ael-20220504
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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 04, 2022
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
(Exact name of registrant as specified in its charter)

Iowa001-3191142-1447959
(State or other jurisdiction
of incorporation)		(Commission File Number)(IRS Employer
Identification No.)
6000 Westown Parkway
West Des Moines, IA 50266
(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:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $1AELNew York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series AAELPRANew York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series BAELPRBNew York Stock Exchange

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 4, 2022, the registrant issued a press release announcing its financial results for the quarter ended March 31, 2022, 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, 2022, 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
104The 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 4, 2022
 AMERICAN EQUITY 
 INVESTMENT LIFE HOLDING COMPANY 
    
    
By:/s/ Axel Andre 
 Axel Andre 
 Chief Financial Officer and Executive Vice President 
   



Exhibit 99.1
aeholdinglogo2019.jpg
For more information, contact:
Steven D. Schwartz, Vice President-Investor Relations
(515) 273-3763, [email protected]
FOR IMMEDIATE RELEASE
May 4, 2022
American Equity Reports Solid Results in line with Expectations
Company Highlights
•Q1 2022 net income available to common stockholders of $555.3 million, or $5.67 per diluted common share
•Non-GAAP operating income1 available to common stockholders for the first quarter 2022 was $89.9 million, or $0.92 per diluted common share
•Repurchased $253 million or 6.3 million common shares year-to-date as of April 30
•Private asset deployment momentum continues with approximately $900 million sourced in the quarter
•American Equity and Brookfield's North End Re (Cayman) SPC expand reinsured products, providing additional flow business and accelerating path to $10 billion of ceded liabilities
WEST DES MOINES, Iowa (May 4, 2022) - American Equity Investment Life Holding Company (NYSE: AEL), a leading issuer of fixed index annuities (FIAs) today reported on its first quarter 2022 results. These results include improved yields in the investment portfolio, continuing implementation of new relationships with "best-in-class" asset originators, and new sales and other operating costs and expenses in-line with expectations set out on the company's fourth quarter 2021 results conference call.
Non-GAAP operating income1 available to common stockholders for the first quarter of 2022 was $89.9 million, or $0.92 per diluted common share. First quarter 2021 net income available to common stockholders was $271.8 million, or $2.82 per diluted common share; the non-GAAP measures were $41.4 million, or $0.43 per diluted common share for the first quarter of 2021.
The year-over-year increase in quarterly non-GAAP operating income1 available to common stockholders primarily reflected a substantial increase in average yield on invested assets due to strong returns on partnership and other market value investments and the significant reduction in cash balances over the last twelve months. The benefit of higher yield was partly offset by increases in the cost of money, other operating costs and expenses, and the increase in the liability for future policy benefits to be paid for lifetime income benefit riders (LIBR).
For the first quarter of 2022, net investment income increased $70 million from the comparable quarter of 2021 reflecting an increase in average yield on investments resulting from strong returns from partnerships and other mark-to-market assets, lower cash balances, and the increase in allocation to higher yielding privately sourced assets.



Compared to the first quarter of 2021, the change in the liability for future policy benefits to be paid for LIBR increased by $13 million, driven by increased utilization on old seasoned blocks as we re-price fees at reset periods, partially offset by higher actual than expected index credits in the quarter. Management expects that in the second quarter, the change in the liability for future policy benefits to be paid for LIBR will continue to remain elevated, absent the benefit of higher than expected index credits.
Compared to the first quarter of 2021, amortization of deferred policy acquisition and sales inducement costs decreased by $4 million.
As of March 31, 2022, notional value2 under reinsurance agreements - generating six to seven year of "fee-like" ROA earnings - was $4.3 billion, up from $4.1 billion at year-end 2021.
DELIVERED ON INVESTMENT MANAGEMENT STRATEGIC GOALS
American Equity’s investment spread was 2.51% for the first quarter of 2022 compared to 2.29% for the fourth quarter of 2021 and 2.00% for the first quarter of 2021. On a sequential quarterly basis, the average yield on invested assets increased by 35 basis points - as mark to market gains on partnerships and other fair value assets were stronger in this year's first quarter - while the cost of money increased 13 basis points. Adjusted investment spread excluding non-trendable items3 increased to 2.45% in the first quarter of 2022 from 2.03% in the fourth quarter of 2021.
Average yield on invested assets was 4.15% in the first quarter of 2022 compared to 3.80% in the fourth quarter of 2021. The average adjusted yield on invested assets excluding non-trendable items3 was 4.12% in the first quarter of 2022 compared to 3.68% in the fourth quarter of 2021. Relative to the prior quarter, the average adjusted yield in the first quarter of 2022 reflected an increase of 32 basis points from returns on partnerships and other mark-to-market assets and a 10 basis points benefit due to lower cash holdings relative to invested assets. Since partnership and other mark-to-market asset returns can vary by quarter, excluding that benefit and non-trendable items, average yield improved from 3.68% in the fourth quarter of 2021 to 3.80% in the first quarter of 2022.
Average cash and equivalents in the insurance companies' portfolios was $1.7 billion compared to $4.8 billion in the fourth quarter of 2021. Cash and equivalents in the insurance companies' portfolios as of March 31, 2022 was $576 million. During the quarter, investment asset purchases totaled $4.7 billion and were made at an average rate of 3.58%, including approximately $900 million of private assets at 5.41%.
American Equity CEO & President Anant Bhalla noted, "I am very proud of our team for having delivered on our investment goals outlined less than 18 months ago. First, by de-risking the legacy American Equity structured assets portfolio and raising the portfolio cash position to close to 20% during the pandemic. Second, by transferring $45 billion of core fixed income assets to world-class managers BlackRock and Conning. Third, by putting our private asset origination and scaling plans on a solid foundation with 15.4% of the portfolio or $8.4 billion already invested in private assets with a clear path to our goal of ramping to a 30% to 40% allocation to private assets over time. Finally, we are now fully invested with a portfolio yield at the end of the first quarter of 3.98%"
The aggregate cost of money for annuity liabilities of 1.64% in the first quarter of 2022 was up 13 basis points compared to the fourth quarter of 2021, in line with market costs. The cost of money in the first quarter of 2022 was positively affected by 3 basis points of over-hedging of index-linked credits compared to 14 basis points of hedge gain in the fourth quarter of 2021.
2

