8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 6, 2020

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

(Exact name of registrant as specified in its charter)

Iowa	001-31911	42-1447959
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6000 Westown Parkway

West Des Moines, IA 50266

(Address of principal executive offices and zip code)

(515) 221-0002

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $1	AEL	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A	AELPRA	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933

(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02  Results of Operations and Financial Condition

On May 6, 2020, the registrant issued a press release announcing its financial results for the quarter ended March 31, 2020, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The registrant's financial supplement for the quarter ended March 31, 2020, is attached as Exhibit 99.2 and is incorporated herein by reference.

In connection with the Company’s conference call to discuss first quarter earnings on May 7, 2020, the Company has prepared a presentation (the “Investments & Capital Update”), which is furnished as Exhibit 99.3 hereto.

The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 9.01.  Financial Statements and Exhibits

(d)    Exhibits

The following exhibits are being furnished with this Form 8-K.

Exhibit Number	Description
99.1	Press release dated May 6, 2020, announcing American Equity Investment Life Holding Company's financial results for the quarter ended March 31, 2020.
99.2	American Equity Investment Life Holding Company's Financial Supplement for the quarter ended March 31, 2020.
99.3	Investments & Capital Update
104	The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 6, 2020

AMERICAN EQUITY
INVESTMENT LIFE HOLDING COMPANY
By:	/s/ Anant Bhalla
	Anant Bhalla
	Chief Executive Officer and President

EX-99.1

Exhibit 99.1

	For more information, contact:
	Steven D. Schwartz, Vice President-Investor Relations
	(515) 273-3763, sschwartz@american-equity.com
FOR IMMEDIATE RELEASE
May 6, 2020

American Equity Reports First Quarter2020 Results

Company Highlights

• First quarter2020 net income available to common stockholders of $236.3 million or $2.57 per diluted common share

• First quarter2020 non-GAAP operating income¹ available to common stockholders of $154.1 million or $1.67 per diluted common share

• First quarter2020 annuity sales of $705 million

• Policyholder funds under management of $53.3 billion

• First quarter2020 investment spread of 2.64%

• Estimated risk-based capital ratio of 396% pro forma including May 4^th capital contribution

WEST DES MOINES, Iowa (May 6, 2020) - During the first quarter of 2020, American Equity Investment Life Holding Company (NYSE: AEL), a leading issuer of fixed index annuities (FIAs), shifted quickly and effectively to respond to the COVID-19 global pandemic while keeping its employees safe and maintaining its industry leading service.

"I couldn't be prouder of our leadership team and employees in their response to these unprecedented times," said Anant Bhalla, Chief Executive Officer. "In March, we moved decisively to first protect our employees and business partners and to pivot our operating platform to continue to provide FIA industry leading levels of service for clients and producers in a prolonged work from home environment. In parallel, we fortressed the life insurance company balance sheets with $1.3 billion of liquidity as of March 31^st and a pro forma 396% RBC ratio after reflecting a $200 million capital contribution from the holding company earlier this month."

American Equity today reported first quarter2020 net income available to common stockholders of $236.3 million, or $2.57 per diluted common share, compared to net loss available to common stockholders of $30.0 million, or $0.33 per diluted common share, for first quarter2019.

Non-GAAP operating income¹ available to common stockholders for the first quarter2020 was $154.1 million, or $1.67per diluted common share, compared to non-GAAP operating income¹ available to common stockholders of $89.4 million, or $0.97 per diluted common share, for first quarter2019. On a trailing twelve-month basis, non-GAAP operating return¹ on average common stockholders' equity excluding average AOCI¹ was 23.0% based on reported results and 18.8% excluding the impact of annual actuarial revisions in the third quarter of 2019.

The year-over-year increases in quarterly non-GAAP operating income¹ available to common stockholders and non-GAAP operating income¹ per share available to common stockholders were attributable to lower amortization of deferred policy acquisition costs and deferred sales inducements and an increase in investment spread which benefited from active in-force crediting rate management and non-trendable investment spread items.  The benefit from these items was partially offset by a greater increase in the liability for future benefits to be paid for lifetime income benefit riders.  The decline in deferred acquisition cost and deferred sales inducement amortization and the increase in the liability for lifetime income benefit riders is consistent with the actuarial revisions made in the third quarter of 2019 and reflect actual experience during the first quarter of 2020. In addition, the company recognized a $31 million, or $0.33 per diluted share, tax benefit in the first quarter of 2020 from tax loss carry back to prior years under the newly enacted CARES Act.

INVESTMENT SPREAD DECREASES SEQUENTIALLY ON LOWER YIELD ON INVESTED ASSETS

American Equity’s investment spread was 2.64% for the first quarter of 2020 compared to 2.77% for the fourth quarter of 2019 and 2.58% for the first quarter of 2019. On a sequential basis, the average yield on invested assets decreased by 16 basis points while the cost of money fell by 3 basis points.

Average yield on invested assets was 4.36% in the first quarter of 2020 compared to 4.52% in the fourth quarter of 2019. The average yield on invested assets excluding non-trendable items was 4.30% in the first quarter of 2020 compared to 4.39% in the fourth quarter of 2019. The decrease in investment yield was primarily driven by the decline in short term yields on floating rate instruments in the investment portfolio, yields on new money investments, and retention of a higher level of liquidity in the investment portfolios of the life insurance companies.

The aggregate cost of money for annuity liabilities of 1.72% in the first quarter of 2020 was down 3 basis points from 1.75% in the fourth quarter of 2019. The cost of money benefited by 5 basis points from the over hedging of index-linked interest obligations in both quarters.

Commenting on investment spread, Bhalla said: “Excluding non-trendable investment spread items, on a sequential basis, investment yield and investment spread decreased by 9 and 6 basis points respectively. We are actively managing spread to offset lower investment income and increased cost of money. Option costs were flat in the first quarter asthe rise in costs of certain options due to the increase in the market implied volatility that was witnessed in March offset the actions we took beginning in January to reduce caps and fixed crediting rates on $29.7 billion of policyholder funds under management in light of declining portfolio yields. Due to the continued elevated levels of market implied volatility since March, which impacts the cost of buying options for certain index strategies, we will begin reducing renewal participation rates on $4.3 billion of policyholder funds starting June 1. We intend to be financially prudent and disciplined in managing in-force and new money cost, while staying true to our core beliefs in always doing the right thing by our clients and producers. Therefore, if market implied volatility levels were to fall back to February levels, we could begin to unwind some of these rate actions in the future.”

POLICYHOLDER FUNDS UNDER MANAGEMENT RELATIVELY FLAT ON $705 MILLION OF SALES

Policyholder funds under management at March 31, 2020 were $53.3 billion, an $82 million, or 0.2% increase from December 31, 2019. First quarter gross and net sales were $705 million and $687 million, respectively, representing decreases of 43% and 42% from first quarter2019 sales. On a sequential basis, gross and net sales decreased 23% and 19%, respectively. Compared to the fourth quarter of 2019, gross sales atAmerican Equity Life and Eagle Life declined 23% and 26%, respectively.

Commenting on sales, Bhalla said: "Entering the quarter, we were not the most competitive in either the accumulation or income markets, primarily driven by some competitors who in our view were being aggressive in order to gain market share. With the recent market events, these competitors have lowered their rates to more sustainable levels for them, thereby having bridged the competitive gap in our favor. Our S&P 500 Dividend Aristocrats DRC 5% Excess Return strategies now illustrate particularly well.

Commenting on the market environment and the outlook for FIA sales, Bhalla added: "While we are currently in an improved competitive position, it seems likely that sales will remain subdued until social distancing needs abate or producers find new ways to engage with clients and the dining table discussion in households shifts from primarily health concerns to longer term issues around wealth and retirement income. In the meanwhile, we are in the process of refreshing our product line beginning with our accumulation product portfolio. These serve as a very compelling alternative to offerings inside traditional equity-bond allocation strategies. As a first step, we will be introducing our first multi-asset index strategy in June. This adds to our distribution partners tool-kit of client solutions, while reducing the vulnerability of cost of money to changes in implied volatility in the marketplace as is the case for plain vanilla S&P 500 annual point-to-point participation rate strategies."

