dignity to our retail clients and be the partner of choice to our distribution partners and advisors."
With regard to the macro-economic outlook, Bhalla continued, “We opportunistically repurchased $253 million of shares in the first quarter while maintaining a fortress balance sheet. Our excess capital position as of March 31, was $650 million. In this current economic environment, we are extremely vigilant with regards to prudent balance sheet management and identification of both risks and opportunities in these turbulent markets. We remain confident in our ability to return capital to shareholders and selectively source private assets at very attractive risk-adjusted returns for all stakeholders."
Non-GAAP operating income available to common stockholders1 for the first quarter of 2023 was $124.3 million, or $1.47 per diluted common share, compared to non-GAAP operating income available to common stockholders1 of $107.1 million, or $1.09 per diluted common share for the first quarter of 2022, restated for the adoption of Accounting Standards Update 2018-12 — more commonly known as Long Duration Targeted Improvements or LDTI. For the first quarter of 2023, non-GAAP operating income available to common stockholders1 included notable items2 of $9.6 million, or $0.11 per share, after taxes. There were no notable items2 affecting results for the first quarter of 2022.
The year-over-year change in quarterly non-GAAP operating income available to common stockholders1 excluding the impact of notable items2 reflects improved investment spread, increased recurring fee revenue related to reinsurance and a decrease in the change in the Market Risk Benefit (MRB) liability.
For the first quarter of 2023, net investment income fell by $10 million to $559 million when adjusted to reflect non-GAAP operating income available to common stockholders1. This $10 million decrease reflects a decline in average investments primarily due to $3.8 billion of invested assets transferred as a result of an in-force reinsurance transaction effective October 3, 2022 with 26North Re, offset in part by improved investment yields resulting from attractive new money rates, the effect of higher short term rates on our floating rate portfolio and the increase in portfolio allocation to privately sourced assets to 24.2%. The contribution to net investment income from partnerships and other mark-to-market investments for the first quarter of 2023 was $21 million less than expected as actual returns were below those used in our investment projections.
Compared to the first quarter of 2022, the change in the MRB liability decreased by $26 million to $47 million when adjusted to reflect non-GAAP operating income available to common stockholders1. This $26 million decrease reflects a $7 million benefit from the fourth quarter 2022 in-force reinsurance transaction which is captured in a $35 million decline in expense associated with adverse experience and a $10 million positive change in the amortization of net deferred capital market impacts, offset in part by a $20 million increase in the interest accrued on the MRB balance. First quarter 2023 change in MRB liability adjusted to reflect non-GAAP operating income available to common stockholders1 was $8 million higher than expected due to $2 million in adverse experience, $3 million of expense associated with model true-ups, and $3 million less from the amortization of net deferred capital market impacts due mostly to a decrease in interest rates during the quarter.
Compared to the first quarter of 2022, amortization of deferred policy acquisition and sales inducement cost decreased $3 million to $115 million reflecting a $5 million reduction from the fourth quarter 2022 in-force reinsurance transaction. Amortization in the first quarter of 2023 included $1 million of expense associated with new sales.
As of March 31, 2023, account value of business ceded subject to fee income was $10.2 billion, up from $9.6 billion at the end of 2022. Flow reinsurance ceded subject to fee income in the first quarter of 2023 totaled $634 million of account value. Revenue associated with recurring fees under reinsurance agreements for the first quarter of 2023 totaled $22 million compared to $9 million for the first quarter of 2022 when adjusted to reflect non-
2
GAAP operating income available to common stockholders1. Growth in ceded account value and a positive $1 million true-up associated with the final settlement of the fourth quarter reinsurance transaction contributed to the increase in revenues.
Other operating costs and expenses for the first quarter of 2023 of $74 million included our single notable item2 in the quarter of $12 million, pre-tax, to reflect expense associated with the strategic incentive compensation award made in November of last year.
The effective tax rate on pre-tax operating income available for common stockholders1 for the first quarter of 2023 was 24.4%. Tax expense in the quarter included a $6 million true-up related to 2022 which contributed approximately 300 basis points to the effective tax rate.
INVESTMENT SPREAD INCREASES AS STRONG ORIGINATION OF PRIVATE ASSETS CONTINUES
American Equity’s investment spread was 2.67% for the first quarter of 2023 compared to 2.54% for the fourth quarter of 2022 and 2.51% for the first quarter of 2022. Adjusted investment spread excluding non-trendable items3 increased to 2.67% in the first quarter of 2023 from 2.53% in the fourth quarter of 2022.
Average yield on invested assets was 4.48% in the first quarter of 2023 compared to 4.30% in the fourth quarter of 2022. The average adjusted yield on invested assets excluding non-trendable items3 was 4.48% in the first quarter of 2023 compared to 4.29% in the fourth quarter of 2022. Below expected returns on mark-to-market assets reduced the portfolio yield by 17 basis points in the first quarter of 2023 compared to nine basis points in the fourth quarter of 2022. The benefit to the investment portfolio from higher short-term rates on floating rate investments was 7 basis points in the first quarter.
During the quarter, investment asset purchases totaled $2.1 billion and were made at an average rate of 7.19%, including approximately $1.3 billion of private assets at 7.89%.
The aggregate cost of money for annuity liabilities of 1.81% in the first quarter of 2023 was up 5 basis points compared to the fourth quarter of 2022, in line with market costs. The cost of money in the both quarters reflect a minimal benefit from the over-hedging of index-linked credits.
FIA SALES INCREASE 23% FROM PRIOR SEQUENTIAL QUARTER
First quarter sales were $1,371 million, of which 70.3%, or $964 million, were in fixed index annuities. Total enterprise FIA sales increased 23.2% and 9.3% compared to fourth and first quarters of 2022, respectively. Compared to the fourth quarter of 2022, FIA sales at American Equity Life in the Independent Marketing Organization (IMO) channel increased 15.5%, while Eagle Life FIA sales through banks and broker-dealers rose 56.8%.
Backed by our new flow reinsurance agreement with 26North Re, which became effective February 8th, total enterprise multi-year fixed rate annuity sales were $404 million in the first quarter.
3
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
The forward-looking statements in this release or that American Equity uses on its conference call, such as ability, aim, anticipate, assume, become, believe, building, can, commit, constructive, confident, continue, could, drive, estimate, expect, exposure, forward, future, goal, grow, guidance, intend, likely, look to, maintain, may, might, model, opportunity, outlook, over time, plan, potential, prepare, project, ramp, remain risk, scenario, see, should, signal, strategy, tail wind, target, test, to be, toward, trends, uncertainty, will, would, and their derivative forms and similar words, as well as any projections of future results, are based on assumptions and expectations that involve risks and uncertainties, including the "Risk Factors" the company describes in its U.S. Securities and Exchange Commission filings. The Company's future results could differ, and it has no obligation to correct or update any of these statements.
CONFERENCE CALL
American Equity will hold a conference call to discuss first quarter 2023 earnings on Tuesday, May 9, at 10:00 a.m. CT.
The conference call will be webcast live on the Internet. Investors and interested parties who wish to listen to the webcast may register to access it on our IR website at https://ir.american-equity.com. An audio replay will also be available via the same link on our website shortly after the completion of the call for 30 days.
The call may also be accessed by telephone. Investors and interested parties may register for the call with the form available at this link, and upon submission (and via follow-up email) will receive the dial-in number and a unique PIN to access the call. Registration is available now or any time up to and during the time of the call. Registration is also available by visiting our IR website at https://ir.american-equity.com.
4
ABOUT AMERICAN EQUITY
At American Equity Investment Life Holding Company, our policyholders work with over 40,000 independent agents and advisors affiliated with independent market organizations (IMOs), banks and broker-dealers through our wholly-owned operating subsidiaries Advisors and agents choose one of our leading annuity products best suited for their clients' personal needs to create financial dignity in retirement. To deliver on its promises to policyholders, American Equity has re-framed its investment focus — building a stronger emphasis on insurance liability driven asset allocation and specializing in alternate, private asset management while partnering with world renowned, public fixed income asset managers. American Equity is headquartered in West Des Moines, Iowa with additional offices in Charlotte, NC and New York, NY. For more information, please visit www.american-equity.com.
1 Use of non-GAAP financial measures is discussed in this release in the tables that follow the text of the release.
2 Notable items reflect the after-tax increase (decrease) to non-GAAP operating income (loss) available to common stockholders for certain matters where more detail may help investors better understand, evaluate, and forecast results. Notable items are further discussed in the tables that follow the text of the release.
3 Non-trendable items are the impact of investment yield – additional prepayment income and cost of money effect of over (under) hedging as shown in our March 31, 2023 financial supplement on page 10, “Spread Results”.
4 For the purposes of this document, all references to sales are on a gross basis. Gross sales is defined as sales before the use of reinsurance.
