Financial Performance - GAAP net income for Q4 2024 was $638 million, a 313% increase from Q3 2024 and a 179% increase year-over-year[6]. - Distributable operating earnings reached $424 million in Q4 2024, up 18% quarter-over-quarter and 141% year-over-year, totaling $1,236 million for the year[4]. - Net income for Q4 2024 was $638 million, a significant increase of 313% quarter-over-quarter and 179% year-over-year[7]. - Distributable operating earnings for Q4 2024 reached $424 million, reflecting an 18% increase from Q3 2024 and a 141% increase from Q4 2023[7]. - Non-GAAP net investment income for Q4 2024 was $1,083 million, a 6% increase QoQ and a 295% increase YoY[28]. Assets and Liabilities - Total assets increased to $121,221 million, a 238% rise compared to $35,885 million in December 2023[5]. - Total liabilities rose to $111,193 million, reflecting a 271% increase from $29,986 million in December 2023[5]. - Total equity stood at $10,028 million, a 70% increase from $5,899 million in December 2023[5]. - Cash and cash equivalents increased to $11,330 million, a 255% rise from $3,192 million in December 2023[5]. - Total invested assets as of December 31, 2024, amounted to $80,755 million, with a slight increase of $109 million compared to December 31, 2023[9]. Investment Performance - Net investment income for Q4 2024 was $1,232 million, a 20% increase from Q3 2024 and a 238% increase year-over-year[6]. - The annuity investment spread was reported at 1.9% for Q4 2024[4]. - The total investments, net of coinsurance funds withheld, were $77,636 million, with a 96% GAAP carrying value[10]. - The carrying value of fixed maturities, available-for-sale, at fair value was $44,141 million, representing 55% of total GAAP carrying value[10]. - Corporate debt securities accounted for $30,918 million, representing 65% of the total carrying value as of December 31, 2024, compared to 84% at the end of 2023[11]. Sales and Growth - Premiums for Q4 2024 were $2,482 million, a 180% increase from Q3 2024 and a 160% increase year-over-year[6]. - Gross annuity sales for Q4 2024 totaled $4,647 million, a 12% increase QoQ and 518% increase YoY[32]. - Pension risk transfer sales in Q4 2024 were $1,918 million, a significant increase of 564% QoQ and 523% YoY[32]. - Total net annuity sales for 2024 were $13,582 million, reflecting a 152% increase compared to 2023[32]. Credit Quality and Risk - Non-performing commercial mortgage loans increased to $117 million, up from $15 million in the previous year, indicating a rise in credit risk[16]. - The average loan-to-value (LTV) ratio improved to 49% in 2024 from 53% in 2023, reflecting a stronger collateral position[20]. - The median credit rating for commercial mortgage loans was CM2, consistent with the previous year, indicating stable credit quality[20]. Financial Metrics and Ratios - The aggregate cost of funds for 2024 was 3.3%, while the yield on net invested assets was 5.2%[28]. - Total adjustments to arrive at cost of funds were $2,148 million in Q4 2024[30]. - The average surrender charge account value increased to $74,265 million in Q4 2024, an 8% increase YoY[34]. - The company believes that cost of funds is a meaningful financial metric that enhances understanding of underlying profitability drivers[45]. - Cost of funds should not be used as a substitute for total benefits and expenses presented under US GAAP[45].