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future operations, strategies, financial results or other developments, and are subject to assumptions, risks and uncertainties. Statements such as “guidance”, “expect”, “anticipate”, “believe”, “goal”, “objective”, “target”, “may”, “should”, “estimate”, “projects” or similar words as well as specific projections of future results qualify as forward-looking statements. Factors that may cause our actual results to differ materially from those contemplated by these forward looking statements can be found in the company’s Form 10-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statement was made and the company undertakes no obligation to update such forward-looking statements. There can be no assurance that other factors not currently anticipated by the company will not materially and adversely affect our results of operations. Investors are cautioned not to place undue reliance on any forward-looking statements made by us or on our behalf.

CONFERENCE CALL

American Equity will hold a conference call to discuss first quarter2020 earnings on Thursday, May 7, 2020 at 10:00 a.m. CT. The conference call will be webcast live on the Internet. Investors and interested parties who wish to listen to the call on the internet may do so at www.american-equity.com.

The call may also be accessed by telephone at 855-865-0606, passcode 3589908 (international callers, please dial 704-859-4382). An audio replay will be available shortly after the call on American Equity's website. An audio replay will also be available via telephone through May 14, 2020 at 855-859-2056, passcode 3589908 (international callers will need to dial 404-537-3406).

ABOUT AMERICAN EQUITY

American Equity Investment Life Holding Company, through its wholly-owned subsidiaries, is a leading issuer of fixed index annuities through independent agents, banks and broker-dealers. American Equity Investment Life Holding Company, a New York Stock Exchange listed company (NYSE: AEL), is headquartered in West Des Moines, Iowa. For more information, please visit www.american-equity.com.

1    Use of non-GAAP financial measures is discussed in this release in the tables that follow the text of the release.

###

American Equity Investment Life Holding Company

Unaudited (Dollars in thousands, except per share data)

Consolidated Statements of Operations

	Three Months Ended   March 31,
	2020			2019
Revenues:
Premiums and other considerations	$	7,664		$	5,410
Annuity product charges	59,549			52,966
Net investment income	573,318			558,438
Change in fair value of derivatives	(941,874		)	384,469
Net realized gains (losses) on investments, excluding credit losses on fixed maturity securities, available for sale	11,035			(563		)
Credit losses on fixed maturity securities, available for sale	(31,371		)	—
Loss on extinguishment of debt	(2,024		)	—
Total revenues	(323,703		)	1,000,720
Benefits and expenses:
Insurance policy benefits and change in future policy benefits	10,072			9,299
Interest sensitive and index product benefits	400,219			136,674
Amortization of deferred sales inducements	73,591			33,309
Change in fair value of embedded derivatives	(1,250,061		)	766,323
Interest expense on notes payable	6,385			6,379
Interest expense on subordinated debentures	1,588			4,088
Amortization of deferred policy acquisition costs	120,702			45,132
Other operating costs and expenses	43,626			38,979
Total benefits and expenses	(593,878		)	1,040,183
Income (loss) before income taxes	270,175			(39,463		)
Income tax expense (benefit)	27,228			(9,453		)
Net income (loss)	242,947			(30,010		)
Less: Preferred stock dividends	6,611			—
Net income (loss) available to common stockholders	$	236,336		$	(30,010	)
Earnings (loss) per common share	$	2.58		$	(0.33	)
Earnings (loss) per common share - assuming dilution	$	2.57		$	(0.33	)
Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share	91,644			90,883
Earnings (loss) per common share - assuming dilution	92,021			91,744

Page 1

American Equity Investment Life Holding Company

Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES

In addition to net income (loss) available to common stockholders, we have consistently utilized non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Non-GAAP operating income available to common stockholders equals net income (loss) available to common stockholders adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income available to common stockholders eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income available to common stockholders together with net income (loss) available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.

Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders

	Three Months Ended   March 31,
	2020			2019
Net income (loss) available to common stockholders	$	236,336		$	(30,010	)
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses	16,349			305
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(120,454		)	150,944
Change in fair value of derivatives - interest rate caps and swap	(848		)	636
Income taxes	22,702			(32,473		)
Non-GAAP operating income available to common stockholders	$	154,085		$	89,402
Per common share - assuming dilution:
Net income (loss) available to common stockholders	$	2.57		$	(0.33	)
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized gains/losses on financial assets, including credit losses	0.17			—
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(1.31		)	1.64
Change in fair value of derivatives - interest rate caps and swap	(0.01		)	0.01
Income taxes	0.25			(0.35		)
Non-GAAP operating income available to common stockholders	$	1.67		$	0.97

(a) Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs where applicable.

Page 2

American Equity Investment Life Holding Company

Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

Average Common Stockholders' Equity and Return on Average Common Stockholders' Equity

Return on average common stockholders' equity measures how efficiently we generate profits from the resources provided by our net assets.  Return on average common stockholders' equity and non-GAAP operating return on average common stockholders' equity are calculated by dividing net income (loss) available to common stockholders and non-GAAP operating income available to common stockholders, respectively, for the trailing twelve months by average total stockholders' equity excluding average equity available to preferred stockholders and average accumulated other comprehensive income (AOCI).  We exclude AOCI because AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments.

	Twelve Months Ended
	March 31, 2020
Average Common Stockholders' Equity Excluding Average AOCI
Average total stockholders' equity	$	3,231,147
Average equity available to preferred stockholders	(200,000		)
Average AOCI	(366,836		)
Average common stockholders' equity excluding average AOCI	$	2,664,311
Net income available to common stockholders	$	512,436
Non-GAAP operating income available to common stockholders	$	612,866
Return on Average Common Stockholders' Equity Excluding Average AOCI
Net income available to common stockholders	19.23		%
Non-GAAP operating income available to common stockholders	23.00		%

Page 3

EX-99.2

Exhibit 99.2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement

March 31, 2020

A.	Financial Highlights
	Condensed Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Quarterly Summary - Most Recent 5 Quarters	3
	Non-GAAP Financial Measures
	Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders	4
	Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders	5
	Quarterly Summary - Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders	6
	Quarterly Summary - Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders	7
	Capitalization/Book Value per Common Share	8
	Spread Results	9
B.	Product Summary
	Summary of Cost of Money for Deferred Annuities	9
	Annuity Account Balance Rollforward	9
	Annuity Deposits by Product Type	10
	Surrender Charge Protection and Account Values by Product Type	10
	Annuity Liability Characteristics	11
C.	Investment Summary
	Summary of Invested Assets	14
	Credit Quality of Fixed Maturity Securities	14
	Watch List Securities	14
	Fixed Maturity Securities by Sector	15
	Mortgage Loans on Commercial Real Estate	16
D.	Shareholder Information	17
E.	Research Analyst Coverage	18

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2020		December 31, 2019
Assets
Investments:
Fixed maturity securities, available for sale, at fair value	$	47,704,867	$	51,580,490
Mortgage loans on real estate	3,668,625		3,448,793
Derivative instruments	207,265		1,355,989
Other investments	497,598		492,301
Total investments	52,078,355		56,877,573
Cash and cash equivalents	1,833,099		2,293,392
Coinsurance deposits	4,933,992		5,115,013
Accrued investment income	472,667		472,826
Deferred policy acquisition costs	3,615,101		2,923,454
Deferred sales inducements	2,414,533		1,966,723
Deferred income taxes	90,384		—
Income taxes recoverable	46,324		—
Other assets	65,101		47,571
Total assets	$	65,549,556	$	69,696,552
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves	$	60,619,047	$	61,893,945
Other policy funds and contract claims	248,178		256,105
Notes payable	495,251		495,116
Subordinated debentures	77,893		157,265
Amounts due under repurchase agreements	186,105		—
Deferred income taxes	—		177,897
Income taxes payable	—		429
Other liabilities	400,325		2,145,676
Total liabilities	62,026,799		65,126,433
Stockholders' equity:
Preferred stock	16		16
Common stock	91,498		91,107
Additional paid-in capital	1,215,464		1,212,311
Accumulated other comprehensive income	219,974		1,497,921
Retained earnings	1,995,805		1,768,764
Total stockholders' equity	3,522,757		4,570,119
Total liabilities and stockholders' equity	$	65,549,556	$	69,696,552

