(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit Number | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |
AMERICAN EQUITY | |||||||||||
INVESTMENT LIFE HOLDING COMPANY | |||||||||||
By: | /s/ Axel Andre | ||||||||||
Axel Andre | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
For more information, contact: | ||||||||
Steven D. Schwartz, Vice President-Investor Relations | ||||||||
(515) 273-3763, sschwartz@american-equity.com | ||||||||
FOR IMMEDIATE RELEASE | ||||||||
May 8, 2023 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Revenues: | |||||||||||
Premiums and other considerations | $ | 4,137 | $ | 10,078 | |||||||
Annuity product charges | 62,591 | 52,355 | |||||||||
Net investment income | 561,323 | 567,423 | |||||||||
Change in fair value of derivatives | 45,890 | (477,519) | |||||||||
Net realized losses on investments | (27,787) | (13,127) | |||||||||
Other revenue | 16,394 | 8,817 | |||||||||
Total revenues | 662,548 | 148,027 | |||||||||
Benefits and expenses: | |||||||||||
Insurance policy benefits and change in future policy benefits | 7,208 | 13,615 | |||||||||
Interest sensitive and index product benefits | 57,911 | 287,917 | |||||||||
Market risk benefits (gains) losses | 183,694 | 191,893 | |||||||||
Amortization of deferred sales inducements | 46,601 | 45,085 | |||||||||
Change in fair value of embedded derivatives | 404,440 | (1,393,649) | |||||||||
Interest expense on notes and loan payable | 11,018 | 6,425 | |||||||||
Interest expense on subordinated debentures | 1,336 | 1,317 | |||||||||
Amortization of deferred policy acquisition costs | 68,235 | 72,969 | |||||||||
Other operating costs and expenses | 74,004 | 57,795 | |||||||||
Total benefits and expenses | 854,447 | (716,633) | |||||||||
Income (loss) before income taxes | (191,899) | 864,660 | |||||||||
Income tax expense (benefit) | (36,008) | 185,195 | |||||||||
Net income (loss) | (155,891) | 679,465 | |||||||||
Less: Net income available to noncontrolling interests | 103 | — | |||||||||
Net income (loss) available to American Equity Investment Life Holding Company stockholders | (155,994) | 679,465 | |||||||||
Less: Preferred stock dividends | 10,919 | 10,919 | |||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||
Earnings (loss) per common share | $ | (2.00) | $ | 6.90 | |||||||
Earnings (loss) per common share - assuming dilution | $ | (2.00) | $ | 6.83 | |||||||
Weighted average common shares outstanding (in thousands): | |||||||||||
Earnings (loss) per common share | 83,417 | 96,866 | |||||||||
Earnings (loss) per common share - assuming dilution | 83,417 | 97,953 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||
Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||
Net realized losses on financial assets, including credit losses | 24,384 | 13,725 | |||||||||
Change in fair value of derivatives and embedded derivatives | 206,202 | (847,207) | |||||||||
Capital markets impact on the change in fair value of market risk benefits | 136,950 | 118,913 | |||||||||
Net investment income | (2,491) | — | |||||||||
Other revenue | 5,969 | — | |||||||||
Income taxes | (79,765) | 153,090 | |||||||||
Non-GAAP operating income available to common stockholders | $ | 124,336 | $ | 107,067 | |||||||
Impact of excluding notable items (a) | $ | 9,566 | $ | — | |||||||
Per common share - assuming dilution: | |||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (2.00) | $ | 6.83 | |||||||
Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||
Anti-dilutive impact for losses (b) | 0.03 | — | |||||||||
Net realized losses on financial assets, including credit losses | 0.29 | 0.14 | |||||||||
Change in fair value of derivatives and embedded derivatives | 2.43 | (8.65) | |||||||||
Capital markets impact on the change in fair value of market risk benefits | 1.62 | 1.21 | |||||||||
Net investment income | (0.03) | — | |||||||||
Other revenue | 0.07 | — | |||||||||
Income taxes | (0.94) | 1.56 | |||||||||
Non-GAAP operating income available to common stockholders | $ | 1.47 | $ | 1.09 | |||||||
Impact of excluding notable items (a) | $ | 0.11 | $ | — |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Notable items impacting non-GAAP operating income available to common stockholders: | |||||||||||
Expense associated with strategic incentive award | $ | 9,566 | $ | — | |||||||
Total notable items (a) | $ | 9,566 | $ | — |
Q1 2023 | |||||
Total stockholders’ equity attributable to American Equity Investment Life Holding Company | $ | 2,605,485 | |||
Equity available to preferred stockholders (a) | (700,000) | ||||
Total common stockholders' equity (b) | 1,905,485 | ||||
Accumulated other comprehensive (income) loss (AOCI) | 3,036,429 | ||||
Total common stockholders’ equity excluding AOCI (b) | 4,941,914 | ||||
Net impact of fair value accounting for derivatives and embedded derivatives | (1,735,943) | ||||
Net capital markets impact on the fair value of market risk benefits | (247,806) | ||||
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for fixed index annuities (b) | $ | 2,958,165 | |||
Common shares outstanding | 77,753,194 | ||||
Book Value per Common Share: (c) | |||||
Book value per common share | $ | 24.51 | |||
Book value per common share excluding AOCI (b) | $ | 63.56 | |||
Book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities (b) | $ | 38.05 | |||
Twelve Months Ended | |||||
March 31, 2023 | |||||
Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company, Excluding Average AOCI and Average Net Impact of Fair Value Accounting for Fixed Index Annuities | |||||
Average total stockholders’ equity | $ | 4,162,215 | |||
Average equity available to preferred stockholders | (700,000) | ||||
Average equity available to common stockholders | 3,462,215 | ||||
Average AOCI | 1,304,970 | ||||
Average common stockholders' equity excluding average AOCI | 4,767,185 | ||||
Average net impact of fair value accounting for derivatives and embedded derivatives | (1,393,594) | ||||
Average net capital markets impact on the fair value of market risk benefits | (223,214) | ||||
Average common stockholders' equity excluding average AOCI and average net impact of fair value accounting for fixed index annuities | $ | 3,150,377 | |||
