American Equity Investment Life pany(US:AEL)2025-05-27 15:22Financial Performance - GAAP net income for Q4 2024 was $638 million, a 313% increase from Q3 2024 and a 179% increase year-over-year[6]. - Distributable operating earnings reached $424 million in Q4 2024, up 18% quarter-over-quarter and 141% year-over-year, totaling $1,236 million for the year[4]. - Net income for Q4 2024 was $638 million, a significant increase of 313% quarter-over-quarter and 179% year-over-year[7]. - Distributable operating earnings for Q4 2024 reached $424 million, reflecting an 18% increase from Q3 2024 and a 141% increase from Q4 2023[7]. - Non-GAAP net investment income for Q4 2024 was $1,083 million, a 6% increase QoQ and a 295% increase YoY[28]. Assets and Liabilities - Total assets increased to $121,221 million, a 238% rise compared to $35,885 million in December 2023[5]. - Total liabilities rose to $111,193 million, reflecting a 271% increase from $29,986 million in December 2023[5]. - Total equity stood at $10,028 million, a 70% increase from $5,899 million in December 2023[5]. - Cash and cash equivalents increased to $11,330 million, a 255% rise from $3,192 million in December 2023[5]. - Total invested assets as of December 31, 2024, amounted to $80,755 million, with a slight increase of $109 million compared to December 31, 2023[9]. Investment Performance - Net investment income for Q4 2024 was $1,232 million, a 20% increase from Q3 2024 and a 238% increase year-over-year[6]. - The annuity investment spread was reported at 1.9% for Q4 2024[4]. - The total investments, net of coinsurance funds withheld, were $77,636 million, with a 96% GAAP carrying value[10]. - The carrying value of fixed maturities, available-for-sale, at fair value was $44,141 million, representing 55% of total GAAP carrying value[10]. - Corporate debt securities accounted for $30,918 million, representing 65% of the total carrying value as of December 31, 2024, compared to 84% at the end of 2023[11]. Sales and Growth - Premiums for Q4 2024 were $2,482 million, a 180% increase from Q3 2024 and a 160% increase year-over-year[6]. - Gross annuity sales for Q4 2024 totaled $4,647 million, a 12% increase QoQ and 518% increase YoY[32]. - Pension risk transfer sales in Q4 2024 were $1,918 million, a significant increase of 564% QoQ and 523% YoY[32]. - Total net annuity sales for 2024 were $13,582 million, reflecting a 152% increase compared to 2023[32]. Credit Quality and Risk - Non-performing commercial mortgage loans increased to $117 million, up from $15 million in the previous year, indicating a rise in credit risk[16]. - The average loan-to-value (LTV) ratio improved to 49% in 2024 from 53% in 2023, reflecting a stronger collateral position[20]. - The median credit rating for commercial mortgage loans was CM2, consistent with the previous year, indicating stable credit quality[20]. Financial Metrics and Ratios - The aggregate cost of funds for 2024 was 3.3%, while the yield on net invested assets was 5.2%[28]. - Total adjustments to arrive at cost of funds were $2,148 million in Q4 2024[30]. - The average surrender charge account value increased to $74,265 million in Q4 2024, an 8% increase YoY[34]. - The company believes that cost of funds is a meaningful financial metric that enhances understanding of underlying profitability drivers[45]. - Cost of funds should not be used as a substitute for total benefits and expenses presented under US GAAP[45].