Financial Performance - For the year ended December 31, 2024, total net premiums reached $5.5 billion, an increase of $2.0 billion from $3.5 billion in 2023, primarily driven by growth in the Pension Risk Transfer (PRT) business [259]. - The Company reported distributable operating earnings of $1.418 billion for 2024, compared to $617 million in 2023, reflecting a significant increase in profitability [255]. - Gross annuity sales for 2024 totaled $13.6 billion, up $8.2 billion from $5.4 billion in 2023, largely due to the addition of fixed index annuity deposits and increased PRT sales [264]. - Net income attributable to common stockholders was $696 million for 2024, compared to $392 million in 2023, indicating a strong growth trajectory [255]. - For the year ended December 31, 2024, net income increased to $729 million, up from $392 million in 2023, primarily due to higher net premiums from a U.K. pension risk transfer deal [269]. - Net premiums and other policy revenue reached $6.2 billion in 2024, compared to $3.9 billion in 2023, reflecting a $2.3 billion increase driven by growth in the PRT business [270]. Business Segments - The PRT business contributed significantly to the increase in net premiums, with $3.148 billion reported in 2024 compared to $1.008 billion in 2023 [258]. - The total net premiums for the Annuities segment increased by $2.1 billion in 2024, driven by the growth in the PRT business [259]. - The Company’s entrance into the PRT market in 2023 was a key factor in the overall increase in net premiums and gross annuity sales [260]. Assets and Investments - The Company’s total assets as of December 31, 2024, were $121.221 billion, a substantial increase from $35.885 billion in 2023 [255]. - Total assets increased by $85.3 billion during the year to $121.2 billion, primarily due to the acquisition of $81.2 billion of assets from American Equity [301]. - Total investments increased by $52.5 billion from December 31, 2023 to December 31, 2024, mainly due to the acquisition of $43.0 billion of investments from American Equity [302]. - Future policy benefits and policyholders' account balances increased by $69.0 billion from December 31, 2023 to December 31, 2024, primarily due to the acquisition of American Equity [311]. - Market risk benefits increased by $3.6 billion from December 31, 2023 to December 31, 2024, primarily due to the acquisition of American Equity [312]. - Goodwill increased by $662 million during 2024 as a result of the acquisition of American Equity [310]. - Other liabilities increased by $3.7 billion from December 31, 2023 to December 31, 2024, primarily due to the acquisition of American Equity [315]. Cash Flow and Liquidity - As of December 31, 2024, the company's total liquidity was $45.2 billion, a significant increase from $14.2 billion in 2023 [317]. - Cash and cash equivalents rose to $11.3 billion in 2024 from $3.2 billion in 2023, reflecting a net change of $8.1 billion during the period [318]. - The company generated $2.5 billion in cash from operating activities in 2024, up from $1.2 billion in 2023, primarily due to higher investment income [319]. - Investing activities resulted in a net inflow of $2.5 billion in 2024, compared to a net deployment of $1.3 billion in 2023, driven by the acquisition of American Equity [321]. - Financing activities yielded a net cash inflow of $3.1 billion in 2024, an increase from $1.9 billion in 2023, largely due to net payments received on policyholders' account deposits [323]. - The company had $881 million in undrawn credit facilities available as of December 31, 2024, enhancing its liquidity position [316]. Expenses and Liabilities - Policyholder benefits and claims incurred increased by $2.1 billion to $5.4 billion in 2024, mainly due to growth in the PRT business and higher catastrophe claims [273]. - Interest sensitive contract benefits increased by $1.3 billion to $1.7 billion in 2024, driven by growth in the in-force block of annuities following the acquisition of American Equity [274]. - Operating expenses rose to $880 million in 2024, up from $601 million in 2023, primarily due to transaction expenses related to the acquisition of American Equity [278]. - Interest expense on borrowings increased by $66 million to $165 million in 2024, driven by new borrowings associated with the acquisition of American Equity [279]. - Amortization of deferred policy acquisition costs increased to $939 million in 2024, compared to $525 million in 2023, due to the growth of the annuities business and the acquisition of American Equity [275]. Risk Management - The company manages interest rate risk through asset liability management (ALM), matching the durations of the investment portfolio to insurance liabilities [364]. - The company manages credit risk by establishing concentration limits by counterparty, credit rating, and asset class, while regularly monitoring the financial condition of counterparties [371][372]. - Insurance risk is managed through the purchase of reinsurance for certain amounts of risk underwritten across Annuities, P&C, and Life Insurance segments [374]. - Operational risk is mitigated through internal control processes, including a risk register and independent internal audit reviews, alongside measures to prevent fraud [376]. Market Conditions - The company is affected by global economic conditions, including interest rates and consumer spending, which impact the demand for financial and insurance products [360]. - Insurers are facing financial market volatility, with public market valuations compressed and capital needs growing, leading to a focus on diversifying investment portfolios to include alternative and private credit assets [366]. - Many insurers are shifting towards less asset-intensive insurance products to free up capital, particularly in response to the capital-intensive nature of life and annuity liabilities [366]. - The reinsurance market is providing opportunities for under-capitalized companies, especially those writing annuity products, to raise or free up capital amid higher hedging costs and regulatory changes [366].