###
5
American Equity Investment Life Holding Company
Unaudited (Dollars in thousands, except per share data)
Consolidated Statements of Operations
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Premiums and other considerations | $ | 4,137 | $ | 10,078 | |||||||||||||||||||
| Annuity product charges | 62,591 | 52,355 | |||||||||||||||||||||
| Net investment income | 561,323 | 567,423 | |||||||||||||||||||||
| Change in fair value of derivatives | 45,890 | (477,519) | |||||||||||||||||||||
| Net realized losses on investments | (27,787) | (13,127) | |||||||||||||||||||||
| Other revenue | 16,394 | 8,817 | |||||||||||||||||||||
| Total revenues | 662,548 | 148,027 | |||||||||||||||||||||
| Benefits and expenses: | |||||||||||||||||||||||
| Insurance policy benefits and change in future policy benefits | 7,208 | 13,615 | |||||||||||||||||||||
| Interest sensitive and index product benefits | 57,911 | 287,917 | |||||||||||||||||||||
| Market risk benefits (gains) losses | 183,694 | 191,893 | |||||||||||||||||||||
| Amortization of deferred sales inducements | 46,601 | 45,085 | |||||||||||||||||||||
| Change in fair value of embedded derivatives | 404,440 | (1,393,649) | |||||||||||||||||||||
| Interest expense on notes and loan payable | 11,018 | 6,425 | |||||||||||||||||||||
| Interest expense on subordinated debentures | 1,336 | 1,317 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 68,235 | 72,969 | |||||||||||||||||||||
| Other operating costs and expenses | 74,004 | 57,795 | |||||||||||||||||||||
| Total benefits and expenses | 854,447 | (716,633) | |||||||||||||||||||||
| Income (loss) before income taxes | (191,899) | 864,660 | |||||||||||||||||||||
| Income tax expense (benefit) | (36,008) | 185,195 | |||||||||||||||||||||
| Net income (loss) | (155,891) | 679,465 | |||||||||||||||||||||
| Less: Net income available to noncontrolling interests | 103 | — | |||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company stockholders | (155,994) | 679,465 | |||||||||||||||||||||
| Less: Preferred stock dividends | 10,919 | 10,919 | |||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||||||||||||||
| Earnings (loss) per common share | $ | (2.00) | $ | 6.90 | |||||||||||||||||||
| Earnings (loss) per common share - assuming dilution | $ | (2.00) | $ | 6.83 | |||||||||||||||||||
| Weighted average common shares outstanding (in thousands): | |||||||||||||||||||||||
| Earnings (loss) per common share | 83,417 | 96,866 | |||||||||||||||||||||
| Earnings (loss) per common share - assuming dilution | 83,417 | 97,953 | |||||||||||||||||||||
Page 1
American Equity Investment Life Holding Company
Unaudited (Dollars in thousands, except per share data)
NON-GAAP FINANCIAL MEASURES
In addition to net income (loss) available to common stockholders, we have consistently utilized non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Non-GAAP operating income available to common stockholders equals net income (loss) available to common stockholders adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income available to common stockholders eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income available to common stockholders together with net income (loss) available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||||||||||||||
| Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||||||||||||||
| Net realized losses on financial assets, including credit losses | 24,384 | 13,725 | |||||||||||||||||||||
| Change in fair value of derivatives and embedded derivatives | 206,202 | (847,207) | |||||||||||||||||||||
| Capital markets impact on the change in fair value of market risk benefits | 136,950 | 118,913 | |||||||||||||||||||||
| Net investment income | (2,491) | — | |||||||||||||||||||||
| Other revenue | 5,969 | — | |||||||||||||||||||||
| Income taxes | (79,765) | 153,090 | |||||||||||||||||||||
| Non-GAAP operating income available to common stockholders | $ | 124,336 | $ | 107,067 | |||||||||||||||||||
| Impact of excluding notable items (a) | $ | 9,566 | $ | — | |||||||||||||||||||
| Per common share - assuming dilution: | |||||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (2.00) | $ | 6.83 | |||||||||||||||||||
| Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||||||||||||||
| Anti-dilutive impact for losses (b) | 0.03 | — | |||||||||||||||||||||
| Net realized losses on financial assets, including credit losses | 0.29 | 0.14 | |||||||||||||||||||||
| Change in fair value of derivatives and embedded derivatives | 2.43 | (8.65) | |||||||||||||||||||||
| Capital markets impact on the change in fair value of market risk benefits | 1.62 | 1.21 | |||||||||||||||||||||
| Net investment income | (0.03) | — | |||||||||||||||||||||
| Other revenue | 0.07 | — | |||||||||||||||||||||
| Income taxes | (0.94) | 1.56 | |||||||||||||||||||||
| Non-GAAP operating income available to common stockholders | $ | 1.47 | $ | 1.09 | |||||||||||||||||||
| Impact of excluding notable items (a) | $ | 0.11 | $ | — | |||||||||||||||||||
Notable Items
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Notable items impacting non-GAAP operating income available to common stockholders: | |||||||||||||||||||||||
| Expense associated with strategic incentive award | $ | 9,566 | $ | — | |||||||||||||||||||
| Total notable items (a) | $ | 9,566 | $ | — | |||||||||||||||||||
(a)Notable items reflect the after-tax increase (decrease) to non-GAAP operating income (loss) available to common stockholders for certain matters where more detail may help investors better understand, evaluate, and forecast results.
For the three months ended March 31, 2023, non-GAAP operating income available to common stockholders would increase $9.6 million if we were to exclude the impact of notable items.
(b)For periods with a loss, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect.
Page 2
American Equity Investment Life Holding Company
Unaudited (Dollars in thousands, except share and per share data)
Book Value per Common Share
| Q1 2023 | |||||||||||||||||||||||||||||
| Total stockholders’ equity attributable to American Equity Investment Life Holding Company | $ | 2,605,485 | |||||||||||||||||||||||||||
| Equity available to preferred stockholders (a) | (700,000) | ||||||||||||||||||||||||||||
| Total common stockholders' equity (b) | 1,905,485 | ||||||||||||||||||||||||||||
| Accumulated other comprehensive (income) loss (AOCI) | 3,036,429 | ||||||||||||||||||||||||||||
| Total common stockholders’ equity excluding AOCI (b) | 4,941,914 | ||||||||||||||||||||||||||||
| Net impact of fair value accounting for derivatives and embedded derivatives | (1,735,943) | ||||||||||||||||||||||||||||
| Net capital markets impact on the fair value of market risk benefits | (247,806) | ||||||||||||||||||||||||||||
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for fixed index annuities (b) | $ | 2,958,165 | |||||||||||||||||||||||||||
| Common shares outstanding | 77,753,194 | ||||||||||||||||||||||||||||
| Book Value per Common Share: (c) | |||||||||||||||||||||||||||||
| Book value per common share | $ | 24.51 | |||||||||||||||||||||||||||
| Book value per common share excluding AOCI (b) | $ | 63.56 | |||||||||||||||||||||||||||
| Book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities (b) | $ | 38.05 | |||||||||||||||||||||||||||
(a)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(b)Total common stockholders' equity, total common stockholders' equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities, non-GAAP financial measures, exclude equity available to preferred stockholders. Total common stockholders’ equity and book value per common share excluding AOCI, non-GAAP financial measures, are based on common stockholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale securities, we believe these non-GAAP financial measures provide useful supplemental information. Total common stockholders' equity and book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities. Since the net impact of fair value accounting for our fixed index annuity business is not economic in nature but rather impact the timing of reported results, we believe these non-GAAP financial measures provide useful supplemental information.
(c)Book value per common share including and excluding AOCI and book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities are calculated as total common stockholders’ equity, total common stockholders’ equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities divided by the total number of shares of common stock outstanding.
Page 3
American Equity Investment Life Holding Company
Unaudited (Dollars in thousands)
NON-GAAP FINANCIAL MEASURES
Average Common Stockholders' Equity and Return on Average Common Stockholders' Equity
Return on average common stockholders' equity measures how efficiently we generate profits from the resources provided by our net assets. Return on average common stockholders' equity is calculated by dividing net income available to common stockholders, for the trailing twelve months, by average equity available to common stockholders. Non-GAAP operating return on average common stockholders' equity excluding average accumulated other comprehensive income (AOCI) and average net impact of fair value accounting for fixed index annuities is calculated by dividing non-GAAP operating income available to common stockholders, for the trailing twelve months, by average common stockholders' equity excluding average AOCI and average net impact of fair value accounting for fixed index annuities. We exclude AOCI because AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments. We exclude the net impact of fair value accounting for fixed index annuities as the amounts are not economic in nature but rather impact the timing of reported results.
| Twelve Months Ended | |||||
| March 31, 2023 | |||||
| Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company, Excluding Average AOCI and Average Net Impact of Fair Value Accounting for Fixed Index Annuities | |||||
| Average total stockholders’ equity | $ | 4,162,215 | |||
| Average equity available to preferred stockholders | (700,000) | ||||
| Average equity available to common stockholders | 3,462,215 | ||||
| Average AOCI | 1,304,970 | ||||
| Average common stockholders' equity excluding average AOCI | 4,767,185 | ||||
| Average net impact of fair value accounting for derivatives and embedded derivatives | (1,393,594) | ||||
| Average net capital markets impact on the fair value of market risk benefits | (223,214) | ||||
| Average common stockholders' equity excluding average AOCI and average net impact of fair value accounting for fixed index annuities | $ | 3,150,377 | |||
| Net income available to American Equity Investment Life Holding Company common stockholders | $ | 1,041,085 | |||
| Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||
| Net realized losses on financial assets, including credit losses | 58,923 | ||||
| Change in fair value of derivatives and embedded derivatives | (495,796) | ||||
| Capital markets impact on the change in fair value of market risk benefits | (375,580) | ||||
| Net investment income | (1,015) | ||||
| Other revenue | 11,938 | ||||
| Income taxes | 168,983 | ||||
| Non-GAAP operating income available to common stockholders | $ | 408,538 | |||
| Impact of excluding notable items (a) | $ | 191,456 | |||
| Return on Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company | |||||
| Net income available to common stockholders | 30.1 | % | |||
| Return on Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company, Excluding Average AOCI and Average Net Impact of Fair Value Accounting for Fixed Index Annuities | |||||
| Non-GAAP operating income available to common stockholders | 13.0 | % | |||
| Notable Items | Twelve Months Ended | ||||
| March 31, 2023 | |||||
| Notable items impacting non-GAAP operating income available to common stockholders: | |||||
| Expense associated with strategic incentive award | $ | 9,566 | |||
| Impact of actuarial assumption updates | 181,890 | ||||
| Total notable items (a) | $ | 191,456 | |||
(a)Notable items reflect the after-tax increase (decrease) to non-GAAP operating income (loss) available to common stockholders for certain matters where more detail may help investors better understand, evaluate, and forecast results.
Page 4
Exhibit 99.2
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement
March 31, 2023
| A. | Financial Highlights | |||||||
| Non-GAAP Financial Measures | ||||||||
| B. | Product Summary | |||||||
| C. | Investment Summary | |||||||
| D. | ||||||||
| E. | ||||||||
Effective January 1, 2023, American Equity Investment Life Holding Company (the “Company”) adopted Accounting Standards Update 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company applied this guidance as of the transition date of January 1, 2021, and retrospectively adjusted prior period amounts to reflect the new guidance. The prior period numbers within this financial supplement have been recast, to the extent impacted by LDTI, from the original financial supplements published by the Company.
