American Equity Investment Insurance Company

Date:

American Equity Investment Life Insurance Company Review

Understanding Fixed Index Annuities How Does a Fixed Index Annuity Work?

At I& E we do our best to stay on top of the best life insurance companies and annuity providers in the country. One insurance company that recently appeared on our radar was American Equity Investment Life Insurance Company based on the insurance providers great product line of annuities. In the following American Equity review, we will focus on the history of the company, its financial strength and annuities offered.

American Equity Reports First Quarter 2020 Results

  • First quarter 2020 net income available to common stockholders of $236.3 million
  • First quarter 2020 non-GAAP operating income1 available to common stockholders of $154.1 million
  • First quarter 2020 annuity sales of $705 million
  • Policyholder funds under management of $53.3 billion
  • First quarter 2020 investment spread of 2.64%
  • Estimated risk-based capital ratio of 396% pro forma including May 4

—-May 6, 2020–During the first quarter of 2020, American Equity Investment Life Holding Company , a leading issuer of fixed index annuities , shifted quickly and effectively to respond to the COVID-19 global pandemic while keeping its employees safe and maintaining its industry leading service.

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

INVESTMENT SPREAD DECREASES SEQUENTIALLY ON LOWER YIELD ON INVESTED ASSETS

POLICYHOLDER FUNDS UNDER MANAGEMENT RELATIVELY FLAT ON $705 MILLION

CONFERENCE CALL

0.97

Heres Why You Should Consider Buying American Equity Investment Shares

FPA Queens Road, an investment management firm, published its FPA Queens Road Small Cap Value Fund fourth-quarter 2021 investor letter a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund returned 23.2% in 2021. This compares to a 28.3% return for the Russell 2000 Value Index during the year.

  • Zacks

    American Equity Q4 results reflect higher investment spread, lower expenses and higher premiums.

  • Zacks

    American Equity delivered earnings and revenue surprises of -0.95% and 1.69%, respectively, for the quarter ended December 2021. Do the numbers hold clues to what lies ahead for the stock?

  • Business Wire

    WEST DES MOINES, Iowa, February 17, 2022–American Equity reports fourth quarter and full year 2021 results

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    Primerica delivered earnings and revenue surprises of -7.55% and 1.53%, respectively, for the quarter ended December 2021. Do the numbers hold clues to what lies ahead for the stock?

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    Brighthouse Financial delivered earnings and revenue surprises of 49.71% and 5.64%, respectively, for the quarter ended December 2021. Do the numbers hold clues to what lies ahead for the stock?

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    American Equity doesn’t possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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    Assurant’s fourth-quarter results are likely to reflect better performance at Global Automotive and Connected Living as well as solid growth in Multifamily housing.

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    Jeffrey D Lorenzen Cfa

    Jeffrey D. Lorenzen, CFA, is Executive Vice President and Chief Risk Officer of American Equity Investment Life Holding Company and American Equity Investment Life Insurance Company.

    Prior to joining American Equity as Senior Vice President and Chief Investment Officer in February 2009, he was the President and Chief Investment Officer of WB Capital Management Inc., a wholly-owned subsidiary of West Bancorporation, Inc. He also served on the board of directors for WB Capital Management, Inc., and was a member of the management committee of West Bancorporation . Prior to 2006, Mr. Lorenzen was President and Chief Investment Officer of Investors Management Group, where he spent 14 years in a variety of investment leadership positions. He started his career at Statesman as a high-yield credit analyst in 1989.

    Mr. Lorenzen received his B.B.A. in finance from the University of Iowa and and M.B.A. from Drake University. He earned his Chartered Financial Analyst designation in 1993. Mr. Lorenzen has more than 25 years of experience in the investment and life insurance industries.

    Profit Investment Management Llc Buys Patterson Inc Vanda Pharmaceuticals Inc Plantronics

    (AEL) American Equity Headquarters Office

    Bethesda, MD, based Investment company Profit Investment Management, LLC buys Patterson Inc, Vanda Pharmaceuticals Inc, Plantronics Inc, American Equity Investment Life Holding Co, PetMed Express Inc, sells , WESCO International Inc, Southwest Airlines Co, Mastercard Inc, NortonLifeLock Inc during the 3-months ended 2021Q4, according to the most recent filings of the investment company, Profit Investment Management, LLC.

  • Business Wire

    WEST DES MOINES, Iowa, January 12, 2022–American Equity Schedules Fourth Quarter 2021 Earnings Release, Conference Call and Webcast

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    Annuity Products Offered By American Equity

    American Equity takes pride in its personal approach to selling annuities for financial security.

    The company expresses on their website, At American Equity, we strive to provide stable annuity products backed by our companys financial strength, disciplined investment practices and award-winning customer service.

    Current product offerings include fixed indexed annuities, fixed annuities and immediate annuities.