Financial Performance - GAAP net income for Q3 2024 was -$299 million, a decrease of 223% QoQ and 654% YoY[4] - Distributable operating earnings for Q3 2024 were $360 million, an increase of 42% QoQ and 157% YoY[4] - Net investment income for Q3 2024 was $1.024 billion, an increase of 11% QoQ and 173% YoY[6] - Total revenue for Q3 2024 was $2.004 billion, a decrease of 5% QoQ but an increase of 59% YoY[6] - Net income attributable to American National Group Inc. common stockholders for Q3 2024 was -$299 million, a decrease of 223% QoQ and 654% YoY[6] - Net income for Q3 2024 was $(299) million, a decrease of 223% QoQ and 654% YoY[7] - Distributable operating earnings for Q3 2024 were $360 million, up 42% QoQ and 157% YoY[7] - Non-GAAP net investment income increased by 301% YoY to $1,021 million in Q3 2024, with total net investment spread growing 326% YoY to $404 million[22] - Average invested assets surged 180% YoY to $69,878 million in Q3 2024, driven by significant portfolio expansion[22] - Yield on net invested assets was 4.8% with an aggregate cost of funds at 3.0%, resulting in a total net investment spread of 1.8% for the twelve months ended September 30, 2024[22] Balance Sheet - Total assets as of September 30, 2024, were $123.659 billion, a 255% increase YoY[4] - Total liabilities as of September 30, 2024, were $113.677 billion, a 286% increase YoY[4] - Total equity, excluding AOCI, was $8.501 billion, a 47% increase YoY[4] - Total investments as of September 30, 2024, were $76,024 million, with unrealized gains of $1,755 million[9] - Fixed maturity investments increased to $42,502 million as of September 30, 2024, from $12,877 million at the end of 2023[9] - Equity securities totaled $1,522 million as of September 30, 2024, with unrealized gains of $21 million[9] - Mortgage loans on real estate increased to $11,800 million as of September 30, 2024, from $5,658 million at the end of 2023[9] - Corporate debt securities increased to $29,398 million as of September 30, 2024, from $10,784 million at the end of 2023[9] - Total fixed maturities, available-for-sale, at fair value, were $42,169 million, representing 55% of total investments as of September 30, 2024[11] - Mortgage loans accounted for 16% of total investments as of September 30, 2024, compared to 20% at the end of 2023[11] - Coinsurance funds withheld investments were $3,284 million as of September 30, 2024, representing 5% of total investments[11] - Total fixed maturities, available-for-sale increased to $45,683 million in September 2024 from $12,877 million in December 2023, with corporate debt securities making up 64% of the total[12] - Corporate debt securities with NAIC designation 1 and 2 accounted for 95% of total U.S. corporate debt securities in September 2024, up from 93% in December 2023[12] - Commercial mortgage loans increased to $9,169 million in September 2024 from $5,711 million in December 2023, with apartment loans representing 23% of the total[16] - Non-performing mortgage loans rose to $290 million (3% of total) in September 2024 from $15 million (0% of total) in December 2023[16] - Total long-term borrowings stood at $2,959 million, representing 26% of total capitalization as of September 2024[19] - Total equity, excluding AOCI and NCI, is a non-GAAP measure used to provide a view of equity attributable to American National Group, Inc[39] Expenses and Benefits - Policyholder benefits and claims incurred for Q3 2024 were $846 million, a decrease of 18% QoQ but an increase of 18% YoY[6] - Total benefits and expenses for Q3 2024 were $2.413 billion, an increase of 12% QoQ and 101% YoY[6] - US GAAP benefits and expenses for Q3 2024 were $2,413 million, a 12% increase from Q2 2024's $2,157 million[24] - Total annuity cost of funds for Q3 2024 was $616 million, up 37% from Q2 2024's $449 million[24] Annuity Sales - Gross annuity sales for Q3 2024 reached $4,132 million, a 26% increase from Q2 2024's $3,292 million[26] - Fixed Index annuity sales in Q3 2024 were $2,027 million, a 37% increase from Q2 2024's $1,483 million[26] - Total net annuity sales for Q3 2024 were $4,122 million, up 26% from Q2 2024's $3,267 million[26] - Pension Risk Transfer sales in Q3 2024 were $289 million, a 6% increase from Q2 2024's $273 million[26] - American Equity gross annuity sales since the acquisition on May 2, 2024 were $3,222 million[27] Surrender Charges - The weighted average surrender charge for Q3 2024 was 8%, up from 5% in Q4 2023[29] - The weighted average years remaining in the protected surrender charge period is approximately 6 years[30]