Page 1

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended   March 31,
	2020			2019
Revenues:
Premiums and other considerations	$	7,664		$	5,410
Annuity product charges	59,549			52,966
Net investment income	573,318			558,438
Change in fair value of derivatives	(941,874		)	384,469
Net realized gains (losses) on investments, excluding credit losses on fixed maturity securities, available for sale	11,035			(563		)
Credit losses on fixed maturity securities, available for sale	(31,371		)	—
Loss on extinguishment of debt	(2,024		)	—
Total revenues	(323,703		)	1,000,720
Benefits and expenses:
Insurance policy benefits and change in future policy benefits	10,072			9,299
Interest sensitive and index product benefits	400,219			136,674
Amortization of deferred sales inducements	73,591			33,309
Change in fair value of embedded derivatives	(1,250,061		)	766,323
Interest expense on notes payable	6,385			6,379
Interest expense on subordinated debentures	1,588			4,088
Amortization of deferred policy acquisition costs	120,702			45,132
Other operating costs and expenses	43,626			38,979
Total benefits and expenses	(593,878		)	1,040,183
Income (loss) before income taxes	270,175			(39,463		)
Income tax expense (benefit)	27,228			(9,453		)
Net income (loss)	242,947			(30,010		)
Less: Preferred stock dividends	6,611			—
Net income (loss) available to common stockholders	$	236,336		$	(30,010	)
Earnings (loss) per common share	$	2.58		$	(0.33	)
Earnings (loss) per common share - assuming dilution	$	2.57		$	(0.33	)
Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share	91,644			90,883
Earnings (loss) per common share - assuming dilution	92,021			91,744

Page 2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters

	Q1 2020			Q4 2019			Q3 2019			Q2 2019			Q1 2019
Revenues:
Traditional life insurance premiums	$	823		$	762		$	778		$	799		$	829
Life contingent immediate annuity considerations	6,841			8,084			4,374			3,327			4,581
Surrender charges	19,705			15,092			20,537			19,480			16,456
Lifetime income benefit rider fees	39,844			47,630			43,110			41,220			36,510
Net investment income	573,318			588,217			590,412			570,568			558,438
Change in fair value of derivatives	(941,874		)	466,434			(20,042		)	76,045			384,469
Net realized gains (losses) on investments, excluding credit losses on fixed maturity securities, available for sale	11,035			7,029			4,328			(3,832		)	(563		)
Credit losses on fixed maturity securities, available for sale	(31,371		)	—			—			—			—
Net OTTI losses recognized in operations	—			(17,412		)	(101		)	(1,213		)	—
Loss on extinguishment of debt	(2,024		)	(2,001		)	—			—			—
Total revenues	(323,703		)	1,113,835			643,396			706,394			1,000,720
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits	621			835			758			576			878
Life contingent immediate annuity benefits and change in future policy benefits	9,451			10,718			6,869			6,363			8,421
Interest sensitive and index product benefits (a)	400,219			399,514			500,285			251,103			136,674
Amortization of deferred sales inducements (b)	73,591			91,260			(55,769		)	19,785			33,309
Change in fair value of embedded derivatives (c)	(1,250,061		)	147,879			212,278			327,562			766,323
Interest expense on notes payable	6,385			6,384			6,382			6,380			6,379
Interest expense on subordinated debentures	1,588			3,651			3,968			4,057			4,088
Amortization of deferred policy acquisition costs (b)	120,702			133,573			(120,934		)	29,946			45,132
Other operating costs and expenses	43,626			39,194			38,554			37,426			38,979
Total benefits and expenses	(593,878		)	833,008			592,391			683,198			1,040,183
Income (loss) before income taxes	270,175			280,827			51,005			23,196			(39,463		)
Income tax expense (benefit) (d)	27,228			60,677			13,645			4,606			(9,453		)
Net income (loss) (a)(b)(c)(d)	242,947			220,150			37,360			18,590			(30,010		)
Less: Preferred stock dividends	6,611			—			—			—			—
Net income (loss) available to common stockholders (a)(b)(c)(d)	$	236,336		$	220,150		$	37,360		$	18,590		$	(30,010	)
Earnings (loss) per common share	$	2.58		$	2.41		$	0.41		$	0.20		$	(0.33	)
Earnings (loss) per common share - assuming dilution (a)(b)(c)(d)	$	2.57		$	2.40		$	0.41		$	0.20		$	(0.33	)
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share	91,644			91,314			91,252			91,103			90,883
Earnings (loss) per common share - assuming dilution	92,021			91,883			91,711			91,785			91,744

(a) Q3 2019 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index product benefits by $315.4 million and decreased both net income and net income available to common stockholders by $247.3 million and decreased earnings per common share - assuming dilution by $2.70 per share.

(b) Q3 2019 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $104.7 million and $193.0 million, respectively, and increased both net income and net income available to common stockholders by $233.4 million and increased earnings per common share - assuming dilution by $2.54 per share.

(c) Q3 2019 includes expense from the revision of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact increased change in fair value of embedded derivatives by $28.2 million and decreased both net income and net income available to common stockholders by $22.1 million and decreased earnings per common share - assuming dilution by $0.24 per share.

(d) Q1 2020 includes a tax benefit related to the provision of the Coronavirus Aid, Relief, and Economic Security Act, (“the CARES ACT”)  which was signed into legislation on March 27, 2020 and allows net operating losses for 2018 through 2020 to be carried back to previous tax years in which a 35% statutory tax rate was in effect. The impact reduced income tax expense and increased both net income and net income available to common stockholders by $30.8 million and increased earnings per common share - assuming dilution by $0.33 per share.

Page 3

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES

In addition to net income (loss) available to common stockholders, we have consistently utilized non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Non-GAAP operating income available to common stockholders equals net income (loss) available to common stockholders adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income available to common stockholders eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income available to common stockholders together with net income (loss) available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.

Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders

	Three Months Ended   March 31,
	2020			2019
Net income (loss) available to common stockholders	$	236,336		$	(30,010	)
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses	16,349			305
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(120,454		)	150,944
Change in fair value of derivatives - interest rate caps and swap	(848		)	636
Income taxes	22,702			(32,473		)
Non-GAAP operating income available to common stockholders	$	154,085		$	89,402
Per common share - assuming dilution:
Net income (loss) available to common stockholders	$	2.57		$	(0.33	)
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized gains/losses on financial assets, including credit losses	0.17			—
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(1.31		)	1.64
Change in fair value of derivatives - interest rate caps and swap	(0.01		)	0.01
Income taxes	0.25			(0.35		)
Non-GAAP operating income available to common stockholders	$	1.67		$	0.97

(a) Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) where applicable.

Page 4

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders

	Three Months Ended   March 31,
	2020			2019
Net realized gains/losses on financial assets, including credit losses:
Net realized gains/losses on financial assets, including credit losses	$	21,657		$	563
Amortization of DAC and DSI	(5,308		)	(258		)
Income taxes	(3,531		)	(66		)
	$	12,818		$	239
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities	$	(209,891	)	$	241,120
Interest rate caps and swap	(848		)	636
Amortization of DAC and DSI	89,437			(90,176		)
Income taxes	26,233			(32,407		)
	$	(95,069	)	$	119,173

Page 5

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES

Quarterly Summary - Most Recent 5 Quarters

Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders

	Q1 2020			Q4 2019			Q3 2019			Q2 2019			Q1 2019
Net income (loss) available to common stockholders	$	236,336		$	220,150		$	37,360		$	18,590		$	(30,010	)
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses	16,349			7,606			(3,175		)	2,625			305
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(120,454		)	(127,777		)	250,186			99,868			150,944
Change in fair value of derivatives - interest rate caps and swap	(848		)	(167		)	(76		)	854			636
Income taxes	22,702			26,023			(50,940		)	(22,346		)	(32,473		)
Non-GAAP operating income available to common stockholders (b)(c)(d)	$	154,085		$	125,835		$	233,355		$	99,591		$	89,402
Per common share - assuming dilution:
Net income (loss) available to common stockholders	$	2.57		$	2.40		$	0.41		$	0.20		$	(0.33	)
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized gains/losses on financial assets, including credit losses	0.17			0.08			(0.04		)	0.03			—
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(1.31		)	(1.39		)	2.73			1.09			1.64
Change in fair value of derivatives - interest rate caps and swap	(0.01		)	—			—			0.01			0.01
Income taxes	0.25			0.28			(0.56		)	(0.24		)	(0.35		)
Non-GAAP operating income available to common stockholders (b)(c)(d)	$	1.67		$	1.37		$	2.54		$	1.09		$	0.97

(a) Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs where applicable.