    About American Equity Investment Life Holding

    American Equity Investment Life Holding Company is engaged in the development and sale of fixed index and fixed rate annuity products. The Company issues fixed annuity products through its life insurance subsidiaries, American Equity Investment Life Insurance Company , American Equity Investment Life Insurance Company of New York and Eagle Life Insurance Company . The Company operates through one segment, which comprises of the sale of fixed index and fixed rate annuities. Its product types include Fixed index annuities, Annual reset fixed rate annuities, Multi-year fixed rate annuities and Single premium immediate annuities. The Company markets its products through a variable cost distribution network, including independent agents through independent marketing organizations , broker/dealers, banks and registered investment advisors.

    Industry

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    Independent Review Of American Equity Investment Life Holding Company

    Through its headquarters in Des Moines, Iowa, American Equity Investment Life Holding Company and its subsidiaries specialize in the sale of fixed index and fixed-rate annuities. In fact, American Equity Life Insurance Companys mission is to become the premier insurance company specializing in retirement savings and income products.

    For nearly 25 years, this company has provided quality wealth accumulation and protection products, as well as retirement income generating vehicles. Today, the company has 500,000 active contract owners, and assets in excess of $53.7 billion.

    American Equity is licensed to offer its products in all 50 of the U.S. states, as well as the District of Columbia. The company is considered to be strong and stable financially, and because of that it has earned an A- rating from A.M. Best and an A- from Standard & Poors.

    American Equity Investment Life offers a variety of annuities, including:

    Fixed

    Fixed Index

    Immediate

    Traditional fixed annuities can help you to add balance to your retirement portfolio, particularly in uncertain times. These annuities provide you with a fixed interest rate that is determined when you purchase the annuity. So, regardless of what happens in the stock market, you can still count on a certain amount of growth in your account.

    For more information on the fixed annuities offered through American Equity, you can check out the updated product brochure HERE.

    • AssetShield 5
    • Choice 8
    • Choice 10

    Best,

    The Annuity Gator.

    American Equity To Issue Shares As Brookfield Reinsurance Boosts Equity Stake To 16%

    AssetShield Series Fixed Index Annuity

    American Equity Investment Life Holding Co. disclosed Monday that investor Brookfield Asset Management Reinsurance Partners Ltd. received regulatory approval to boost its stake in the life insurance company. Brookfield Reinsurance said it will increase its equity stake in American Equity to about 16%, from the current holding of 9.85%. As a result, American Equity said it expects to issue 6.78 million shares of its common stock to Brookfield Reinsurance at $37.33 a share, which is 4.1% below Fri

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    American Equity Investment Life Insurance Company

    American Equity is one of the top indexed annuity providers specializing in designing secure, innovative retirement solutions and providing financial stability with our broad product line of fixed and indexed annuities. We have a strong commitment to superior customer service, product integrity and secure retirement planning. With this commitment, AEL partnered with Informatica to provide nightly feeds to their Agents, Broker/Dealers, and National Marketing organizations. AEL had a major challenge with moving data to and from these three channels and the process of onboarding new channels was taking approximately three weeks. To make functionality changes under the old process would take around three months from start to finish. AEL implemented the full B2B Data Exchange stack which gave them the ability to add new Brokers/Dealers in one to two weeks. There is no longer a bottleneck and the wait on the Brokers/Dealers to be prepared. This is an increase in performance from three months. With this solution, their business in the broker dealer space has increased by 400%. The application process has now been able to be replicated by three different solutions with only mapping process changes. This has saved the customer nine months worth of work.

    Brookfield Reinsurance Closes $10 Billion Reinsurance Deal With American Equity Investment Life Insurance Company

    Brookfield Reinsurance Closes $10 Billion Reinsurance Deal with American Equity Investment Life Insurance Company

    BROOKFIELD, NEWS, Brookfield Asset Management Reinsurance Partners Ltd. today announced the closing of its previously-announced transaction to reinsure up to $10 billion of annuity products issued by American Equity Investment Life Insurance Company , a subsidiary of American Equity Investment Life Holding Company . Under the agreement, Brookfield Reinsurance has reinsured a block of approximately $4 billion of in-force policies, and will reinsure up to an additional approximately $6 billion of AEILICs IncomeShield or other mutually agreed liabilities issued by AEL on a flow basis.

    Brookfield Reinsurance holds an approximate 9.5% equity interest in AEL and has agreed to purchase additional shares of AELs common stock for up to a total equity interest of 19.9% , subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions.

    Advisors

    is serving as legal advisor to Brookfield Reinsurance in connection with the reinsurance transaction.