Financial Performance - Net premiums for the three months ended September 30, 2024, were $888 million, up 13.3% from $784 million in the same period of 2023[12]. - Total revenues for the nine months ended September 30, 2024, reached $5,789 million, a significant increase from $3,893 million in the prior year[12]. - Net investment income for the three months ended September 30, 2024, was $1,024 million, compared to $375 million in the same period of 2023, reflecting a 173.3% increase[12]. - For the nine months ended September 30, 2024, the net income was $29 million, compared to a net income of $166 million for the same period in 2023[17]. - The company reported a net loss attributable to American National Group Inc. common stockholders of $299 million for the three months ended September 30, 2024, compared to a net income of $54 million in the same period of 2023[12]. Assets and Liabilities - Total assets increased to $123,659 million as of September 30, 2024, compared to $35,885 million on December 31, 2023[6]. - The company’s total liabilities rose to $113,677 million as of September 30, 2024, compared to $29,986 million at the end of 2023[8]. - Future policy benefits increased to $7,179 million as of September 30, 2024, from $6,108 million on December 31, 2023[8]. - Cash and cash equivalents increased to $13,873 million as of September 30, 2024, from $3,192 million on December 31, 2023[6]. Investment Performance - The company reported cash flows provided by operating activities of $2,104 million for the nine months ended September 30, 2024, compared to $676 million for the same period in 2023[21]. - Cash flows provided by investing activities increased significantly to $6,565 million in 2024 from a cash outflow of $1,713 million in 2023[23]. - The total gross unrealized losses on available-for-sale fixed maturity securities as of September 30, 2024, amounted to $10.941 billion, with 755 issues affected[53]. - The company experienced a significant increase in interest credited to policyholder account balances, amounting to $1,300 million for the nine months ended September 30, 2024[21]. Policyholder Benefits and Claims - Policyholder benefits and claims incurred for the nine months ended September 30, 2024, totaled $2,962 million, compared to $2,406 million in the same period of 2023[12]. - Gross policyholder benefits paid and claims incurred were $3,771 million for the nine months ended September 30, 2024, compared to $2,957 million for the same period in 2023, reflecting an increase of about 27.5%[165]. Equity and Comprehensive Income - Comprehensive income attributable to American National Group Inc. was $748 million for the three months ended September 30, 2024, compared to $99 million in the same period of 2023[13]. - The total equity increased to $9,982 million as of September 30, 2024, up from $9,257 million at June 30, 2024[15]. - Other comprehensive income for the period was $1,036 million, contributing positively to the total equity[15]. Acquisitions and Business Combinations - The acquisition of AEL on May 2, 2024, was for approximately $2.5 billion in cash and shares, resulting in goodwill of $630 million as of September 30, 2024[184][185]. - The company made acquisitions from business combinations totaling $4,288 million during the nine months ended September 30, 2024[158]. - Pro forma revenue for the nine months ended September 30, 2024, would have been $6.5 billion, with a net profit of $0.5 billion if the merger had occurred on January 1, 2023[187]. Derivatives and Risk Management - The notional amount of derivatives designated as hedging instruments was $47.539 billion as of September 30, 2024[104]. - The company recognized a gain of $13 million on hedged items for the three months ended September 30, 2024, with an offsetting loss of $13 million on derivatives designated as hedging instruments[108]. - The company reported a loss of $362 million related to derivatives not designated as hedging instruments for the nine months ended September 30, 2024[109]. Credit Losses and Allowances - The