FIA SALES IN-LINE WITH EXPECTATIONS4
First quarter sales were $902 million, of which 98%, or $883 million, were in fixed index annuities. This is in line with the company's focus strategy for 2022 sales. Compared to the first quarter of 2021, total company FIA sales increased 33%. FIA sales at American Equity Life increased 46% while Eagle Life sales declined by 15%.
On a sequential quarterly basis, FIA sales decreased 10% to $883 million primarily due to lower sales in the bank and broker-dealer channel while maintaining a leading market position in the Independent Marketing Organization (IMO) space.
EXPANDED PRODUCT LINE TO BE REINSURED TO BROOKFIELD's NORTH END RE (CAYMAN) SPC
American Equity has executed an agreement with Brookfield's North End Re (Cayman) SPC to expand the company’s income products funding the additional $6 billion in capacity under the reinsurance treaty signed between the two companies in 2021. The new products include American Equity Life’s EstateShield as well as Eagle Life’s Eagle Select Income Focus products. The flow reinsurance transfers a 75% quota share of all sales of these products retrospective from July 1, 2021.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
The forward-looking statements in this release or that American Equity uses on its conference call, such as anticipate, assuming, become, believe, calls for, can, continue, estimate, expect, forward, future, goal, going forward, grow, intend, likely, look to, may, need, next, on the way, on track, outlook, over time, plan, potential, predictable, project, ramp, should, signal, strategy, target, then, to be, toward, trends, 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 2022 earnings on Thursday, May 5, at 10:00 a.m. CDT. The conference call will be webcast live on the Internet. Investors and interested parties who wish to listen to the call on the internet may do so at www.american-equity.com.
The call may also be accessed by telephone at 855-865-0606, passcode 1593835 (international callers, please dial 704-859-4382). An audio replay will be available shortly after the call on American Equity's website. An audio replay will also be available via telephone through May 12, 2022 at 855-859-2056, passcode 1593835 (international callers will need to dial 404-537-3406).
3

ABOUT AMERICAN EQUITY    
At American Equity Investment Life Holding Company, we think of ourselves as The Financial Dignity CompanyTM that offers solutions designed to create financial dignity in retirement. Our policyholders work with independent agents, banks and broker-dealers, through our wholly-owned operating subsidiaries, to choose one of our leading annuity products best suited for their personal needs. To deliver on our promises to policyholders, American Equity has reframed its investment focus, building a stronger emphasis on insurance liability driven asset allocation as well as the origination and management of private assets. Our company is headquartered in West Des Moines, Iowa with satellite offices slated to open in 2022 in Charlotte, NC and New York, NY. For more information, please visit www.american-equity.com.
1    Use of non-GAAP financial measures, including those that isolate notable items, is discussed in this release in the tables that follow the text of the release.
2    Notional value represents the initial cash surrender value of business ceded subject to recurring fees under reinsurance agreements.
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, 2022 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.

###
4

American Equity Investment Life Holding Company
Unaudited (Dollars in thousands, except per share data)


Consolidated Statements of Operations
Three Months Ended 
 March 31,
20222021
Revenues:
Premiums and other considerations$10,078 $13,213 
Annuity product charges52,355 60,082 
Net investment income567,423 497,190 
Change in fair value of derivatives(477,519)396,305 
Net realized losses on investments(13,127)(4,583)
Other revenue8,589 — 
Total revenues147,799 962,207 
Benefits and expenses:
Insurance policy benefits and change in future policy benefits12,638 16,424 
Interest sensitive and index product benefits372,662 476,595 
Amortization of deferred sales inducements143,545 122,975 
Change in fair value of embedded derivatives(1,393,649)(282,413)
Interest expense on notes payable6,425 6,393 
Interest expense on subordinated debentures1,317 1,326 
Amortization of deferred policy acquisition costs225,426 203,823 
Other operating costs and expenses58,120 55,865 
Total benefits and expenses(573,516)600,988 
Income before income taxes721,315 361,219 
Income tax expense155,092 78,535 
Net income566,223 282,684 
Less: Net income available to noncontrolling interests— — 
Net income available to American Equity Investment Life Holding Company stockholders566,223 282,684 
Less: Preferred stock dividends10,919 10,919 
Net income available to American Equity Investment Life Holding Company common stockholders$555,304 $271,765 
Earnings per common share$5.73 $2.84 
Earnings per common share - assuming dilution$5.67 $2.82 
Weighted average common shares outstanding (in thousands):
Earnings per common share96,866 95,735 
Earnings per common share - assuming dilution97,953 96,216 





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 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 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 available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Three Months Ended 
 March 31,
20222021
Net income available to American Equity Investment Life Holding Company common stockholders$555,304 $271,765 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized losses on financial assets, including credit losses10,285 3,516 
Change in fair value of derivatives and embedded derivatives(603,354)(297,634)
Income taxes127,661 63,794 
Non-GAAP operating income available to common stockholders89,896 41,441 
Impact of notable items (b)— — 
Non-GAAP operating income available to common stockholders, excluding notable items$89,896 $41,441 
Per common share - assuming dilution:
Net income available to American Equity Investment Life Holding Company common stockholders$5.67 $2.82 
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized losses on financial assets, including credit losses0.11 0.04 
Change in fair value of derivatives and embedded derivatives(6.16)(3.09)
Income taxes1.30 0.66 
Non-GAAP operating income available to common stockholders0.92 0.43 
Impact of notable items— — 
Non-GAAP operating income available to common stockholders, excluding notable items$0.92 $0.43 
(a)Adjustments to net income available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and accretion of lifetime income benefit rider (LIBR) reserves where applicable.
(b)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items primarily include the impact from actuarial assumption updates. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