(b) Q3 2019 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index product benefits by $315.4 million and decreased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $247.3 million and $2.70 per share, respectively.

(c) Q3 2019 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $184.9 million and $288.3 million, respectively, and increased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share- assuming dilution by $371.0 million and $4.05 per share, respectively.

(d) Q1 2020 includes a tax benefit related to the provision of the CARES ACT which was signed into legislation on March 27, 2020 and allows net operating losses for 2018 through 2020 to be carried back to previous tax years in which a 35% statutory tax rate was in effect. The impact reduced income tax expense and increased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $30.8 million and $0.33 per share, respectively.

Page 6

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders

	Q1 2020			Q4 2019			Q3 2019			Q2 2019			Q1 2019
Net realized (gains) losses on investments	$	(11,035	)	$	(7,029	)	$	(4,328	)	$	3,832		$	563
Credit losses on fixed maturity securities, available for sale	31,371			—			—			—			—
Net OTTI losses recognized in operations	—			17,412			101			1,213			—
Change in fair value of derivatives	1,039,322			(370,973		)	(79,943		)	(108,662		)	(524,567		)
Increase (decrease) in total revenues	1,059,658			(360,590		)	(84,170		)	(103,617		)	(524,004		)
Amortization of deferred sales inducements	(29,683		)	(37,374		)	(57,408		)	49,101			35,494
Change in fair value of embedded derivatives	1,250,061			(147,879		)	(212,278		)	(327,562		)	(766,323		)
Interest sensitive and index product benefits (a)	(1,321		)	—			—			—			—
Amortization of deferred policy acquisition costs	(54,446		)	(54,999		)	(61,419		)	71,497			54,940
Increase (decrease) in total benefits and expenses	1,164,611			(240,252		)	(331,105		)	(206,964		)	(675,889		)
Increase in income (loss) before income taxes	(104,953		)	(120,338		)	246,935			103,347			151,885
Increase (decrease) in income tax expense (benefit)	(22,702		)	(26,023		)	50,940			22,346			32,473
Increase (decrease) in net income (loss) available to common stockholders	$	(82,251	)	$	(94,315	)	$	195,995		$	81,001		$	119,412

(a) Interest sensitive and index product benefits adjustment reflects the change in the allowance for credit losses on our reinsurance recoverable/coinsurance deposits under a revised impairment model for financial assets measured at amortized cost which we were required to adopt on January 1, 2020. The change in this allowance is reflected in the net realized gains/losses of financial assets, including credit losses line in the other Non-GAAP financial measures tables in this financial supplement.

Page 7

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share

	Q1 2020			Q4 2019			Q3 2019			Q2 2019			Q1 2019
Capitalization:
Notes payable	$	500,000		$	500,000		$	500,000		$	500,000		$	500,000
Subordinated debentures payable to subsidiary trusts	77,893			159,272			247,362			247,294			247,227
Total debt	577,893			659,272			747,362			747,294			747,227
Total stockholders’ equity	3,522,757			4,570,119			4,126,716			3,497,475			2,939,537
Total capitalization	4,100,650			5,229,391			4,874,078			4,244,769			3,686,764
Accumulated other comprehensive income (AOCI)	(219,974		)	(1,497,921		)	(1,639,429		)	(1,049,984		)	(513,697		)
Total capitalization excluding AOCI (a)	$	3,880,676		$	3,731,470		$	3,234,649		$	3,194,785		$	3,173,067
Total stockholders’ equity	$	3,522,757		$	4,570,119		$	4,126,716		$	3,497,475		$	2,939,537
Equity available to preferred stockholders (b)	(400,000		)	(400,000		)	—			—			—
Total common stockholders' equity (c)	3,122,757			4,170,119			4,126,716			3,497,475			2,939,537
Accumulated other comprehensive income	(219,974		)	(1,497,921		)	(1,639,429		)	(1,049,984		)	(513,697		)
Total common stockholders’ equity excluding AOCI(c)	2,902,783			2,672,198			2,487,287			2,447,491			2,425,840
Net impact of fair value accounting for derivatives and embedded derivatives	353,853			448,924			549,202			353,180			274,238
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (c)	$	3,256,636		$	3,121,122		$	3,036,489		$	2,800,671		$	2,700,078
Common shares outstanding	91,497,841			91,107,555			91,006,950			90,936,324			90,784,123
Book Value per Common Share: (d)
Book value per common share (c)	$	34.13		$	45.77		$	45.35		$	38.46		$	32.38
Book value per common share excluding AOCI (c)	$	31.73		$	29.33		$	27.33		$	26.91		$	26.72
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (c)	$	35.59		$	34.26		$	33.37		$	30.80		$	29.74
Debt-to-Capital Ratios: (e)
Senior debt / Total capitalization	12.9		%	13.4		%	15.5		%	15.7		%	15.8		%
Total debt / Total capitalization	14.9		%	17.7		%	23.1		%	23.4		%	23.5		%

(a) Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.

(b) Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.

(c) Total common stockholders' equity, total common stockholder's equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives, non-GAAP financial measures, exclude equity available to preferred stockholders. Total common stockholders’ equity and book value per common share excluding AOCI, non-GAAP financial measures, are based on common stockholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale securities, we believe these non-GAAP financial measures provide useful supplemental information. Total common stockholders' equity and book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives. Since the net impact of fair value accounting for our derivatives and embedded derivatives fluctuates from quarter to quarter and the most significant impacts relate to fair value accounting for our fixed index annuity business and are not economic in nature but rather impact the timing of reported results, we believe these non-GAAP financial measures provide useful supplemental information.

(d) Book value per common share including and excluding AOCI and book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives are calculated as total common stockholders’ equity, total common stockholders’ equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives divided by the total number of shares of common stock outstanding.

(e) Debt-to-capital ratios are computed using total capitalization excluding AOCI.

Page 8

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

Spread Results

	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019
Average yield on invested assets	4.36%	4.52%	4.59%	4.51%	4.48%
Aggregate cost of money	1.72%	1.75%	1.84%	1.88%	1.90%
Aggregate investment spread	2.64%	2.77%	2.75%	2.63%	2.58%
Impact of:
Investment yield - additional prepayment income	0.06%	0.12%	0.11%	0.04%	0.01%
Cost of money effect of over hedging	0.05%	0.05%	0.02%	0.04%	0.02%
Weighted average investments	$52,623,239	$52,141,459	$51,529,850	$50,709,966	$49,908,718

Weighted average investments include fixed maturity securities at amortized cost and mortgage loans on real estate and other investments at carrying values as reflected in the consolidated balance sheets. The numerator for average yield on invested assets includes net investment income and the tax effect of investment income that is exempt from income taxes.

Summary of Cost of Money for Deferred Annuities

	Q1 2020			Q4 2019			Q3 2019			Q2 2019			Q1 2019
Included in interest sensitive and index product benefits:
Index credits	$	278,940		$	277,798		$	92,343		$	161,752		$	55,925
Interest credited	48,947			49,482			49,511			50,478			47,436
Included in change in fair value of derivatives:
Proceeds received at option expiration	(285,263		)	(284,624		)	(95,491		)	(166,430		)	(58,460		)
Pro rata amortization of option cost	187,030			188,984			195,354			199,006			198,497
Cost of money for deferred annuities	$	229,654		$	231,640		$	241,717		$	244,806		$	243,398
Weighted average liability balance outstanding	$	53,274,905		$	53,092,419		$	52,682,886		$	52,009,407		$	51,328,715

Annuity Account Balance Rollforward

	Q1 2020			Q4 2019			Q3 2019			Q2 2019			Q1 2019
Account balances at beginning of period	$	53,233,898		$	52,950,937		$	52,414,835		$	51,603,979		$	51,053,450
Net deposits	681,752			838,761			1,216,720			1,425,325			1,180,365
Premium bonuses	24,552			36,983			46,968			48,370			45,621
Fixed interest credited and index credits	327,887			327,280			141,854			212,230			103,361
Surrender charges	(19,705		)	(15,092		)	(20,537		)	(19,480		)	(16,456		)
Lifetime income benefit rider fees	(39,844		)	(47,630		)	(43,110		)	(41,220		)	(36,510		)
Surrenders, withdrawals, deaths, etc.	(892,631		)	(857,341		)	(805,793		)	(814,369		)	(725,852		)
Account balances at end of period	$	53,315,909		$	53,233,898		$	52,950,937		$	52,414,835		$	51,603,979