total allowance for credit losses across mortgage loan portfolios was $88 million as of September 30, 2024, up from $54 million at the beginning of the period, reflecting a 63% increase[70]. - The allowance for credit losses on commercial mortgage loans increased to $80 million as of September 30, 2024, compared to $53 million as of December 31, 2023, reflecting a rise of 51%[64]. - The company recognized credit losses of $3 million for securities for which credit losses were not previously recorded during the three months ended September 30, 2024[57]. Future Policy Benefits and Liabilities - The liability for future policy benefits for annuity products was $3,829 million, while life products accounted for $1,567 million[192]. - The total future policy benefits liability for universal life products increased due to unfavorable updates in policyholder lapse assumptions and mortality[194]. - Expected future benefit payments for annuities are projected to be $6,011 million undiscounted and $3,831 million discounted as of September 30, 2024[195]. Real Estate and Mortgage Loans - The carrying value of mortgage loans reached $11.87 billion, up from $5.66 billion as of December 31, 2023, indicating a significant growth of 109%[64]. - The commercial mortgage loan portfolio's principal outstanding increased to $9.67 billion as of September 30, 2024, from $5.87 billion at the end of 2023, representing a growth of 65%[64]. - Total real estate investments amounted to $2,008 million as of September 30, 2024, with single-family residential properties making up 64% of this total[86].

Financial Performance - Net premiums for the six months ended June 30, 2024, were $2,149 million, up from $1,783 million for the same period in 2023, representing a growth of 20.5%[16] - Net investment income rose to $1,372 million for the six months ended June 30, 2024, compared to $666 million in the prior year, marking an increase of 106.5%[16] - Total revenues for the second quarter of 2024 reached $2,115 million, a 42.0% increase from $1,488 million in the same quarter of 2023[16] - The company reported a net income attributable to American National Group Inc. of $244 million for the second quarter of 2024, compared to $101 million in the same quarter of 2023, reflecting a 141.6% increase[16] - Comprehensive income attributable to American National Group Inc. for the six months ended June 30, 2024, was $911 million, compared to $179 million in the same period of 2023, indicating strong performance[19] - For the six months ended June 30, 2024, net income was $361 million, a significant increase from $111 million in the same period of 2023, representing a growth of 225%[24] - Operating activities generated cash flows of $1,377 million for the six months ended June 30, 2024, compared to $600 million in the same period of 2023, indicating a 129.5% increase[24] Assets and Liabilities - Total assets increased to $118,618 million as of June 30, 2024, compared to $35,885 million at December 31, 2023, reflecting significant growth[11] - Policyholders' account balances surged to $80,489 million as of June 30, 2024, up from $17,177 million at the end of 2023, indicating a substantial increase in liabilities[13] - The company’s total liabilities increased to $109,361 million as of June 30, 2024, compared to $29,986 million at December 31, 2023, showing a significant rise[13] - The company’s equity increased to $9,257 million as of June 30, 2024, up from $5,899 million at the end of 2023, reflecting positive growth in shareholder value[13] Investment Performance - The change in net unrealized investment gains for the second quarter of 2024 was $387 million, compared to a loss of $215 million in the same quarter of 2023, highlighting improved investment performance[19] - The company reported unrealized losses on investments and derivatives of $250 million for the six months ended June 30, 2024, compared to $136 million in the same period of 2023[24] - The total fair value of corporate debt securities was $31.95 billion as of June 30, 2024, with an amortized cost of $32.08 billion[137] - The total fair value of residential mortgage-backed securities was $1.08 billion as of June 30, 2024[137] - The total fair value of available-for-sale fixed maturity securities as of June 30, 2024, was $46,480 million, unchanged