Page 2

American Equity Investment Life Holding Company
Unaudited (Dollars in thousands, except share and per share data)
Book Value per Common Share
Q1 2022
Total stockholders’ equity attributable to American Equity Investment Life Holding Company$5,171,086 
Equity available to preferred stockholders (a)(700,000)
Total common stockholders' equity (b)4,471,086 
Accumulated other comprehensive income(63,706)
Total common stockholders’ equity excluding AOCI (b)4,407,380 
Net impact of fair value accounting for derivatives and embedded derivatives(750,229)
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (b)
$3,657,151 
Common shares outstanding95,019,904 
Book Value per Common Share: (c)
Book value per common share$47.05 
Book value per common share excluding AOCI (b)$46.38 
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (b)$38.49 
(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 derivatives and embedded derivatives, 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 derivatives and embedded derivatives, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives. Since the net impact of fair value accounting for our derivatives and embedded derivatives fluctuates from quarter to quarter and the most significant impacts relate to fair value accounting for our fixed index annuity business and are 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 derivatives and embedded derivatives 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 derivatives and embedded derivatives 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 derivatives and embedded derivatives 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 derivatives and embedded derivatives. 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 derivatives and embedded derivatives as the amounts are not economic in nature but rather impact the timing of reported results.
Twelve Months Ended
March 31, 2022
Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company, Excluding Average AOCI and Average Net Impact of Fair Value Accounting for Derivatives and Embedded Derivatives
Average total stockholders’ equity$5,549,923 
Average equity available to preferred stockholders(700,000)
Average equity available to common stockholders4,849,923 
Average AOCI(784,483)
Average common stockholders' equity excluding average AOCI4,065,440 
Average net impact of fair value accounting for derivatives and embedded derivatives(574,884)
Average common stockholders' equity excluding average AOCI and average net impact of fair value accounting for derivatives and embedded derivatives3,490,556 
Impact of notable items on average common stockholders' equity excluding average AOCI and average net impact of fair value accounting for derivatives and embedded derivatives39,018 
Average common stockholders' equity excluding average AOCI, average net impact of fair value accounting for derivatives and embedded derivatives and notables$3,529,574 
Net income available to American Equity Investment Life Holding Company common stockholders$713,856 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized losses on financial assets, including credit losses17,068 
Change in fair value of derivatives and embedded derivatives(493,010)
Income taxes101,051 
Non-GAAP operating income available to common stockholders338,965 
Impact of notable items (b)78,036 
Non-GAAP operating income available to common stockholders, excluding notable items$417,001 
Return on Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company
Net income available to common stockholders14.7 %
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 Derivatives and Embedded Derivatives
Non-GAAP operating income available to common stockholders9.7 %
Non-GAAP operating income available to common stockholders, excluding notable items11.8 %
Notable ItemsTwelve Months Ended
March 31, 2022
Notable items impacting Non-GAAP operating income available to common stockholders:
Impact of actuarial assumption updates$78,036 
Total notable items (b)$78,036 
(a)Adjustments to net income available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and accretion of lifetime income benefit rider (LIBR) reserves where applicable.
(b)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items primarily include the impact from actuarial assumption updates. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

Page 4


Exhibit 99.2



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement

March 31, 2022

A.Financial Highlights
Non-GAAP Financial Measures
B.Product Summary
C.Investment Summary
D.
E.



Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2022December 31, 2021
Assets
Investments:
Fixed maturity securities, available for sale, at fair value$49,662,120 $51,305,943 
Mortgage loans on real estate5,734,872 5,687,998 
Real estate investments510,188 337,939 
Derivative instruments642,413 1,277,480 
Other investments1,999,113 1,767,144 
Total investments58,548,706 60,376,504 
Cash and cash equivalents1,933,899 4,508,982 
Coinsurance deposits8,713,069 8,850,608 
Accrued investment income483,902 445,097 
Deferred policy acquisition costs2,840,938 2,222,769 
Deferred sales inducements1,957,518 1,546,073 
Income taxes recoverable166,067 166,586 
Other assets255,245 232,490 
Total assets$74,899,344 $78,349,109 
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves$63,730,995 $65,477,778 
Other policy funds and contract claims425,308 226,844 
Notes payable496,425 496,250 
Subordinated debentures78,502 78,421 
Deferred income taxes219,013 541,972 
Funds withheld for reinsurance liabilities3,003,062 3,124,740 
Other liabilities1,773,869 2,079,977 
Total liabilities69,727,174 72,025,982 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 12 
Common stock95,020 92,514 
Additional paid-in capital1,689,606 1,614,374 
Accumulated other comprehensive income63,706 1,848,789 
Retained earnings3,322,726 2,767,422 
Total stockholders' equity attributable to American Equity Investment Life Holding Company5,171,086 6,323,127 
Noncontrolling interests1,084 — 
Total stockholders' equity5,172,170 6,323,127 
Total liabilities and stockholders' equity$74,899,344 $78,349,109 

Page 1

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended 
 March 31,
20222021
Revenues:
Premiums and other considerations$10,078 $13,213 
Annuity product charges52,355 60,082 
Net investment income567,423 497,190 
Change in fair value of derivatives(477,519)396,305 
Net realized losses on investments(13,127)(4,583)
Other revenue8,589 — 
Total revenues147,799 962,207 
Benefits and expenses:
Insurance policy benefits and change in future policy benefits12,638 16,424 
Interest sensitive and index product benefits372,662 476,595 
Amortization of deferred sales inducements143,545 122,975 
Change in fair value of embedded derivatives(1,393,649)(282,413)
Interest expense on notes payable6,425 6,393 
Interest expense on subordinated debentures1,317 1,326 
Amortization of deferred policy acquisition costs225,426 203,823 
Other operating costs and expenses58,120 55,865 
Total benefits and expenses(573,516)600,988 
Income before income taxes721,315 361,219 
Income tax expense155,092 78,535 
Net income566,223 282,684 
Less: Net income available to noncontrolling interests— — 
Net income available to American Equity Investment Life Holding Company stockholders566,223 282,684 
Less: Preferred stock dividends10,919 10,919 
Net income available to American Equity Investment Life Holding Company common stockholders$555,304 $271,765 
Earnings per common share$5.73 $2.84 
Earnings per common share - assuming dilution$5.67 $2.82 
Weighted average common shares outstanding (in thousands):
Earnings per common share96,866 95,735 
Earnings per common share - assuming dilution97,953 96,216 

