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% QoQ and 654% YoY[4] - Distributable operating earnings for Q3 2024 were $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% QoQ and 173% YoY[6] - Total revenue for Q3 2024 was $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% QoQ and 654% YoY[6] - Net income for Q3 2024 was $(299) million, a decrease of 223% QoQ and 654% YoY[7] - Distributable operating earnings for Q3 2024 were $360 million, up 42% QoQ and 157% YoY[7] - Non-GAAP net investment income increased by 301% YoY to $1,021 million in Q3 2024, with total net investment spread growing 326% YoY to $404 million[22] - Average invested assets surged 180% YoY to $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% increase YoY[4] - Total liabilities as of September 30, 2024, were $113.677 billion, a 286% increase YoY[4] - Total equity, excluding AOCI, was $8.501 billion, a 47% increase YoY[4] - Total investments as of September 30, 2024, were $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% of total investments[11] - Total fixed maturities, available-for-sale increased to $45,683 million in September 2024 from $12,877 million in December 2023, with corporate debt securities making up 64% of the total[12] - Corporate debt securities with NAIC designation 1 and 2 accounted for 95% of total U.S. corporate debt securities in September 2024, up from 93% in December 2023[12] - Commercial mortgage loans increased to $9,169 million in September 2024 from $5,711 million in December 2023, with apartment loans representing 23% of the total[16] - Non-performing mortgage loans rose to $290 million (3% of total) in September 2024 from $15 million (0% of total) in December 2023[16] - Total long-term borrowings stood at $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% QoQ but an increase of 18% YoY[6] - Total benefits and expenses for Q3 2024 were $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% increase from Q2 2024's $2,157 million[24] - Total annuity cost of funds for Q3 2024 was $616 million, up 37% from Q2 2024's $449 million[24] Annuity Sales - Gross annuity sales for Q3 2024 reached $4,132 million, a 26% increase from Q2 2024's $3,292 million[26] - Fixed Index annuity sales in Q3 2024 were $2,027 million, a 37% increase from Q2 2024's $1,483 million[26] - Total net annuity sales for Q3 2024 were $4,122 million, up 26% from Q2 2024's $3,267 million[26] - Pension Risk Transfer sales in Q3 2024 were $289 million, a 6% increase from Q2 2024's $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]