from its carrying amount[184] Cash and Cash Equivalents - Total cash and cash equivalents at the end of the period were $13,895 million, up from $1,897 million at the end of June 2023, reflecting a substantial increase[27] - Cash and cash equivalents stand at $13.895 billion[208] Policyholder Accounts - Policyholders' account deposits amounted to $4,052 million for the six months ended June 30, 2024, compared to $2,948 million in the same period of 2023, showing a growth of 37.5%[27] - Interest credited to policyholder account balances was $637 million for the six months ended June 30, 2024, compared to $276 million in the same period of 2023, indicating a 130.8% increase[24] - Policyholders' account balances, excluding embedded derivatives, were $76,797 million as of June 30, 2024, consistent with the carrying amount[184] Credit Losses and Allowances - The allowance for credit losses increased to $37 million as of June 30, 2024, from $24 million as of December 31, 2023[145] - The total net allowance for credit losses remained unchanged at $54 million for the three months ended June 30, 2024, compared to $43 million for the same period in 2023[154] - The allowance for credit losses for private loans was $(21) million as of June 30, 2024, compared to $(8) million at the beginning of the year[162] Real Estate and Mortgage Loans - The total carrying value of mortgage loans reached $12,042 million as of June 30, 2024, compared to $5,658 million as of December 31, 2023, marking an increase of 112.5%[149] - The carrying value distribution of equity securities as of June 30, 2024, shows 33% in energy and utilities, 22% in finance, and 25% in information technology[147] - The geographic distribution of the commercial mortgage loan portfolio shows that the Pacific region accounted for 19.7% of the amortized cost as of June 30, 2024, up from 15.9% as of December 31, 2023[150] Derivatives and Financial Instruments - The total derivative assets as of June 30, 2024, amounted to $1.610 billion, reflecting a significant increase from $227 million as of December 31, 2023[180] - The Company recognized derivative gains of $308 million for the three months ended June 30, 2024, compared to $46 million for the same period in 2023, indicating a significant increase in performance[177] - The notional amount of equity-indexed options as of June 30, 2024, was $45.871 billion, with a fair value of $1.610 billion[176] Accounting Policies and Estimates - The unaudited consolidated financial statements have been prepared under GAAP, presented in USD rounded to the nearest million[33] - The Company measures mortgage loans and private loans at amortized cost, including unamortized principal and interest, with interest income reported in "Net investment income"[48] - The Company evaluates its investment real estate for impairment, writing down properties to their estimated fair value when carrying values exceed undiscounted cash flows[52]

Financial Performance - Total revenues for Q1 2024 reached $989.96 million, a significant increase from $662.55 million in Q1 2023, representing a growth of approximately 49.2%[18] - Net income available to American Equity Investment Life Holding Company common stockholders for Q1 2024 was $332.08 million, compared to a net loss of $166.91 million in Q1 2023[18] - Earnings per common share for Q1 2024 were $4.20, a substantial improvement from a loss of $2.00 per share in the same quarter last year[18] - Net income for the three months ended March 31, 2024, was $342,645, compared to a net loss of $155,891 for the same period in 2023, representing a significant turnaround[22] - Comprehensive income for the period was $132,582, down from $553,910 in the prior year, primarily due to a decrease in other comprehensive income[22] Assets and Liabilities - Total assets increased to $80.78 billion as of March 31, 2024, up from $79.92 billion at the end of 2023, reflecting a growth of approximately 1.1%[14] - Total liabilities rose to $77.61 billion as of March 31, 2024, compared to $76.87 billion at the end of 2023, indicating an increase of about 0.9%[14] - Total stockholders' equity increased to $3,171,573 as of March 31, 2024, up from $3,047,774 at the end of 2023, reflecting positive net income and share-based compensation[26] Investment Income and Cash