Page 2

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Revenues:
Traditional life insurance premiums$675 $677 $697 $708 $706 
Life contingent immediate annuity considerations9,403 13,876 15,144 13,887 12,507 
Surrender charges15,541 13,638 16,481 18,057 19,481 
Lifetime income benefit rider fees36,814 46,672 41,999 45,702 40,601 
Net investment income567,423 514,599 526,366 499,320 497,190 
Change in fair value of derivatives(477,519)522,251 (70,701)500,880 396,305 
Net realized gains (losses) on investments(13,127)(10,478)4,933 (3,114)(4,583)
Other revenue (a)8,589 8,026 7,644 — — 
Total revenues147,799 1,109,261 542,563 1,075,440 962,207 
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits
765 624 798 502 1,049 
Life contingent immediate annuity benefits and change in future policy benefits
11,873 16,351 17,958 15,326 15,375 
Interest sensitive and index product benefits (b)372,662 574,816 817,014 812,981 476,595 
Amortization of deferred sales inducements (c)143,545 59,409 (17,172)(12,520)122,975 
Change in fair value of embedded derivatives (d)(1,393,649)186,802 (536,404)273,713 (282,413)
Interest expense on notes payable6,425 6,259 6,535 6,394 6,393 
Interest expense on subordinated debentures1,317 1,330 1,342 1,326 1,326 
Amortization of deferred policy acquisition costs (c)225,426 82,999 (1,588)(16,906)203,823 
Other operating costs and expenses58,120 66,279 56,518 65,050 55,865 
Total benefits and expenses(573,516)994,869 345,001 1,145,866 600,988 
Income (loss) before income taxes721,315 114,392 197,562 (70,426)361,219 
Income tax expense (benefit)155,092 21,255 44,697 (15,732)78,535 
Net income (loss) (b)(c)(d)566,223 93,137 152,865 (54,694)282,684 
Less: Net income (loss) available to noncontrolling interests— — — — — 
Net income (loss) available to American Equity Investment Life Holding Company stockholders (b)(c)(d)566,223 93,137 152,865 (54,694)282,684 
Less: Preferred stock dividends10,919 10,919 10,918 10,919 10,919 
Net income (loss) available to American Equity Investment Life Holding Company common stockholders (b)(c)(d)$555,304 $82,218 $141,947 $(65,613)$271,765 
Earnings (loss) per common share$5.73 $0.89 $1.53 $(0.69)$2.84 
Earnings (loss) per common share - assuming dilution (b)(c)(d)$5.67 $0.88 $1.53 $(0.69)$2.82 
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share96,866 92,479 92,478 94,801 95,735 
Earnings (loss) per common share - assuming dilution97,953 93,378 93,044 95,379 96,216 
(a)Other revenue consists of $2.9 million in Q1 2022, $2.8 million in Q4 2021 and $2.7 million in Q3 2021 related to asset liability management fees and $5.7 million in Q1 2022, $5.3 million in Q4 2021 and $4.9 million in Q3 2021 related to amortization of the deferred gain associated with the cost of reinsurance. The deferred gain, which is recorded in Other liabilities on the Consolidated Balance Sheets, was $349.8 million and $321.7 million at March 31, 2022 and December 31, 2021, respectively. The deferred gain consists primarily of a difference between liabilities ceded and assets transferred and the present value of the ceding commissions offset by a reduction in deferred policy acquisition costs associated with the in-force business ceded.
(b)Q4 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $10.5 million and decreased both net income and net income available to common stockholders by $8.2 million and decreased earnings per common share - assuming dilution by $0.09 per share.
Q3 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $233.2 million and decreased both net income and net income available to common stockholders by $183.0 million and decreased earnings per common share - assuming dilution by $1.97 per share.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands, except per share data)

(c)Q4 2021 includes expense from the update of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $6.3 million and $6.9 million, respectively, and decreased both net income and net income available to common stockholders by $10.4 million and decreased earnings per common share - assuming dilution by $0.11 per share
Q3 2021 includes a benefit from the update of assumptions which decreased amortization of deferred sales inducements and deferred policy acquisition costs by $51.4 million and $52.6 million, respectively, and increased both net income and net income available to common stockholders by $81.7 million and increased earnings per common share - assuming dilution by $0.88 per share.
(d)Q4 2021 includes expense from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact increased change in fair value of embedded derivatives by $3.5 million and decreased both net income and net income available to common stockholders by $2.7 million and decreased earnings per common share - assuming dilution by $0.03 per share.
Q3 2021 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 $125.8 million and increased both net income and net income available to common stockholders by $98.7 million and increased earnings per common share - assuming dilution by $1.06 per share.
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
In addition to net income 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 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 available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Three Months Ended 
 March 31,
20222021
Net income available to American Equity Investment Life Holding Company common stockholders$555,304 $271,765 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized losses on financial assets, including credit losses10,285 3,516 
Change in fair value of derivatives and embedded derivatives(603,354)(297,634)
Income taxes127,661 63,794 
Non-GAAP operating income available to common stockholders89,896 41,441 
Impact of notable items (b)— — 
Non-GAAP operating income available to common stockholders, excluding notable items$89,896 $41,441 
Per common share - assuming dilution:
Net income available to American Equity Investment Life Holding Company common stockholders$5.67 $2.82 
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized losses on financial assets, including credit losses0.11 0.04 
Change in fair value of derivatives and embedded derivatives(6.16)(3.09)
Income taxes1.30 0.66 
Non-GAAP operating income available to common stockholders0.92 0.43 
Impact of notable items— — 
Non-GAAP operating income available to common stockholders, excluding notable items$0.92 $0.43 
(a)Adjustments to net income available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and accretion of lifetime income benefit rider (LIBR) reserves where applicable.
(b)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items primarily include the impact from actuarial assumption updates. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
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,
20222021
Net realized losses on financial assets, including credit losses:
Net realized losses on financial assets, including credit losses$13,725 $4,727 
Amortization of DAC and DSI and accretion of LIBR reserves(3,440)(1,211)
Income taxes(2,211)(756)
$8,074 $2,760 
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities$(644,763)$(493,799)
Reinsurance contracts(202,444)— 
Amortization of DAC and DSI243,853 196,165 
Income taxes129,872 64,550 
$(473,482)$(233,084)