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2023 | December 31, 2022 | ||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
| Fixed maturity securities, available for sale, at fair value | $ | 39,555,624 | $ | 39,804,617 | |||||||
| Mortgage loans on real estate | 7,199,225 | 6,949,027 | |||||||||
| Real estate investments | 1,164,879 | 1,056,063 | |||||||||
| Limited partnerships and limited liability companies | 1,657,415 | 1,266,779 | |||||||||
| Derivative instruments | 684,033 | 431,727 | |||||||||
| Other investments | 1,157,162 | 1,817,085 | |||||||||
| Total investments | 51,418,338 | 51,325,298 | |||||||||
| Cash and cash equivalents | 2,777,852 | 1,919,669 | |||||||||
| Coinsurance deposits | 13,710,877 | 13,254,956 | |||||||||
| Market risk benefits | 230,304 | 229,871 | |||||||||
| Accrued investment income | 497,425 | 497,851 | |||||||||
| Deferred policy acquisition costs | 2,772,175 | 2,773,643 | |||||||||
| Deferred sales inducements | 2,044,349 | 2,045,683 | |||||||||
| Deferred income taxes | 290,648 | 438,434 | |||||||||
| Income taxes recoverable | 50,821 | 55,498 | |||||||||
| Other assets | 702,937 | 642,696 | |||||||||
| Total assets | $ | 74,495,726 | $ | 73,183,599 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Policy benefit reserves | $ | 59,019,189 | $ | 58,781,836 | |||||||
| Market risk benefits | 2,653,185 | 2,455,492 | |||||||||
| Other policy funds and contract claims | 306,359 | 512,790 | |||||||||
| Notes and loan payable | 790,413 | 792,073 | |||||||||
| Subordinated debentures | 78,839 | 78,753 | |||||||||
| Funds withheld for reinsurance liabilities | 6,984,409 | 6,577,426 | |||||||||
| Other liabilities | 2,034,523 | 1,614,479 | |||||||||
| Total liabilities | 71,866,917 | 70,812,849 | |||||||||
| Stockholders' equity: | |||||||||||
| Preferred stock, Series A | 16 | 16 | |||||||||
| Preferred stock, Series B | 12 | 12 | |||||||||
| Common stock | 77,753 | 84,810 | |||||||||
| Additional paid-in capital | 1,045,453 | 1,325,316 | |||||||||
| Accumulated other comprehensive loss | (3,036,429) | (3,746,230) | |||||||||
| Retained earnings | 4,518,680 | 4,685,593 | |||||||||
| Total stockholders' equity attributable to American Equity Investment Life Holding Company | 2,605,485 | 2,349,517 | |||||||||
| Noncontrolling interests | 23,324 | 21,233 | |||||||||
| Total stockholders' equity | 2,628,809 | 2,370,750 | |||||||||
| Total liabilities and stockholders' equity | $ | 74,495,726 | $ | 73,183,599 | |||||||
Page 1
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except per share data)
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Premiums and other considerations | $ | 4,137 | $ | 10,078 | |||||||||||||||||||
| Annuity product charges | 62,591 | 52,355 | |||||||||||||||||||||
| Net investment income | 561,323 | 567,423 | |||||||||||||||||||||
| Change in fair value of derivatives | 45,890 | (477,519) | |||||||||||||||||||||
| Net realized losses on investments | (27,787) | (13,127) | |||||||||||||||||||||
| Other revenue | 16,394 | 8,817 | |||||||||||||||||||||
| Total revenues | 662,548 | 148,027 | |||||||||||||||||||||
| Benefits and expenses: | |||||||||||||||||||||||
| Insurance policy benefits and change in future policy benefits | 7,208 | 13,615 | |||||||||||||||||||||
| Interest sensitive and index product benefits | 57,911 | 287,917 | |||||||||||||||||||||
| Market risk benefits (gains) losses | 183,694 | 191,893 | |||||||||||||||||||||
| Amortization of deferred sales inducements | 46,601 | 45,085 | |||||||||||||||||||||
| Change in fair value of embedded derivatives | 404,440 | (1,393,649) | |||||||||||||||||||||
| Interest expense on notes and loan payable | 11,018 | 6,425 | |||||||||||||||||||||
| Interest expense on subordinated debentures | 1,336 | 1,317 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 68,235 | 72,969 | |||||||||||||||||||||
| Other operating costs and expenses | 74,004 | 57,795 | |||||||||||||||||||||
| Total benefits and expenses | 854,447 | (716,633) | |||||||||||||||||||||
| Income (loss) before income taxes | (191,899) | 864,660 | |||||||||||||||||||||
| Income tax expense (benefit) | (36,008) | 185,195 | |||||||||||||||||||||
| Net income (loss) | (155,891) | 679,465 | |||||||||||||||||||||
| Less: Net income available to noncontrolling interests | 103 | — | |||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company stockholders | (155,994) | 679,465 | |||||||||||||||||||||
| Less: Preferred stock dividends | 10,919 | 10,919 | |||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||||||||||||||
| Earnings (loss) per common share | $ | (2.00) | $ | 6.90 | |||||||||||||||||||
| Earnings (loss) per common share - assuming dilution | $ | (2.00) | $ | 6.83 | |||||||||||||||||||
| Weighted average common shares outstanding (in thousands): | |||||||||||||||||||||||
| Earnings (loss) per common share | 83,417 | 96,866 | |||||||||||||||||||||
| Earnings (loss) per common share - assuming dilution (a) | 83,417 | 97,953 | |||||||||||||||||||||
(a)Weighted average common shares outstanding - assuming dilution were 84,751 excluding the impact of anti-dilution related to the net loss for the three month period ended March 31, 2023.
Page 2
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except per share data)
Quarterly Summary - Most Recent 5 Quarters
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Traditional life insurance premiums | $ | 698 | $ | 626 | $ | 634 | $ | 691 | $ | 675 | |||||||||||||||||||
| Life contingent immediate annuity considerations | 3,439 | 2,365 | 2,205 | 3,140 | 9,403 | ||||||||||||||||||||||||
| Surrender charges | 26,542 | 22,030 | 19,783 | 15,345 | 15,541 | ||||||||||||||||||||||||
| Lifetime income benefit rider fees | 36,049 | 39,636 | 41,036 | 40,169 | 36,814 | ||||||||||||||||||||||||
| Net investment income | 561,323 | 537,995 | 609,737 | 592,308 | 567,423 | ||||||||||||||||||||||||
| Change in fair value of derivatives | 45,890 | 22,243 | (176,671) | (506,181) | (477,519) | ||||||||||||||||||||||||
| Net realized gains (losses) on investments | (27,787) | 14,411 | (15,860) | (33,272) | (13,127) | ||||||||||||||||||||||||
| Other revenue (a) | 16,394 | 13,032 | 10,988 | 9,408 | 8,817 | ||||||||||||||||||||||||
| Total revenues | 662,548 | 652,338 | 491,852 | 121,608 | 148,027 | ||||||||||||||||||||||||
| Benefits and expenses: | |||||||||||||||||||||||||||||
| Traditional life insurance policy benefits and change in future policy benefits (b) | 1,206 | 944 | 118 | 495 | 1,491 | ||||||||||||||||||||||||
| Life contingent immediate annuity benefits and change in future policy benefits (c) | 6,002 | 5,004 | 6,541 | 6,503 | 12,124 | ||||||||||||||||||||||||
| Interest sensitive and index product benefits | 57,911 | 57,626 | 68,982 | 140,346 | 287,917 | ||||||||||||||||||||||||
| Market risk benefits (gains) losses (d) | 183,694 | 33,490 | 77,579 | (299,278) | 191,893 | ||||||||||||||||||||||||
| Amortization of deferred sales inducements | 46,601 | 45,966 | 46,223 | 44,696 | 45,085 | ||||||||||||||||||||||||
| Change in fair value of embedded derivatives (e) | 404,440 | 342,409 | (415,374) | (885,984) | (1,393,649) | ||||||||||||||||||||||||
| Interest expense on notes payable | 11,018 | 10,228 | 8,984 | 6,461 | 6,425 | ||||||||||||||||||||||||
| Interest expense on subordinated debentures | 1,336 | 1,335 | 1,333 | 1,346 | 1,317 | ||||||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 68,235 | 66,831 | 71,726 | 72,485 | 72,969 | ||||||||||||||||||||||||
| Other operating costs and expenses | 74,004 | 62,389 | 59,470 | 59,872 | 57,795 | ||||||||||||||||||||||||
| Total benefits and expenses | 854,447 | 626,222 | (74,418) | (853,058) | (716,633) | ||||||||||||||||||||||||
| Income (loss) before income taxes | (191,899) | 26,116 | 566,270 | 974,666 | 864,660 | ||||||||||||||||||||||||
| Income tax expense (benefit) | (36,008) | (6,817) | 121,380 | 211,377 | 185,195 | ||||||||||||||||||||||||
| Net income (loss) (b)(c)(d)(e) | (155,891) | 32,933 | 444,890 | 763,289 | 679,465 | ||||||||||||||||||||||||
| Less: Net income (loss) available to noncontrolling interests | 103 | 361 | 1 | (4) | — | ||||||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company stockholders (b)(c)(d)(e) | (155,994) | 32,572 | 444,889 | 763,293 | 679,465 | ||||||||||||||||||||||||
| Less: Preferred stock dividends | 10,919 | 10,919 | 10,918 | 10,919 | 10,919 | ||||||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders (b)(c)(d)(e) | $ | (166,913) | $ | 21,653 | $ | 433,971 | $ | 752,374 | $ | 668,546 | |||||||||||||||||||
| Earnings (loss) per common share | $ | (2.00) | $ | 0.25 | $ | 4.95 | $ | 8.13 | $ | 6.90 | |||||||||||||||||||
| Earnings (loss) per common share - assuming dilution (b)(c)(d)(e) | $ | (2.00) | $ | 0.25 | $ | 4.90 | $ | 8.06 | $ | 6.83 | |||||||||||||||||||
| Weighted average common shares outstanding (thousands): | |||||||||||||||||||||||||||||
| Earnings (loss) per common share | 83,417 | 85,274 | 87,707 | 92,544 | 96,866 | ||||||||||||||||||||||||
| Earnings (loss) per common share - assuming dilution | 83,417 | 86,402 | 88,581 | 93,375 | 97,953 | ||||||||||||||||||||||||
(a)Other revenue consists of reinsurance related fee revenue including asset liability management fees and amortization of the deferred gain associated with the cost of reinsurance.
(b)Q3 2022 includes benefit from the update of assumptions used in determining the deferred profit liability. The impact decreased traditional life insurance policy benefits and change in future policy benefits by $0.5 million and increased both net income and net income available to common stockholders by $0.4 million and did not impact earnings per common share - assuming dilution.
(c)Q3 2022 includes expense from the update of assumptions used in determining the liability for future policyholder benefits. The impact increased life contingent immediate annuity benefits and change in future policy benefits by $1.3 million and decreased both net income and net income available to common stockholders by $1.0 million and decreased earnings per common share - assuming dilution by $0.01 per share.
Page 3
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except per share data)
(d)Q3 2022 includes expense from the update of assumptions used in determining the reserves held for market risk benefits. The impact increased market risk benefits (gains) losses by $229.4 million and decreased both net income and net income available to common stockholders by $181.3 million and decreased earnings per common share - assuming dilution by $2.05 per share.