Flow - The company reported a net investment income of $554.74 million for Q1 2024, slightly down from $561.32 million in Q1 2023[18] - The company reported net cash provided by operating activities of $1,070,006 for the three months ended March 31, 2024, compared to $865,043 for the same period in 2023, indicating improved operational efficiency[30] - The company’s cash and cash equivalents increased to $13.50 billion in Q1 2024, up from $9.77 billion in Q4 2023, marking a growth of approximately 38.0%[10] Derivatives and Fair Value - The change in fair value of derivatives for Q1 2024 was a gain of $409.77 million, compared to a gain of $45.89 million in Q1 2023, showing a significant improvement[18] - The change in fair value of embedded derivatives resulted in a gain of $162,202 for the period, contrasting with a gain of $404,440 in the same period last year[30] - The fair value hierarchy categorizes financial instruments into three levels, with Level 1 representing quoted prices in active markets[43] Policy Benefits and Reserves - Policy benefit reserves stood at $60.98 billion as of March 31, 2024, compared to $60.90 billion at the end of 2023, reflecting a marginal increase[14] - The liability for future policy benefits decreased from $303,200 thousand as of December 31, 2023, to $293,943 thousand as of March 31, 2024, reflecting a reduction of approximately 3.9%[175] - The net liability for future policy benefits, after reinsurance recoverable, decreased from $323,159 thousand at the end of 2023 to $313,609 thousand at the end of Q1 2024, a reduction of approximately 2.3%[175] Market Risk and Credit Losses - The total balance of market risk benefits decreased from $2,606,673 thousand as of December 31, 2023, to $2,539,221 thousand as of March 31, 2024, a decline of approximately 2.6%[182] - The company has a policy to identify securities that could potentially have credit loss, involving ongoing monitoring of market events[103] - The allowance for credit losses was $3.5 million as of March 31, 2024, and $4.0 million as of December 31, 2023[96] Mortgage Loans and Performance - The total principal outstanding for commercial mortgage loans was $3.480 billion as of March 31, 2024, down from $3.550 billion at December 31, 2023, representing a decrease of approximately 2%[116] - The carrying value of residential mortgage loans was $3.253 billion as of March 31, 2024, compared to $3.433 billion at December 31, 2023, indicating a decrease of about 5.2%[116] - The company closely monitors loan performance across commercial, agricultural, and residential mortgage loan portfolios[137] Changes in Accounting Standards - The company adopted new accounting standards for troubled debt restructurings and vintage disclosures effective January 1, 2023, with no material impact on financial statements[38] - The company implemented targeted improvements to the accounting for long-duration insurance contracts effective January 1, 2023, enhancing measurement models and disclosure requirements[39]

Core Viewpoint - Brookfield Reinsurance has successfully acquired American Equity Investment Life Holding Company (AEL) in a transaction valued at $56.50 per AEL share, enhancing its insurance operations and increasing its assets under management to over $100 billion [1]. Group 1: Acquisition Details - The acquisition is structured as a cash and stock transaction, valued at $56.50 per share of AEL [1]. - AEL's strong fixed annuity business will complement Brookfield Reinsurance's existing insurance operations [1]. - The acquisition is expected to create job growth in Iowa, where AEL is headquartered [1]. Group 2: Strategic Implications - Jon Bayer, Managing Partner at Brookfield Reinsurance, expressed enthusiasm about the acquisition, highlighting the potential for growth and diversification in retirement services [1]. - The integration of AEL is anticipated to enhance Brookfield's capabilities in serving policyholders and distribution partners [1]. Group 3: Company Backgrounds - Brookfield Reinsurance operates a leading capital solutions business, providing insurance and reinsurance services to individuals and institutions [3]. - American Equity is a prominent provider of fixed rate and fixed index annuity products, with a network of over 40,000 independent agents and advisors [4].