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
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 Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$555,304 $82,218 $141,947 $(65,613)$271,765 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized (gains) losses on financial assets, including credit losses10,285 7,771 (3,900)2,912 3,516 
Change in fair value of derivatives and embedded derivatives(603,354)(14,544)(75,879)200,767 (297,634)
Income taxes127,661 383 17,285 (44,278)63,794 
Non-GAAP operating income available to common stockholders (b)(c)89,896 75,828 79,453 93,788 41,441 
Impact of notable items (d)— 21,235 56,801 — — 
Non-GAAP operating income available to common stockholders, excluding notable items$89,896 $97,063 $136,254 $93,788 $41,441 
Per common share - assuming dilution:
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$5.67 $0.88 $1.53 $(0.69)$2.82 
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized (gains) losses on financial assets, including credit losses0.11 0.08 (0.04)0.03 0.04 
Change in fair value of derivatives and embedded derivatives(6.16)(0.15)(0.82)2.10 (3.09)
Income taxes1.30 — 0.18 (0.46)0.66 
Non-GAAP operating income available to common stockholders (b)(c)0.92 0.81 0.85 0.98 0.43 
Impact of notable items (d)— 0.23 0.61 — — 
Non-GAAP operating income available to common stockholders, excluding notable items$0.92 $1.04 $1.46 $0.98 $0.43 
Notable Items
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Notable items impacting non-GAAP operating income available to common stockholders:
Impact of actuarial assumption updates (b)(c)$— $21,235 $56,801 $— $— 
Total notable items (d)$— $21,235 $56,801 $— $— 
(a)Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and accretion of lifetime income benefit rider (LIBR) reserves where applicable.
(b)Q4 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $10.5 million and decreased both non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per share - assuming dilution by $8.2 million and $0.09 per share, respectively.
Q3 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $233.2 million and decreased both non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per share - assuming dilution by $183.0 million and $1.97 per share, respectively.
(c)Q4 2021 includes expense from the update of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $7.7 million and $8.8 million, respectively, and decreased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $13.0 million and $0.14 per share, respectively.
Q3 2021 includes a benefit from the update of assumptions which decreased amortization of deferred sales inducements and deferred policy acquisition costs by $73.8 million and $87.0 million, respectively, and increased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $126.2 million and $1.36 per share, respectively.
(d)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items primarily include the impact from actuarial assumption updates. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Net realized (gains) losses on investments$13,127 $10,478 $(4,933)$3,114 $4,583 
Change in fair value of derivatives546,442 (215,961)411,330 57,555 (211,387)
Increase (decrease) in total revenues559,569 (205,483)406,397 60,669 (206,804)
Amortization of deferred sales inducements(90,361)(4,506)(17,682)52,074 (69,788)
Change in fair value of embedded derivatives1,393,649 (186,802)536,404 (273,713)282,413 
Interest sensitive and index product benefits (a)143 971 (944)227 (145)
Amortization of deferred policy acquisition costs(150,793)(8,373)(31,602)78,402 (125,166)
Increase (decrease) in total benefits and expenses1,152,638 (198,710)486,176 (143,010)87,314 
Increase (decrease) in income (loss) before income taxes(593,069)(6,773)(79,779)203,679 (294,118)
Increase (decrease) in income tax expense (benefit)(127,661)(383)(17,285)44,278 (63,794)
Increase (decrease) in net income (loss) available to common stockholders$(465,408)$(6,390)$(62,494)$159,401 $(230,324)
(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.
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Capitalization:
Notes payable$500,000 $500,000 $500,000 $500,000 $500,000 
Subordinated debentures payable to subsidiary trusts78,502 78,421 78,342 78,264 78,187 
Total debt
578,502 578,421 578,342 578,264 578,187 
Total stockholders’ equity attributable to American Equity Investment Life Holding Company5,171,086 6,323,127 6,375,208 6,295,735 5,928,760 
Total capitalization5,749,588 6,901,548 6,953,550 6,873,999 6,506,947 
Accumulated other comprehensive income (AOCI)(63,706)(1,848,789)(1,956,974)(2,023,911)(1,505,260)
Total capitalization excluding AOCI (a)
$5,685,882 $5,052,759 $4,996,576 $4,850,088 $5,001,687 
Total stockholders’ equity attributable to American Equity Investment Life Holding Company$5,171,086 $6,323,127 $6,375,208 $6,295,735 $5,928,760 
Equity available to preferred stockholders (b)(700,000)(700,000)(700,000)(700,000)(700,000)
Total common stockholders' equity (c)
4,471,086 5,623,127 5,675,208 5,595,735 5,228,760 
Accumulated other comprehensive income(63,706)(1,848,789)(1,956,974)(2,023,911)(1,505,260)
Total common stockholders’ equity excluding AOCI (c)
4,407,380 3,774,338 3,718,234 3,571,824 3,723,500 
Net impact of fair value accounting for derivatives and embedded derivatives(750,229)(274,981)(265,018)(242,423)(399,538)
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (c)
$3,657,151 $3,499,357 $3,453,216 $3,329,401 $3,323,962 
Common shares outstanding95,019,904 92,513,517 92,513,517 92,553,825 95,482,733 
Book Value per Common Share: (d)
Book value per common share$47.05 $60.78 $61.34 $60.46 $54.76 
Book value per common share excluding AOCI (c)$46.38 $40.80 $40.19 $38.59 $39.00 
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (c)$38.49 $37.83 $37.33 $35.97 $34.81 
Debt-to-Capital Ratios: (e)
Senior debt / Total capitalization8.8 %9.9 %10.0 %10.3 %10.0 %
Total debt / Total capitalization10.2 %11.4 %11.6 %11.9 %11.6 %
(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 derivatives and embedded derivatives, 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 derivatives and embedded derivatives, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives. Since the net impact of fair value accounting for our derivatives and embedded derivatives fluctuates from quarter to quarter and the most significant impacts relate to fair value accounting for our fixed index annuity business and are 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 derivatives and embedded derivatives 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 derivatives and embedded derivatives divided by the total number of shares of common stock outstanding.
(e)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

