EX-99.2 3 a2021-06x30ex992.htm FINANCIAL SUPPLEMENT Document

Exhibit 99.2



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement

June 30, 2021

A.Financial Highlights
Non-GAAP Financial Measures
B.Product Summary
C.Investment Summary
D.
E.





AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2021December 31, 2020 (a)
Assets
Investments:
Fixed maturity securities, available for sale, at fair value$46,659,256 $47,538,893 
Mortgage loans on real estate4,299,945 4,165,489 
Real estate258,237 — 
Derivative instruments1,459,965 1,310,954 
Other investments962,305 590,078 
Total investments53,639,708 53,605,414 
Cash and cash equivalents11,524,265 9,095,522 
Coinsurance deposits4,441,950 4,844,927 
Accrued investment income397,393 398,082 
Deferred policy acquisition costs2,310,931 2,225,199 
Deferred sales inducements1,466,217 1,448,375 
Income taxes recoverable41,019 862 
Other assets60,816 70,198 
Total assets$73,882,299 $71,688,579 
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves$64,555,597 $62,352,882 
Other policy funds and contract claims233,987 240,904 
Notes payable495,955 495,668 
Subordinated debentures78,264 78,112 
Deferred income taxes483,631 504,000 
Other liabilities1,739,130 1,668,025 
Total liabilities67,586,564 65,339,591 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 12 
Common stock92,554 95,721 
Additional paid-in capital1,604,535 1,681,127 
Accumulated other comprehensive income2,023,911 2,203,557 
Retained earnings2,574,707 2,368,555 
Total stockholders' equity6,295,735 6,348,988 
Total liabilities and stockholders' equity$73,882,299 $71,688,579 
(a)The December 31, 2020 balance sheet includes reclassifications from previously reported amounts for the correction of an immaterial error in the calculation of the impact of unrealized gains and losses on lifetime income benefit reserves which was determined in the first quarter of 2021. This is reflected in deferred policy acquisition costs, deferred sales inducements, policy benefit reserves, deferred income taxes and accumulated other comprehensive income