Net income available to American Equity Investment Life Holding Company common stockholders | $ | 1,041,085 | |||
Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||
Net realized losses on financial assets, including credit losses | 58,923 | ||||
Change in fair value of derivatives and embedded derivatives | (495,796) | ||||
Capital markets impact on the change in fair value of market risk benefits | (375,580) | ||||
Net investment income | (1,015) | ||||
Other revenue | 11,938 | ||||
Income taxes | 168,983 | ||||
Non-GAAP operating income available to common stockholders | $ | 408,538 | |||
Impact of excluding notable items (a) | $ | 191,456 | |||
Return on Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company | |||||
Net income available to common stockholders | 30.1 | % | |||
Return on Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company, Excluding Average AOCI and Average Net Impact of Fair Value Accounting for Fixed Index Annuities | |||||
Non-GAAP operating income available to common stockholders | 13.0 | % |
Notable Items | Twelve Months Ended | ||||
March 31, 2023 | |||||
Notable items impacting non-GAAP operating income available to common stockholders: | |||||
Expense associated with strategic incentive award | $ | 9,566 | |||
Impact of actuarial assumption updates | 181,890 | ||||
Total notable items (a) | $ | 191,456 |
A. | Financial Highlights | |||||||
Non-GAAP Financial Measures | ||||||||
B. | Product Summary | |||||||
C. | Investment Summary | |||||||
D. | ||||||||
E. |
March 31, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Investments: | |||||||||||
Fixed maturity securities, available for sale, at fair value | $ | 39,555,624 | $ | 39,804,617 | |||||||
Mortgage loans on real estate | 7,199,225 | 6,949,027 | |||||||||
Real estate investments | 1,164,879 | 1,056,063 | |||||||||
Limited partnerships and limited liability companies | 1,657,415 | 1,266,779 | |||||||||
Derivative instruments | 684,033 | 431,727 | |||||||||
Other investments | 1,157,162 | 1,817,085 | |||||||||
Total investments | 51,418,338 | 51,325,298 | |||||||||
Cash and cash equivalents | 2,777,852 | 1,919,669 | |||||||||
Coinsurance deposits | 13,710,877 | 13,254,956 | |||||||||
Market risk benefits | 230,304 | 229,871 | |||||||||
Accrued investment income | 497,425 | 497,851 | |||||||||
Deferred policy acquisition costs | 2,772,175 | 2,773,643 | |||||||||
Deferred sales inducements | 2,044,349 | 2,045,683 | |||||||||
Deferred income taxes | 290,648 | 438,434 | |||||||||
Income taxes recoverable | 50,821 | 55,498 | |||||||||
Other assets | 702,937 | 642,696 | |||||||||
Total assets | $ | 74,495,726 | $ | 73,183,599 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities: | |||||||||||
Policy benefit reserves | $ | 59,019,189 | $ | 58,781,836 | |||||||
Market risk benefits | 2,653,185 | 2,455,492 | |||||||||
Other policy funds and contract claims | 306,359 | 512,790 | |||||||||
Notes and loan payable | 790,413 | 792,073 | |||||||||
Subordinated debentures | 78,839 | 78,753 | |||||||||
Funds withheld for reinsurance liabilities | 6,984,409 | 6,577,426 | |||||||||
Other liabilities | 2,034,523 | 1,614,479 | |||||||||
Total liabilities | 71,866,917 | 70,812,849 | |||||||||
Stockholders' equity: | |||||||||||
Preferred stock, Series A | 16 | 16 | |||||||||
Preferred stock, Series B | 12 | 12 | |||||||||
Common stock | 77,753 | 84,810 | |||||||||
Additional paid-in capital | 1,045,453 | 1,325,316 | |||||||||
Accumulated other comprehensive loss | (3,036,429) | (3,746,230) | |||||||||
Retained earnings | 4,518,680 | 4,685,593 | |||||||||
Total stockholders' equity attributable to American Equity Investment Life Holding Company | 2,605,485 | 2,349,517 | |||||||||
Noncontrolling interests | 23,324 | 21,233 | |||||||||
Total stockholders' equity | 2,628,809 | 2,370,750 | |||||||||
Total liabilities and stockholders' equity | $ | 74,495,726 | $ | 73,183,599 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Revenues: | |||||||||||
Premiums and other considerations | $ | 4,137 | $ | 10,078 | |||||||
Annuity product charges | 62,591 | 52,355 | |||||||||
Net investment income | 561,323 | 567,423 | |||||||||
Change in fair value of derivatives | 45,890 | (477,519) | |||||||||
Net realized losses on investments | (27,787) | (13,127) | |||||||||
Other revenue | 16,394 | 8,817 | |||||||||
Total revenues | 662,548 | 148,027 | |||||||||
Benefits and expenses: | |||||||||||
Insurance policy benefits and change in future policy benefits | 7,208 | 13,615 | |||||||||
Interest sensitive and index product benefits | 57,911 | 287,917 | |||||||||
Market risk benefits (gains) losses | 183,694 | 191,893 | |||||||||
Amortization of deferred sales inducements | 46,601 | 45,085 | |||||||||
Change in fair value of embedded derivatives | 404,440 | (1,393,649) | |||||||||
Interest expense on notes and loan payable | 11,018 | 6,425 | |||||||||
Interest expense on subordinated debentures | 1,336 | 1,317 | |||||||||
Amortization of deferred policy acquisition costs | 68,235 | 72,969 | |||||||||
Other operating costs and expenses | 74,004 | 57,795 | |||||||||
Total benefits and expenses | 854,447 | (716,633) | |||||||||
Income (loss) before income taxes | (191,899) | 864,660 | |||||||||
Income tax expense (benefit) | (36,008) | 185,195 | |||||||||
Net income (loss) | (155,891) | 679,465 | |||||||||
Less: Net income available to noncontrolling interests | 103 | — | |||||||||
Net income (loss) available to American Equity Investment Life Holding Company stockholders | (155,994) | 679,465 | |||||||||
Less: Preferred stock dividends | 10,919 | 10,919 | |||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||
Earnings (loss) per common share | $ | (2.00) | $ | 6.90 | |||||||
Earnings (loss) per common share - assuming dilution | $ | (2.00) | $ | 6.83 | |||||||
Weighted average common shares outstanding (in thousands): | |||||||||||
Earnings (loss) per common share | 83,417 | 96,866 | |||||||||
Earnings (loss) per common share - assuming dilution (a) | 83,417 | 97,953 |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Traditional life insurance premiums | $ | 698 | $ | 626 | $ | 634 | $ | 691 | $ | 675 | |||||||||||||||||||
