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]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential for market outperformance over the next 30 days [1] Zacks Style Scores - **Value Score**: Focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [2] - **Growth Score**: Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [2] - **Momentum Score**: Targets stocks experiencing upward or downward trends, utilizing factors like price changes and earnings estimate revisions [2] - **VGM Score**: A composite score that combines Value, Growth, and Momentum Scores to identify stocks with the best overall characteristics [3] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [4] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [4] - The model categorizes over 800 stocks, making it essential for investors to filter based on their specific goals [4] Investment Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [5] - Stocks with lower ranks, even if they have good Style Scores, may still face downward price pressure due to negative earnings outlooks [5] Company Spotlight: American Equity Investment (AEL) - American Equity Investment Life Insurance Company specializes in fixed index and fixed rate annuity products [6] - AEL currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance potential [6] - The company has seen a 0.4% increase in shares over the past four weeks, with positive earnings estimate revisions for fiscal 2023 [6][7]

designer491 Macro: In the 1970s Fed Chairman Arthur Burns, under pressure from President Nixon who was trying to get re-elected, cut interest rates. With the US off the gold standard, the result was a reignition of US Dollar inflation that plagued the rest of that decade. History may not repeat itself, but as Mark Twain said, "it often rhymes". In fact, so far it appears to be doing so. CPI history repeats (apolloacademy.com) The 2014 - 2024 inflation rate seems to be highly correlated with the 1966 - 1976 ...

UNITED STATES FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number : 001-31911 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 American Equity Investment Life Holding Company (Exact name of registrant as specified in its char ...

Financial Performance - Total revenues for the three months ended June 30, 2023, were $851,639 thousand, a decrease from $1,514,187 thousand for the same period in 2022, reflecting a decline of about 43.7%[17] - Net income available to common stockholders for the three months ended June 30, 2023, was $344,444 thousand, down from $752,374 thousand in the same period of 2022, indicating a decrease of approximately 54.2%[17] - Earnings per common share for the three months ended June 30, 2023, were $4.43, compared to $8.13 for the same period in 2022, a decline of about 45.8%[17] - Net income for the three months ended June 30, 2023, was $355,146, compared to $763,289 for the same period in 2022, representing a decrease of approximately 53.5%[20] - For the six months ended June 30, 2023, net income was $199,255, down from $1,442,754 in the same period of 2022, indicating a decline of approximately 86.2%[20] - Net income available to common stockholders for the six months ended June 30, 2023, was $177.53 million, with earnings per common share of $2.20[159] - Net investment income of $542,685 thousand for the three months ended June 30, 2023, down from $592,308 thousand in the same period of 2022, a decrease of approximately 8.4%[17] - The company reported net realized losses on investments of $52,466 for the six months ended June 30, 2023, compared to $46,399 for the same period in 2022[93] Assets and Liabilities - Total assets increased to $77,645,425 thousand as of June 30, 2023, compared to $73,183,599 thousand as of December 31, 2022, representing a growth of approximately 6.7%[11] - Total liabilities increased to $75,050,384 thousand as of June 30, 2023, from $70,812,849 thousand as of December 31, 2022, reflecting an increase of about 5.2%[13] - Cash and cash equivalents rose significantly to $5,000,657 thousand as of June 30, 2023, compared to $1,919,669 thousand as of December 31, 2022, representing an increase of about 160.5%[11] - The balance of stockholders' equity as of June 30, 2023, was $2,595,041, a decrease from $3,627,547 as of June 30, 2022[24] Investment Performance - The company reported a change in net unrealized investment losses of $(421,329) for the three months ended June 30, 2023, compared to $(3,419,845) for the same period in 2022[20] - The company experienced a change in fair value of embedded derivatives amounting to $618,204 for the six months ended June 30, 2023, compared to a loss of $(2,279,633) in 2022[31] - The fair value of fixed index annuities embedded derivatives was $5,014,697 thousand as of June 30, 2023, compared to $5,836,312 thousand as of December 31, 2022, indicating a decline of about 14%[86] - The total fair value of fixed maturity securities available for sale was $32,323,907 as of June 30, 2023, with unrealized losses of $4,812,561[89] Policy Benefits and Reserves - Policy benefit reserves increased to $59,856,677 thousand as of June 30, 2023, from $58,781,836 thousand as of December 31, 2022, marking an increase of approximately 1.8%[13] - The liability for future policy benefits decreased to $309,234 thousand as of June 30, 2023, down from $318,677 thousand at the end of 2022, with a net liability after reinsurance recoverable of $327,521 thousand[140] - The expected future benefit payments for SPIA with life contingency are projected at $453,722 thousand as of June 30, 2023, compared to $467,627 thousand at the end of 2022[141] Shareholder Activities - The Company approved a share repurchase program totaling $900 million, with $500 million authorized on November 19, 2021, and an additional $400 million on November 11, 2022, to offset dilution from share issuance[164] - As of June 30, 2023, the Company repurchased approximately 31.2 million shares at an average price of $34.76 per share, with $276 million remaining under the share repurchase program[166] - Brookfield Asset Management acquired a 19.9% ownership interest in the Company, with an initial purchase of 9.9% at $37.00 per share and a subsequent purchase of 6,775,000 shares at $37.33 per share, resulting in total ownership of approximately 16%[163] Market Conditions and Risks - S&P placed all ratings for the Company on negative watch due to the merger announcement, while Fitch affirmed its "A-" financial strength rating and revised its outlook to "stable"[180][181] - The company has a diversified counterparty risk management strategy, purchasing derivatives from multiple counterparties with a minimum credit rating of A-[134] - The maximum credit exposure to any single counterparty is subject to concentration limits, with a total derivative collateral of $1.1 billion as of June 30, 2023, limiting potential economic loss to $68.5 million[135] Annuity and Investment Products - Total sales increased to $3.4 billion in the first half of 2023, with fixed index annuities representing $2.8 billion, and second-quarter sales of $2.0 billion, a 95% increase in fixed index annuity sales compared to the first quarter[179] - Annuity deposits for fixed index annuities reached $1.87 billion in Q2 2023, a 141% increase from $776 million in Q2 2022[186] - Withdrawals from annuity policies subject to surrender charges increased significantly to $600.1 million in Q2 2023 and $1,060.9 million for the six months ended June 30, 2023 compared to $190.1 million and $457.5 million for the same periods in 2022[196]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number : 001-31911 American Equity Investment Life Holding Company (Exact name of registrant as specified in its charter) ...