Page 9

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

Annuity Deposits by Product Type

	Q1 2020		Q4 2019		Q3 2019		Q2 2019		Q1 2019
American Equity Life:
Fixed index annuities	$	586,063	$	765,180	$	1,054,796	$	1,211,004	$	1,027,658
Annual reset fixed rate annuities	2,331		1,843		2,340		3,614		3,448
Multi-year fixed rate annuities	369		306		593		566		148
Single premium immediate annuities	5,398		4,873		3,314		1,747		2,068
	594,161		772,202		1,061,043		1,216,931		1,033,322
Eagle Life:
Fixed index annuities	106,502		67,784		166,081		235,558		177,480
Annual reset fixed rate annuities	41		6		—		66		127
Multi-year fixed rate annuities	4,149		81,041		79,000		47,004		25,568
	110,692		148,831		245,081		282,628		203,175
Consolidated:
Fixed index annuities	692,565		832,964		1,220,877		1,446,562		1,205,138
Annual reset fixed rate annuities	2,372		1,849		2,340		3,680		3,575
Multi-year fixed rate annuities	4,518		81,347		79,593		47,570		25,716
Single premium immediate annuities	5,398		4,873		3,314		1,747		2,068
Total before coinsurance ceded	704,853		921,033		1,306,124		1,499,559		1,236,497
Coinsurance ceded	17,703		77,399		86,090		72,487		54,064
Net after coinsurance ceded	$	687,150	$	843,634	$	1,220,034	$	1,427,072	$	1,182,433

Surrender Charge Protection and Account Values by Product Type

Annuity Surrender Charges and Net (of Coinsurance) Account Values at March 31, 2020:

	Surrender Charge			Net Account Value
Product Type	Avg. Years At Issue	Avg. Years Remaining	Avg. % Remaining	Dollars in Thousands		%
Fixed Index Annuities	12.7	6.7	10.8%	$	51,308,622	96.2	%
Annual Reset Fixed Rate Annuities	9.6	3.2	6.0%	1,411,303		2.7	%
Multi-Year Fixed Rate Annuities	4.2	0.7	1.8%	595,984		1.1	%
Total	12.5	6.5	10.5%	$	53,315,909	100.0	%

Page 10

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

Annuity Liability Characteristics

Surrender Charge Percentages:	Fixed Annuities Account Value		Fixed Index Annuities Account Value
No surrender charge	$	809,840	$	2,661,886
0.0% < 2.0%	13,309		258,393
2.0% < 3.0%	9,250		601,548
3.0% < 4.0%	67,465		1,702,164
4.0% < 5.0%	64,842		1,382,231
5.0% < 6.0%	151,260		2,872,164
6.0% < 7.0%	198,274		1,050,295
7.0% < 8.0%	72,007		5,366,366
8.0% < 9.0%	44,779		4,124,986
9.0% < 10.0%	97,941		4,138,269
10.0% or greater	478,320		27,150,320
	$	2,007,287	$	51,308,622

Surrender Charge Expiration By Year:	Fixed and Fixed Index Annuities Account Value		Weighted Average Surrender Charge
Out of Surrender Charge	$	3,471,726	0.00	%
2020	641,060		2.55	%
2021	1,227,970		4.00	%
2022	1,756,414		5.11	%
2023	4,212,150		5.79	%
2024	5,245,596		7.83	%
2025	6,009,680		8.90	%
2026	5,295,574		10.51	%
2027	4,486,908		12.00	%
2028	4,769,910		12.90	%
2029	5,983,049		14.11	%
2030	2,915,290		16.44	%
2031	3,019,076		17.92	%
2032	2,055,425		18.36	%
2033	1,179,708		18.83	%
2034	687,182		19.31	%
2035	319,932		19.84	%
2036	39,259		20.00	%
	$	53,315,909	10.53	%

Page 11

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

Annuity Liability Characteristics

Credited Rate vs. Ultimate Minimum Guaranteed Rate Differential:	Fixed Annuities Account Value		Fixed Index Annuities Account Value
No differential	$	954,405	$	1,294,288
› 0.0% - 0.25%	49,679		159,787
› 0.25% - 0.5%	238,430		5,717
› 0.5% - 1.0%	34,406		11,992
› 1.0% - 1.5%	11,690		—
› 2.5% - 3.0%	23		—
1.00% ultimate guarantee - 2.37% wtd avg interest rate (a)	445,932		703,848
1.50% ultimate guarantee - 1.17% wtd avg interest rate (a)	143,905		3,336,922
1.75% ultimate guarantee - 1.96% wtd avg interest rate (a)	49,376		487,487
2.00% ultimate guarantee - 1.85% wtd avg interest rate (a)	79,441		—
2.25% ultimate guarantee - 1.80% wtd avg interest rate (a)	—		782,481
3.00% ultimate guarantee - 2.03% wtd avg interest rate (a)	—		1,508,495
Allocated to index strategies (see tables that follow)	—		43,017,605
	$	2,007,287	$	51,308,622

(a) The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy is 1.00%. The ultimate guaranteed rate is applied on less than 100% of the premium.

If all crediting rates were reduced to minimum guaranteed rates (subject to limitations imposed by ultimate minimum guaranteed rates where applicable) the weighted average crediting rate as of March 31, 2020 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.15%.

Page 12

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

Annuity Liability Characteristics

FIXED INDEX ANNUITIES ACCOUNT VALUE - INDEX STRATEGIES

Annual Monthly Average and Point-to-Point with Caps
	Minimum Guaranteed Cap
	1%		3%		4%		7%		8% +
Current Cap
At minimum	$	1,441	$	101,682	$	4,830,720	$	65,006	$	151,267
1.75% - 3%	8,391,960		—		—		—		—
3% - 4%	272,798		3,780		—		—		—
4% - 5%	832,438		217,207		1,539,010		—		—
5% - 6%	572,344		185,341		30,971		—		—
6% - 7%	—		—		419		—		—
>= 7%	10,924		6,534		697		5,647		—

Annual Monthly Average and Point-to-Point with Participation Rates
	Minimum Guaranteed Participation Rate
	10%		20% - 25%		35%		50% +
Current Participation Rate
At minimum	$	12,728	$	385,186	$	99,552	$	104,039
< 20%	842,383		—		—		—
20% - 40%	1,084,271		165,157		—		—
40% - 60%	3,286,370		95,700		58,161		—
60% - 100%	510,927		—		—		—
> 100%	451,373		—		—		—

S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum	$	1,962,439
1.10% - 1.30%	7,355,636
1.40% - 1.60%	2,149,738
1.70% - 2.00%	380,629
>= 2.10%	1,577

Volatility Control Index
Current Asset Fee
At Maximum	$	—
0.75% - 1.75%	399,738
2.25% - 2.75%	208,295
3.00% - 3.50%	2,776,372
3.75% - 5.00%	2,047,309

If all caps and participation rates were reduced to minimum caps and participation rates and current asset fees were increased to their maximums, the cost of options would decrease by 0.75% based upon prices of options for the week ended April 17, 2020.

