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]

Distribution and Marketing - Independent agents contracted through four national marketing organizations accounted for approximately 52% of the annuity deposits and insurance premiums collected during 2023[41] - American Equity Life has relationships with 47 national marketing organizations, through which nearly 34,277 independent agents are under contract[40] - Eagle Life has 107 broker-dealer/firm selling agreements, through which nearly 13,992 representatives are appointed[42] - The states with the largest share of direct premium collected during 2023 were Florida (10.0%), Texas (9.3%), California (7.2%), Pennsylvania (4.9%), and Ohio (4.4%)[41] Financial Strength and Ratings - A.M. Best and S&P currently assign American Equity Life a financial strength rating of A- with a "Watch" outlook as of August 2023 and July 2023 respectively[46] - Fitch revised its rating outlook on the North American life insurance sector from 'neutral' to 'improving', reflecting expectations of benefits from a higher interest rate environment in 2024[48] - The financial strength ratings from A.M. Best, S&P, and Fitch indicate strong financial security characteristics for American Equity Life, with potential impacts on sales and financing costs if ratings are negatively adjusted[50] Reinsurance Agreements - American Equity Life has three coinsurance agreements with Athene Life Re Ltd., ceding 20% to 80% of certain annuity liabilities[52] - The North End Re reinsurance treaty includes ceding 75% of certain fixed index annuities issued after the effective date of the agreement[55] - Effective October 1, 2023, North End Re and American Equity Life agreed to reduce the quota share of all newly issued flow policies to zero[56] - American Equity Life has a coinsurance agreement with AeBe ISA LTD, ceding 75% of certain in-force fixed indexed and fixed rate annuity product liabilities[57] - The company will receive an annual ceding commission of up to 0.50% of the premium received for flow business ceded to AeBe[58] - American Equity Life entered into a coinsurance agreement with AEL Re Vermont Inc. to cede a portion of lifetime income benefit rider payments on a funds withheld basis[59] Capital and Surplus - American Equity Life can distribute up to $373.1 million as dividends in 2024 without prior approval from the Iowa Insurance Commissioner[66] - As of December 31, 2023, American Equity Life had a statutory earned surplus of $2.1 billion[66] - The RBC ratio for American Equity Life was in excess of all action levels as of December 31, 2023[71] - The NAIC adopted a new principles-based statutory accounting definition of a "bond," effective January 1, 2025, which may impact the RBC[70] Regulatory Changes and Taxation - The Iowa statute governing permitted investments was amended effective July 1, 2023, providing greater flexibility for the investment portfolio[73] - The Inflation Reduction Act imposes a 15% corporate alternative minimum tax starting in tax year 2023, but the company was not subject to it for the year ended December 31, 2023[89] - Bermuda enacted a 15% corporate income tax based on book income effective for tax years beginning on January 1, 2025, which is not expected to have a material impact on the company[91] - The SEC has proposed new climate-related disclosure rules that could have significant cost impacts on the company[90] Employee Engagement and Benefits - As of December 31, 2023, American Equity employed approximately 995 full-time team members, with no employees covered by a collective bargaining agreement[93] - Over 85% of employees chose coverage through the company's medical plan in 2023, with the company paying an average of 84% of participating employees' monthly medical premiums[95] - The company matches 100% of team member contributions to the 401(k) plan up to 3% of eligible compensation and 50% up to the next 2%[96] - In early 2024, the company converted its retirement programs into a KSOP, continuing semi-annual contributions and 401(k) matching[96] - The company engaged employees in thousands of hours of training focused on business acumen and leadership development in 2023[97] Community Commitment - The company made a significant commitment to community initiatives, including support for Greater Des Moines Habitat for Humanity[98] Corporate Culture - The company emphasizes a culture of growth, innovation, and teamwork to enhance customer service and employee engagement[94]

American Equity Investment Life Holding Company (AEL) reported fourth-quarter 2023 adjusted net earnings of $1.99 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 21.3% year over year.The quarterly results reflected increased annuity product charges, improved investment income and other revenues, offset by lower premiums and higher expenses.Operational Update   Operating total revenues were $703.7 million, up 14.3% year over year due to higher annuity product charges, net ...

Core Insights - American Equity Investment (AEL) reported revenue of $582.18 million for Q4 2023, marking an 8.2% year-over-year increase and surpassing the Zacks Consensus Estimate by 1.23% [1] - The earnings per share (EPS) for the same quarter was $1.99, a significant increase from $0.79 a year ago, exceeding the consensus EPS estimate of $1.73 by 15.03% [1] Financial Performance Metrics - Net investment income was reported at $582.18 million, exceeding the average estimate of $575.10 million from four analysts, with a year-over-year change of +8.2% [2] - Premiums and other considerations totaled $2.66 million, falling short of the two-analyst average estimate of $3.10 million, reflecting a year-over-year decline of -11.2% [2] - Annuity product charges reached $96.95 million, significantly higher than the estimated $64.08 million from two analysts, representing a year-over-year increase of +57.2% [2] - Other revenue was reported at $21.97 million, slightly above the average estimate of $21.27 million from two analysts, with a year-over-year change of +45.1% [2] Stock Performance - Over the past month, shares of American Equity have returned -0.2%, contrasting with the Zacks S&P 500 composite's increase of +3.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]