Core Points - IAC Inc. will replace American Equity Investment Life Holding Company in the S&P SmallCap 600 effective May 6, 2024 [1] - Brookfield Reinsurance is acquiring American Equity Investment Life Holding Company, with the deal expected to be completed before May 3, 2024 [1] Summary by Category Index Changes - Effective Date: May 6, 2024 - Addition: IAC (Ticker: IAC) in the S&P SmallCap 600, classified under Communication Services [1] - Deletion: American Equity Investment Life Holdings (Ticker: AEL) from the S&P SmallCap 600, classified under Financials [1] Acquisition Details - Brookfield Reinsurance is the acquirer of American Equity Investment Life Holding Company [1] - The acquisition is anticipated to finalize before the market opens on May 3, 2024 [1]

Core Viewpoint - American Equity Investment Life Holding Company reported strong fourth-quarter earnings, exceeding estimates, but the stock has underperformed the S&P 500 in the past month, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - Adjusted net earnings for Q4 2023 were $1.99 per share, beating the Zacks Consensus Estimate by 15% and increasing 21.3% year over year [2]. - Total operating revenues for Q4 were $703.7 million, up 14.3% year over year, driven by higher annuity product charges and net investment income [3]. - Premiums and other considerations decreased 11% year over year to $2.6 million, while annuity product charges increased 57.2% year over year to $96.9 million [3]. - Net investment income rose 8.2% year over year to $582 million [3]. - Total expenses more than doubled year over year to $1.6 billion [3]. Financial Update - Cash and cash equivalents surged fivefold to $9.8 billion as of December 31, 2023, while total investments decreased 6% to $48.2 billion [4]. - Book value per common share increased 5% to $66.84, and total debt/total capitalization was 12.8%, deteriorating by 20 basis points from the end of 2022 [4]. - Non-GAAP operating return on equity was 18.7% [4]. Full-Year Highlights - Total operating revenues for 2023 were $2.7 billion, a 2.9% increase year over year, with adjusted earnings of $7.50 per share, surging 75.6% year over year [5]. - Net investment income for 2023 was $2.3 billion, a decrease of 1.5% year over year [5]. Market Position and Outlook - Estimates for American Equity have trended downward recently, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [8]. - The company has a subpar Growth Score of D, a Momentum Score of C, and a Value Score of B, resulting in an aggregate VGM Score of C [6][7]. Industry Comparison - American Equity operates within the Zacks Insurance - Life Insurance industry, where competitor Sun Life reported revenues of $13.73 billion, a year-over-year increase of 51.5% [9]. - Sun Life's EPS for the last quarter was $1.23, with an expected earnings of $1.20 per share for the current quarter, reflecting a year-over-year change of 7.1% [9].

Group 1 - Brookfield Reinsurance has announced a hearing date of April 5, 2024, for its acquisition of American Equity Investment Life Holding Company (AEL) [1] - The acquisition was initially announced on July 5, 2023, and is expected to close shortly after the hearing [1] - CEO Sachin Shah expressed enthusiasm about the acquisition, aiming to build AEL into a leader in the U.S. annuity markets and positively impact the Des Moines community [1] Group 2 - Brookfield Reinsurance operates a leading capital solutions business providing insurance and reinsurance services to individuals and institutions [2] - Each class A exchangeable limited voting share and class A-1 exchangeable non-voting share of Brookfield Reinsurance can be exchanged on a one-for-one basis with a class A limited voting share of Brookfield Corporation [2]