Page 13

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

Summary of Invested Assets

	March 31, 2020				December 31, 2019
	Carrying Amount		Percent		Carrying Amount		Percent
Fixed maturity securities:
United States Government full faith and credit	$	39,248	0.1	%	$	161,765	0.3	%
United States Government sponsored agencies	338,561		0.6	%	625,020		1.1	%
United States municipalities, states and territories	3,765,163		7.2	%	4,527,671		7.9	%
Foreign government obligations	198,396		0.4	%	205,096		0.3	%
Corporate securities	31,135,319		59.8	%	32,536,839		57.2	%
Residential mortgage backed securities	1,765,033		3.4	%	1,575,664		2.8	%
Commercial mortgage backed securities	5,296,112		10.2	%	5,786,279		10.2	%
Other asset backed securities	5,167,035		9.9	%	6,162,156		10.8	%
Total fixed maturity securities	47,704,867		91.6	%	51,580,490		90.6	%
Mortgage loans on real estate	3,668,625		7.0	%	3,448,793		6.1	%
Derivative instruments	207,265		0.4	%	1,355,989		2.4	%
Other investments	497,598		1.0	%	492,301		0.9	%
	$	52,078,355	100.0	%	$	56,877,573	100.0	%

Credit Quality of Fixed Maturity Securities - March 31, 2020

NAIC Designation	Carrying Amount		Percent		Rating Agency Rating	Carrying Amount		Percent
1	$	27,739,779	58.2	%	Aaa/Aa/A	$	28,334,402	59.4	%
2	18,999,760		39.8	%	Baa	18,386,135		38.5	%
3	838,628		1.8	%	Ba	770,834		1.6	%
4	104,090		0.2	%	B	73,263		0.2	%
5	18,433		—	%	Caa	63,808		0.1	%
6	4,177		—	%	Ca and lower	76,425		0.2	%
	$	47,704,867	100.0	%		$	47,704,867	100.0	%

Watch List Securities - March 31, 2020

General Description	Amortized Cost		Allowance for Credit Losses			Amortized Cost, Net of Allowance		Unrealized Gains (Losses), Net of Allowance			Fair Value		Months Below Amortized Cost
Below investment grade
Corporate securities:
Energy	$	59,078	$	(28,332	)	$	30,746	$	(20,009	)	$	10,737	1 - 67
Other asset backed securities:
Financials	430		—			430		759			1,189		—
	$	59,508	$	(28,332	)	$	31,176	$	(19,250	)	$	11,926

Page 14

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector

	March 31, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale:
United States Government full faith and credit and sponsored agencies	$	330,223	$	377,809	$	763,164	$	786,785
United States municipalities, states and territories	3,357,142		3,765,163		4,147,343		4,527,671
Foreign government obligations	187,007		198,396		186,993		205,096
Corporate securities:
Capital goods	2,544,057		2,680,266		2,550,750		2,794,986
Consumer discretionary	6,132,996		6,516,325		6,082,974		6,658,120
Energy	2,684,838		2,337,328		2,499,030		2,677,646
Financials	6,696,595		7,046,008		6,737,325		7,323,150
Government non-guaranteed	539,422		585,723		539,639		606,308
Industrials	279,913		297,855		311,269		336,537
Information technology	1,836,085		1,980,470		1,868,131		2,051,175
Materials	1,813,196		1,862,854		1,818,048		1,961,033
Other	439,067		491,461		439,171		469,344
Telecommunications	1,486,265		1,597,736		1,510,836		1,664,350
Transportation	1,560,463		1,577,187		1,486,540		1,603,997
Utilities	3,866,623		4,162,106		3,978,459		4,390,193
Residential mortgage backed securities:
Government agency	607,480		696,014		591,100		646,787
Prime	971,183		961,342		793,357		815,916
Alt-A	92,803		107,677		93,281		112,961
Commercial mortgage backed securities:
Government agency	412,480		461,837		414,626		437,420
Non-agency	5,128,127		4,834,275		5,176,541		5,348,859
Other asset backed securities:
Auto	394,523		388,643		403,860		411,371
Energy	7,411		8,980		7,495		8,603
Financials	4,441		4,868		4,967		5,493
Industrials	146,984		136,083		167,466		171,273
Collateralized loan obligations	4,762,537		3,619,087		4,787,402		4,612,694
Military housing	469,816		528,335		471,621		539,029
Other	502,386		481,039		407,558		413,693
	$	47,254,063	$	47,704,867	$	48,238,946	$	51,580,490

Page 15

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Unaudited (Dollars in thousands)

Mortgage Loans on Commercial Real Estate

	March 31, 2020						December 31, 2019
	Principal			Percent			Principal		Percent
Geographic distribution
East	$	705,459		19.1		%	$	645,991	18.7	%
Middle Atlantic	290,232			7.9		%	284,597		8.2	%
Mountain	393,338			10.7		%	389,892		11.3	%
New England	11,284			0.3		%	9,152		0.3	%
Pacific	730,262			19.8		%	655,518		19.0	%
South Atlantic	809,663			21.9		%	751,199		21.7	%
West North Central	304,069			8.2		%	302,534		8.7	%
West South Central	444,995			12.1		%	420,031		12.1	%
	$	3,689,302		100.0		%	$	3,458,914	100.0	%
Property type distribution
Office	$	262,446		7.1		%	$	250,287	7.3	%
Medical Office	29,551			0.8		%	29,990		0.9	%
Retail	1,222,985			33.2		%	1,225,670		35.4	%
Industrial/Warehouse	938,104			25.4		%	896,558		25.9	%
Apartment	956,947			25.9		%	858,679		24.8	%
Agricultural	95,606			2.6		%	51,303		1.5	%
Mixed use/Other	183,663			5.0		%	146,427		4.2	%
	$	3,689,302		100.0		%	$	3,458,914	100.0	%
	March 31, 2020			December 31, 2019
Credit exposure - by payment activity
Performing	$	3,685,050		$	3,458,914
In workout	—			—
Delinquent	—			—
Collateral dependent	4,252			—
Principal outstanding	3,689,302			3,458,914
Deferred prepayment fees	(901		)	(942		)
Amortized cost	3,688,401			3,457,972
Valuation allowance	(19,776		)	(9,179		)
Carrying value	$	3,668,625		$	3,448,793

Page 16

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Shareholder Information

Corporate Offices:

American Equity Investment Life Holding Company

6000 Westown Parkway

West Des Moines, IA 50266

Inquiries:

Steven Schwartz, Vice President-Investor Relations

(515) 273-3763, sschwartz@american-equity.com

Common Stock and Dividend Information:

New York Stock Exchange symbol: “AEL”

	High	Low	Close	Dividend Declared
2020
First Quarter	$34.16	$9.07	$18.80	$0.00
2019
First Quarter	$33.57	$26.34	$27.02	$0.00
Second Quarter	$30.91	$25.84	$27.16	$0.00
Third Quarter	$27.80	$20.16	$24.20	$0.00
Fourth Quarter	$30.96	$21.75	$29.93	$0.30
2018
First Quarter	$35.79	$28.90	$29.36	$0.00
Second Quarter	$37.16	$27.06	$36.00	$0.00
Third Quarter	$38.57	$34.51	$35.36	$0.00
Fourth Quarter	$36.39	$25.27	$27.94	$0.28

Transfer Agent:

Computershare Trust Company, N.A.

P.O. Box 43010

Providence, RI 02940-0310

Phone: (877) 282-1169

Fax: (781) 575-2723

www.computershare.com

Annual Report and Other Information:

Shareholders may receive when available, without charge, a copy of American Equity’s Annual Report, SEC filings and/or press releases by calling Steven Schwartz, Vice President-Investor Relations, at (515) 273-3763 or by visiting our website at www.american-equity.com.

Page 17

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2020

Research Analyst Coverage

Erik Bass

Autonomous Research US LP

(646) 561-6248

ebass@autonomous.com

Randy Binner

B. Riley FBR, Inc.

(703) 312-1890

rbinner@fbr.com

Daniel Bergman

Citi Research

(212) 816-2132

daniel.bergman@citi.com

Thomas Gallagher

Evercore ISI

(212) 446-9439

thomas.gallagher@evercoreisi.com

Alex Scott

Goldman Sachs & Co. LLC

(917) 343-7160

alex.scott@gs.com

Pablo Singzon II

JP Morgan

(212) 622-2295

pablo.s.singzon@jpmorgan.com

Ryan Krueger

Keefe, Bruyette & Woods

(860) 722-5930

rkrueger@kbw.com

C. Gregory Peters

Raymond James & Associates, Inc.

(727) 567-1534

greg.peters@raymondjames.com

Mark A. Dwelle

RBC Capital Markets, LLC

(804) 782-4008

mark.dwelle@rbccm.com

John Barnidge

Piper Sandler & Co.