Page 1



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2021202020212020
Revenues:
Premiums and other considerations$14,595 $11,032 $27,808 $18,696 
Annuity product charges63,759 63,438 123,841 122,987 
Net investment income499,320 543,704 996,510 1,117,022 
Change in fair value of derivatives500,880 327,662 897,185 (614,212)
Net realized losses on investments(3,114)(25,888)(7,697)(46,224)
Loss on extinguishment of debt— — — (2,024)
Total revenues1,075,440 919,948 2,037,647 596,245 
Benefits and expenses:
Insurance policy benefits and change in future policy benefits15,828 13,331 32,252 23,403 
Interest sensitive and index product benefits812,981 240,992 1,289,576 641,211 
Amortization of deferred sales inducements(12,520)(75,178)110,455 (1,587)
Change in fair value of embedded derivatives273,713 1,126,935 (8,700)(123,126)
Interest expense on notes payable6,394 6,388 12,787 12,773 
Interest expense on subordinated debentures1,326 1,321 2,652 2,909 
Amortization of deferred policy acquisition costs(16,906)(119,889)186,917 813 
Other operating costs and expenses65,050 41,951 120,915 85,577 
Total benefits and expenses1,145,866 1,235,851 1,746,854 641,973 
Income (loss) before income taxes(70,426)(315,903)290,793 (45,728)
Income tax expense (benefit)(15,732)(68,474)62,803 (41,246)
Net income (loss)(54,694)(247,429)227,990 (4,482)
Less: Preferred stock dividends10,919 5,950 21,838 12,561 
Net income (loss) available to common stockholders$(65,613)$(253,379)$206,152 $(17,043)
Earnings (loss) per common share$(0.69)$(2.76)$2.16 $(0.19)
Earnings (loss) per common share - assuming dilution$(0.69)$(2.76)$2.15 $(0.19)
Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share94,801 91,803 95,265 91,724 
Earnings (loss) per common share - assuming dilution95,379 92,027 95,795 92,024 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
Revenues:
Traditional life insurance premiums$708 $706 $701 $708 $722 
Life contingent immediate annuity considerations13,887 12,507 9,578 9,699 10,310 
Surrender charges18,057 19,481 17,009 16,447 19,390 
Lifetime income benefit rider fees45,702 40,601 48,954 45,830 44,048 
Net investment income499,320 497,190 521,725 543,331 543,704 
Change in fair value of derivatives500,880 396,305 443,867 205,011 327,662 
Net realized losses on investments(3,114)(4,583)(12,135)(22,321)(25,888)
Total revenues1,075,440 962,207 1,029,699 798,705 919,948 
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits
502 1,049 1,091 655 702 
Life contingent immediate annuity benefits and change in future policy benefits
15,326 15,375 11,975 12,618 12,629 
Interest sensitive and index product benefits (a)812,981 476,595 325,912 576,147 240,992 
Amortization of deferred sales inducements (b)(d)(12,520)122,975 22,768 416,983 (75,178)
Change in fair value of embedded derivatives (c)(d)273,713 (282,413)568,836 (1,732,497)1,126,935 
Interest expense on notes payable6,394 6,393 6,391 6,388 6,388 
Interest expense on subordinated debentures1,326 1,326 1,325 1,323 1,321 
Amortization of deferred policy acquisition costs (b)(d)(16,906)203,823 26,145 622,596 (119,889)
Other operating costs and expenses65,050 55,865 55,321 42,738 41,951 
Total benefits and expenses1,145,866 600,988 1,019,764 (53,049)1,235,851 
Income (loss) before income taxes(70,426)361,219 9,935 851,754 (315,903)
Income tax expense (benefit)(15,732)78,535 1,193 184,554 (68,474)
Net income (loss) (a)(b)(c)(d)(54,694)282,684 8,742 667,200 (247,429)
Less: Preferred stock dividends10,919 10,919 15,004 5,950 5,950 
Net income (loss) available to common stockholders (a)(b)(c)(d)$(65,613)$271,765 $(6,262)$661,250 $(253,379)
Earnings (loss) per common share$(0.69)$2.84 $(0.07)$7.20 $(2.76)
Earnings (loss) per common share - assuming dilution (a)(b)(c)(d)$(0.69)$2.82 $(0.07)$7.17 $(2.76)
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share94,801 95,735 92,904 91,861 91,803 
Earnings (loss) per common share - assuming dilution95,379 96,216 93,352 92,163 92,027 
(a)Q3 2020 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $285.8 million and decreased both net income and net income available to common stockholders by $224.4 million and decreased earnings per common share - assuming dilution by $2.44 per share.
(b)Q3 2020 includes expense from the revision of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $391.4 million and $589.2 million, respectively, and decreased both net income and net income available to common stockholders by $769.8 million and decreased earnings per common share - assuming dilution by $8.35 per share.
(c)Q3 2020 includes a benefit from the revision of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact decreased change in fair value of embedded derivatives by $2,111.1 million and increased both net income and net income available to common stockholders by $1,657.2 million and increased earnings per common share - assuming dilution by $17.98 per share.
(d)Q2 2020 includes a benefit from the revision of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact decreased change in fair value of embedded derivatives by $230.1 million, increased amortization of deferred sales inducements and deferred policy acquisition costs by $36.7 million and $57.6 million, respectively, and decreased both net loss and net loss available to common stockholders by $106.5 million and reduced loss per common share - assuming dilution by $1.16 per share.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
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 and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2021202020212020
Net income (loss) available to common stockholders$(65,613)$(253,379)$206,152 $(17,043)
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses2,912 18,492 6,428 34,841 
Change in fair value of derivatives and embedded derivatives - fixed index annuities200,767 423,590 (96,867)303,136 
Change in fair value of derivatives - interest rate caps and swap— — — (848)
Income taxes(44,278)(95,599)19,516 (72,897)
Non-GAAP operating income available to common stockholders93,788 93,104 135,229 247,189 
Impact of notable items (b)— — — (30,778)
Non-GAAP operating income available to common stockholders, excluding notable items$93,788 $93,104 $135,229 $216,411 
Per common share - assuming dilution:
Net income (loss) available to common stockholders$(0.69)$(2.76)$2.15 $(0.19)
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Anti-dilutive effect of net loss— 0.01 — — 
Net realized gains/losses on financial assets, including credit losses0.03 0.20 0.07 0.38 
Change in fair value of derivatives and embedded derivatives - fixed index annuities2.10 4.60 (1.01)3.30 
Change in fair value of derivatives - interest rate caps and swap— — — (0.01)
Income taxes(0.46)(1.04)0.20 (0.79)
Non-GAAP operating income available to common stockholders0.98 1.01 1.41 2.69 
Impact of notable items— — — (0.33)
Non-GAAP operating income available to common stockholders, excluding notable items$0.98 $1.01 $1.41 $2.36 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands, except per share data)