(e)Q3 2022 includes a benefit from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact decreased change in fair value of embedded derivatives by $94.8 million and increased both net income and net income available to common stockholders by $74.4 million and increased earnings per common share - assuming dilution by $0.84 per share.
Page 4
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except per share data)
NON-GAAP FINANCIAL MEASURES
In addition to net income (loss) available to common stockholders, we have consistently utilized non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Non-GAAP operating income available to common stockholders equals net income (loss) available to common stockholders adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income available to common stockholders eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income available to common stockholders together with net income (loss) available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||||||||||||||
| Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||||||||||||||
| Net realized losses on financial assets, including credit losses | 24,384 | 13,725 | |||||||||||||||||||||
| Change in fair value of derivatives and embedded derivatives | 206,202 | (847,207) | |||||||||||||||||||||
| Capital markets impact on the change in fair value of market risk benefits | 136,950 | 118,913 | |||||||||||||||||||||
| Net investment income | (2,491) | — | |||||||||||||||||||||
| Other revenue | 5,969 | — | |||||||||||||||||||||
| Income taxes | (79,765) | 153,090 | |||||||||||||||||||||
| Non-GAAP operating income available to common stockholders | $ | 124,336 | $ | 107,067 | |||||||||||||||||||
| Impact of excluding notable items (a) | $ | 9,566 | $ | — | |||||||||||||||||||
| Per common share - assuming dilution: | |||||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (2.00) | $ | 6.83 | |||||||||||||||||||
| Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||||||||||||||
| Anti-dilutive impact for losses (b) | 0.03 | — | |||||||||||||||||||||
| Net realized losses on financial assets, including credit losses | 0.29 | 0.14 | |||||||||||||||||||||
| Change in fair value of derivatives and embedded derivatives | 2.43 | (8.65) | |||||||||||||||||||||
| Capital markets impact on the change in fair value of market risk benefits | 1.62 | 1.21 | |||||||||||||||||||||
| Net investment income | (0.03) | — | |||||||||||||||||||||
| Other revenue | 0.07 | — | |||||||||||||||||||||
| Income taxes | (0.94) | 1.56 | |||||||||||||||||||||
| Non-GAAP operating income available to common stockholders | $ | 1.47 | $ | 1.09 | |||||||||||||||||||
| Impact of excluding notable items (a) | $ | 0.11 | $ | — | |||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Notable items impacting non-GAAP operating income available to common stockholders: | |||||||||||||||||||||||
| Expense associated with strategic incentive award | $ | 9,566 | $ | — | |||||||||||||||||||
| Total notable items (a) | $ | 9,566 | $ | — | |||||||||||||||||||
(a)Notable items reflect the after-tax increase (decrease) to non-GAAP operating income (loss) available to common stockholders for certain matters where more detail may help investors better understand, evaluate, and forecast results.
For the three months ended March 31, 2023, non-GAAP operating income available to common stockholders would increase $9.6 million if we were to exclude the impact of notable items.
(b)For periods with a loss, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect.
Page 5
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Net realized losses on financial assets, including credit losses: | |||||||||||||||||||||||
| Net realized losses on financial assets, including credit losses | $ | 24,384 | $ | 13,725 | |||||||||||||||||||
| Income taxes | (5,243) | (2,951) | |||||||||||||||||||||
| $ | 19,141 | $ | 10,774 | ||||||||||||||||||||
| Change in fair value of derivatives and embedded derivatives: | |||||||||||||||||||||||
| Fixed index annuities | $ | 142,947 | $ | (644,763) | |||||||||||||||||||
| Reinsurance contracts | 64,380 | (202,444) | |||||||||||||||||||||
| Interest rate swaps | (1,125) | — | |||||||||||||||||||||
| Income taxes | (44,330) | 181,607 | |||||||||||||||||||||
| $ | 161,872 | $ | (665,600) | ||||||||||||||||||||
| Capital market impact on the fair value of market risk benefits: | |||||||||||||||||||||||
| Capital markets impact on the change in fair value of market risk benefits | $ | 121,342 | $ | 113,002 | |||||||||||||||||||
| Amortization of capital markets impact on the fair value of market risk benefits | 15,608 | 5,911 | |||||||||||||||||||||
| Income taxes | (29,444) | (25,566) | |||||||||||||||||||||
| $ | 107,506 | $ | 93,347 | ||||||||||||||||||||
| Net investment income: | |||||||||||||||||||||||
| Income associated with assets transferred under reinsurance treaty | $ | (2,491) | $ | — | |||||||||||||||||||
| Income taxes | 535 | — | |||||||||||||||||||||
| $ | (1,956) | $ | — | ||||||||||||||||||||
| Other revenue: | |||||||||||||||||||||||
| Amortization of deferred fees associated with reinsurance treaties | $ | 5,969 | $ | — | |||||||||||||||||||
| Income taxes | (1,283) | — | |||||||||||||||||||||
| $ | 4,686 | $ | — | ||||||||||||||||||||
Page 6
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except per share data)
NON-GAAP FINANCIAL MEASURES
Quarterly Summary - Most Recent 5 Quarters
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss) Available to Common Stockholders
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 21,653 | $ | 433,971 | $ | 752,374 | $ | 668,546 | |||||||||||||||||||
| Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders: | |||||||||||||||||||||||||||||
| Net realized (gains) losses on financial assets, including credit losses | 24,384 | (19,460) | 16,945 | 37,054 | 13,725 | ||||||||||||||||||||||||
| Change in fair value of derivatives and embedded derivatives | 206,202 | 169,767 | (400,952) | (470,813) | (847,207) | ||||||||||||||||||||||||
| Capital markets impact on the change in fair value of market risk benefits | 136,950 | 2,309 | (179,509) | (335,330) | 118,913 | ||||||||||||||||||||||||
| Net investment income | (2,491) | 1,476 | — | — | — | ||||||||||||||||||||||||
| Other revenue | 5,969 | 5,969 | — | — | — | ||||||||||||||||||||||||
| Income taxes | (79,765) | (39,998) | 120,802 | 167,944 | 153,090 | ||||||||||||||||||||||||
| Non-GAAP operating income (loss) available to common stockholders | $ | 124,336 | $ | 141,716 | $ | (8,743) | $ | 151,229 | $ | 107,067 | |||||||||||||||||||
| Impact of excluding notable items (a) | $ | 9,566 | $ | — | $ | 181,890 | $ | — | $ | — | |||||||||||||||||||
| Per common share - assuming dilution: | |||||||||||||||||||||||||||||
| Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (2.00) | $ | 0.25 | $ | 4.90 | $ | 8.06 | $ | 6.83 | |||||||||||||||||||
| Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders: | |||||||||||||||||||||||||||||
| Anti-dilutive impact for losses (b) | 0.03 | — | — | — | — | ||||||||||||||||||||||||
| Net realized (gains) losses on financial assets, including credit losses | 0.29 | (0.23) | 0.19 | 0.39 | 0.14 | ||||||||||||||||||||||||
| Change in fair value of derivatives and embedded derivatives | 2.43 | 1.96 | (4.52) | (5.04) | (8.65) | ||||||||||||||||||||||||
| Capital markets impact on the change in fair value of market risk benefits | 1.62 | 0.03 | (2.03) | (3.59) | 1.21 | ||||||||||||||||||||||||
| Net investment income | (0.03) | 0.02 | — | — | — | ||||||||||||||||||||||||
| Other revenue | 0.07 | 0.07 | — | — | — | ||||||||||||||||||||||||
| Income taxes | (0.94) | (0.46) | 1.36 | 1.80 | 1.56 | ||||||||||||||||||||||||
| Non-GAAP operating income (loss) available to common stockholders | $ | 1.47 | $ | 1.64 | $ | (0.10) | $ | 1.62 | $ | 1.09 | |||||||||||||||||||
| Impact of excluding notable items (a) | $ | 0.11 | $ | — | $ | 2.05 | $ | — | $ | — | |||||||||||||||||||
Notable Items
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
| Notable items impacting non-GAAP operating income (loss) available to common stockholders: | |||||||||||||||||||||||||||||
| Expense associated with strategic incentive award | $ | 9,566 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
| Impact of actuarial assumption updates | — | — | 181,890 | — | — | ||||||||||||||||||||||||
| Total notable items (a) | $ | 9,566 | $ | — | $ | 181,890 | $ | — | $ | — | |||||||||||||||||||
(a)Notable items reflect the after-tax increase (decrease) to non-GAAP operating income (loss) available to common stockholders for certain matters where more detail may help investors better understand, evaluate, and forecast results. For the three months ended March 31, 2023 and September 30, 2022, non-GAAP operating income available to common stockholders would increase $9.6 million and $181.9 million, respectively, if we were to exclude the impact of notable items.
(b)For periods with a loss, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect.
Page 7
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
| Net realized (gains) losses on investments | $ | 27,787 | $ | (14,411) | $ | 15,860 | $ | 33,272 | $ | 13,127 | |||||||||||||||||||
| Net investment income | (2,491) | 1,476 | — | — | — | ||||||||||||||||||||||||
| Other revenue | 5,969 | 5,969 | — | — | — | ||||||||||||||||||||||||
| Change in fair value of derivatives | (198,239) | (172,643) | 14,423 | 415,171 | 546,442 | ||||||||||||||||||||||||
| Increase (decrease) in total revenues | (166,974) | (179,609) | 30,283 | 448,443 | 559,569 | ||||||||||||||||||||||||
| Change in fair value of embedded derivatives | (404,440) | (342,409) | 415,374 | 885,984 | 1,393,649 | ||||||||||||||||||||||||
| Market risk benefits (gains) losses | (136,950) | (2,309) | 179,509 | 335,330 | (118,913) | ||||||||||||||||||||||||
| Interest sensitive and index product benefits (a) | 3,402 | 5,048 | (1,084) | (3,782) | (598) | ||||||||||||||||||||||||
| Increase (decrease) in total benefits and expenses | (537,988) | (339,670) | 593,799 | 1,217,532 | 1,274,138 | ||||||||||||||||||||||||
| Increase (decrease) in income (loss) before income taxes | 371,014 | 160,061 | (563,516) | (769,089) | (714,569) | ||||||||||||||||||||||||
| Increase (decrease) in income tax expense benefit | 79,765 | 39,998 | (120,802) | (167,944) | (153,090) | ||||||||||||||||||||||||
| Increase (decrease) in net income (loss) available to common stockholders | $ | 291,249 | $ | 120,063 | $ | (442,714) | $ | (601,145) | $ | (561,479) | |||||||||||||||||||
(a)Interest sensitive and index product benefits adjustment reflects the change in the allowance for credit losses on our reinsurance recoverable/coinsurance deposits. The change in this allowance is reflected in the net realized (gains) losses of financial assets, including credit losses line in the other Non-GAAP financial measures tables in this financial supplement.