(312) 281-3412

John.Barnidge@psc.com

Mark Hughes

SunTrust Robinson Humphrey

(615) 748-4422

mark.hughes@suntrust.com

Page 18

EX-99.3

Investment Update 1Q 2020 Investments & Capital Update As of March 31, 2020

Forward Looking Statements The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. Certain information contained herein and certain oral statements made in reference thereto may be “forward-looking” in nature. Forward-looking statements relate to future operations, strategies, financial results or other developments, and are subject to assumptions, risks and uncertainties. Statements such as “guidance”, “expect”, “anticipate”, “believe”, “goal”, “objective”, “target”, “may”, “should”, “estimate”, “projects” or similar words as well as specific projections of future results qualify as forward-looking statements. Factors that may cause our actual results to differ materially from those contemplated by these forward looking statements include, but are not limited to, the effects of the COVID-19 virus on economic conditions and the financial markets and the resulting effect on American Equity Investment Life Holding Company’s (“AEL”) investment portfolio, expected future operating results, liquidity and capital resources. Resiliency analysis and stress testing include methodologies, estimates, models and assumptions, the actual results of which could vary from those contained herein impacting the performance of our investment portfolio. For a discussion of the other risks and uncertainties related to AEL’s forward-looking statements, see the company’s annual report on Form 10-K for the year-ended December 31, 2019 and its other filings, which can be found on the SEC’s website www.sec.gov. Forward-looking statements speak only as of the date the statement was made and the company undertakes no obligation to update such forward-looking statements. There can be no assurance that other factors not currently anticipated by the company will not materially and adversely affect our results of operations. Investors are cautioned not to place undue reliance on any forward-looking statements made by us or on our behalf. Disclaimer This presentation does not constitute an offer to sell, or the solicitation of any offer to buy, any security of AEL. Information contained herein may include information respecting prior performance of AEL. Information respecting prior performance, while a useful tool, is not necessarily indicative of actual results to be achieved in the future, which is dependent upon many factors, many of which are beyond AEL’s control. The information contained herein is not a guarantee of future performance by AEL, and actual outcomes and results may differ materially from any historic or projected resiliency analysis, stress testing, or financial results indicated herein. Certain financial information is based on estimates of management. These estimates, which are based on the reasonable expectations of management, are subject to change and there can be no assurance that they will prove to be correct, particularly because of the heightened uncertainty in the global financial markets and on our business from the effects of the spread of the COVID-19 virus. The information contained herein does not purport to be all-inclusive or contain all information that an evaluator may require in order to properly evaluate the business, prospects or value of AEL. AEL does not have any obligation to update this presentation and the information may change without notice. Certain of the information used in this presentation was obtained from third parties or public sources. No representation or warranty, express or implied, is made or given by or on behalf of AEL or any other party as to the accuracy, completeness or fairness of such information, and no responsibility or liability is accepted for any such information. This document is not intended to be, nor should it be construed or used as, financial, legal, tax, insurance or investment advice. There can be no assurance that AEL will achieve its objectives. Past performance is not indicative of future results. All information is as of the dates indicated herein. 2

Conservative High Quality Investment Portfolio Sector Allocation Credit Quality $52 Billion Investment Portfolio Other 2% CMBS 10% Mortgage Residential MBS Loans 7% NAIC 1 3% Corporates 58% Cash & NAIC 2 58% Equivalents 40% 3% Government and related 8% CLO 9% NAIC 3 and below 2% • Well-diversified by sector and issuer • High-quality investment portfolio • Traditional corporate credit & structured • 98% NAIC 2 (BBB) or better securities • 58% NAIC 1 (A or better) • Highly liquid (11% cash & equivalents and • A- average credit quality Govt & related) 3

Corporate Credit Overview Sector Allocation Credit Quality $28.9B or 58% of Invested Assets Brokerage/Asset Natural Gas, 2% B & Below Managers/Exchanges, 0% 2% Other, BB AAA Owned, No Guarantee, 2% AA 4% BBB- 9% 2% 3% 8% Consumer, Non- Cyclical, 13% Transportation, 5% REITs, 5% Capital Goods, 9% BBB 22% Communications, 5% Energy, 9% A 37% Banking, 5% Insurance, 8% Technology 6% Basics, 6% BBB+ Consumer Electric, 10% 20% Cyclical, 7% • Substantial net unrealized gains of $1.2B as • Exceptional credit quality supported by 98% of March 31, 2020 investment grade securities • Disciplined credit review process • Average corporate portfolio credit rating of A- • Broadly diversified across credit sectors • BBB- represent only 9% of corporate holdings 4

Corporate Credit: Energy Overview Composition by Sub-Sector $2.5B or 4.8% of Invested Assets • Low risk sub-sectors include midstream, integrated majors and refiners (68% of position or $1.7B) Oil Field • Midstream: Supported by stable, long term Services, 15% contracts and cost competitive, difficult to replace assets • Integrated Majors & Refiners: business model has lower risks of margin sensitivity Midstream, and cash flow volatility Independent, 16% 45% • Elevated risk in sub-sector of Oil Field Service: Oil Drillers $56M diversified across 7 issuers Refining, • Impaired by $68m over past few quarters 6% • Average carrying value of 45 cents on the dollar (of par) Integrated, 18% 5

Corporate Credit: Retail/Lodging & Leisure Retail Lodging & Leisure $862M or 1.7% of Invested Assets Royal Carribean Dept Stores/ Retail - 10% Tier 3, 16% Marriott 21% Examples Nordstrom Kohls Brand/ Big Box - Macy Tier 1, 54% Carnival Corp 16% Consumer Discretionary - Tier 2, Hyatt Hotels 7% 30% Examples Nike Tampa Bay Arena Examples Walmart 4% Family Dollar Costco Walgreens Target Int'l Speedway 8% O'Reilly Auto Parts Lowes Advanced Auto Home Depot Ross Stores Amazon Clark County LV Stadium 35% • Retail represents $718M or 1.4% of invested • Lodging and Leisure represents $144M or 0.3% of assets invested assets • Predominantly focused on strong retail • Seven holdings in total brands and e-commerce enabled credits • Multiple credits have recently placed debt and/or equity offerings indicating access to capital markets 6

Corporate Credit: Aircraft/Lessors/Commercial Aerospace NAIC Ratings By Exposure Type $574M or 1.1% of Invested Assets NAIC 3 6% Commercial Aerospace 44% Airline NAIC 2 NAIC 1 38% 56% EETC’s* 56% *Enhanced Equipment Trust Certificates • Airline EETC’s collateralized by relatively young narrow and wide-body aircraft • No unsecured exposure to airlines • Commercial aerospace exposures reside with critical aircraft and engine manufacturers 7

CLO Overview Ratings Profile Structural Enhancements $4.8B or 9% of Invested Assets • All positions are CLO vintage 3.0 (post Great AA BB Financial Crisis – “GFC”); superior structure design 4% 8% • Limits non-loan collateral (No structured or HY bonds) A • Shorter cash reinvestment period 33% • Higher first lien loan requirements BBB • Higher par coverage support/ subordination across all 55% tranches pre versus post crisis: • AAA : 24% to 35+% • AA: 19% to 24% • A : 13% to 19% • BBB: 9% to 13% • All rated by either Moody’s or S&P • 98% First Lien • 97% Broadly syndicated loans 8

CLO: Well Diversified Underlying Collateral Well Diversified Underlying Collateral Top 10 industries represent approximately 73% of the portfolio with low exposure to COVID-19 sectors Below-average exposure to several industries most vulnerable to COVID-19 shock 9

CLO: Manager Selection & Diversification AEL approved managers experienced defaults 64% below the market from 1999-2017 Default Performance 12% 10% 8% 6% 4% 2% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 *Credit Suisse Leveraged Loan Default Rate AEL Approved Managers Market* • Approximately 130 active US CLO managers, AEL’s selected managers are in the top 1/3 in default performance 10

CLO: Collateral Composition Moody’s Facility Rating 40% 35% 30% 25% 20% 15% 10% 5% 0% Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Ca C NR Source: JP Morgan as of 4/13/2020 American Equity JP Morgan Loan Index • AEL maintains an up-in-quality collateral bias 11

CLO: Resiliency Analysis No expected permanent credit losses in a more severe peak default scenario than the GFC • No modeled permanent credit loss CLO Portfolio Peak Annual Minimum Book Value even if peak defaults are 25% higher Scenario Impairment % Default Rate Recovery Rate Loss than GFC (9.6% default with ~40% Great Financial Crisis (GFC) 0.0% 9.6% 43.2% $0 recoveries) 110% of GFC with depressed recoveries 0.0% 10.6% 38.2% $0 • No modeled loss to the rated BBB or 125% of GFC 0.0% 12.0% 43.2% $0 higher even if peak defaults are 75% 175% of GFC BBB 0.0% 16.8% 43.2% $0 higher than GFC (16.8% peak annual BB 100.0% 16.8% 43.2% $389M defaults) Great Financial Crisis - Defaults* Great Financial Crisis - Recoveries* 12% 80% 10% 60% 8% 40% 6% 20% 4% 2% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Market Recovery Rate Market Default Rate 125% Market Default Rate *Source: Credit Suisse Leveraged Loans Index 12