Life contingent immediate annuity considerations | 3,439 | 2,365 | 2,205 | 3,140 | 9,403 | ||||||||||||||||||||||||
Surrender charges | 26,542 | 22,030 | 19,783 | 15,345 | 15,541 | ||||||||||||||||||||||||
Lifetime income benefit rider fees | 36,049 | 39,636 | 41,036 | 40,169 | 36,814 | ||||||||||||||||||||||||
Net investment income | 561,323 | 537,995 | 609,737 | 592,308 | 567,423 | ||||||||||||||||||||||||
Change in fair value of derivatives | 45,890 | 22,243 | (176,671) | (506,181) | (477,519) | ||||||||||||||||||||||||
Net realized gains (losses) on investments | (27,787) | 14,411 | (15,860) | (33,272) | (13,127) | ||||||||||||||||||||||||
Other revenue (a) | 16,394 | 13,032 | 10,988 | 9,408 | 8,817 | ||||||||||||||||||||||||
Total revenues | 662,548 | 652,338 | 491,852 | 121,608 | 148,027 | ||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||
Traditional life insurance policy benefits and change in future policy benefits (b) | 1,206 | 944 | 118 | 495 | 1,491 | ||||||||||||||||||||||||
Life contingent immediate annuity benefits and change in future policy benefits (c) | 6,002 | 5,004 | 6,541 | 6,503 | 12,124 | ||||||||||||||||||||||||
Interest sensitive and index product benefits | 57,911 | 57,626 | 68,982 | 140,346 | 287,917 | ||||||||||||||||||||||||
Market risk benefits (gains) losses (d) | 183,694 | 33,490 | 77,579 | (299,278) | 191,893 | ||||||||||||||||||||||||
Amortization of deferred sales inducements | 46,601 | 45,966 | 46,223 | 44,696 | 45,085 | ||||||||||||||||||||||||
Change in fair value of embedded derivatives (e) | 404,440 | 342,409 | (415,374) | (885,984) | (1,393,649) | ||||||||||||||||||||||||
Interest expense on notes payable | 11,018 | 10,228 | 8,984 | 6,461 | 6,425 | ||||||||||||||||||||||||
Interest expense on subordinated debentures | 1,336 | 1,335 | 1,333 | 1,346 | 1,317 | ||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 68,235 | 66,831 | 71,726 | 72,485 | 72,969 | ||||||||||||||||||||||||
Other operating costs and expenses | 74,004 | 62,389 | 59,470 | 59,872 | 57,795 | ||||||||||||||||||||||||
Total benefits and expenses | 854,447 | 626,222 | (74,418) | (853,058) | (716,633) | ||||||||||||||||||||||||
Income (loss) before income taxes | (191,899) | 26,116 | 566,270 | 974,666 | 864,660 | ||||||||||||||||||||||||
Income tax expense (benefit) | (36,008) | (6,817) | 121,380 | 211,377 | 185,195 | ||||||||||||||||||||||||
Net income (loss) (b)(c)(d)(e) | (155,891) | 32,933 | 444,890 | 763,289 | 679,465 | ||||||||||||||||||||||||
Less: Net income (loss) available to noncontrolling interests | 103 | 361 | 1 | (4) | — | ||||||||||||||||||||||||
Net income (loss) available to American Equity Investment Life Holding Company stockholders (b)(c)(d)(e) | (155,994) | 32,572 | 444,889 | 763,293 | 679,465 | ||||||||||||||||||||||||
Less: Preferred stock dividends | 10,919 | 10,919 | 10,918 | 10,919 | 10,919 | ||||||||||||||||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders (b)(c)(d)(e) | $ | (166,913) | $ | 21,653 | $ | 433,971 | $ | 752,374 | $ | 668,546 | |||||||||||||||||||
Earnings (loss) per common share | $ | (2.00) | $ | 0.25 | $ | 4.95 | $ | 8.13 | $ | 6.90 | |||||||||||||||||||
Earnings (loss) per common share - assuming dilution (b)(c)(d)(e) | $ | (2.00) | $ | 0.25 | $ | 4.90 | $ | 8.06 | $ | 6.83 | |||||||||||||||||||
Weighted average common shares outstanding (thousands): | |||||||||||||||||||||||||||||
Earnings (loss) per common share | 83,417 | 85,274 | 87,707 | 92,544 | 96,866 | ||||||||||||||||||||||||
Earnings (loss) per common share - assuming dilution | 83,417 | 86,402 | 88,581 | 93,375 | 97,953 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||
Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||
Net realized losses on financial assets, including credit losses | 24,384 | 13,725 | |||||||||
Change in fair value of derivatives and embedded derivatives | 206,202 | (847,207) | |||||||||
Capital markets impact on the change in fair value of market risk benefits | 136,950 | 118,913 | |||||||||
Net investment income | (2,491) | — | |||||||||
Other revenue | 5,969 | — | |||||||||
Income taxes | (79,765) | 153,090 | |||||||||
Non-GAAP operating income available to common stockholders | $ | 124,336 | $ | 107,067 | |||||||
Impact of excluding notable items (a) | $ | 9,566 | $ | — | |||||||
Per common share - assuming dilution: | |||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (2.00) | $ | 6.83 | |||||||
Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||
Anti-dilutive impact for losses (b) | 0.03 | — | |||||||||
Net realized losses on financial assets, including credit losses | 0.29 | 0.14 | |||||||||
Change in fair value of derivatives and embedded derivatives | 2.43 | (8.65) | |||||||||
Capital markets impact on the change in fair value of market risk benefits | 1.62 | 1.21 | |||||||||
Net investment income | (0.03) | — | |||||||||
Other revenue | 0.07 | — | |||||||||
Income taxes | (0.94) | 1.56 | |||||||||
Non-GAAP operating income available to common stockholders | $ | 1.47 | $ | 1.09 | |||||||
Impact of excluding notable items (a) | $ | 0.11 | $ | — |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Notable items impacting non-GAAP operating income available to common stockholders: | |||||||||||
Expense associated with strategic incentive award | $ | 9,566 | $ | — | |||||||
Total notable items (a) | $ | 9,566 | $ | — |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net realized losses on financial assets, including credit losses: | |||||||||||
Net realized losses on financial assets, including credit losses | $ | 24,384 | $ | 13,725 | |||||||
Income taxes | (5,243) | (2,951) | |||||||||
$ | 19,141 | $ | 10,774 | ||||||||
Change in fair value of derivatives and embedded derivatives: | |||||||||||
Fixed index annuities | $ | 142,947 | $ | (644,763) | |||||||
Reinsurance contracts | 64,380 | (202,444) | |||||||||
Interest rate swaps | (1,125) | — | |||||||||
Income taxes | (44,330) | 181,607 | |||||||||
$ | 161,872 | $ | (665,600) | ||||||||
Capital market impact on the fair value of market risk benefits: | |||||||||||