Notable Items
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2021202020212020
Notable items impacting non-GAAP operating income available to common stockholders:
Tax benefit related to the CARES Act$— $— $— $(30,778)
Total notable items (b)$— $— $— $(30,778)
(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) and accretion of lifetime income benefit rider (LIBR) reserves where applicable.
(b)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items include the impact from actuarial assumption updates, certain initial uncapitalized costs to establish the AEL 2.0 strategy, and initial non-deferred impacts related to reinsurance transactions. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2021202020212020
Net realized gains/losses on financial assets, including credit losses:
Net realized gains/losses on financial assets, including credit losses$2,862 $25,276 $7,589 $46,933 
Amortization of DAC and DSI and accretion of LIBR reserves50 (6,784)(1,161)(12,092)
Income taxes(626)(3,995)(1,382)(7,526)
$2,286 $14,497 $5,046 $27,315 
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities$331,268 $713,446 $(162,531)$503,555 
Interest rate caps and swap— — — (848)
Amortization of DAC and DSI(130,501)(289,856)65,664 (200,419)
Income taxes(43,652)(91,604)20,898 (65,371)
$157,115 $331,986 $(75,969)$236,917 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
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 (Loss) Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
Net income (loss) available to common stockholders$(65,613)$271,765 $(6,262)$661,250 $(253,379)
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses2,912 3,516 9,369 15,145 18,492 
Change in fair value of derivatives and embedded derivatives -
fixed index annuities
200,767 (297,634)90,616 (1,176,909)423,590 
Income taxes(44,278)63,794 (21,996)250,701 (95,599)
Non-GAAP operating income (loss) available to common stockholders (b)(c)93,788 41,441 71,727 (249,813)93,104 
Impact of notable items (d)— — — 340,895 — 
Non-GAAP operating income available to common stockholders, excluding notable items$93,788 $41,441 $71,727 $91,082 $93,104 
Per common share - assuming dilution:
Net income (loss) available to common stockholders$(0.69)$2.82 $(0.07)$7.17 $(2.76)
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders:
Anti-dilutive effect of net loss— — — — 0.01 
Anti-dilutive effect of operating loss— — — 0.01 — 
Net realized gains/losses on financial assets, including credit losses0.03 0.04 0.10 0.16 0.20 
Change in fair value of derivatives and embedded derivatives - fixed index annuities
2.10 (3.09)0.97 (12.77)4.60 
Income taxes(0.46)0.66 (0.23)2.71 (1.04)
Non-GAAP operating income (loss) available to common stockholders (b)(c)0.98 0.43 0.77 (2.72)1.01 
Impact of notable items— — — 3.70 — 
Non-GAAP operating income available to common stockholders, excluding notable items$0.98 $0.43 $0.77 $0.98 $1.01 
Notable Items
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
Notable items impacting non-GAAP operating income (loss) available to common stockholders:
Impact of actuarial assumption updates (c)(d)$— $— $— $340,895 $— 
Total notable items (b)$— $— $— $340,895 $— 
(a)Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income (loss) available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and accretion of lifetime income benefit rider (LIBR) reserves where applicable.
(b)Q3 2020 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $285.8 million and increased non-GAAP operating loss available to common stockholders and non-GAAP operating loss available to common stockholders per common share - assuming dilution by $224.4 million and $2.44 per share, respectively.
(c)Q3 2020 includes expense from the revision of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $57.5 million and $91.0 million, respectively, and increased non-GAAP operating loss available to common stockholders and non-GAAP operating loss available to common stockholders per common share - assuming dilution by $116.5 million and $1.26 per share, respectively.
(d)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items include the impact from actuarial assumption updates, certain initial uncapitalized costs to establish the AEL 2.0 strategy, and initial non-deferred impacts related to reinsurance transactions. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
Net realized losses on investments$3,114 $4,583 $12,135 $22,321 $25,888 
Change in fair value of derivatives57,555 (211,387)(416,450)(203,088)(413,489)
Increase (decrease) in total revenues60,669 (206,804)(404,315)(180,767)(387,601)
Amortization of deferred sales inducements52,074 (69,788)22,785 (303,710)115,511 
Change in fair value of embedded derivatives(273,713)282,413 (568,836)1,732,497 (1,126,935)
Interest sensitive and index product benefits (a)227 (145)761 1,298 612 
Amortization of deferred policy acquisition costs78,402 (125,166)40,990 (449,088)181,129 
Increase (decrease) in total benefits and expenses(143,010)87,314 (504,300)980,997 (829,683)
Increase in income (loss) before income taxes203,679 (294,118)99,985 (1,161,764)442,082 
Increase (decrease) in income tax expense (benefit)44,278 (63,794)21,996 (250,701)95,599 
Increase (decrease) in net income (loss) available to common stockholders$159,401 $(230,324)$77,989 $(911,063)$346,483 
(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.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
Capitalization:
Notes payable$500,000 $500,000 $500,000 $500,000 $500,000 
Subordinated debentures payable to subsidiary trusts78,264 78,187 78,112 78,037 77,964 
Total debt
578,264 578,187 578,112 578,037 577,964 
Total stockholders’ equity (a)
6,295,735 5,928,760 6,348,988 5,918,216 4,919,689 
Total capitalization (a)
6,873,999 6,506,947 6,927,100 6,496,253 5,497,653 
Accumulated other comprehensive income (AOCI) (a)(2,023,911)(1,505,260)(2,203,557)(1,911,593)(1,577,469)
Total capitalization excluding AOCI (b)
$4,850,088 $5,001,687 $4,723,543 $4,584,660 $3,920,184 
Total stockholders’ equity (a)
$6,295,735 $5,928,760 $6,348,988 $5,918,216 $4,919,689 
Equity available to preferred stockholders (c)(700,000)(700,000)(700,000)(700,000)(700,000)
Total common stockholders' equity (a)(d)
5,595,735 5,228,760 5,648,988 5,218,216 4,219,689 
Accumulated other comprehensive income (a)(2,023,911)(1,505,260)(2,203,557)(1,911,593)(1,577,469)
Total common stockholders’ equity excluding AOCI (d)
3,571,824 3,723,500 3,445,431 3,306,623 2,642,220 
Net impact of fair value accounting for derivatives and embedded derivatives
(242,423)(399,538)(166,453)(237,099)685,839 
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (d)
$3,329,401 $3,323,962 $3,278,978 $3,069,524 $3,328,059 
Common shares outstanding92,553,825 95,482,733 95,720,622 91,931,837 91,595,066 
Book Value per Common Share: (e)
Book value per common share (a)$60.46 $54.76 $59.02 $56.76 $46.07 
Book value per common share excluding AOCI (d)$38.59 $39.00 $35.99 $35.97 $28.85 
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (d)$35.97 $34.81 $34.26 $33.39 $36.33 
Debt-to-Capital Ratios: (f)
Senior debt / Total capitalization10.3 %10.0 %10.6 %10.9 %12.8 %
Total debt / Total capitalization11.9 %11.6 %12.2 %12.6 %14.7 %
(a)Q2 2020 through Q4 2020 include the impact of a correction of an immaterial error in the calculation of the impact of unrealized gains and losses on lifetime income benefit reserves which was determined in Q1 2021. This had the impact of reducing AOCI as of December 31, 2020 by $225.7 million and decreased book value per common share by $2.35 compared to amounts previously reported.
(b)Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.
(c)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(d)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, 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.
(e)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.
(f)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands)