Page 8
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except share and per share data)
Capitalization/Book Value per Common Share
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
| Capitalization: | |||||||||||||||||||||||||||||
| Notes and loan payable | $ | 800,000 | $ | 800,000 | $ | 800,000 | $ | 500,000 | $ | 500,000 | |||||||||||||||||||
| Subordinated debentures payable to subsidiary trusts | 78,839 | 78,753 | 78,668 | 78,584 | 78,502 | ||||||||||||||||||||||||
Total debt | 878,839 | 878,753 | 878,668 | 578,584 | 578,502 | ||||||||||||||||||||||||
| Total stockholders’ equity attributable to American Equity Investment Life Holding Company | 2,605,485 | 2,349,517 | 2,157,667 | 3,625,377 | 5,718,944 | ||||||||||||||||||||||||
| Total capitalization | 3,484,324 | 3,228,270 | 3,036,335 | 4,203,961 | 6,297,446 | ||||||||||||||||||||||||
| Accumulated other comprehensive (income) loss (AOCI) | 3,036,429 | 3,746,230 | 3,984,496 | 2,231,594 | (426,490) | ||||||||||||||||||||||||
Total capitalization excluding AOCI (a) | $ | 6,520,753 | $ | 6,974,500 | $ | 7,020,831 | $ | 6,435,555 | $ | 5,870,956 | |||||||||||||||||||
| Total stockholders’ equity attributable to American Equity Investment Life Holding Company | $ | 2,605,485 | $ | 2,349,517 | $ | 2,157,667 | $ | 3,625,377 | $ | 5,718,944 | |||||||||||||||||||
| Equity available to preferred stockholders (b) | (700,000) | (700,000) | (700,000) | (700,000) | (700,000) | ||||||||||||||||||||||||
Total common stockholders' equity (c) | 1,905,485 | 1,649,517 | 1,457,667 | 2,925,377 | 5,018,944 | ||||||||||||||||||||||||
| Accumulated other comprehensive (income) loss | 3,036,429 | 3,746,230 | 3,984,496 | 2,231,594 | (426,490) | ||||||||||||||||||||||||
Total common stockholders’ equity excluding AOCI (c) | 4,941,914 | 5,395,747 | 5,442,163 | 5,156,971 | 4,592,454 | ||||||||||||||||||||||||
| Net impact of fair value accounting for derivatives and embedded derivatives | (1,735,943) | (1,652,169) | (1,721,324) | (1,418,244) | (1,051,245) | ||||||||||||||||||||||||
| Net capital markets impact on the fair value of market risk benefits | (247,806) | (600,958) | (602,772) | (461,856) | (198,622) | ||||||||||||||||||||||||
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for fixed index annuities (c) | $ | 2,958,165 | $ | 3,142,620 | $ | 3,118,067 | $ | 3,276,871 | $ | 3,342,587 | |||||||||||||||||||
| Common shares outstanding | 77,753,194 | 84,810,255 | 85,966,505 | 90,168,512 | 95,019,904 | ||||||||||||||||||||||||
Book Value per Common Share: (d) | |||||||||||||||||||||||||||||
| Book value per common share | $ | 24.51 | $ | 19.45 | $ | 16.96 | $ | 32.44 | $ | 52.82 | |||||||||||||||||||
| Book value per common share excluding AOCI (c) | $ | 63.56 | $ | 63.62 | $ | 63.31 | $ | 57.19 | $ | 48.33 | |||||||||||||||||||
| Book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities (c) | $ | 38.05 | $ | 37.05 | $ | 36.27 | $ | 36.34 | $ | 35.18 | |||||||||||||||||||
Debt-to-Capital Ratios: (e) | |||||||||||||||||||||||||||||
| Senior debt / Total capitalization | 12.3 | % | 11.5 | % | 11.4 | % | 7.8 | % | 8.5 | % | |||||||||||||||||||
| Total debt / Total capitalization | 13.5 | % | 12.6 | % | 12.5 | % | 9.0 | % | 9.9 | % | |||||||||||||||||||
(a)Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.
(b)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(c)Total common stockholders' equity, total common stockholders' equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities, non-GAAP financial measures, exclude equity available to preferred stockholders. Total common stockholders’ equity and book value per common share excluding AOCI, non-GAAP financial measures, are based on common stockholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale securities, we believe these non-GAAP financial measures provide useful supplemental information. Total common stockholders' equity and book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities. Since the net impact of fair value accounting for our fixed index annuity business is not economic in nature but rather impact the timing of reported results, we believe these non-GAAP financial measures provide useful supplemental information.
(d)Book value per common share including and excluding AOCI and book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities are calculated as total common stockholders’ equity, total common stockholders’ equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities divided by the total number of shares of common stock outstanding.
(e)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
Page 9
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
Spread Results
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||||||||||||||||||
| Average yield on invested assets | 4.48% | 4.30% | 4.48% | 4.33% | 4.15% | |||||||||||||||||||||||||||||||||
| Aggregate cost of money | 1.81% | 1.76% | 1.75% | 1.69% | 1.64% | |||||||||||||||||||||||||||||||||
| Aggregate investment spread | 2.67% | 2.54% | 2.73% | 2.64% | 2.51% | |||||||||||||||||||||||||||||||||
| Impact of: | ||||||||||||||||||||||||||||||||||||||
Investment yield - additional prepayment income | —% | 0.01% | 0.03% | 0.05% | 0.03% | |||||||||||||||||||||||||||||||||
| Cost of money effect of over hedging | —% | —% | —% | 0.02% | 0.03% | |||||||||||||||||||||||||||||||||
| Weighted average investments | $ | 49,304,219 | $ | 50,040,228 | $ | 54,378,154 | $ | 54,768,966 | $ | 54,728,239 | ||||||||||||||||||||||||||||
| Ending investments | 48,852,319 | 49,811,623 | 54,056,886 | 54,699,422 | 54,838,509 | |||||||||||||||||||||||||||||||||
Weighted average investments include fixed maturity securities at amortized cost and mortgage loans on real estate and other investments at carrying values as reflected in the consolidated balance sheets. The numerator for average yield on invested assets includes net investment income and the tax effect of investment income that is exempt from income taxes.
Investment Yields
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||||||||||||||||||
| Investment income: | ||||||||||||||||||||||||||||||||||||||
Fixed income (a) | $ | 533,122 | $ | 511,077 | $ | 547,326 | $ | 539,382 | $ | 510,303 | ||||||||||||||||||||||||||||
| Mark-to-market private asset income (a) | 19,627 | 26,816 | 61,671 | 53,816 | 58,046 | |||||||||||||||||||||||||||||||||
| Total non-GAAP investment income (b) | $ | 552,749 | $ | 537,893 | $ | 608,997 | $ | 593,198 | $ | 568,349 | ||||||||||||||||||||||||||||
| Investment yield: | ||||||||||||||||||||||||||||||||||||||
| Fixed income investment yield | 4.52% | 4.26% | 4.16% | 4.04% | 3.80% | |||||||||||||||||||||||||||||||||
| Mark-to-market private asset yield | 3.61% | 5.29% | 13.89% | 15.15% | 22.36% | |||||||||||||||||||||||||||||||||
| Total investment yield | 4.48% | 4.30% | 4.48% | 4.33% | 4.15% | |||||||||||||||||||||||||||||||||
| Weighted average investments: | ||||||||||||||||||||||||||||||||||||||
| Fixed income investments | $ | 47,129,120 | $ | 48,012,311 | $ | 52,602,319 | $ | 53,347,874 | $ | 53,689,782 | ||||||||||||||||||||||||||||
| Mark-to-market private assets | 2,175,099 | 2,027,917 | 1,775,835 | 1,421,092 | 1,038,457 | |||||||||||||||||||||||||||||||||
| Total weighted average investments | $ | 49,304,219 | $ | 50,040,228 | $ | 54,378,154 | $ | 54,768,966 | $ | 54,728,239 | ||||||||||||||||||||||||||||
(a)Net of investment expenses
(b)Non-GAAP investment income is comprised of GAAP Net investment income adjusted to remove income associated with cash held by the Parent Company for corporate activities and to gross up income related to the tax benefit of tax exempt investment income, in addition to the adjustments shown in the reconciliation of Net income to Non-GAAP Operating income on page 5. The net impact of the adjustments for income associated with cash held by the Holding Company and tax exempt investment income was $6,083 in Q1 2023, $1,578 thousand in Q4 2022, $740 thousand in Q3 2022, $890 thousand in Q2 2022, and $926 thousand in Q1 2022, respectively.