Capital markets impact on the change in fair value of market risk benefits | $ | 121,342 | $ | 113,002 | |||||||
Amortization of capital markets impact on the fair value of market risk benefits | 15,608 | 5,911 | |||||||||
Income taxes | (29,444) | (25,566) | |||||||||
$ | 107,506 | $ | 93,347 | ||||||||
Net investment income: | |||||||||||
Income associated with assets transferred under reinsurance treaty | $ | (2,491) | $ | — | |||||||
Income taxes | 535 | — | |||||||||
$ | (1,956) | $ | — | ||||||||
Other revenue: | |||||||||||
Amortization of deferred fees associated with reinsurance treaties | $ | 5,969 | $ | — | |||||||
Income taxes | (1,283) | — | |||||||||
$ | 4,686 | $ | — |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 21,653 | $ | 433,971 | $ | 752,374 | $ | 668,546 | |||||||||||||||||||
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders: | |||||||||||||||||||||||||||||
Net realized (gains) losses on financial assets, including credit losses | 24,384 | (19,460) | 16,945 | 37,054 | 13,725 | ||||||||||||||||||||||||
Change in fair value of derivatives and embedded derivatives | 206,202 | 169,767 | (400,952) | (470,813) | (847,207) | ||||||||||||||||||||||||
Capital markets impact on the change in fair value of market risk benefits | 136,950 | 2,309 | (179,509) | (335,330) | 118,913 | ||||||||||||||||||||||||
Net investment income | (2,491) | 1,476 | — | — | — | ||||||||||||||||||||||||
Other revenue | 5,969 | 5,969 | — | — | — | ||||||||||||||||||||||||
Income taxes | (79,765) | (39,998) | 120,802 | 167,944 | 153,090 | ||||||||||||||||||||||||
Non-GAAP operating income (loss) available to common stockholders | $ | 124,336 | $ | 141,716 | $ | (8,743) | $ | 151,229 | $ | 107,067 | |||||||||||||||||||
Impact of excluding notable items (a) | $ | 9,566 | $ | — | $ | 181,890 | $ | — | $ | — | |||||||||||||||||||
Per common share - assuming dilution: | |||||||||||||||||||||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (2.00) | $ | 0.25 | $ | 4.90 | $ | 8.06 | $ | 6.83 | |||||||||||||||||||
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders: | |||||||||||||||||||||||||||||
Anti-dilutive impact for losses (b) | 0.03 | — | — | — | — | ||||||||||||||||||||||||
Net realized (gains) losses on financial assets, including credit losses | 0.29 | (0.23) | 0.19 | 0.39 | 0.14 | ||||||||||||||||||||||||
Change in fair value of derivatives and embedded derivatives | 2.43 | 1.96 | (4.52) | (5.04) | (8.65) | ||||||||||||||||||||||||
Capital markets impact on the change in fair value of market risk benefits | 1.62 | 0.03 | (2.03) | (3.59) | 1.21 | ||||||||||||||||||||||||
Net investment income | (0.03) | 0.02 | — | — | — | ||||||||||||||||||||||||
Other revenue | 0.07 | 0.07 | — | — | — | ||||||||||||||||||||||||
Income taxes | (0.94) | (0.46) | 1.36 | 1.80 | 1.56 | ||||||||||||||||||||||||
Non-GAAP operating income (loss) available to common stockholders | $ | 1.47 | $ | 1.64 | $ | (0.10) | $ | 1.62 | $ | 1.09 | |||||||||||||||||||
Impact of excluding notable items (a) | $ | 0.11 | $ | — | $ | 2.05 | $ | — | $ | — |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Notable items impacting non-GAAP operating income (loss) available to common stockholders: | |||||||||||||||||||||||||||||
Expense associated with strategic incentive award | $ | 9,566 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Impact of actuarial assumption updates | — | — | 181,890 | — | — | ||||||||||||||||||||||||
Total notable items (a) | $ | 9,566 | $ | — | $ | 181,890 | $ | — | $ | — |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Net realized (gains) losses on investments | $ | 27,787 | $ | (14,411) | $ | 15,860 | $ | 33,272 | $ | 13,127 | |||||||||||||||||||
Net investment income | (2,491) | 1,476 | — | — | — | ||||||||||||||||||||||||
Other revenue | 5,969 | 5,969 | — | — | — | ||||||||||||||||||||||||
Change in fair value of derivatives | (198,239) | (172,643) | 14,423 | 415,171 | 546,442 | ||||||||||||||||||||||||
Increase (decrease) in total revenues | (166,974) | (179,609) | 30,283 | 448,443 | 559,569 | ||||||||||||||||||||||||
Change in fair value of embedded derivatives | (404,440) | (342,409) | 415,374 | 885,984 | 1,393,649 | ||||||||||||||||||||||||
Market risk benefits (gains) losses | (136,950) | (2,309) | 179,509 | 335,330 | (118,913) | ||||||||||||||||||||||||
Interest sensitive and index product benefits (a) | 3,402 | 5,048 | (1,084) | (3,782) | (598) | ||||||||||||||||||||||||
Increase (decrease) in total benefits and expenses | (537,988) | (339,670) | 593,799 | 1,217,532 | 1,274,138 | ||||||||||||||||||||||||
Increase (decrease) in income (loss) before income taxes | 371,014 | 160,061 | (563,516) | (769,089) | (714,569) | ||||||||||||||||||||||||
Increase (decrease) in income tax expense benefit | 79,765 | 39,998 | (120,802) | (167,944) | (153,090) | ||||||||||||||||||||||||
Increase (decrease) in net income (loss) available to common stockholders | $ | 291,249 | $ | 120,063 | $ | (442,714) | $ | (601,145) | $ | (561,479) |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Capitalization: | |||||||||||||||||||||||||||||
Notes and loan payable | $ | 800,000 | $ | 800,000 | $ | 800,000 | $ | 500,000 | $ | 500,000 | |||||||||||||||||||
Subordinated debentures payable to subsidiary trusts | 78,839 | 78,753 | 78,668 | 78,584 | 78,502 | ||||||||||||||||||||||||
Total debt | 878,839 | 878,753 | 878,668 | 578,584 | 578,502 | ||||||||||||||||||||||||
Total stockholders’ equity attributable to American Equity Investment Life Holding Company | 2,605,485 | 2,349,517 | 2,157,667 | 3,625,377 | 5,718,944 | ||||||||||||||||||||||||
Total capitalization | 3,484,324 | 3,228,270 | 3,036,335 | 4,203,961 | 6,297,446 | ||||||||||||||||||||||||
Accumulated other comprehensive (income) loss (AOCI) | 3,036,429 | 3,746,230 | 3,984,496 | 2,231,594 | (426,490) | ||||||||||||||||||||||||
Total capitalization excluding AOCI (a) | $ | 6,520,753 | $ | 6,974,500 | $ | 7,020,831 | $ | 6,435,555 | $ | 5,870,956 | |||||||||||||||||||
Total stockholders’ equity attributable to American Equity Investment Life Holding Company | $ | 2,605,485 | $ | 2,349,517 | $ | 2,157,667 | $ | 3,625,377 | $ | 5,718,944 | |||||||||||||||||||