Spread Results
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Average yield on invested assets4.15%3.80%3.91%3.51%3.58%
Aggregate cost of money1.64%1.51%1.51%1.56%1.58%
Aggregate investment spread2.51%2.29%2.40%1.95%2.00%
Impact of:
Investment yield - additional prepayment income
0.03%0.12%0.12%0.10%0.11%
Cost of money effect of over hedging0.03%0.14%0.08%0.04%0.02%
Weighted average investments$54,728,239$54,407,554$53,781,352$56,991,393$55,712,648
Ending investments54,838,50954,617,96854,197,14057,144,56356,838,224
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.
Summary of Cost of Money for Deferred Annuities
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Included in interest sensitive and index product benefits:
Index credits$224,385 $442,568 $475,292 $714,291 $345,737 
Interest credited61,334 63,974 62,804 62,637 56,477 
Included in change in fair value of derivatives:
Proceeds received at option expiration(228,092)(459,982)(489,902)(720,474)(349,119)
Pro rata amortization of option cost160,097 153,399 150,262 162,124 164,230 
Cost of money for deferred annuities$217,724 $199,959 $198,456 $218,578 $217,325 
Weighted average liability balance outstanding
$53,155,293 $53,064,893 $52,644,622 $56,221,809 $54,935,106 
Annuity Account Balance Rollforward
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Account balances at beginning of period$53,191,277 $52,938,493 $56,630,138 $55,813,480 $54,056,725 
Reserves ceded - in-force— — (4,279,394)— — 
Account balance at beginning of period, net of reinsurance ceded53,191,277 52,938,493 52,350,744 55,813,480 54,056,725 
Net deposits674,925 815,890 1,090,461 1,161,125 2,417,729 
Premium bonuses23,142 23,476 22,021 24,813 24,850 
Fixed interest credited and index credits285,719 506,542 538,096 776,928 402,214 
Surrender charges(15,541)(13,638)(16,481)(18,057)(19,481)
Lifetime income benefit rider fees(36,814)(46,672)(41,999)(45,702)(40,601)
Surrenders, withdrawals, deaths, etc.(1,003,417)(1,032,814)(1,004,349)(1,082,449)(1,027,956)
Account balances at end of period$53,119,291 $53,191,277 $52,938,493 $56,630,138 $55,813,480 
Lifetime income benefit rider reserves, excluding unrealized gain/loss adjustment$2,396,587 $2,311,842 $2,245,040 $2,007,394 $1,973,223 
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands, except per share data)

Notional Values Subject to Recurring Fees Under Reinsurance Agreements
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
Cash surrender value of business ceded at beginning of period subject to recurring fees$4,083,301 $3,900,540 $3,736,355 $— $— 
Cash surrender value of business ceded during the period subject to recurring fees180,832 182,761 164,185 — — 
Cash surrender value of business ceded at end of period subject to recurring fees (a) $4,264,133 $4,083,301 $3,900,540 $— $— 
Asset liability management fee0.30%0.30%0.30%— — 
Weighted average ceding commission fee0.60%0.57%0.53%— — 
(a)The business ceded to Brookfield Asset Management Re receives an annual ceding commission equal to 49 basis points for business written before July 1, 2021 and 140 basis points for business written after July 1, 2021 and an annual asset liability management fee of 30 basis points calculated based on initial cash surrender value of liabilities ceded. These annual fees are fixed and contractually guaranteed for six years with the additional and final seventh year payment being contingent on certain performance obligations for both parties.
Annuity Deposits by Product Type
Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021
American Equity Life:
Fixed index annuities$755,980 $806,238 $727,641 $702,605 $516,995 
Annual reset fixed rate annuities1,062 848 1,462 1,656 2,167 
Multi-year fixed rate annuities2,345 6,640 14,196 47,674 787,192 
Single premium immediate annuities13,453 14,145 16,282 15,430 13,959 
772,840 827,871 759,581 767,365 1,320,313 
Eagle Life:
Fixed index annuities126,754 176,101 187,611 184,520 148,836 
Annual reset fixed rate annuities7 13 — 175 162 
Multi-year fixed rate annuities2,340 40,901 362,769 228,197 965,425 
129,101 217,015 550,380 412,892 1,114,423 
Consolidated:
Fixed index annuities882,734 982,339 915,252 887,125 665,831 
Annual reset fixed rate annuities1,069 861 1,462 1,831 2,329 
Multi-year fixed rate annuities4,685 47,541 376,965 275,871 1,752,617 
Single premium immediate annuities13,453 14,145 16,282 15,430 13,959 
Total before coinsurance ceded901,941 1,044,886 1,309,961 1,180,257 2,434,736 
Coinsurance ceded213,563 214,851 203,218 3,702 3,048 
Net after coinsurance ceded$688,378 $830,035 $1,106,743 $1,176,555 $2,431,688 
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
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, 2022:
Surrender ChargeNet Account Value
Product TypeAvg.
Years
At Issue		Avg.
Years
Remaining		Avg.
%
Remaining		Dollars in Thousands%
Fixed Index Annuities12.75.38.5%$47,494,210 89.4 %
Annual Reset Fixed Rate Annuities8.32.14.0%1,409,386 2.7 %
Multi-Year Fixed Rate Annuities4.02.47.8%4,215,695 7.9 %
Total11.94.98.3%$53,119,291 100.0 %

