American Equity Investment Life pany(US:AEL)2025-05-15 15:45Revenue and Income - Total revenues for Q1 2025 increased to $2,339 million, up 40% from $1,670 million in Q1 2024[16] - Net investment income surged to $1,275 million in Q1 2025, compared to $440 million in Q1 2024, reflecting a significant increase of 190%[16] - The company reported a net loss of $203 million for Q1 2025, contrasting with a net income of $114 million in Q1 2024[19] - Comprehensive income attributable to American National Group Inc. was $124 million for Q1 2025, down from $163 million in Q1 2024[19] - For the three months ended March 31, 2025, the net income was a loss of $203 million, compared to a net income of $114 million for the same period in 2024[25] - The company reported a significant increase in insurance-related liabilities, which rose to $652 million from $238 million year-over-year[25] - The company experienced losses on investments and derivatives amounting to $308 million, compared to gains of $47 million in the previous year[25] Assets and Liabilities - Total assets rose to $123,434 million as of March 31, 2025, compared to $121,221 million at the end of 2024, marking an increase of 1.8%[13] - The company’s total liabilities increased to $113,389 million as of March 31, 2025, compared to $111,193 million at the end of 2024, an increase of 2%[13] - The company’s equity totaled $10,045 million as of March 31, 2025, slightly up from $10,028 million at the end of 2024[13] - The total financial liabilities increased to $9,538 million as of March 31, 2025, compared to $9,324 million as of December 31, 2024, reflecting an increase of approximately 2.3%[90] - The total liabilities of the Company as of March 31, 2025, were $110.234 billion, an increase from $107.791 billion as of December 31, 2024[199] Cash Flow and Investments - Cash flows provided by operating activities increased to $671 million, up from $262 million year-over-year[25] - Cash flows used in investing activities significantly increased to $(5,748) million, compared to $(1,538) million in the prior year[27] - The cash and cash equivalents at the end of the period were $7,520 million, a decrease from $11,330 million at the beginning of the period[27] - The fair value of cash and cash equivalents decreased to $7,520 million as of March 31, 2025, from $11,330 million as of December 31, 2024, a decline of approximately 33.5%[90] - The company held excess collateral of $16 million as of March 31, 2025, down from $76 million as of December 31, 2024[86] Premiums and Claims - Net premiums decreased to $889 million in Q1 2025, down 22% from $1,144 million in Q1 2024[16] - The net amount of policyholder benefits and claims incurred was $888 million for the three months ended March 31, 2025, down from $1,086 million in 2024, a decrease of about 18.2%[128] - The liability for unpaid claims increased to $1,908 million as of March 31, 2025, compared to $1,854 million at the end of 2024, reflecting a growth of 2.9%[157] - Total incurred claims for the current accident year were $291 million for the three months ended March 31, 2025, down from $343 million for the same period in 2024[157] Acquisitions and Intangible Assets - The acquisition of AEL was completed for approximately $2.5 billion in cash and 28,803,599 shares of BAM, with goodwill recognized at $662 million as of March 31, 2025[136][137] - The total intangible assets as of March 31, 2025, amounted to $1,654 million, compared to $1,601 million at the end of December 31, 2024, reflecting an increase of about 3.3%[133] - The total value of business acquired (VOBA) decreased to $8,718 million as of March 31, 2025, down from $8,913 million at the beginning of the period, a reduction of approximately 2.2%[130] Equity and Stock Transactions - The company redeemed 16,000 shares of Series A preferred stock for a total payment of $408 million on February 24, 2025, recognizing a loss of $11 million[173] - The company issued 12,000 shares of Series D preferred stock with a liquidation preference of $25,000 per share for net proceeds of $292 million on January 10, 2025[175] Segment Performance - For the three months ended March 31, 2025, the Company reported segment revenues of $2,400 million, an increase from $1,708 million in the same period of 2024, representing a growth of approximately 40.5%[194] - The Distributable Operating Earnings (DOE) for the Annuities segment was $407 million for Q1 2025, compared to $105 million in Q1 2024, indicating a significant increase of approximately 287.6%[194] - The Life Insurance segment generated $152 million in revenues for Q1 2025, a decrease from $311 million in Q1 2024, reflecting a decline of approximately 51.1%[194] Regulatory and Accounting Changes - The amendments in ASU 2023-09 will require public business entities to disclose specific categories in the rate reconciliation starting from annual reporting periods after December 15, 2024[44] - The company is currently evaluating the impact of ASU 2024-03, which will require additional expense category disclosures starting from annual reporting periods after December 15, 2026[45]