Equity available to preferred stockholders (b) | (700,000) | (700,000) | (700,000) | (700,000) | (700,000) | ||||||||||||||||||||||||
Total common stockholders' equity (c) | 1,905,485 | 1,649,517 | 1,457,667 | 2,925,377 | 5,018,944 | ||||||||||||||||||||||||
Accumulated other comprehensive (income) loss | 3,036,429 | 3,746,230 | 3,984,496 | 2,231,594 | (426,490) | ||||||||||||||||||||||||
Total common stockholders’ equity excluding AOCI (c) | 4,941,914 | 5,395,747 | 5,442,163 | 5,156,971 | 4,592,454 | ||||||||||||||||||||||||
Net impact of fair value accounting for derivatives and embedded derivatives | (1,735,943) | (1,652,169) | (1,721,324) | (1,418,244) | (1,051,245) | ||||||||||||||||||||||||
Net capital markets impact on the fair value of market risk benefits | (247,806) | (600,958) | (602,772) | (461,856) | (198,622) | ||||||||||||||||||||||||
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for fixed index annuities (c) | $ | 2,958,165 | $ | 3,142,620 | $ | 3,118,067 | $ | 3,276,871 | $ | 3,342,587 | |||||||||||||||||||
Common shares outstanding | 77,753,194 | 84,810,255 | 85,966,505 | 90,168,512 | 95,019,904 | ||||||||||||||||||||||||
Book Value per Common Share: (d) | |||||||||||||||||||||||||||||
Book value per common share | $ | 24.51 | $ | 19.45 | $ | 16.96 | $ | 32.44 | $ | 52.82 | |||||||||||||||||||
Book value per common share excluding AOCI (c) | $ | 63.56 | $ | 63.62 | $ | 63.31 | $ | 57.19 | $ | 48.33 | |||||||||||||||||||
Book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities (c) | $ | 38.05 | $ | 37.05 | $ | 36.27 | $ | 36.34 | $ | 35.18 | |||||||||||||||||||
Debt-to-Capital Ratios: (e) | |||||||||||||||||||||||||||||
Senior debt / Total capitalization | 12.3 | % | 11.5 | % | 11.4 | % | 7.8 | % | 8.5 | % | |||||||||||||||||||
Total debt / Total capitalization | 13.5 | % | 12.6 | % | 12.5 | % | 9.0 | % | 9.9 | % | |||||||||||||||||||
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Average yield on invested assets | 4.48% | 4.30% | 4.48% | 4.33% | 4.15% | ||||||||||||||||||||||||
Aggregate cost of money | 1.81% | 1.76% | 1.75% | 1.69% | 1.64% | ||||||||||||||||||||||||
Aggregate investment spread | 2.67% | 2.54% | 2.73% | 2.64% | 2.51% | ||||||||||||||||||||||||
Impact of: | |||||||||||||||||||||||||||||
Investment yield - additional prepayment income | —% | 0.01% | 0.03% | 0.05% | 0.03% | ||||||||||||||||||||||||
Cost of money effect of over hedging | —% | —% | —% | 0.02% | 0.03% | ||||||||||||||||||||||||
Weighted average investments | $ | 49,304,219 | $ | 50,040,228 | $ | 54,378,154 | $ | 54,768,966 | $ | 54,728,239 | |||||||||||||||||||
Ending investments | 48,852,319 | 49,811,623 | 54,056,886 | 54,699,422 | 54,838,509 |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Investment income: | |||||||||||||||||||||||||||||
Fixed income (a) | $ | 533,122 | $ | 511,077 | $ | 547,326 | $ | 539,382 | $ | 510,303 | |||||||||||||||||||
Mark-to-market private asset income (a) | 19,627 | 26,816 | 61,671 | 53,816 | 58,046 | ||||||||||||||||||||||||
Total non-GAAP investment income (b) | $ | 552,749 | $ | 537,893 | $ | 608,997 | $ | 593,198 | $ | 568,349 | |||||||||||||||||||
Investment yield: | |||||||||||||||||||||||||||||
Fixed income investment yield | 4.52% | 4.26% | 4.16% | 4.04% | 3.80% | ||||||||||||||||||||||||
Mark-to-market private asset yield | 3.61% | 5.29% | 13.89% | 15.15% | 22.36% | ||||||||||||||||||||||||
Total investment yield | 4.48% | 4.30% | 4.48% | 4.33% | 4.15% | ||||||||||||||||||||||||
Weighted average investments: | |||||||||||||||||||||||||||||
Fixed income investments | $ | 47,129,120 | $ | 48,012,311 | $ | 52,602,319 | $ | 53,347,874 | $ | 53,689,782 | |||||||||||||||||||
Mark-to-market private assets | 2,175,099 | 2,027,917 | 1,775,835 | 1,421,092 | 1,038,457 | ||||||||||||||||||||||||
Total weighted average investments | $ | 49,304,219 | $ | 50,040,228 | $ | 54,378,154 | $ | 54,768,966 | $ | 54,728,239 |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Included in interest sensitive and index product benefits: | |||||||||||||||||||||||||||||
Index credits | $ | 3,533 | $ | 3,861 | $ | 4,648 | $ | 72,398 | $ | 224,385 | |||||||||||||||||||
Interest credited | 56,316 | 56,402 | 62,383 | 60,770 | 61,334 | ||||||||||||||||||||||||
Included in change in fair value of derivatives: | |||||||||||||||||||||||||||||
Proceeds received at option expiration | (3,601) | (4,061) | (4,865) | (75,115) | (228,092) | ||||||||||||||||||||||||
Pro rata amortization of option cost | 157,271 | 154,463 | 167,197 | 165,375 | 160,097 | ||||||||||||||||||||||||
Cost of money for deferred annuities | $ | 213,519 | $ | 210,665 | $ | 229,363 | $ | 223,428 | $ | 217,724 | |||||||||||||||||||
Weighted average liability balance outstanding | $ | 47,266,672 | $ | 47,802,219 | $ | 52,337,208 | $ | 52,940,739 | $ | 53,155,293 |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Account balances at beginning of period | $ | 47,504,615 | $ | 51,913,689 | $ | 52,762,558 | $ | 53,119,291 | $ | 53,191,277 | |||||||||||||||||||
Reserves ceded - in-force | — | (3,810,982) | (257,779) | — | — | ||||||||||||||||||||||||
Account balance at beginning of period, net of reinsurance ceded | 47,504,615 | 48,102,707 | 52,504,779 | 53,119,291 | 53,191,277 | ||||||||||||||||||||||||
Net deposits | 732,664 | 613,084 | 496,940 | 562,366 | 674,925 | ||||||||||||||||||||||||
Premium bonuses | 45,267 | 33,617 | 27,385 | 23,547 | 23,142 | ||||||||||||||||||||||||
Fixed interest credited and index credits | 59,849 | 60,263 | 67,031 | 133,168 | 285,719 | ||||||||||||||||||||||||
Surrender charges | (26,542) | (22,030) | (19,783) | (15,345) | (15,541) | ||||||||||||||||||||||||
Lifetime income benefit rider fees | (36,049) | (39,636) | (41,036) | (40,169) | (36,814) | ||||||||||||||||||||||||
Surrenders, withdrawals, deaths, etc. | (1,248,199) | (1,243,390) | (1,121,627) | (1,020,300) | (1,003,417) | ||||||||||||||||||||||||
Account balances at end of period | $ | 47,031,605 | $ | 47,504,615 | $ | 51,913,689 | $ | 52,762,558 | $ | 53,119,291 |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
MRB balance at beginning of period | $ | 1,521,954 | $ | 1,762,629 | $ | 1,721,376 | $ | 2,075,033 | $ | 2,362,947 | |||||||||||||||||||