Spread Results
Six Months Ended 
 June 30,
20212020Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
3.54%4.24%Average yield on invested assets3.51%3.58%3.88%4.10%4.12%
1.57%1.73%Aggregate cost of money1.56%1.58%1.63%1.66%1.73%
1.97%2.51%Aggregate investment spread1.95%2.00%2.25%2.44%2.39%
Impact of:
0.11%0.04%
Investment yield - additional prepayment income
0.10%0.11%0.11%0.10%0.03%
0.03%0.02%Cost of money effect of over (under) hedging0.04%0.02%0.01%0.03%(0.01)%
$56,352,021$52,762,227Weighted average investments$56,991,393$55,712,648$53,836,378$53,024,798$52,901,215
57,144,56352,963,914Ending investments57,144,56356,838,22454,587,07253,085,68352,963,914
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
Six Months Ended 
 June 30,
20212020Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
Included in interest sensitive and index product benefits:
$1,060,028 $376,815 Index credits$714,291 $345,737 $195,927 $174,747 $97,875 
119,114 95,541 Interest credited62,637 56,477 49,551 47,376 46,594 
Included in change in fair value of derivatives:
(1,069,593)(382,278)Proceeds received at option expiration(720,474)(349,119)(197,921)(178,405)(97,015)
326,354 369,871 Pro rata amortization of option cost162,124 164,230 170,505 176,481 182,841 
$435,903 $459,949 Cost of money for deferred annuities$218,578 $217,325 $218,062 $220,199 $230,295 
$55,578,458 $53,244,580 
Weighted average liability balance outstanding
$56,221,809 $54,935,106 $53,531,441 $53,059,376 $53,214,255 
Page 9