Page 10
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except per share data)
Summary of Cost of Money for Deferred Annuities
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||||||||||||||||||
Included in interest sensitive and index product benefits: | ||||||||||||||||||||||||||||||||||||||
| Index credits | $ | 3,533 | $ | 3,861 | $ | 4,648 | $ | 72,398 | $ | 224,385 | ||||||||||||||||||||||||||||
| Interest credited | 56,316 | 56,402 | 62,383 | 60,770 | 61,334 | |||||||||||||||||||||||||||||||||
Included in change in fair value of derivatives: | ||||||||||||||||||||||||||||||||||||||
| Proceeds received at option expiration | (3,601) | (4,061) | (4,865) | (75,115) | (228,092) | |||||||||||||||||||||||||||||||||
| Pro rata amortization of option cost | 157,271 | 154,463 | 167,197 | 165,375 | 160,097 | |||||||||||||||||||||||||||||||||
| Cost of money for deferred annuities | $ | 213,519 | $ | 210,665 | $ | 229,363 | $ | 223,428 | $ | 217,724 | ||||||||||||||||||||||||||||
Weighted average liability balance outstanding | $ | 47,266,672 | $ | 47,802,219 | $ | 52,337,208 | $ | 52,940,739 | $ | 53,155,293 | ||||||||||||||||||||||||||||
Annuity Account Balance Rollforward
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||||||||||||||||||
| Account balances at beginning of period | $ | 47,504,615 | $ | 51,913,689 | $ | 52,762,558 | $ | 53,119,291 | $ | 53,191,277 | ||||||||||||||||||||||||||||
| Reserves ceded - in-force | — | (3,810,982) | (257,779) | — | — | |||||||||||||||||||||||||||||||||
| Account balance at beginning of period, net of reinsurance ceded | 47,504,615 | 48,102,707 | 52,504,779 | 53,119,291 | 53,191,277 | |||||||||||||||||||||||||||||||||
| Net deposits | 732,664 | 613,084 | 496,940 | 562,366 | 674,925 | |||||||||||||||||||||||||||||||||
| Premium bonuses | 45,267 | 33,617 | 27,385 | 23,547 | 23,142 | |||||||||||||||||||||||||||||||||
| Fixed interest credited and index credits | 59,849 | 60,263 | 67,031 | 133,168 | 285,719 | |||||||||||||||||||||||||||||||||
| Surrender charges | (26,542) | (22,030) | (19,783) | (15,345) | (15,541) | |||||||||||||||||||||||||||||||||
| Lifetime income benefit rider fees | (36,049) | (39,636) | (41,036) | (40,169) | (36,814) | |||||||||||||||||||||||||||||||||
| Surrenders, withdrawals, deaths, etc. | (1,248,199) | (1,243,390) | (1,121,627) | (1,020,300) | (1,003,417) | |||||||||||||||||||||||||||||||||
| Account balances at end of period | $ | 47,031,605 | $ | 47,504,615 | $ | 51,913,689 | $ | 52,762,558 | $ | 53,119,291 | ||||||||||||||||||||||||||||
MRB Liability
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||||||||||||||||||
| MRB balance at beginning of period | $ | 1,521,954 | $ | 1,762,629 | $ | 1,721,376 | $ | 2,075,033 | $ | 2,362,947 | ||||||||||||||||||||||||||||
| Reserves ceded - in-force | — | (331,020) | 4,496 | — | — | |||||||||||||||||||||||||||||||||
| Issuances | 2,921 | 1,230 | 1,366 | 913 | 3,920 | |||||||||||||||||||||||||||||||||
| Interest accrual | 29,559 | 23,910 | 20,626 | 12,424 | 9,238 | |||||||||||||||||||||||||||||||||
| Attributed fees collected | 28,197 | 29,585 | 29,010 | 29,378 | 29,513 | |||||||||||||||||||||||||||||||||
| Benefits payments | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| Effect of changes in interest rates and equity markets | 118,422 | (16,236) | (197,978) | (348,675) | 113,002 | |||||||||||||||||||||||||||||||||
| Effect of changes in assumptions and policyholder behavior | 1,870 | (5,023) | 224,522 | 7,220 | 37,111 | |||||||||||||||||||||||||||||||||
| Effect of changes in instrument specific credit risk | (70,005) | 56,879 | (40,789) | (54,917) | (480,698) | |||||||||||||||||||||||||||||||||
| MRB balance at end of period, net (a) | 1,632,918 | 1,521,954 | 1,762,629 | 1,721,376 | 2,075,033 | |||||||||||||||||||||||||||||||||
| MRB net deferred capital markets impact, end of period | 628,602 | 765,552 | 767,862 | 588,352 | 253,022 | |||||||||||||||||||||||||||||||||
| Non-GAAP MRB balance, end of period (b) | $ | 2,261,520 | $ | 2,287,506 | $ | 2,530,491 | $ | 2,309,728 | $ | 2,328,055 | ||||||||||||||||||||||||||||
(a)The MRB balance is the MRB liability net of the MRB asset and reinsurance recoverable asset associated with the ceded MRB. The reinsurance recoverable asset associated with the ceded MRB is included in coinsurance deposits on the Consolidated Balance Sheet.
Page 11
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except per share data)
(b)Non-GAAP MRB balance is comprised of the GAAP MRB balance adjusted for the pre-tax cumulative effect of the deferral of capital markets impact on the fair value of MRB. See page 11 and page 12 for the non-GAAP definition and reconciliation of total common stockholders' equity to total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities which includes the adjustment for the after-tax cumulative effect of the deferral of capital markets impact on the fair value of MRB.
Account Values Subject to Recurring Fees Under Reinsurance Agreements
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||||||||||||||||||
| Account value of business ceded subject to fee income at beginning of period | $ | 9,642,336 | $ | 5,612,098 | $ | 5,065,538 | $ | 4,859,360 | $ | 4,660,690 | ||||||||||||||||||||||||||||
| In-force account value ceded subject to fee income | — | 3,810,982 | 257,779 | — | — | |||||||||||||||||||||||||||||||||
| Premiums on business ceded subject to fee income | 634,160 | 351,971 | 288,781 | 206,178 | 198,670 | |||||||||||||||||||||||||||||||||
| Disbursements on business ceded subject to fee income | (120,729) | (132,715) | — | — | — | |||||||||||||||||||||||||||||||||
| Account value of business ceded subject to fee income at end of period | $ | 10,155,767 | $ | 9,642,336 | $ | 5,612,098 | $ | 5,065,538 | $ | 4,859,360 | ||||||||||||||||||||||||||||
| Non-GAAP operating revenue associated with recurring fees (a) | $ | 22,363 | $ | 19,001 | $ | 10,988 | $ | 9,408 | $ | 8,817 | ||||||||||||||||||||||||||||
(a)Non-GAAP operating revenue associated with recurring fees is comprised of GAAP Other Revenue adjusted for the amortization of gains on assets transferred under a reinsurance transaction. See page 5 for the reconciliation of Net Income (Loss) to Non-GAAP Operating Income and page 6 for the summary of adjustments to arrive at Non-GAAP Operating Income
Annuity Deposits by Product Type
| Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||||||||||||||||||
| American Equity Life: | ||||||||||||||||||||||||||||||||||||||
| Fixed index annuities | $ | 735,839 | $ | 637,021 | $ | 627,444 | $ | 671,696 | $ | 755,980 | ||||||||||||||||||||||||||||
| Annual reset fixed rate annuities | 693 | 1,856 | 1,271 | 1,140 | 1,062 | |||||||||||||||||||||||||||||||||
| Multi-year fixed rate annuities | 156,034 | 49,216 | 4,465 | 485 | 2,345 | |||||||||||||||||||||||||||||||||
| Single premium immediate annuities | 427 | 494 | 1,915 | 3,073 | 13,453 | |||||||||||||||||||||||||||||||||
| 892,993 | 688,587 | 635,095 | 676,394 | 772,840 | ||||||||||||||||||||||||||||||||||
| Eagle Life: | ||||||||||||||||||||||||||||||||||||||
| Fixed index annuities | 228,599 | 145,772 | 102,379 | 104,374 | 126,754 | |||||||||||||||||||||||||||||||||
| Annual reset fixed rate annuities | 1,269 | 230 | 143 | — | 7 | |||||||||||||||||||||||||||||||||
| Multi-year fixed rate annuities | 248,229 | 65,434 | 14,684 | 123 | 2,340 | |||||||||||||||||||||||||||||||||
| 478,097 | 211,436 | 117,206 | 104,497 | 129,101 | ||||||||||||||||||||||||||||||||||
| Consolidated: | ||||||||||||||||||||||||||||||||||||||
| Fixed index annuities | 964,438 | 782,793 | 729,823 | 776,070 | 882,734 | |||||||||||||||||||||||||||||||||
| Annual reset fixed rate annuities | 1,962 | 2,086 | 1,414 | 1,140 | 1,069 | |||||||||||||||||||||||||||||||||
| Multi-year fixed rate annuities | 404,263 | 114,650 | 19,149 | 608 | 4,685 | |||||||||||||||||||||||||||||||||
| Single premium immediate annuities | 427 | 494 | 1,915 | 3,073 | 13,453 | |||||||||||||||||||||||||||||||||
| Total before coinsurance ceded | 1,371,090 | 900,023 | 752,301 | 780,891 | 901,941 | |||||||||||||||||||||||||||||||||
| Coinsurance ceded | 637,999 | 286,445 | 253,446 | 215,452 | 213,563 | |||||||||||||||||||||||||||||||||
| Net after coinsurance ceded | $ | 733,091 | $ | 613,578 | $ | 498,855 | $ | 565,439 | $ | 688,378 | ||||||||||||||||||||||||||||
Page 12
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands, except per share data)
Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of Coinsurance) Account Values at March 31, 2023:
| Surrender Charge | Net Account Value | |||||||||||||||||||||||||||||||
| Product Type | Avg. Years At Issue | Avg. Years Remaining | Avg. % Remaining | Dollars in Thousands | % | |||||||||||||||||||||||||||
| Fixed Index Annuities | 12.4 | 4.9 | 7.9% | $ | 41,404,188 | 88.0 | % | |||||||||||||||||||||||||
| Annual Reset Fixed Rate Annuities | 7.3 | 1.7 | 3.3% | 1,339,807 | 2.9 | % | ||||||||||||||||||||||||||
| Multi-Year Fixed Rate Annuities | 4.0 | 1.6 | 7.0% | 4,287,610 | 9.1 | % | ||||||||||||||||||||||||||
| Total | 11.5 | 4.5 | 7.7% | $ | 47,031,605 | 100.0 | % | |||||||||||||||||||||||||
Annuity Liability Characteristics
| Surrender Charge Percentages: | Fixed Annuities Account Value | Fixed Index Annuities Account Value | |||||||||
| No surrender charge | $ | 888,445 | $ | 3,834,335 | |||||||
| 0.0% < 2.0% | 50,686 | 2,505,840 | |||||||||
| 2.0% < 3.0% | 44,152 | 4,153,052 | |||||||||
| 3.0% < 4.0% | 49,464 | 800,303 | |||||||||
| 4.0% < 5.0% | 5,090 | 2,890,227 | |||||||||
| 5.0% < 6.0% | 41,888 | 2,388,250 | |||||||||
| 6.0% < 7.0% | 66,204 | 2,563,019 | |||||||||
| 7.0% < 8.0% | 3,181,971 | 2,657,664 | |||||||||
| 8.0% < 9.0% | 923,445 | 2,154,631 | |||||||||
| 9.0% < 10.0% | 161,317 | 3,439,889 | |||||||||
| 10.0% or greater | 214,755 | 14,016,978 | |||||||||
| $ | 5,627,417 | $ | 41,404,188 | ||||||||
Page 13
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
| Surrender Charge Expiration By Year: | Fixed and Fixed Index Annuities Account Value | Weighted Average Surrender Charge | |||||||||
| Out of Surrender Charge | $ | 4,722,780 | 0.00 | % | |||||||
| 2023 | 3,753,879 | 3.20 | % | ||||||||
| 2024 | 3,829,960 | 4.81 | % | ||||||||
| 2025 | 5,278,723 | 4.18 | % | ||||||||
| 2026 | 4,762,948 | 5.56 | % | ||||||||
| 2027 | 4,158,392 | 7.36 | % | ||||||||
| 2028 | 3,890,062 | 8.60 | % | ||||||||
| 2029 | 4,074,565 | 10.10 | % | ||||||||
| 2030 | 2,845,400 | 12.40 | % | ||||||||
| 2031 | 3,820,329 | 13.59 | % | ||||||||
| 2032 | 3,072,979 | 14.11 | % | ||||||||
| 2033 | 1,388,042 | 15.98 | % | ||||||||
| 2034 | 664,622 | 17.84 | % | ||||||||
| 2035 | 344,605 | 18.37 | % | ||||||||
| 2036 | 195,296 | 18.86 | % | ||||||||
| 2037 | 118,244 | 19.34 | % | ||||||||
| 2038 | 103,533 | 19.84 | % | ||||||||
| 2039 | 7,246 | 20.00 | % | ||||||||
| $ | 47,031,605 | 7.71 | % | ||||||||
If all crediting rates were reduced to minimum guaranteed rates (subject to limitations imposed by ultimate minimum guaranteed rates where applicable) the weighted average crediting rate as of March 31, 2023 for the $12.2 billion of account value of fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.23%.
