American Equity Investment Life pany(AEL) - 2024 Q4 - Annual Results

Financial Performance - GAAP net income for Q3 2024 was -$299 million, a decrease of 223$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$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 -$299 million, a decrease of 223$(299) million, a decrease of 223% QoQ and 654% YoY[7] - Distributable operating earnings for Q3 2024 were $360 million, up 42$1,021 million in Q3 2024, with total net investment spread growing 326% YoY to $404 million[22] - Average invested assets surged 180$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$113.677 billion, a 286% increase YoY[4] - Total equity, excluding AOCI, was $8.501 billion, a 47$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$45,683 million in September 2024 from $12,877 million in December 2023, with corporate debt securities making up 64$9,169 million in September 2024 from $5,711 million in December 2023, with apartment loans representing 23$290 million (3% of total) in September 2024 from $15 million (0$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$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$2,157 million[24] - Total annuity cost of funds for Q3 2024 was $616 million, up 37$449 million[24] Annuity Sales - Gross annuity sales for Q3 2024 reached $4,132 million, a 26$3,292 million[26] - Fixed Index annuity sales in Q3 2024 were $2,027 million, a 37$1,483 million[26] - Total net annuity sales for Q3 2024 were $4,122 million, up 26$3,267 million[26] - Pension Risk Transfer sales in Q3 2024 were $289 million, a 6$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]