Reserves ceded - in-force | — | (331,020) | 4,496 | — | — | ||||||||||||||||||||||||
Issuances | 2,921 | 1,230 | 1,366 | 913 | 3,920 | ||||||||||||||||||||||||
Interest accrual | 29,559 | 23,910 | 20,626 | 12,424 | 9,238 | ||||||||||||||||||||||||
Attributed fees collected | 28,197 | 29,585 | 29,010 | 29,378 | 29,513 | ||||||||||||||||||||||||
Benefits payments | — | — | — | — | — | ||||||||||||||||||||||||
Effect of changes in interest rates and equity markets | 118,422 | (16,236) | (197,978) | (348,675) | 113,002 | ||||||||||||||||||||||||
Effect of changes in assumptions and policyholder behavior | 1,870 | (5,023) | 224,522 | 7,220 | 37,111 | ||||||||||||||||||||||||
Effect of changes in instrument specific credit risk | (70,005) | 56,879 | (40,789) | (54,917) | (480,698) | ||||||||||||||||||||||||
MRB balance at end of period, net (a) | 1,632,918 | 1,521,954 | 1,762,629 | 1,721,376 | 2,075,033 | ||||||||||||||||||||||||
MRB net deferred capital markets impact, end of period | 628,602 | 765,552 | 767,862 | 588,352 | 253,022 | ||||||||||||||||||||||||
Non-GAAP MRB balance, end of period (b) | $ | 2,261,520 | $ | 2,287,506 | $ | 2,530,491 | $ | 2,309,728 | $ | 2,328,055 |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
Account value of business ceded subject to fee income at beginning of period | $ | 9,642,336 | $ | 5,612,098 | $ | 5,065,538 | $ | 4,859,360 | $ | 4,660,690 | |||||||||||||||||||
In-force account value ceded subject to fee income | — | 3,810,982 | 257,779 | — | — | ||||||||||||||||||||||||
Premiums on business ceded subject to fee income | 634,160 | 351,971 | 288,781 | 206,178 | 198,670 | ||||||||||||||||||||||||
Disbursements on business ceded subject to fee income | (120,729) | (132,715) | — | — | — | ||||||||||||||||||||||||
Account value of business ceded subject to fee income at end of period | $ | 10,155,767 | $ | 9,642,336 | $ | 5,612,098 | $ | 5,065,538 | $ | 4,859,360 | |||||||||||||||||||
Non-GAAP operating revenue associated with recurring fees (a) | $ | 22,363 | $ | 19,001 | $ | 10,988 | $ | 9,408 | $ | 8,817 |
Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||||||||||
American Equity Life: | |||||||||||||||||||||||||||||
Fixed index annuities | $ | 735,839 | $ | 637,021 | $ | 627,444 | $ | 671,696 | $ | 755,980 | |||||||||||||||||||
Annual reset fixed rate annuities | 693 | 1,856 | 1,271 | 1,140 | 1,062 | ||||||||||||||||||||||||
Multi-year fixed rate annuities | 156,034 | 49,216 | 4,465 | 485 | 2,345 | ||||||||||||||||||||||||
Single premium immediate annuities | 427 | 494 | 1,915 | 3,073 | 13,453 | ||||||||||||||||||||||||
892,993 | 688,587 | 635,095 | 676,394 | 772,840 | |||||||||||||||||||||||||
Eagle Life: | |||||||||||||||||||||||||||||
Fixed index annuities | 228,599 | 145,772 | 102,379 | 104,374 | 126,754 | ||||||||||||||||||||||||
Annual reset fixed rate annuities | 1,269 | 230 | 143 | — | 7 | ||||||||||||||||||||||||
Multi-year fixed rate annuities | 248,229 | 65,434 | 14,684 | 123 | 2,340 | ||||||||||||||||||||||||
478,097 | 211,436 | 117,206 | 104,497 | 129,101 | |||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||
Fixed index annuities | 964,438 | 782,793 | 729,823 | 776,070 | 882,734 | ||||||||||||||||||||||||
Annual reset fixed rate annuities | 1,962 | 2,086 | 1,414 | 1,140 | 1,069 | ||||||||||||||||||||||||
Multi-year fixed rate annuities | 404,263 | 114,650 | 19,149 | 608 | 4,685 | ||||||||||||||||||||||||
Single premium immediate annuities | 427 | 494 | 1,915 | 3,073 | 13,453 | ||||||||||||||||||||||||
Total before coinsurance ceded | 1,371,090 | 900,023 | 752,301 | 780,891 | 901,941 | ||||||||||||||||||||||||
Coinsurance ceded | 637,999 | 286,445 | 253,446 | 215,452 | 213,563 | ||||||||||||||||||||||||
Net after coinsurance ceded | $ | 733,091 | $ | 613,578 | $ | 498,855 | $ | 565,439 | $ | 688,378 |
Surrender Charge | Net Account Value | |||||||||||||||||||||||||||||||
Product Type | Avg. Years At Issue | Avg. Years Remaining | Avg. % Remaining | Dollars in Thousands | % | |||||||||||||||||||||||||||
Fixed Index Annuities | 12.4 | 4.9 | 7.9% | $ | 41,404,188 | 88.0 | % | |||||||||||||||||||||||||
Annual Reset Fixed Rate Annuities | 7.3 | 1.7 | 3.3% | 1,339,807 | 2.9 | % | ||||||||||||||||||||||||||
Multi-Year Fixed Rate Annuities | 4.0 | 1.6 | 7.0% | 4,287,610 | 9.1 | % | ||||||||||||||||||||||||||
Total | 11.5 | 4.5 | 7.7% | $ | 47,031,605 | 100.0 | % |
Surrender Charge Percentages: | Fixed Annuities Account Value | Fixed Index Annuities Account Value | |||||||||
No surrender charge | $ | 888,445 | $ | 3,834,335 | |||||||
0.0% < 2.0% | 50,686 | 2,505,840 | |||||||||
2.0% < 3.0% | 44,152 | 4,153,052 | |||||||||
3.0% < 4.0% | 49,464 | 800,303 | |||||||||
4.0% < 5.0% | 5,090 | 2,890,227 | |||||||||
5.0% < 6.0% | 41,888 | 2,388,250 | |||||||||
6.0% < 7.0% | 66,204 | 2,563,019 | |||||||||
7.0% < 8.0% | 3,181,971 | 2,657,664 | |||||||||
8.0% < 9.0% | 923,445 | 2,154,631 | |||||||||
9.0% < 10.0% | 161,317 | 3,439,889 | |||||||||
10.0% or greater | 214,755 | 14,016,978 | |||||||||
$ | 5,627,417 | $ | 41,404,188 |
Surrender Charge Expiration By Year: | Fixed and Fixed Index Annuities Account Value | Weighted Average Surrender Charge | |||||||||
Out of Surrender Charge | $ | 4,722,780 | 0.00 | % | |||||||
2023 | 3,753,879 | 3.20 | % | ||||||||
2024 | 3,829,960 | 4.81 | % | ||||||||
2025 | 5,278,723 | 4.18 | % | ||||||||
2026 | 4,762,948 | 5.56 | % | ||||||||
2027 | 4,158,392 | 7.36 | % | ||||||||
2028 | 3,890,062 | 8.60 | % | ||||||||
2029 | 4,074,565 | 10.10 | % | ||||||||
2030 | 2,845,400 | 12.40 | % | ||||||||
2031 | 3,820,329 | 13.59 | % | ||||||||
2032 | 3,072,979 | 14.11 | % | ||||||||
2033 | 1,388,042 | 15.98 | % | ||||||||
2034 | 664,622 | 17.84 | % | ||||||||
2035 | 344,605 | 18.37 | % | ||||||||
2036 | 195,296 | 18.86 | % | ||||||||
2037 | 118,244 | 19.34 | % | ||||||||
2038 | 103,533 | 19.84 | % | ||||||||
2039 | 7,246 | 20.00 | % | ||||||||
$ | 47,031,605 | 7.71 | % |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying Amount | Percent | Carrying Amount | Percent | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