If all caps and participation rates were reduced to minimum caps and participation rates and current asset fees were increased to their maximums on the $34.8 billion of account value allocated to index strategies, the cost of options would decrease by 1.04% based upon prices of options for the week ended April 1, 2023.
Page 14
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
Summary of Invested Assets
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Carrying Amount | Percent | Carrying Amount | Percent | ||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| U.S. Government and agencies | $ | 177,878 | 0.4 | % | $ | 169,071 | 0.4 | % | |||||||||||||||
| States, municipalities and territories | 3,665,674 | 8.0 | % | 3,822,943 | 8.5 | % | |||||||||||||||||
| Foreign corporate securities and foreign governments | 622,583 | 1.4 | % | 616,938 | 1.4 | % | |||||||||||||||||
| Corporate securities | 19,584,731 | 43.0 | % | 20,201,774 | 44.8 | % | |||||||||||||||||
| Residential mortgage backed securities | 1,283,590 | 2.8 | % | 1,366,927 | 3.0 | % | |||||||||||||||||
| Commercial mortgage backed securities | 3,409,589 | 7.5 | % | 3,447,075 | 7.6 | % | |||||||||||||||||
| Other asset backed securities | 5,817,083 | 12.8 | % | 5,155,254 | 11.4 | % | |||||||||||||||||
| Total fixed maturity securities | 34,561,128 | 75.9 | % | 34,779,982 | 77.1 | % | |||||||||||||||||
| Mortgage loans on real estate | 6,986,882 | 15.3 | % | 6,778,977 | 15.0 | % | |||||||||||||||||
| Real estate investments | 1,164,879 | 2.6 | % | 1,056,063 | 2.3 | % | |||||||||||||||||
| Limited partnerships and limited liability companies | 1,657,415 | 3.6 | % | 1,266,779 | 2.8 | % | |||||||||||||||||
| Derivative instruments | 684,033 | 1.5 | % | 431,727 | 1.0 | % | |||||||||||||||||
| Other investments | 497,523 | 1.1 | % | 829,900 | 1.8 | % | |||||||||||||||||
| Total investments, net of modified coinsurance investments | 45,551,860 | 100.0 | % | 45,143,428 | 100.0 | % | |||||||||||||||||
| Coinsurance investments (a) | 5,866,478 | 6,181,870 | |||||||||||||||||||||
| Total investments | $ | 51,418,338 | $ | 51,325,298 | |||||||||||||||||||
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
Credit Quality of Fixed Maturity Securities - March 31, 2023
| NAIC Designation | Amortized Cost | Carrying Amount | Percent | Rating Agency Rating | Amortized Cost | Carrying Amount | Percent | |||||||||||||||||||||||||||||||
| 1 | $ | 23,863,099 | $ | 21,622,202 | 62.6 | % | Aaa/Aa/A | $ | 23,751,792 | $ | 21,527,275 | 62.3 | % | |||||||||||||||||||||||||
| 2 | 13,802,465 | 12,303,113 | 35.6 | % | Baa | 13,892,051 | 12,373,819 | 35.8 | % | |||||||||||||||||||||||||||||
| 3 | 579,165 | 503,236 | 1.5 | % | Ba | 568,020 | 494,809 | 1.4 | % | |||||||||||||||||||||||||||||
| 4 | 151,304 | 116,477 | 0.3 | % | B | 146,297 | 113,418 | 0.3 | % | |||||||||||||||||||||||||||||
| 5 | 7,171 | 7,595 | — | % | Caa | 19,684 | 18,397 | 0.1 | % | |||||||||||||||||||||||||||||
| 6 | 11,648 | 8,505 | — | % | Ca and lower | 37,008 | 33,410 | 0.1 | % | |||||||||||||||||||||||||||||
| 38,414,852 | 34,561,128 | 100.0 | % | 38,414,852 | 34,561,128 | 100.0 | % | |||||||||||||||||||||||||||||||
| Coinsurance investments (a) | 5,369,579 | 4,994,496 | Coinsurance investments (a) | 5,369,579 | 4,994,496 | |||||||||||||||||||||||||||||||||
| $ | 43,784,431 | $ | 39,555,624 | $ | 43,784,431 | $ | 39,555,624 | |||||||||||||||||||||||||||||||
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
Page 15
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
Watch List Securities - March 31, 2023
| General Description (a) | Amortized Cost | Allowance for Credit Losses | Amortized Cost, Net of Allowance | Net Unrealized Gains (Losses), Net of Allowance | Fair Value | |||||||||||||||||||||||||||
| States, municipalities and territories | $ | 20,657 | $ | — | $ | 20,657 | $ | (3,409) | $ | 17,248 | ||||||||||||||||||||||
| Corporate securities - Public securities | 48,310 | — | 48,310 | (21,420) | 26,890 | |||||||||||||||||||||||||||
| Corporate securities - Private placement securities | 7,658 | (1,914) | 5,744 | — | 5,744 | |||||||||||||||||||||||||||
| Residential mortgage backed securities | 48,492 | (133) | 48,359 | (13,874) | 34,485 | |||||||||||||||||||||||||||
| Commercial mortgage backed securities | 93,472 | — | 93,472 | (10,907) | 82,565 | |||||||||||||||||||||||||||
| Other asset backed securities | 2,284 | — | 2,284 | 100 | 2,384 | |||||||||||||||||||||||||||
| Collateralized loan obligations | 134,318 | — | 134,318 | (27,040) | 107,278 | |||||||||||||||||||||||||||
| $ | 355,191 | $ | (2,047) | $ | 353,144 | $ | (76,550) | $ | 276,594 | |||||||||||||||||||||||
(a)The watch list consists of all fixed maturity securities we have determined contain elevated credit risk, including those on which we have taken credit losses.
Page 16
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
Fixed Maturity Securities by Sector
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
| Available for sale: | |||||||||||||||||||||||
| U.S. Government and agencies | $ | 179,026 | $ | 177,878 | $ | 173,638 | $ | 169,071 | |||||||||||||||
| States, municipalities and territories | 4,066,537 | 3,665,674 | 4,356,191 | 3,822,943 | |||||||||||||||||||
| Foreign corporate securities and foreign governments | 675,154 | 622,583 | 680,263 | 616,938 | |||||||||||||||||||
| Corporate securities: | |||||||||||||||||||||||
| Capital goods | 1,466,737 | 1,311,002 | 1,601,113 | 1,395,595 | |||||||||||||||||||
| Consumer discretionary | 4,772,337 | 4,146,563 | 5,086,479 | 4,320,219 | |||||||||||||||||||
| Energy | 1,090,897 | 1,011,671 | 1,219,370 | 1,111,891 | |||||||||||||||||||
| Financials | 6,514,732 | 5,779,472 | 6,467,052 | 5,634,229 | |||||||||||||||||||
| Government non-guaranteed | 203,412 | 182,341 | 202,740 | 179,440 | |||||||||||||||||||
| Industrials | 166,491 | 142,156 | 166,061 | 138,999 | |||||||||||||||||||
| Information technology | 1,278,878 | 1,129,887 | 1,344,461 | 1,160,067 | |||||||||||||||||||
| Materials | 1,096,259 | 968,675 | 1,169,188 | 1,021,288 | |||||||||||||||||||
| Telecommunications | 1,237,937 | 1,059,994 | 1,306,495 | 1,090,868 | |||||||||||||||||||
| Transportation | 1,055,812 | 957,791 | 1,100,681 | 975,393 | |||||||||||||||||||
| Utilities | 3,247,641 | 2,837,812 | 3,620,946 | 3,115,520 | |||||||||||||||||||
| Other | 57,078 | 57,367 | 58,184 | 58,265 | |||||||||||||||||||
| Residential mortgage backed securities: | |||||||||||||||||||||||
| Government agency | 775,682 | 738,757 | 806,999 | 754,349 | |||||||||||||||||||
| Prime | 383,652 | 329,998 | 387,838 | 334,613 | |||||||||||||||||||
| Alt-A | 53,691 | 54,029 | 54,910 | 58,091 | |||||||||||||||||||
| Non-qualified mortgage | 134,128 | 124,534 | 169,847 | 157,960 | |||||||||||||||||||
| Other | 36,375 | 36,272 | 62,235 | 61,914 | |||||||||||||||||||
| Commercial mortgage backed securities: | |||||||||||||||||||||||
| Government agency | 169,170 | 158,785 | 170,307 | 157,903 | |||||||||||||||||||
| Non-agency | 3,625,682 | 3,250,804 | 3,668,300 | 3,289,172 | |||||||||||||||||||
| Other asset backed securities: | |||||||||||||||||||||||
| Auto | 206,092 | 204,601 | 44,450 | 41,896 | |||||||||||||||||||
| Consumer discretionary | 65,252 | 63,218 | 122,068 | 118,843 | |||||||||||||||||||
| Financials | 312,983 | 286,603 | 283,238 | 252,493 | |||||||||||||||||||
| Collateralized loan obligations | 4,369,026 | 4,101,569 | 4,071,929 | 3,775,347 | |||||||||||||||||||
| Other | 1,174,191 | 1,161,092 | 1,005,440 | 966,675 | |||||||||||||||||||
| 38,414,852 | 34,561,128 | 39,400,423 | 34,779,982 | ||||||||||||||||||||
| Coinsurance investments (a) | 5,369,579 | 4,994,496 | 5,465,596 | 5,024,635 | |||||||||||||||||||
| $ | 43,784,431 | $ | 39,555,624 | $ | 44,866,019 | $ | 39,804,617 | ||||||||||||||||
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
Page 17
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
Mortgage Loans on Real Estate
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Principal | Percent | Principal | Percent | ||||||||||||||||||||
