EXHIBIT 99.1


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY ANNOUNCES CLOSING OF PRIVATE
OFFERING OF $10 MILLION OF ITS CONTINGENT CONVERTIBLE SENIOR NOTES DUE 2024

WEST DES MOINES, Iowa, Dec 30, 2004 /PRNewswire-FirstCall via COMTEX/ --
American Equity Investment Life Holding Company (NYSE: AEL) today announced
that it has closed a private offering (the "Offering") of $10 million aggregate
principal amount of its 5.25% Contingent Convertible Senior Notes due 2024. The
terms of the Notes are substantially identical to the $250 million aggregate
principal amount of the company's 5.25% Contingent Convertible Senior Notes due
2024 that were issued on December 6, 2004.

The company expects to utilize substantially all of the net proceeds to
increase the capital and surplus of its life insurance subsidiaries to support
future growth of its business.

This press release does not constitute an offer to sell or the solicitation of
an offer to buy any of the securities offered. The Offering was made only to a
qualified institutional buyer in accordance with Rule 144A under the Securities
Act of 1933 (the "Securities Act"). The Notes and the shares of common stock
issuable on conversion of the Notes have not been registered under the
Securities Act or any state securities laws and unless so registered may not be
offered or sold in the United States except pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the
Securities Act and applicable state securities laws.

American Equity Investment Life Holding Company, through its wholly-owned
operating subsidiaries, is a full service underwriter of a broad line of
annuity and insurance products, with a primary emphasis on the sale of fixed
rate and index annuities. The Company's headquarters are located at 5000
Westown Parkway, Suite 440, West Des Moines, Iowa, 50266. The mailing address
of the company is: P.O. Box 71216, Des Moines, Iowa, 50325.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding American Equity Investment
Life Holding Company's business which are not historical facts are
"forward-looking statements" that involve risks and uncertainties that could
cause actual results to differ materially from those expressed or implied in
the forward-looking statements. Such results may be impacted by factors outside
the company's control. Additional information concerning potential risk factors
that could affect the company's future performance are described from time to
time in the company's reports filed with the Securities and Exchange
Commission, including the company's Annual Report on Form 10-K for the most
recently ended fiscal year.

SOURCE American Equity Investment Life Holding Company

Debra J. Richardson, Sr. Vice President, +1-515-273-3551,
drichardson@american-equity.com , or John M. Matovina, Vice Chairman,
+1-515-273-3552, jmatovina@american-equity.com , or D. J. Noble, Chairman,
+1-515-457-1705, dnoble@american-equity.com , all of American Equity Investment
Life Holding Company (AEL).