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2020
Unaudited (Dollars in thousands, except per share data)

Annuity Account Balance Rollforward
Six Months Ended 
 June 30,
20212020Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
$54,056,725 $53,233,898 Account balances at beginning of period$55,813,480 $54,056,725 $53,006,150 $53,112,600 $53,315,909 
3,578,854 1,224,778 Net deposits1,161,125 2,417,729 1,830,816 557,675 543,026 
49,663 47,262 Premium bonuses24,813 24,850 25,143 21,205 22,710 
1,179,142 472,356 Fixed interest credited and index credits776,928 402,214 245,478 222,123 144,469 
(37,538)(39,095)Surrender charges(18,057)(19,481)(17,009)(16,447)(19,390)
(86,303)(83,892)Lifetime income benefit rider fees(45,702)(40,601)(48,954)(45,830)(44,048)
(2,110,405)(1,742,707)Surrenders, withdrawals, deaths, etc.(1,082,449)(1,027,956)(984,899)(845,176)(850,076)
$56,630,138 $53,112,600 Account balances at end of period$56,630,138 $55,813,480 $54,056,725 $53,006,150 $53,112,600 
$2,007,394 $1,467,811 Lifetime income benefit rider reserves, excluding unrealized gain/loss adjustment$2,007,394 $1,973,223 $1,900,487 $1,821,169 $1,467,811 
Annuity Deposits by Product Type
Six Months Ended 
 June 30,
20212020Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
American Equity Life:
$1,219,600 $1,058,962 Fixed index annuities$702,605 $516,995 $500,495 $432,602 $472,899 
3,823 4,647 Annual reset fixed rate annuities1,656 2,167 1,664 1,817 2,316 
834,866 452 Multi-year fixed rate annuities47,674 787,192 394,999 531 83 
29,389 15,482 Single premium immediate annuities15,430 13,959 7,774 10,205 10,084 
2,087,678 1,079,543 767,365 1,320,313 904,932 445,155 485,382 
Eagle Life:
333,356 178,873 Fixed index annuities184,520 148,836 106,170 60,476 72,371 
337 58 Annual reset fixed rate annuities175 162 — 39 17 
1,193,622 5,180 Multi-year fixed rate annuities228,197 965,425 833,765 68,206 1,031 
1,527,315 184,111 412,892 1,114,423 939,935 128,721 73,419 
Consolidated:
1,552,956 1,237,835 Fixed index annuities887,125 665,831 606,665 493,078 545,270 
4,160 4,705 Annual reset fixed rate annuities1,831 2,329 1,664 1,856 2,333 
2,028,488 5,632 Multi-year fixed rate annuities275,871 1,752,617 1,228,764 68,737 1,114 
29,389 15,482 Single premium immediate annuities15,430 13,959 7,774 10,205 10,084 
3,614,993 1,263,654 Total before coinsurance ceded1,180,257 2,434,736 1,844,867 573,876 558,801 
6,750 23,394 Coinsurance ceded3,702 3,048 6,277 5,996 5,691 
$3,608,243 $1,240,260 Net after coinsurance ceded$1,176,555 $2,431,688 $1,838,590 $567,880 $553,110 
Page 10



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2020
Unaudited (Dollars in thousands, except per share data)

Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of Coinsurance) Account Values at June 30, 2021:
Surrender ChargeNet Account Value
Product TypeAvg.
Years
At Issue
Avg.
Years
Remaining
Avg.
%
Remaining
Dollars in Thousands%
Fixed Index Annuities12.66.09.6%$51,385,857 90.7 %
Annual Reset Fixed Rate Annuities8.82.54.8%1,404,922 2.5 %
Multi-Year Fixed Rate Annuities3.92.98.4%3,839,359 6.8 %
Total12.05.79.4%$56,630,138 100.0 %

Annuity Liability Characteristics
Surrender Charge Percentages:Fixed
Annuities
Account Value
Fixed Index
Annuities
Account Value
No surrender charge$868,177 $3,247,984 
0.0% < 2.0%23,222 762,507 
2.0% < 3.0%60,396 2,973,108 
3.0% < 4.0%87,053 2,297,534 
4.0% < 5.0%105,067 2,414,801 
5.0% < 6.0%90,957 2,779,431 
6.0% < 7.0%51,880 2,841,897 
7.0% < 8.0%57,271 3,745,345 
8.0% < 9.0%61,158 3,596,109 
9.0% < 10.0%3,418,114 3,471,007 
10.0% or greater420,986 23,256,134 
$5,244,281 $51,385,857 
Surrender Charge Expiration By Year:Fixed and
Fixed Index
Annuities
Account Value
Weighted
Average
Surrender
Charge
Out of Surrender Charge$4,116,161 0.00 %
2021617,148 2.77 %
20221,584,961 3.04 %
20234,879,266 4.97 %
20246,234,060 6.06 %
20256,190,943 6.72 %
20265,905,338 8.53 %
20274,368,969 10.23 %
20284,672,067 11.27 %
20295,917,422 12.67 %
20303,934,688 14.62 %
20313,836,507 15.95 %
20321,965,637 17.69 %
20331,136,036 18.22 %
2034716,311 18.68 %
2035339,938 19.18 %
2036155,185 19.74 %
203759,501 20.00 %
$56,630,138 9.38 %
Page 11



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
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$978,718 $1,174,031 
› 0.00% - 0.25%45,864 135,475 
› 0.25% - 0.50%229,188 6,647 
› 0.50% - 1.00%9,153 1,095 
› 1.00% - 1.50%10,998 — 
1.00% ultimate guarantee - 2.13% wtd avg interest rate (a)3,716,931 1,102,168 
1.50% ultimate guarantee - 1.08% wtd avg interest rate (a)135,477 3,052,600 
1.75% ultimate guarantee - 1.72% wtd avg interest rate (a)48,616 507,653 
2.00% ultimate guarantee - 1.85% wtd avg interest rate (a)69,336 — 
2.25% ultimate guarantee - 1.64% wtd avg interest rate (a)— 641,376 
3.00% ultimate guarantee - 1.95% wtd avg interest rate (a)— 1,303,391 
Allocated to index strategies (see tables that follow)— 43,461,421 
$5,244,281 $51,385,857 
(a)The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy ranges from 0.5% - 1.75%. 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 June 30, 2021 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.12%.
Page 12



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
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$1,273 $100,565 $4,932,913 $58,112 $130,834 
1.75% - 3%8,951,323 — — — — 
3% - 4%338,626 2,058 — — — 
4% - 5%1,760,633 208,598 1,009,494 — — 
5% - 6%693,286 185,423 28,041 — — 
6% - 7%1,116 — 741 — — 
>= 7%9,550 8,660 615 4,769 — 
Annual Monthly Average and Point-to-Point with Participation Rates
Minimum Guaranteed Participation Rate
10%20% - 25%35%50% +
Current Participation Rate
At minimum$252,030 $457,082 $83,979 $88,543 
< 20%1,599,918 — — — 
20% - 40%3,872,612 252,766 5,965 — 
40% - 60%1,293,438 28,723 44,382 — 
60% - 100%1,006,567 — — — 
> 100%754,602 — — — 
S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum$1,918,300 
1.10% - 1.30%6,179,584 
1.40% - 1.60%2,006,652 
1.70% - 2.00%299,836 
>= 2.10%12,790 
Volatility Control Index
Current Asset Fee
At Maximum$— 
0.75% - 1.75%360,092 
2.00% - 2.75%177,105 
3.00% - 3.50%1,063,320 
3.75% - 5.25%3,164,913 
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 0.72% based upon prices of options for the week ended July 2, 2021.
Page 13