U.S. Government and agencies | $ | 177,878 | 0.4 | % | $ | 169,071 | 0.4 | % | |||||||||||||||
States, municipalities and territories | 3,665,674 | 8.0 | % | 3,822,943 | 8.5 | % | |||||||||||||||||
Foreign corporate securities and foreign governments | 622,583 | 1.4 | % | 616,938 | 1.4 | % | |||||||||||||||||
Corporate securities | 19,584,731 | 43.0 | % | 20,201,774 | 44.8 | % | |||||||||||||||||
Residential mortgage backed securities | 1,283,590 | 2.8 | % | 1,366,927 | 3.0 | % | |||||||||||||||||
Commercial mortgage backed securities | 3,409,589 | 7.5 | % | 3,447,075 | 7.6 | % | |||||||||||||||||
Other asset backed securities | 5,817,083 | 12.8 | % | 5,155,254 | 11.4 | % | |||||||||||||||||
Total fixed maturity securities | 34,561,128 | 75.9 | % | 34,779,982 | 77.1 | % | |||||||||||||||||
Mortgage loans on real estate | 6,986,882 | 15.3 | % | 6,778,977 | 15.0 | % | |||||||||||||||||
Real estate investments | 1,164,879 | 2.6 | % | 1,056,063 | 2.3 | % | |||||||||||||||||
Limited partnerships and limited liability companies | 1,657,415 | 3.6 | % | 1,266,779 | 2.8 | % | |||||||||||||||||
Derivative instruments | 684,033 | 1.5 | % | 431,727 | 1.0 | % | |||||||||||||||||
Other investments | 497,523 | 1.1 | % | 829,900 | 1.8 | % | |||||||||||||||||
Total investments, net of modified coinsurance investments | 45,551,860 | 100.0 | % | 45,143,428 | 100.0 | % | |||||||||||||||||
Coinsurance investments (a) | 5,866,478 | 6,181,870 | |||||||||||||||||||||
Total investments | $ | 51,418,338 | $ | 51,325,298 |
NAIC Designation | Amortized Cost | Carrying Amount | Percent | Rating Agency Rating | Amortized Cost | Carrying Amount | Percent | |||||||||||||||||||||||||||||||
1 | $ | 23,863,099 | $ | 21,622,202 | 62.6 | % | Aaa/Aa/A | $ | 23,751,792 | $ | 21,527,275 | 62.3 | % | |||||||||||||||||||||||||
2 | 13,802,465 | 12,303,113 | 35.6 | % | Baa | 13,892,051 | 12,373,819 | 35.8 | % | |||||||||||||||||||||||||||||
3 | 579,165 | 503,236 | 1.5 | % | Ba | 568,020 | 494,809 | 1.4 | % | |||||||||||||||||||||||||||||
4 | 151,304 | 116,477 | 0.3 | % | B | 146,297 | 113,418 | 0.3 | % | |||||||||||||||||||||||||||||
5 | 7,171 | 7,595 | — | % | Caa | 19,684 | 18,397 | 0.1 | % | |||||||||||||||||||||||||||||
6 | 11,648 | 8,505 | — | % | Ca and lower | 37,008 | 33,410 | 0.1 | % | |||||||||||||||||||||||||||||
38,414,852 | 34,561,128 | 100.0 | % | 38,414,852 | 34,561,128 | 100.0 | % | |||||||||||||||||||||||||||||||
Coinsurance investments (a) | 5,369,579 | 4,994,496 | Coinsurance investments (a) | 5,369,579 | 4,994,496 | |||||||||||||||||||||||||||||||||
$ | 43,784,431 | $ | 39,555,624 | $ | 43,784,431 | $ | 39,555,624 |
General Description (a) | Amortized Cost | Allowance for Credit Losses | Amortized Cost, Net of Allowance | Net Unrealized Gains (Losses), Net of Allowance | Fair Value | |||||||||||||||||||||||||||
States, municipalities and territories | $ | 20,657 | $ | — | $ | 20,657 | $ | (3,409) | $ | 17,248 | ||||||||||||||||||||||
Corporate securities - Public securities | 48,310 | — | 48,310 | (21,420) | 26,890 | |||||||||||||||||||||||||||
Corporate securities - Private placement securities | 7,658 | (1,914) | 5,744 | — | 5,744 | |||||||||||||||||||||||||||
Residential mortgage backed securities | 48,492 | (133) | 48,359 | (13,874) | 34,485 | |||||||||||||||||||||||||||
Commercial mortgage backed securities | 93,472 | — | 93,472 | (10,907) | 82,565 | |||||||||||||||||||||||||||
Other asset backed securities | 2,284 | — | 2,284 | 100 | 2,384 | |||||||||||||||||||||||||||
Collateralized loan obligations | 134,318 | — | 134,318 | (27,040) | 107,278 | |||||||||||||||||||||||||||
$ | 355,191 | $ | (2,047) | $ | 353,144 | $ | (76,550) | $ | 276,594 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||
U.S. Government and agencies | $ | 179,026 | $ | 177,878 | $ | 173,638 | $ | 169,071 | |||||||||||||||
States, municipalities and territories | 4,066,537 | 3,665,674 | 4,356,191 | 3,822,943 | |||||||||||||||||||
Foreign corporate securities and foreign governments | 675,154 | 622,583 | 680,263 | 616,938 | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||
Capital goods | 1,466,737 | 1,311,002 | 1,601,113 | 1,395,595 | |||||||||||||||||||
Consumer discretionary | 4,772,337 | 4,146,563 | 5,086,479 | 4,320,219 | |||||||||||||||||||
Energy | 1,090,897 | 1,011,671 | 1,219,370 | 1,111,891 | |||||||||||||||||||
Financials | 6,514,732 | 5,779,472 | 6,467,052 | 5,634,229 | |||||||||||||||||||
Government non-guaranteed | 203,412 | 182,341 | 202,740 | 179,440 | |||||||||||||||||||
Industrials | 166,491 | 142,156 | 166,061 | 138,999 | |||||||||||||||||||
Information technology | 1,278,878 | 1,129,887 | 1,344,461 | 1,160,067 | |||||||||||||||||||
Materials | 1,096,259 | 968,675 | 1,169,188 | 1,021,288 | |||||||||||||||||||
Telecommunications | 1,237,937 | 1,059,994 | 1,306,495 | 1,090,868 | |||||||||||||||||||
Transportation | 1,055,812 | 957,791 | 1,100,681 | 975,393 | |||||||||||||||||||
Utilities | 3,247,641 | 2,837,812 | 3,620,946 | 3,115,520 | |||||||||||||||||||
Other | 57,078 | 57,367 | 58,184 | 58,265 | |||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||
Government agency | 775,682 | 738,757 | 806,999 | 754,349 | |||||||||||||||||||
Prime | 383,652 | 329,998 | 387,838 | 334,613 | |||||||||||||||||||
Alt-A | 53,691 | 54,029 | 54,910 | 58,091 | |||||||||||||||||||
Non-qualified mortgage | 134,128 | 124,534 | 169,847 | 157,960 | |||||||||||||||||||
Other | 36,375 | 36,272 | 62,235 | 61,914 | |||||||||||||||||||
Commercial mortgage backed securities: | |||||||||||||||||||||||
Government agency | 169,170 | 158,785 | 170,307 | 157,903 | |||||||||||||||||||
Non-agency | 3,625,682 | 3,250,804 | 3,668,300 | 3,289,172 | |||||||||||||||||||
Other asset backed securities: | |||||||||||||||||||||||
Auto | 206,092 | 204,601 | 44,450 | 41,896 | |||||||||||||||||||
Consumer discretionary | 65,252 | 63,218 | 122,068 | 118,843 | |||||||||||||||||||
Financials | 312,983 | 286,603 | 283,238 | 252,493 | |||||||||||||||||||
Collateralized loan obligations | 4,369,026 | 4,101,569 | 4,071,929 | 3,775,347 | |||||||||||||||||||
Other | 1,174,191 | 1,161,092 | 1,005,440 | 966,675 | |||||||||||||||||||
38,414,852 | 34,561,128 | 39,400,423 | 34,779,982 | ||||||||||||||||||||
