American Equity Investment Life pany(US:AEL)2025-11-13 22:03Financial Performance - Net premiums for the three months ended September 30, 2025, were $566 million, a decrease of 36.3% compared to $888 million for the same period in 2024[16]. - Total revenues for the nine months ended September 30, 2025, reached $6,583 million, an increase of 13.7% from $5,789 million in the same period of 2024[16]. - Net income attributable to American National Group Inc. stockholders for the three months ended September 30, 2025, was $208 million, compared to a loss of $299 million in the same period in 2024[16]. - For the nine months ended September 30, 2025, net income was $169 million, compared to $29 million for the same period in 2024, indicating a significant increase[27]. - The company reported a comprehensive income of $686 million for the three months ended September 30, 2025, compared to $704 million in the same period of 2024[19]. - The company reported a loss of $288 million for the three months ended September 30, 2024, compared to a net income of $218 million for the same period in 2025[24]. Assets and Liabilities - Total assets increased to $130,559 million as of September 30, 2025, up from $121,221 million at December 31, 2024, representing a growth of 7.8%[11]. - The total liabilities of the company rose to $119,578 million as of September 30, 2025, compared to $111,193 million at December 31, 2024, marking a growth of 7.5%[13]. - The company’s equity increased to $10,981 million as of September 30, 2025, up from $10,028 million at December 31, 2024, representing a growth of 9.5%[13]. - Total financial liabilities increased to $15,863 million as of September 30, 2025, from $9,304 million as of December 31, 2024, representing a growth of approximately 70.5%[85]. - The total assets of consolidated Variable Interest Entities (VIEs) increased to $10,876 million as of September 30, 2025, up from $8,516 million on December 31, 2024[66]. Investment Income - Net investment income rose to $1,285 million for the three months ended September 30, 2025, compared to $1,024 million in the same period of 2024, reflecting a growth of 25.5%[16]. - The total net investment income for the nine months ended September 30, 2025, was $3,720 million, up from $2,396 million in 2024, indicating a 55.2% increase[84]. - The available-for-sale fixed maturity securities generated net investment income of $840 million for the three months ended September 30, 2025, compared to $604 million in 2024, a 39.1% increase[84]. - The company reported derivative gains (losses) recognized in income of $286 million for the three months ended September 30, 2025, compared to a loss of $362 million in the same period of 2024[79]. Policyholder Accounts - Policyholders' account balances increased to $89,469 million as of September 30, 2025, up from $83,079 million at December 31, 2024, indicating a growth of 7.2%[13]. - Policyholders' account deposits for the nine months ended September 30, 2025, totaled $12,018 million, compared to $7,785 million for the same period in 2024, representing a 54% increase[29]. - The balance of policyholders' account balances for investment contracts, excluding embedded derivatives, was $80,470 million as of September 30, 2025, slightly up from $79,384 million at the end of 2024[120]. Future Policy Benefits - Future policy benefits increased to $10,345 million as of September 30, 2025, compared to $9,170 million at December 31, 2024, reflecting an increase of 12.8%[13]. - The liability for future policy benefits at the end of the period is $2,301 million for life insurance and $2,301 million for annuities, totaling $4,602 million[146]. - The present value of expected future policy benefits is $10,811 million, with $6,563 million for annuities and $4,248 million for life insurance[150]. Debt and Financing - The company issued $700 million of 6.000% Senior Notes due July 15, 2035 on June 27, 2025, using the proceeds to repay part of its Term Loan Credit Facility[166]. - As of September 30, 2025, total long-term borrowings amounted to $3,449 million, an increase from $2,957 million as of December 31, 2024[165]. - The company redeemed all 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[175]. Segment Performance - The Distributable Operating Earnings (DOE) for the Annuities segment was $389 million for the three months ended September 30, 2025, compared to $342 million for the same period in 2024, reflecting an increase of about 13.7%[193]. - The net premiums and other policy-related revenues for the Annuities segment were $308 million for the three months ended September 30, 2025, down from $471 million in the same period of 2024, a decrease of about 34.6%[193]. - The company’s total annuity revenue for Q3 2025 was $86,037 million, compared to $78,737 million in Q3 2024, representing a 9.4% increase[154]. Tax and Compliance - The effective tax rates for the three and nine months ended September 30, 2025, were 35.3% and 37.6%, respectively, higher than the statutory rate of 21% due to a one-time adjustment related to Bermuda corporate income tax[169]. - The company continues to evaluate the impact of global minimum tax requirements and legislative changes on its operations and financial statements[172]. - The company was in compliance with its financial covenants as of September 30, 2025[168].