American Equity Investment Life pany(AEL) - 2024 Q2 - Quarterly Report

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$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$637 million for the six months ended June 30, 2024, compared to $276 million in the same period of 2023, indicating a 130.8$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]