| Property type distribution | |||||||||||||||||||||||
| Commercial mortgage loans: | |||||||||||||||||||||||
| Office | $ | 256,699 | 3.7 | % | $ | 277,767 | 4.1 | % | |||||||||||||||
| Retail | 840,628 | 12.1 | % | 878,352 | 13.0 | % | |||||||||||||||||
| Industrial/Warehouse | 893,753 | 12.8 | % | 853,215 | 12.6 | % | |||||||||||||||||
| Apartment | 1,000,680 | 14.3 | % | 893,910 | 13.2 | % | |||||||||||||||||
| Hotel | 285,271 | 4.1 | % | 285,271 | 4.2 | % | |||||||||||||||||
| Mixed Use/Other | 79,421 | 1.1 | % | 200,756 | 3.0 | % | |||||||||||||||||
| Agricultural mortgage loans | 609,026 | 8.7 | % | 567,630 | 8.4 | % | |||||||||||||||||
| Residential mortgage loans | 3,011,666 | 43.2 | % | 2,807,652 | 41.5 | % | |||||||||||||||||
| 6,977,144 | 100.0 | % | 6,764,553 | 100.0 | % | ||||||||||||||||||
| Coinsurance investments (a) | 213,862 | 171,633 | |||||||||||||||||||||
| $ | 7,191,006 | $ | 6,936,186 | ||||||||||||||||||||
| Commercial | Agricultural | ||||||||||||||||||||||
| Amortized Cost | Average LTV | Amortized Cost | Average LTV | ||||||||||||||||||||
| As of March 31, 2023: | |||||||||||||||||||||||
| Debt Service Coverage Ratio: | |||||||||||||||||||||||
| Greater than or equal to 1.5 | $ | 2,297,191 | 53% | $ | 300,977 | 49% | |||||||||||||||||
| Greater than or equal to 1.2 and less than 1.5 | 490,237 | 61% | 243,811 | 52% | |||||||||||||||||||
| Greater than or equal to 1.0 and less than 1.2 | 493,075 | 46% | 14,914 | 41% | |||||||||||||||||||
| Less than 1.0 | 71,061 | 60% | 47,564 | 39% | |||||||||||||||||||
| 3,351,564 | 53% | 607,266 | 49% | ||||||||||||||||||||
| Coinsurance investments (a) | 212,343 | 53% | — | —% | |||||||||||||||||||
| $ | 3,563,907 | 53% | $ | 607,266 | 49% | ||||||||||||||||||
| As of December 31, 2022: | |||||||||||||||||||||||
| Debt Service Coverage Ratio: | |||||||||||||||||||||||
| Greater than or equal to 1.5 | $ | 2,358,793 | 53% | $ | 266,695 | 45% | |||||||||||||||||
| Greater than or equal to 1.2 and less than 1.5 | 505,644 | 61% | 236,589 | 48% | |||||||||||||||||||
| Greater than or equal to 1.0 and less than 1.2 | 475,315 | 50% | 15,075 | 39% | |||||||||||||||||||
| Less than 1.0 | 44,756 | 66% | 47,604 | 33% | |||||||||||||||||||
| 3,384,508 | 54% | 565,963 | 45% | ||||||||||||||||||||
| Coinsurance investments (a) | 170,050 | 61% | — | —% | |||||||||||||||||||
| $ | 3,554,558 | 54% | $ | 565,963 | 45% | ||||||||||||||||||
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
Page 18
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Unaudited (Dollars in thousands)
| March 31, 2023 | |||||||||||||||||||||||
| Commercial | Agricultural | Residential | Total | ||||||||||||||||||||
| Credit exposure - by payment activity | |||||||||||||||||||||||
| Performing | $ | 3,356,452 | $ | 603,683 | $ | 2,966,679 | $ | 6,926,814 | |||||||||||||||
| In workout | — | — | — | — | |||||||||||||||||||
| Delinquent | — | 5,343 | 44,987 | 50,330 | |||||||||||||||||||
| Principal outstanding | 3,356,452 | 609,026 | 3,011,666 | 6,977,144 | |||||||||||||||||||
| Unamortized discounts and premiums, net | — | — | 60,685 | 60,685 | |||||||||||||||||||
| Deferred fees and costs, net | (4,888) | (1,759) | 1,326 | (5,321) | |||||||||||||||||||
| Amortized cost | 3,351,564 | 607,267 | 3,073,677 | 7,032,508 | |||||||||||||||||||
| Valuation allowance | (25,082) | (1,356) | (19,188) | (45,626) | |||||||||||||||||||
| Carrying value | 3,326,482 | 605,911 | 3,054,489 | 6,986,882 | |||||||||||||||||||
| Coinsurance investments (a) | 212,343 | — | — | 212,343 | |||||||||||||||||||
| $ | 3,538,825 | $ | 605,911 | $ | 3,054,489 | $ | 7,199,225 | ||||||||||||||||
| December 31, 2022 | |||||||||||||||||||||||
| Commercial | Agricultural | Residential | Total | ||||||||||||||||||||
| Credit exposure - by payment activity | |||||||||||||||||||||||
| Performing | $ | 3,389,271 | $ | 564,495 | $ | 2,773,251 | $ | 6,727,017 | |||||||||||||||
| In workout | — | — | — | — | |||||||||||||||||||
| Delinquent | — | 3,135 | 34,401 | 37,536 | |||||||||||||||||||
| Principal outstanding | 3,389,271 | 567,630 | 2,807,652 | 6,764,553 | |||||||||||||||||||
| Unamortized discounts and premiums, net | — | — | 55,917 | 55,917 | |||||||||||||||||||
| Deferred fees and costs, net | (4,763) | (1,667) | 1,909 | (4,521) | |||||||||||||||||||
| Amortized cost | 3,384,508 | 565,963 | 2,865,478 | 6,815,949 | |||||||||||||||||||
| Valuation allowance | (22,428) | (1,021) | (13,523) | (36,972) | |||||||||||||||||||
| Carrying value | 3,362,080 | 564,942 | 2,851,955 | 6,778,977 | |||||||||||||||||||
| Coinsurance investments (a) | 170,050 | — | — | 170,050 | |||||||||||||||||||
| $ | 3,532,130 | $ | 564,942 | $ | 2,851,955 | $ | 6,949,027 | ||||||||||||||||
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
Page 19
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Shareholder Information
| A.M. Best | S&P | Fitch | |||||||||||||||
| Financial Strength Ratings | |||||||||||||||||
| American Equity Investment Life Insurance Company | A- (stable) | A- (stable) | A- (stable) | ||||||||||||||
| American Equity Investment Life Insurance Company of New York | A- (stable) | A- (stable) | A- (stable) | ||||||||||||||
| Eagle Life Insurance Company | A- (stable) | A- (stable) | A- (stable) | ||||||||||||||
| Credit Ratings | |||||||||||||||||
| American Equity Investment Life Holding Company | bbb- (stable) | BBB- | BBB | ||||||||||||||
| Senior unsecured debt | bbb- (stable) | BBB- | BBB- | ||||||||||||||
| Perpetual, non-cumulative preferred stock | bb (stable) | BB | BB | ||||||||||||||
Corporate Offices:
American Equity Investment Life Holding Company
6000 Westown Parkway
West Des Moines, IA 50266
Inquiries:
Steven Schwartz, Vice President-Investor Relations
(515) 273-3763, sschwartz@american-equity.com
Common Stock and Dividend Information:
New York Stock Exchange symbol: “AEL”
| High | Low | Close | Dividend Declared | ||||||||||||||||||||
| 2023 | |||||||||||||||||||||||
| First Quarter | $48.37 | $31.57 | $36.49 | $0.00 | |||||||||||||||||||
| 2022 | |||||||||||||||||||||||
| First Quarter | $44.49 | $35.05 | $39.91 | $0.00 | |||||||||||||||||||
| Second Quarter | $42.18 | $32.65 | $36.57 | $0.00 | |||||||||||||||||||
| Third Quarter | $43.55 | $33.22 | $37.29 | $0.00 | |||||||||||||||||||
| Fourth Quarter | $46.76 | $28.05 | $45.62 | $0.36 | |||||||||||||||||||
| 2021 | |||||||||||||||||||||||
| First Quarter | $32.54 | $26.21 | $31.53 | $0.00 | |||||||||||||||||||
| Second Quarter | $33.68 | $29.18 | $32.32 | $0.00 | |||||||||||||||||||
| Third Quarter | $33.79 | $27.12 | $29.57 | $0.00 | |||||||||||||||||||
| Fourth Quarter | $39.88 | $29.46 | $38.92 | $0.34 | |||||||||||||||||||
Transfer Agent:
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-0310
Phone: (877) 282-1169
Fax: (781) 575-2723
www.computershare.com
Annual Report and Other Information:
Shareholders may receive when available, without charge, a copy of American Equity’s Annual Report, SEC filings and/or press releases by calling Steven Schwartz, Vice President-Investor Relations, at (515) 273-3763 or by visiting our website at www.american-equity.com.
Page 20
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2023
Research Analyst Coverage
Erik Bass
Autonomous Research US LP
(646) 561-6248
ebass@autonomous.com
Andrew Kligerman
Credit Suisse Securities
(919) 593-7737
andrew.kligerman@credit-suisse.com
Thomas Gallagher
Evercore ISI
(212) 446-9439
thomas.gallagher@evercoreisi.com
Daniel Bergman
Jefferies
(617) 345-8688
dbergman@jefferies.com
Pablo Singzon II
JP Morgan
(212) 622-2295
pablo.s.singzon@jpmorgan.com
Ryan Krueger
Keefe, Bruyette & Woods
(860) 722-5930
rkrueger@kbw.com
Nigel Dally
Morgan Stanley Research
(212) 761-4132
Nigel.Dally@morganstanley.com
John Barnidge
Piper Sandler & Co.
(312) 281-3412
John.Barnidge@psc.com
Wilma Burdis
Raymond James & Associates, Inc.
(727) 567-9371
wilma.burdis@raymondjames.com
Mark A. Dwelle
RBC Capital Markets, LLC
(804) 782-4008
mark.dwelle@rbccm.com
Mark Hughes
Truist Securities
(615) 748-4422
mark.hughes@research.truist.com
Page 21