    About Brookfield Reinsurance

    For more information, please visit our website at bamr.brookfield.com or contact:

    Communications & Media: Email:

    Notice to Readers

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    Brookfield Reinsurance Increases Stake In American Equity Investment Life Holding Company

    BROOKFIELD, NEWS, Jan. 07, 2022 — Brookfield Asset Management Reinsurance Partners Ltd. today announced that it has purchased an additional 6,775,000 shares of common stock of American Equity Investment Life Holding Company , bringing its total combined equity interest in AEL to approximately 16%. The share purchase took place pursuant to the terms of Brookfield Reinsurances previousl

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    First American Financial Corp., Fidelity National Financial Inc., American Equity Investment Life Holding Co., Brown and Brown Inc., and Aflac Inc. are highlighted in this analyst blog.

  • Price Of American Equity Investment Life Insurance: Pay Upfront Or Over Time

    Welcome to American Equity Investment Life Insurance Company

    American Equity Investment allows for flexible premium payment options on most policies. You can use the retirement calculators American Equity Investment provides to estimate the rate, time, and value of your return. Unlike with life insurance policies, your premium wont depend on your health statusyoull pay your choice of premium depending on how much income you want to receive during retirement.

    Note that American Equity doesnt charge any annual fees.

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    American Equity Annuity Review

    This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAssets reviews. This page contains links to SmartAssets financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

    American Equity Investment Life Insurance Company has been in business since 1995, when it was founded by the late David J. Noble. As of Q2 2020, the company has $53 billion in policyholder assets under management and more than 630 employees. Customers of American Equity can pick from products like fixed annuities, fixed indexed annuities and immediate annuities.

    If youre unsure which annuity best fits your retirement plan, its a good idea to consult with a financial advisor.

    Annuity
    • 1.10% – 1.20% lifetime income benefit rider fee
    • 0.90% – 1.00% lifetime income benefit rider fee

    Minimum Initial Premium

    American Equity Reviews Faqs

    American Equity has an overall rating of 3.5 out of 5, based on over 50 reviews left anonymously by employees. 48% of employees would recommend working at American Equity to a friend and 63% have a positive outlook for the business. This rating has improved by 4% over the last 12 months.

    According to anonymously submitted Glassdoor reviews, American Equity employees rate their compensation and benefits as 3.9 out of 5. Find out more about salaries and benefits at American Equity. This rating has improved by 2% over the last 12 months.

    48% of American Equity employees would recommend working there to a friend based on Glassdoor reviews. Employees also rated American Equity 3.2 out of 5 for work life balance, 3 for culture and values and 2.9 for career opportunities.

    According to reviews on Glassdoor, employees commonly mention the pros of working at American Equity to be career development, coworkers, benefits and the cons to be culture, management.

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    Why You Can Trust The Annuity Expert

    The Annuity Expert is a licensed annuity broker and insurance agency since 2008. We offer the largest selection of annuities in the United States. Information provided is written by a financial professionalnot a content writer with no financial experience.

    We have been recognized as an authority of annuities and insurance by:

    • Yahoo Finance!
    • LegalZoom

    How American Equity Investment Compares To Other Life Insurance

    EstateShield 10 Fixed Index Annuity

    American Equity Investment is a great option for people looking for fixed-rate or fixed index annuities, but its not the only company out there that provides these products. Some other companies have better financial strength ratings, lower complaint indices, and more plan options.

    American Equity Investment vs. Jackson National Life Insurance

    American Equity Investment and Jackson National Life Insurance are both focused on providing annuities and do not sell life insurance policies. They each have a variety of plans, many of which allow penalty-free withdrawals each year. However, there are several key differences between these two companies:

    • Jackson National Life Insurance offers variable annuities while American Equity Investment does not.
    • Jackson National Life Insurance is the largest annuities seller in the U.S. and has been around since 1961. American Equity Investment is newer and represents a smaller share of the market.
    • Jackson National Life Insurance had a complaint index of just 0.24 for individual annuities in 2020, while American Equity Investment had an index of 1.61.
    • Jackson National Life Insurance doesnt offer a rider similar to American Equitys Lifetime Income Benefit Rider.

    While there are pros and cons to each company, people seeking variable annuities should go with Jackson National Life Insurance, while those looking for guaranteed lifetime income should opt for American Equity.

    8%

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    Cancellation Policy: High Surrender Charges

    After an annuity contract is issued, you will have at least 10 days, depending on the state you live in, to cancel the contract without paying surrender charges. This is known as the free-look period. After that, surrendering your contract isnt cheap and can cost up to 20% of your contract value, depending on your plan.

    Customer Service: A Few Options But Limited Hours

    You can email American Equity Investment at any time at or fill out the online form to be contacted by a representative. The company has some resources such as forms available online, but you wont be able to file a death claim online. Theres also no live chat, but there is an FAQ section.

    You can call American Equity Investment Monday through Thursday, 8:00 a.m. to 4:30 p.m. CT or Friday, 8:00 a.m. to 1:00 p.m. CT. The main office number is 515-221-0002, or you can call toll-free at 888-231-1234.

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