American Equity Investment Life pany(AEL) - 2024 Q3 - Quarterly Report

Financial Performance - Net premiums for the three months ended September 30, 2024, were $888 million, up 13.3$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$9.67 billion as of September 30, 2024, from $5.87 billion at the end of 2023, representing a growth of 65$2,008 million as of September 30, 2024, with single-family residential properties making up 64% of this total[86].