Distribution Network - In 2022, agents contracted through four national marketing organizations accounted for approximately 58% of the annuity deposits and insurance premiums collected[41]. - American Equity Life has relationships with 50 national marketing organizations, through which nearly 28,638 independent agents are under contract[40]. - The company is pursuing a strategy to increase the efficiency of its independent agent distribution network by strengthening relationships with key IMOs[40]. - Eagle Life has 102 broker-dealer/firm selling agreements, with nearly 12,050 representatives appointed to distribute fixed index and fixed rate annuities[42]. - The company emphasizes high-quality service and prompt commission payments to agents, which is crucial for building strong distribution relationships[38]. Reinsurance Agreements - The company ceded $4.3 billion of certain in-force fixed indexed and fixed rate annuity product liabilities to AeBe ISA LTD under a reinsurance agreement effective October 1, 2022[57]. - Under the North End Re reinsurance treaty, American Equity Life is ceding 75% of certain fixed index annuities issued after July 1, 2021, with 70% on a modified coinsurance basis and 30% on a coinsurance basis[55]. - American Equity Life received a closing ceding commission of $70 million upon the execution of the reinsurance agreement with AeBe[57]. - The reinsurance agreement with AeBe includes a 75% funds withheld coinsurance and 25% coinsurance structure[57]. - American Equity Life entered into a reinsurance agreement with North End Re, ceding 70% of certain fixed indexed annuity product liabilities[54]. - The North End Re reinsurance treaty includes an annual ceding commission of 49 basis points and a management fee of 30 basis points[54]. - American Equity Life has three coinsurance agreements with Athene Life Re, covering various percentages of fixed index and multi-year rate guaranteed annuities[52]. - The company remains liable to policyholders for ceded liabilities should reinsurers fail to meet their obligations[58]. Financial Strength and Capital Management - A.M. Best, S&P, and Fitch have assigned American Equity Life a financial strength rating of A- with a stable outlook[45]. - American Equity Life has a statutory earned surplus of $2.0 billion as of December 31, 2022, allowing for dividend distributions of up to $369.3 million without prior regulatory approval in 2023[64]. - The ratio of total adjusted capital to the highest level at which regulatory action might be initiated was 415% as of December 31, 2022, indicating strong capital adequacy[69]. - American Equity Life's financial strength ratings are subject to periodic reviews and may change based on market conditions[49]. - The company can distribute up to $369.3 million as dividends without prior approval from the Iowa Insurance Commissioner in 2023[64]. Regulatory Environment - The company is subject to various state regulations regarding the payment of dividends and distributions, which are limited to statutory net gain from operations or a percentage of statutory surplus[64]. - The Financial Accounting Standards Board's revised guidance on long-duration insurance contracts will be effective for the company on January 1, 2023, impacting cash flow assumptions and liability calculations[75]. - The Iowa Insurance Division completed financial examinations of American Equity Life and Eagle Life for the five-year period ending December 31, 2018, with no adjustments made to their statutory financial statements[63]. - The company is subject to regulatory developments regarding insurer solvency and market conduct, which may affect its operations and financial stability[84]. - The NAIC's risk-based capital requirements serve as an early warning tool for regulators to identify weakly capitalized insurance companies[68]. Employee and Workforce Management - The company employs approximately 840 full-time team members as of December 31, 2022, with no employees covered by a collective bargaining agreement[89]. - Over 85% of employees chose coverage through the company's medical plan in 2022, with the company paying an average of 84% of participating employees' monthly medical premiums[91]. - 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%[92]. - Employees participated in thousands of hours of training through the Academy for Excellence and LinkedIn Learning in 2022[93]. Market and Economic Risks - The outbreak of COVID-19 has significantly disrupted distribution channels and may continue to affect economic activity and demand for the company's products[81]. - Rising interest rates may lead to increased policy surrenders, affecting net cash outflows and requiring asset sales at potentially disadvantaged prices[102]. - The company may face risks related to interest rate changes, which could impact investment spreads and policyholder behavior[101]. - Economic and capital markets may face downturns due to inflation, recession, and geopolitical conflicts, potentially impacting investment portfolio performance[120]. Competition and Market Position - The company faces significant competition from larger firms with greater financial resources and diversified product lines, which may impact customer choices[113]. - The company operates in a highly competitive industry, with its products competing against various alternatives offered by other financial institutions[43]. Compliance and Legal Risks - Increased litigation and regulatory scrutiny may arise, impacting compliance with insurance and securities laws[127]. - The SEC has proposed new climate-related disclosure rules that may significantly impact the company, requiring disclosures on governance of climate-related risks and greenhouse gas emissions[87]. - Changes in laws, regulations, and accounting standards may affect the company's operations and financial reporting[128]. - Climate change and related regulations may impact investment values and increase regulatory focus on climate-related risks[132].