Coinsurance investments (a) | 5,369,579 | 4,994,496 | 5,465,596 | 5,024,635 | |||||||||||||||||||
$ | 43,784,431 | $ | 39,555,624 | $ | 44,866,019 | $ | 39,804,617 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Principal | Percent | Principal | Percent | ||||||||||||||||||||
Property type distribution | |||||||||||||||||||||||
Commercial mortgage loans: | |||||||||||||||||||||||
Office | $ | 256,699 | 3.7 | % | $ | 277,767 | 4.1 | % | |||||||||||||||
Retail | 840,628 | 12.1 | % | 878,352 | 13.0 | % | |||||||||||||||||
Industrial/Warehouse | 893,753 | 12.8 | % | 853,215 | 12.6 | % | |||||||||||||||||
Apartment | 1,000,680 | 14.3 | % | 893,910 | 13.2 | % | |||||||||||||||||
Hotel | 285,271 | 4.1 | % | 285,271 | 4.2 | % | |||||||||||||||||
Mixed Use/Other | 79,421 | 1.1 | % | 200,756 | 3.0 | % | |||||||||||||||||
Agricultural mortgage loans | 609,026 | 8.7 | % | 567,630 | 8.4 | % | |||||||||||||||||
Residential mortgage loans | 3,011,666 | 43.2 | % | 2,807,652 | 41.5 | % | |||||||||||||||||
6,977,144 | 100.0 | % | 6,764,553 | 100.0 | % | ||||||||||||||||||
Coinsurance investments (a) | 213,862 | 171,633 | |||||||||||||||||||||
$ | 7,191,006 | $ | 6,936,186 |
Commercial | Agricultural | ||||||||||||||||||||||
Amortized Cost | Average LTV | Amortized Cost | Average LTV | ||||||||||||||||||||
As of March 31, 2023: | |||||||||||||||||||||||
Debt Service Coverage Ratio: | |||||||||||||||||||||||
Greater than or equal to 1.5 | $ | 2,297,191 | 53% | $ | 300,977 | 49% | |||||||||||||||||
Greater than or equal to 1.2 and less than 1.5 | 490,237 | 61% | 243,811 | 52% | |||||||||||||||||||
Greater than or equal to 1.0 and less than 1.2 | 493,075 | 46% | 14,914 | 41% | |||||||||||||||||||
Less than 1.0 | 71,061 | 60% | 47,564 | 39% | |||||||||||||||||||
3,351,564 | 53% | 607,266 | 49% | ||||||||||||||||||||
Coinsurance investments (a) | 212,343 | 53% | — | —% | |||||||||||||||||||
$ | 3,563,907 | 53% | $ | 607,266 | 49% | ||||||||||||||||||
As of December 31, 2022: | |||||||||||||||||||||||
Debt Service Coverage Ratio: | |||||||||||||||||||||||
Greater than or equal to 1.5 | $ | 2,358,793 | 53% | $ | 266,695 | 45% | |||||||||||||||||
Greater than or equal to 1.2 and less than 1.5 | 505,644 | 61% | 236,589 | 48% | |||||||||||||||||||
Greater than or equal to 1.0 and less than 1.2 | 475,315 | 50% | 15,075 | 39% | |||||||||||||||||||
Less than 1.0 | 44,756 | 66% | 47,604 | 33% | |||||||||||||||||||
3,384,508 | 54% | 565,963 | 45% | ||||||||||||||||||||
Coinsurance investments (a) | 170,050 | 61% | — | —% | |||||||||||||||||||
$ | 3,554,558 | 54% | $ | 565,963 | 45% |
March 31, 2023 | |||||||||||||||||||||||
Commercial | Agricultural | Residential | Total | ||||||||||||||||||||
Credit exposure - by payment activity | |||||||||||||||||||||||
Performing | $ | 3,356,452 | $ | 603,683 | $ | 2,966,679 | $ | 6,926,814 | |||||||||||||||
In workout | — | — | — | — | |||||||||||||||||||
Delinquent | — | 5,343 | 44,987 | 50,330 | |||||||||||||||||||
Principal outstanding | 3,356,452 | 609,026 | 3,011,666 | 6,977,144 | |||||||||||||||||||
Unamortized discounts and premiums, net | — | — | 60,685 | 60,685 | |||||||||||||||||||
Deferred fees and costs, net | (4,888) | (1,759) | 1,326 | (5,321) | |||||||||||||||||||
Amortized cost | 3,351,564 | 607,267 | 3,073,677 | 7,032,508 | |||||||||||||||||||
Valuation allowance | (25,082) | (1,356) | (19,188) | (45,626) | |||||||||||||||||||
Carrying value | 3,326,482 | 605,911 | 3,054,489 | 6,986,882 | |||||||||||||||||||
Coinsurance investments (a) | 212,343 | — | — | 212,343 | |||||||||||||||||||
$ | 3,538,825 | $ | 605,911 | $ | 3,054,489 | $ | 7,199,225 | ||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Commercial | Agricultural | Residential | Total | ||||||||||||||||||||
Credit exposure - by payment activity | |||||||||||||||||||||||
Performing | $ | 3,389,271 | $ | 564,495 | $ | 2,773,251 | $ | 6,727,017 | |||||||||||||||
In workout | — | — | — | — | |||||||||||||||||||
Delinquent | — | 3,135 | 34,401 | 37,536 | |||||||||||||||||||
Principal outstanding | 3,389,271 | 567,630 | 2,807,652 | 6,764,553 | |||||||||||||||||||
Unamortized discounts and premiums, net | — | — | 55,917 | 55,917 | |||||||||||||||||||
Deferred fees and costs, net | (4,763) | (1,667) | 1,909 | (4,521) | |||||||||||||||||||
Amortized cost | 3,384,508 | 565,963 | 2,865,478 | 6,815,949 | |||||||||||||||||||
Valuation allowance | (22,428) | (1,021) | (13,523) | (36,972) | |||||||||||||||||||
Carrying value | 3,362,080 | 564,942 | 2,851,955 | 6,778,977 | |||||||||||||||||||
Coinsurance investments (a) | 170,050 | — | — | 170,050 | |||||||||||||||||||
$ | 3,532,130 | $ | 564,942 | $ | 2,851,955 | $ | 6,949,027 |
A.M. Best | S&P | Fitch | |||||||||||||||
Financial Strength Ratings | |||||||||||||||||
American Equity Investment Life Insurance Company | A- (stable) | A- (stable) | A- (stable) | ||||||||||||||
American Equity Investment Life Insurance Company of New York | A- (stable) | A- (stable) | A- (stable) | ||||||||||||||
Eagle Life Insurance Company | A- (stable) | A- (stable) | A- (stable) | ||||||||||||||
Credit Ratings | |||||||||||||||||
American Equity Investment Life Holding Company | bbb- (stable) | BBB- | BBB | ||||||||||||||
Senior unsecured debt | bbb- (stable) | BBB- | BBB- | ||||||||||||||
Perpetual, non-cumulative preferred stock | bb (stable) | BB | BB |
High | Low | Close | Dividend Declared | ||||||||||||||||||||
2023 | |||||||||||||||||||||||
First Quarter | $48.37 | $31.57 | $36.49 | $0.00 | |||||||||||||||||||
2022 | |||||||||||||||||||||||
First Quarter | $44.49 | $35.05 | $39.91 | $0.00 | |||||||||||||||||||
Second Quarter | $42.18 | $32.65 | $36.57 | $0.00 | |||||||||||||||||||
Third Quarter | $43.55 | $33.22 | $37.29 | $0.00 | |||||||||||||||||||
Fourth Quarter | $46.76 | $28.05 | $45.62 | $0.36 | |||||||||||||||||||
2021 | |||||||||||||||||||||||
First Quarter | $32.54 | $26.21 | $31.53 | $0.00 | |||||||||||||||||||
Second Quarter | $33.68 | $29.18 | $32.32 | $0.00 | |||||||||||||||||||
Third Quarter | $33.79 | $27.12 | $29.57 | $0.00 | |||||||||||||||||||
Fourth Quarter | $39.88 | $29.46 | $38.92 | $0.34 |
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