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands)

Summary of Invested Assets
June 30, 2021December 31, 2020
Carrying
Amount
PercentCarrying
Amount
Percent
Fixed maturity securities:
United States Government full faith and credit$38,879 0.1 %$39,771 0.1 %
United States Government sponsored agencies1,046,186 2.0 %1,039,551 1.9 %
United States municipalities, states and territories3,700,225 6.9 %3,776,131 7.0 %
Foreign government obligations197,330 0.4 %202,706 0.4 %
Corporate securities31,455,817 58.6 %31,156,827 58.1 %
Residential mortgage backed securities1,192,423 2.2 %1,512,831 2.8 %
Commercial mortgage backed securities4,175,517 7.8 %4,261,227 8.0 %
Other asset backed securities4,852,879 9.0 %5,549,849 10.4 %
Total fixed maturity securities46,659,256 87.0 %47,538,893 88.7 %
Mortgage loans on real estate4,299,945 8.0 %4,165,489 7.8 %
Real estate258,237 0.5 %— — %
Derivative instruments1,459,965 2.7 %1,310,954 2.4 %
Other investments962,305 1.8 %590,078 1.1 %
$53,639,708 100.0 %$53,605,414 100.0 %
Credit Quality of Fixed Maturity Securities - June 30, 2021
NAIC DesignationCarrying
Amount
PercentRating Agency RatingCarrying
Amount
Percent
1$25,937,900 55.6 %Aaa/Aa/A$27,097,912 58.1 %
219,387,062 41.6 %Baa18,570,085 39.8 %
31,135,994 2.4 %Ba800,364 1.7 %
4147,401 0.3 %B82,971 0.2 %
529,418 0.1 %Caa46,470 0.1 %
621,481 — %Ca and lower61,454 0.1 %
$46,659,256 100.0 %$46,659,256 100.0 %
Watch List Securities - June 30, 2021
General Description (a)Amortized
Cost
Allowance for Credit LossesAmortized Cost, Net of AllowanceNet Unrealized
Gains (Losses),
Net of Allowance
Fair Value
Corporate securities - Public securities$69,739 $(10,033)$59,706 $1,318 $61,024 
Corporate securities - Private placement securities103,189 (690)102,499 1,652 104,151 
Residential mortgage backed securities6,739 (120)6,619 (69)6,550 
Commercial mortgage backed securities46,059 — 46,059 (3,441)42,618 
Collateralized loan obligations9,989 — 9,989 (1,113)8,876 
United States municipalities, states and territories19,044 (3,347)15,697 — 15,697 
$254,759 $(14,190)$240,569 $(1,653)$238,916 
(a)The watch list consists of all fixed maturity securities we have determined contain elevated credit risk, including those we have taken credit losses on.

Page 14



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector
June 30, 2021December 31, 2020
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available for sale:
United States Government full faith and credit and sponsored agencies$1,046,316 $1,085,065 $1,032,936 $1,079,322 
United States municipalities, states and territories3,219,847 3,700,225 3,236,767 3,776,131 
Foreign government obligations177,087 197,330 177,062 202,706 
Corporate securities:
Capital goods2,301,510 2,664,988 2,295,927 2,721,465 
Consumer discretionary5,902,440 6,818,683 5,674,845 6,734,249 
Energy1,984,088 2,241,563 2,140,768 2,359,893 
Financials6,174,256 6,960,264 5,971,097 6,877,472 
Government non-guaranteed496,339 576,083 539,148 632,178 
Industrials377,724 423,507 276,352 319,823 
Information technology1,639,715 1,872,439 1,556,654 1,840,942 
Materials1,598,844 1,826,924 1,543,032 1,803,501 
Other292,504 340,499 315,628 370,204 
Telecommunications1,543,432 1,758,859 1,340,484 1,582,329 
Transportation1,334,560 1,481,455 1,362,858 1,511,499 
Utilities3,880,356 4,490,553 3,728,403 4,403,272 
Residential mortgage backed securities:
Government agency498,757 558,512 549,677 627,201 
Prime538,257 547,174 771,031 788,933 
Alt-A69,907 86,737 79,248 96,697 
Commercial mortgage backed securities:
Government agency393,427 439,822 398,141 447,726 
Non-agency3,584,388 3,735,695 3,721,509 3,813,501 
Other asset backed securities:
Auto227,504 234,719 258,286 266,065 
Energy7,198 8,506 7,301 8,946 
Financials4,441 4,303 4,441 3,911 
Industrials41,544 43,250 60,894 61,147 
Collateralized loan obligations3,535,477 3,486,402 4,255,839 4,112,318 
Military housing468,218 538,845 464,684 538,356 
Other513,952 536,854 541,724 559,106 
$41,852,088 $46,659,256 $42,304,736 $47,538,893 