Non-Agency CMBS Overview $5.1B or 9.8% of Invested Assets Property Type Ratings Distribution Securitization Type BB 0% BBB Other 8% Conduit A 75% Industrial 4% 15% 38% AAA Retail 35% 13% Multi-Family 10% Lodging 10% Single Asset AA Single Borrower 41% Office 25% (SASB) Agency - Non- 23% Guaranteed 2% • All fixed rate transactions issued after the GFC • Average credit quality – A+ • Diversified portfolio: 13,823 loans on 23,390 properties 13

Non-Agency CMBS: Single Asset Single Borrower (SASB) SASB Office: $493 Million . Gateway Markets . Strong Demographics . High Quality Tenants . Institutional Ownership LTV: 50.9% DSCR: 2.29x Viacom/CBS Headquarters Time Square Google Office Campus Madison Avenue – Jeffries Global HQ Manhattan - Colgate Palmolive Global HQ SASB Retail: $517 Million . Strong Demographics . High Inline Sales . Institutional Ownership LTV: 55.7% DSCR: 2.40x Mall of America Queens Center, Brooklyn NY Mall Willowbrook Mall, 20 miles West of Midtown Fashion Show Mall - Vegas Green Street rates malls on a scale from A++ (highest) to C- (lowest) 14

Non-Agency CMBS: Lodging & Retail Lodging: $529 Million Retail: $1.7 Billion Drug Store 3% Single Tenant Extended Stay 7% 17% Urban / Street Retail Full Service 10% Mall 41% 43% Community Shopping/Power Center * Limited Service 18% 42% Neighborhood / Convenience Centers 19% LTV: 62.8% DSCR: 2.01x LTV: 60.6% DSCR: 1.97x * includes Outlet and Lifestyle Centers • No exposure to single-asset lodging • Diversified exposure to retail assets or hotel deals • Nearly 60% of the mall exposure is within • Diversified consumer price point and Single Asset Single Borrower (SASB) lodging type transactions on traditionally high-quality, top-tier malls 15

Non-Agency CMBS: Disciplined Investment Process Lower refinancing risks in 2020-2021 and low exposure to interest-only vintages Lower Exposure to Issuance Years with Higher Interest Only Levels CMBS Principal Paydown Schedule 25.0% 100% 91% $1,200,000,000 83% 90% 78% 20.0% 75% 80% $1,000,000,000 67% 67% 64% 70% $800,000,000 15.0% 60% Market Conduit 50% - AEL Allocation 50% $600,000,000 34% 10.0% Total Interest Only 40% $400,000,000 25% 30% 5.0% 13% 20% $200,000,000 AEL allocation by Issuance Year Issuance by allocation AEL 10% 0.0% 0% $- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ Avg Interest Only Exposure Only Interest Avg * Total Interest Only includes full term and partial term IO loans As underwriting quality weakened in conduit Less than $200 million in CMBS paydowns by lending standards, AEL reduced its purchases in year end 2021 will allow more time for a market new issue securitizations recovery before loan maturities begin 16

CMBS: Higher Credit Enhancements Credit Enhancement: American Equity Conduit CMBS vs Universe Average 30.00 AEL Universe 25.00 20.00 15.00 10.00 5.00 0.00 AAA AA A BBB BB • AEL has higher credit enhancement • A disciplined investment process is across all rating categories demonstrated through stronger collateral performance 17

Non-Agency CMBS: Resiliency Analysis Minimal expected losses • Modeled life time losses - 0.9 -1.2% of holdings Conduit American Equity Conduit • Under the GFC scenario with 50% loss severity- Universe Portfolio $46m of loss % of Trust Trust Impairment CMBS • Additional severe stress for retail & lodging Scenario Losses Losses Estimate Portfolio Great Financial Crisis sectors to represent COVID-19 situation, 8.91% 8.47% 46,454,707 0.89% produces an incremental $14m loss (total: $60m) Default w/ 50% Severity Covid Stress (Retail & • Severe stress to underlying Lodging and Retail Lodging) / Great Financial 9.44% 8.89% 60,280,455 1.16% property cash flows, declining by 60% and 30% Crisis with 50% Severity for respectively, with recovery over 18+ months others Great Financial Crisis* - Default Curve COVID-19 Stress Curves Steep declines in NCF followed by 18 Month Recovery 10.00% 120% 9.00% 100% 8.00% 95% 7.00% 80% 6.00% 37% Cumulative Defaults 50% Loss Severity 5.00% 60% 4.00% Hotel - 60% NCF Decline 40% 3.00% Retail - 30% NCF Decline 2.00% 20% 1.00% Annual RealizedAnnual Default Rate 0% 0.00% % Change of Net Cash Flow (NCF) 0 1 2 3 4 1 2 3 4 5 6 7 8 9 10 11+ Years post NCF decline Years * Performance based on actual realized defaults from the cohort of conduit CMBS issued during 2007. This cohort recorded the highest level of defaults. 18

Commercial Mortgage Loan Overview Property Type NAIC Ratings $3.6B or 6.9% of Invested Assets Multi-Family Properties 26% Office/Medical CM2 Office 8% 19% Self Industrial/Warehouse Storage, 26% MHP, AG 6% CM1 81% Strip Retail 29% Grocery Anchored Retail 5% • 793 first mortgage loans, average loan size • Geographically well-diversified $4.3 million • Undervalued portfolio strength, only 8% in office • Weighted average portfolio: 59% LTV and 1.87x portfolio DSC ratio • Retail concentration down from 39% to 34% over last 3 years • Per NAIC CM ratings: 81% rated CM1 and 19% rated CM2 • No exposure to hotels, malls or leisure-related • Per internal ratings: 95% of portfolio rated 1 or properties 2 on a scale of 1 to 5 with 1 being highest 19

Commercial Mortgage Loan: Portfolio Performance Historical Losses $18,000,000 $16,000,000 .59% .49% $14,000,000 $12,000,000 .37% $10,000,000 .37% $8,000,000 $6,000,000 .20% .16% $4,000,000 .08% .05% $2,000,000 .03% $- • Cumulative losses over 20-year - less than $70 million • Peak loss in any one year following the GFC : $15 million or 59 basis points • Proven process for strong underwriting and risk management 20

Commercial Mortgage Loan: Resiliency Analysis Strip Retail with Anchor Universe: • 269 loans totaling $1.07B • Average loan size of $4M, weighted average LTV 60% • Weighted average DSC ratio of 1.79x • 47% of strip retail rated 1 and 51% rated 2, per internal rating system Stress Scenario definition: • Decreasing all retail properties revenues (net operating income) immediately by 30% flat (no recovery in the year) Result: Highlights “most exposed” loans without indicating any imminent permanent credit loss • 58 loans with an aggregate balance of $238M - DSC ratio of less than 1.0x • Indicates areas of potentially heightened exposure which may require borrower assistance or reworking of loan terms (no immediate permanent credit loss expectation) • If we applied a 7% cap rate to this stressed NOI - 15 loans totaling $113 million would have both a DSC ratio of less than 1.0x and over 100% LTV, with a combined collateral shortfall of $12 million 21

Capital Sensitivity to Adverse Recessionary Scenario 12-18 month economic recession consistent with the Federal Reserve CCAR stress test March 31, 2020 Pro Forma Estimated Risk- Based Capital (RBC) Ratio 396% Modeled Credit Losses ~ 25% Modeled Ratings Migration ~ 50% Net Risk-Based Capital Ratio1 ~ 320% 1. Excludes retained earnings or other management actions over the modeled period 22

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Cover Page	May 06, 2020
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	May 06, 2020
Entity Registrant Name	AMERICAN EQUITY INVESTMENT LIFE HOLDING CO
Entity Incorporation, State or Country Code	IA
Entity File Number	001-31911
Entity Tax Identification Number	42-1447959
Entity Address, Address Line One	6000 Westown Parkway
Entity Address, City or Town	West Des Moines
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	50266
City Area Code	515
Local Phone Number	221-0002
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001039828
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, par value $1
Trading Symbol	AEL
Security Exchange Name	NYSE
Series A Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A
Trading Symbol	AELPRA
Security Exchange Name	NYSE