Annuity Liability Characteristics
Surrender Charge Percentages:Fixed
Annuities
Account Value		Fixed Index
Annuities
Account Value
No surrender charge$904,807 $3,793,760 
0.0% < 2.0%81,888 1,741,500 
2.0% < 3.0%86,447 4,418,855 
3.0% < 4.0%37,899 1,483,101 
4.0% < 5.0%74,176 2,859,833 
5.0% < 6.0%27,129 3,104,980 
6.0% < 7.0%60,357 3,091,097 
7.0% < 8.0%82,752 2,759,497 
8.0% < 9.0%3,196,014 3,250,221 
9.0% < 10.0%747,561 3,928,587 
10.0% or greater326,051 17,062,779 
$5,625,081 $47,494,210 
Surrender Charge Expiration By Year:Fixed and
Fixed Index
Annuities
Account Value		Weighted
Average
Surrender
Charge
Out of Surrender Charge$4,698,567 0.00 %
20221,190,690 2.27 %
20234,667,934 4.01 %
20246,198,310 5.23 %
20255,873,022 5.39 %
20266,269,005 7.48 %
20274,316,718 9.00 %
20283,965,932 10.08 %
20294,113,376 11.41 %
20302,898,757 13.76 %
20314,102,549 14.42 %
20322,329,390 15.99 %
20331,113,436 17.86 %
2034706,422 18.34 %
2035363,293 18.85 %
2036166,313 19.33 %
2037114,931 19.86 %
203830,646 20.00 %
$53,119,291 8.29 %
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
Credited Rate vs. Ultimate Minimum Guaranteed Rate Differential:Fixed
Annuities
Account Value		Fixed Index
Annuities
Account Value
No differential$1,008,599 $1,073,212 
› 0.00% - 0.25%30,398 118,095 
› 0.25% - 0.50%219,512 6,027 
› 0.50% - 1.00%5,543 840 
› 1.00% - 1.50%8,757 — 
1.00% ultimate guarantee - 2.13% wtd avg interest rate (a)4,109,496 939,179 
1.50% ultimate guarantee - 1.07% wtd avg interest rate (a)129,832 2,772,760 
1.75% ultimate guarantee - 1.80% wtd avg interest rate (a)47,858 291,362 
2.00% ultimate guarantee - 1.82% wtd avg interest rate (a)65,086 — 
2.25% ultimate guarantee - 1.63% wtd avg interest rate (a)— 570,385 
3.00% ultimate guarantee - 1.93% wtd avg interest rate (a)— 1,165,302 
Allocated to index strategies (see tables that follow)— 40,557,048 
$5,625,081 $47,494,210 
(a)The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy ranges from 0.5% - 1.75%. The ultimate guaranteed rate is applied on less than 100% of the premium.
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, 2022 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.13%.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
FIXED INDEX ANNUITIES ACCOUNT VALUE - INDEX STRATEGIES
Annual Monthly Average and Point-to-Point with Caps
Minimum Guaranteed Cap
1%3%4%7%8% +
Current Cap
At minimum$1,193 $88,844 $4,675,540 $53,449 $121,861 
1.75% - 3%7,534,121 — — — — 
3% - 4%333,079 1,937 — — — 
4% - 5%1,959,618 242,837 799,675 — — 
5% - 6%559,827 158,232 27,415 — — 
6% - 7%5,621 — 741 — — 
>= 7%4,874 7,683 602 4,577 — 
Annual Monthly Average and Point-to-Point with Participation Rates
Minimum Guaranteed Participation Rate
10%20% - 25%35%50% +
Current Participation Rate
At minimum$165,042 $540,296 $77,121 $86,488 
< 20%1,689,278 — — — 
20% - 40%3,438,717 305,640 6,157 — 
40% - 60%525,233 14,070 36,125 — 
60% - 100%1,175,042 — — — 
> 100%1,304,921 — — — 
S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum$1,766,197 
1.10% - 1.30%5,858,354 
1.40% - 1.60%1,794,830 
1.70% - 2.00%362,320 
>= 2.10%22,670 
Volatility Control Index
Current Asset Fee
At Maximum$— 
0.75% - 1.75%375,722 
2.00% - 2.75%171,912 
3.00% - 3.50%935,264 
3.75% - 5.25%3,137,914 
If all caps and participation rates were reduced to minimum caps and participation rates and current asset fees were increased to their maximums, the cost of options would decrease by 0.85% based upon prices of options for the week ended April 1, 2022.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

Summary of Invested Assets
March 31, 2022December 31, 2021
Carrying
Amount		PercentCarrying
Amount		Percent
Fixed maturity securities:
United States Government full faith and credit$38,666 0.1 %$37,793 0.1 %
United States Government sponsored agencies174,845 0.3 %1,040,953 1.7 %
United States municipalities, states and territories3,812,510 6.5 %3,927,201 6.5 %
Foreign government obligations405,166 0.7 %402,545 0.7 %
Corporate securities33,873,527 57.8 %34,660,234 57.4 %
Residential mortgage backed securities1,210,559 2.1 %1,125,049 1.9 %
Commercial mortgage backed securities4,769,867 8.1 %4,840,311 8.0 %
Other asset backed securities5,376,980 9.2 %5,271,857 8.7 %
Total fixed maturity securities49,662,120 84.8 %51,305,943 85.0 %
Mortgage loans on real estate5,734,872 9.8 %5,687,998 9.4 %
Real estate investments510,188 0.9 %337,939 0.6 %
Derivative instruments642,413 1.1 %1,277,480 2.1 %
Other investments1,999,113 3.4 %1,767,144 2.9 %
$58,548,706 100.0 %$60,376,504 100.0 %
Credit Quality of Fixed Maturity Securities - March 31, 2022
NAIC DesignationCarrying
Amount		PercentRating Agency RatingCarrying
Amount		Percent
1$28,064,072 56.5 %Aaa/Aa/A$27,771,213 55.9 %
220,701,013 41.7 %Baa20,986,780 42.3 %
3748,881 1.6 %Ba711,175 1.4 %
4122,867 0.2 %B104,496 0.2 %
53,259 — %Caa32,177 0.1 %
622,028 — %Ca and lower56,279 0.1 %
$49,662,120 100.0 %$49,662,120 100.0 %
Watch List Securities - March 31, 2022
General Description (a)Amortized
Cost		Allowance for Credit LossesAmortized Cost, Net of AllowanceNet Unrealized
Gains (Losses),
Net of Allowance		Fair Value
Corporate securities - Public securities$726 $— $726 $(600)$126 
Corporate securities - Private placement securities10,646 (3,825)6,821 (966)5,855 
Residential mortgage backed securities29,030 (743)28,287 (1,424)26,863 
Commercial mortgage backed securities143,502 — 143,502 (875)142,627 
Other asset backed securities3,259 — 3,259 — 3,259 
United States municipalities, states and territories19,062 (2,009)17,053 — 17,053 
$206,225 $(6,577)$199,648 $(3,865)$195,783 
(a)The watch list consists of all fixed maturity securities we have determined contain elevated credit risk, including those we have taken credit losses on.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector
March 31, 2022December 31, 2021
Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Available for sale:
United States Government full faith and credit and sponsored agencies$197,898 $213,511 $1,046,029 $1,078,746 
United States municipalities, states and territories3,694,146 3,812,510 3,495,563 3,927,201 
Foreign government obligations415,227 405,166 380,646 402,545 
Corporate securities:
Capital goods2,354,168 2,438,541 2,357,470 2,694,887 
Consumer discretionary7,199,325 7,298,694 6,396,009 7,210,975 
Energy2,032,392 2,085,993 2,120,185 2,365,991 
Financials9,234,613 9,165,561 8,043,912 8,761,157 
Government non-guaranteed469,263 498,041 471,015 541,233 
Industrials517,605 496,684 465,334 514,635 
Information technology2,022,554 2,033,129 1,885,278 2,083,179 
Materials1,716,224 1,762,769 1,702,910 1,906,150 
Other311,909 335,867 350,641 401,207 
Telecommunications1,949,788 1,948,644 1,750,183 1,937,493 
Transportation1,390,430 1,413,466 1,344,629 1,486,405 
Utilities4,351,747 4,396,138 4,197,063 4,756,922 
Residential mortgage backed securities:
Government agency597,165 608,468 455,136 500,698 
Prime526,423 516,675 537,559 544,084 
Alt-A61,013 74,922 59,129 75,361 
Sub prime10,835 10,494 4,954 4,906 
Commercial mortgage backed securities:
Government agency377,940 386,655 380,339 415,026 
Non-agency4,496,040 4,383,212 4,328,539 4,425,285 
Other asset backed securities:
Auto204,742 202,466 218,106 222,364 
Energy48,186 47,972 7,091 8,353 
Financials3,259 3,259 4,441 4,887 
Industrials32,618 32,529 33,381 34,357 
Collateralized loan obligations3,901,120 3,807,277 3,861,962 3,817,352 
Military housing462,165 505,298 464,321 531,689 
Other786,120 778,179 637,358 652,855 
$49,364,915 $49,662,120 $46,999,183 $51,305,943 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