Page 15



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands)

Mortgage Loans on Real Estate
June 30, 2021December 31, 2020
PrincipalPercentPrincipalPercent
Geographic distribution: commercial mortgage loans
East$676,448 19.6 %$699,741 19.5 %
Middle Atlantic294,619 8.5 %281,971 7.9 %
Mountain373,129 10.8 %391,025 10.9 %
New England24,475 0.7 %24,774 0.7 %
Pacific650,256 18.8 %659,743 18.4 %
South Atlantic779,690 22.5 %832,739 23.3 %
West North Central263,600 7.6 %266,050 7.4 %
West South Central397,662 11.5 %424,111 11.9 %
$3,459,879 100.0 %$3,580,154 100.0 %
Property type distribution: commercial mortgage loans
Office$292,968 8.5 %$297,065 8.3 %
Medical Office17,718 0.5 %20,584 0.6 %
Retail1,116,376 32.3 %1,187,484 33.2 %
Industrial/Warehouse911,293 26.3 %929,325 25.9 %
Apartment948,161 27.4 %939,084 26.2 %
Mixed use/Other173,363 5.0 %206,612 5.8 %
$3,459,879 100.0 %$3,580,154 100.0 %

Page 16



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021
Unaudited (Dollars in thousands)

June 30, 2021
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,459,879 $277,427 $565,053 $4,302,359 
In workout— — — — 
Delinquent— — 8,585 8,585 
Principal outstanding3,459,879 277,427 573,638 4,310,944 
Unamortized discounts and premiums, net— — 16,212 16,212 
Deferred fees and costs, net(1,409)(708)1,487 (630)
Amortized cost3,458,470 276,719 591,337 4,326,526 
Valuation allowance(22,498)(454)(3,629)(26,581)
Carrying value$3,435,972 $276,265 $587,708 $4,299,945 
December 31, 2020
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,580,154 $245,807 $366,047 $4,192,008 
In workout— — — — 
Delinquent— — 273 273 
Principal outstanding3,580,154 245,807 366,320 4,192,281 
Unamortized discounts and premiums, net— — 5,212 5,212 
Deferred fees and costs, net(1,266)(634)925 (975)
Amortized cost3,578,888 245,173 372,457 4,196,518 
Valuation allowance(25,529)(2,130)(3,370)(31,029)
Carrying value$3,553,359 $243,043 $369,087 $4,165,489 



Page 17



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021

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
HighLowCloseDividend Declared
2021
First Quarter$32.54$26.21$31.53$0.00
Second Quarter$33.68$29.18$32.32$0.00
2020
First Quarter$34.16$9.07$18.80$0.00
Second Quarter$27.09$14.76$24.71$0.00
Third Quarter$27.32$19.06$21.99$0.00
Fourth Quarter$34.25$22.37$27.66$0.32
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
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 18



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2021

Research Analyst Coverage
Erik Bass
Autonomous Research US LP
(646) 561-6248
ebass@autonomous.com
Daniel Bergman
Citi Research
(212) 816-2132
daniel.bergman@citi.com
Wilma Burdis
Credit Suisse Securities
Equity Research | Life Insurance
(919) 306-1023
wilma.burdis@credit-suisse.com
Thomas Gallagher
Evercore ISI
(212) 446-9439
thomas.gallagher@evercoreisi.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

Bob Huang
Morgan Stanley Research
(212) 761-6136
Bob.Huang@morganstanley.com
John Barnidge
Piper Sandler & Co.
(312) 281-3412
John.Barnidge@psc.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
Mark Hughes
Truist Securities
(615) 748-4422
mark.hughes@research.truist.com


Page 19