Mortgage Loans on Real Estate
March 31, 2022December 31, 2021
PrincipalPercentPrincipalPercent
Geographic distribution: commercial mortgage loans
East$596,667 16.5 %$614,406 16.9 %
Middle Atlantic296,015 8.2 %293,494 8.1 %
Mountain459,562 12.7 %452,818 12.5 %
New England59,996 1.7 %60,172 1.6 %
Pacific884,983 24.5 %863,879 23.8 %
South Atlantic758,905 21.0 %785,679 21.6 %
West North Central225,801 6.3 %235,864 6.5 %
West South Central328,943 9.1 %326,819 9.0 %
$3,610,872 100.0 %$3,633,131 100.0 %
Property type distribution: commercial mortgage loans
Office$353,011 9.8 %$315,374 8.7 %
Medical Office10,688 0.3 %10,827 0.3 %
Retail997,613 27.6 %1,016,101 28.0 %
Industrial/Warehouse900,747 24.9 %924,779 25.4 %
Apartment850,404 23.6 %864,580 23.8 %
Hotel285,010 7.9 %283,500 7.8 %
Mixed Use/Other213,399 5.9 %217,970 6.0 %
$3,610,872 100.0 %$3,633,131 100.0 %

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022
Unaudited (Dollars in thousands)

March 31, 2022
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,610,872 $464,431 $1,657,534 $5,732,837 
In workout— — — — 
Delinquent— — 12,363 12,363 
Principal outstanding3,610,872 464,431 1,669,897 5,745,200 
Unamortized discounts and premiums, net— — 23,726 23,726 
Deferred fees and costs, net(4,873)(1,344)1,432 (4,785)
Amortized cost3,605,999 463,087 1,695,055 5,764,141 
Valuation allowance(24,587)(558)(4,124)(29,269)
Carrying value$3,581,412 $462,529 $1,690,931 $5,734,872 
December 31, 2021
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,633,131 $408,135 $1,645,905 $5,687,171 
In workout— — — — 
Delinquent— — 7,005 7,005 
Principal outstanding3,633,131 408,135 1,652,910 5,694,176 
Unamortized discounts and premiums, net— — 22,143 22,143 
Deferred fees and costs, net(4,629)(1,136)1,468 (4,297)
Amortized cost3,628,502 406,999 1,676,521 5,712,022 
Valuation allowance(17,926)(519)(5,579)(24,024)
Carrying value$3,610,576 $406,480 $1,670,942 $5,687,998 



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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022

Shareholder Information
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, [email protected]
Common Stock and Dividend Information:
New York Stock Exchange symbol: “AEL”
HighLowCloseDividend Declared
2022
First Quarter$44.49$35.05$39.91$0.00
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
2020
First Quarter$34.16$9.07$18.80$0.00
Second Quarter$27.09$14.76$24.71$0.00
Third Quarter$27.32$19.06$21.99$0.00
Fourth Quarter$34.25$22.37$27.66$0.32
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.


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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2022

Research Analyst Coverage
Erik Bass
Autonomous Research US LP
(646) 561-6248
[email protected]
Wilma Burdis
Credit Suisse Securities
Equity Research | Life Insurance
(919) 306-1023
[email protected]
Thomas Gallagher
Evercore ISI
(212) 446-9439
[email protected]
Daniel Bergman
Jefferies
(617) 345-8688
[email protected]
Pablo Singzon II
JP Morgan
(212) 622-2295
[email protected]
Ryan Krueger
Keefe, Bruyette & Woods
(860) 722-5930
[email protected]

Nigel Dally
Morgan Stanley Research
(212) 761-4132
[email protected]
John Barnidge
Piper Sandler & Co.
(312) 281-3412
[email protected]
C. Gregory Peters
Raymond James & Associates, Inc.
(727) 567-1534
[email protected]
Mark A. Dwelle
RBC Capital Markets, LLC
(804) 782-4008
[email protected]
Mark Hughes
Truist Securities
(615) 748-4422
[email protected]


Page 20