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Form 8-K AMERICAN EQUITY INVESTME For: Aug 08

August 8, 2022 4:57 PM EDT
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 08, 2022
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
(Exact name of registrant as specified in its charter)

Iowa001-3191142-1447959
(State or other jurisdiction
of incorporation)
(Commission File Number)(IRS Employer
Identification No.)
6000 Westown Parkway
West Des Moines, IA 50266
(Address of principal executive offices and zip code)
(515) 221-0002
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $1AELNew York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series AAELPRANew York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series BAELPRBNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.






Item 2.02  Results of Operations and Financial Condition
On August 8, 2022, the registrant issued a press release announcing its financial results for the quarter ended June 30, 2022, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The registrant's financial supplement for the quarter ended June 30, 2022, is attached as Exhibit 99.2 and is incorporated herein by reference.
The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.
Item 9.01.  Financial Statements and Exhibits



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 8, 2022
 AMERICAN EQUITY 
 INVESTMENT LIFE HOLDING COMPANY 
    
    
By:/s/ Axel Andre 
 Axel Andre 
 Chief Financial Officer and Executive Vice President 
   



Exhibit 99.1
aeholdinglogo2019a.jpg
For more information, contact:
Steven D. Schwartz, Vice President-Investor Relations
(515) 273-3763, sschwartz@american-equity.com
FOR IMMEDIATE RELEASE
August 8, 2022
American Equity Reports Strong Results as Investment Yield Improves
Company Highlights
Q2 2022 net income available to common stockholders of $349.7 million, or $3.74 per diluted common share
Non-GAAP operating income1 available to common stockholders for the second quarter 2022 was $91.1 million, or $0.98 per diluted common share
Repurchased $189 million or 4.95 million common shares in Q2 2022 as we remain committed to our capital return plans even in the current macro-economic environment
Private asset deployment momentum continues with approximately $1.4 billion sourced in the quarter
Yield and investment spread expansion driven by strong residential real estate returns and floating rate assets
WEST DES MOINES, Iowa (August 8, 2022) – American Equity Investment Life Holding Company (NYSE: AEL), a leading issuer of fixed index annuities (FIAs) today reported on its second quarter 2022 results. These results include improved yields in the investment portfolio, continued progress with our "best-in-class" asset origination partners, and continued share repurchase activities in-line with our capital return goals for this year.
Non-GAAP operating income1 available to common stockholders for the second quarter of 2022 was $91.1 million, or $0.98 per diluted common share. Second quarter 2021 net loss available to common stockholders was $(65.6) million, or $(0.69) per diluted common share, and non-GAAP operating income1 available to common stockholders of $93.8 million, or $0.98 per diluted common share.
Quarterly non-GAAP operating income1 available to common stockholders declined slightly year-over-year. Results for the quarter just ended reflected a substantial increase in average yield on invested assets compared to the year ago period due to strong returns on partnership and other market value investments, the significant reduction in cash balances over the last twelve months with the rebalancing of the investment portfolio, and lower operating expenses. The benefit of higher yield was offset by increases in the cost of money, commensurate increases in the amortization of the deferred acquisition cost and deferred sales inducement assets, and the increase in the liability for future policy benefits to be paid for lifetime income benefit riders (LIBR).



For the second quarter of 2022, net investment income increased $93 million from the comparable quarter of 2021 reflecting an increase in average yield on investments resulting from strong returns from partnerships and other mark-to-market assets, lower cash balances, and the increase in allocation to higher yielding privately sourced assets to 16.6% of the investment portfolio.
Compared to the second quarter of 2021, the change in the liability for future policy benefits to be paid for LIBR increased by $62 million, driven by higher benefit utilization and lower index credits realized in the second quarter of this year compared to a benefit from strong index credits in the second quarter of last year related to the upside from equity market performance.
Compared to the second quarter of 2021, amortization of deferred policy acquisition and sales inducement costs increased by $32 million, primarily reflecting the substantial improvement in investment income and the decline in index credits year-over-year.
As of June 30, 2022, notional value2 under reinsurance agreements - generating six to seven years of "fee-like" return on asset (ROA) earnings - was $4.5 billion, up from $4.3 billion three months earlier .
STRONG INVESTMENT MANAGEMENT RESULTS
American Equity’s investment spread was 2.64% for the second quarter of 2022 compared to 2.51% for the first quarter of 2022 and 1.95% for the second quarter of 2021. On a sequential quarterly basis, the average yield on invested assets increased by 18 basis points - driven by the increase in short-term interest rates and lower allocation to cash and equivalents - while the cost of money increased 5 basis points. Adjusted investment spread excluding non-trendable items3 increased to 2.57% in the second quarter of 2022 from 2.45% in the first quarter of 2022.
Average yield on invested assets was 4.33% in the second quarter of 2022 compared to 4.15% in the first quarter of 2022. The average adjusted yield on invested assets excluding non-trendable items3 was 4.28% in the second quarter of 2022 compared to 4.12% in the first quarter of 2022. Relative to the prior quarter, the increase in the average adjusted yield in the second quarter of 2022 was primarily driven by an 8 basis point benefit due to higher short term rates and 9 basis points from the decrease in average cash balance. While the benefit from partnership income was lower than in the first quarter, this was mostly offset by appreciation in residential real estate assets. Partnerships and other mark-to-market assets contributed 20 basis points to average yield in the second quarter of 2022 in excess of rates of return assumed in our investment process.
Average cash and equivalents in the insurance companies' portfolios was $526 million compared to $1.7 billion for the first quarter. Cash and equivalents in the insurance companies' portfolios as of June 30, 2022 was $544 million or approximately 1% of the investment portfolio.
During the quarter, investment asset purchases totaled $2.0 billion and were made at an average rate of 4.88%, including approximately $1.4 billion of private assets at 5.10%.
2


American Equity CEO & President Anant Bhalla stated, "We continued to execute in our Investments pillar originating $1.4 billion of privately sourced assets as we worked closely with our "best-in-class" asset origination partners to bring these yield enhancing assets to 16.6% of our investment portfolio compared to 15.4% three months earlier. While this number increased meaningfully in the quarter, we are, and will continue to be, primarily opportunistic investors compared to others who may be more programmatic in deployment in various private asset sectors. Therefore, we will benefit from partnerships that allow us to allocate to the most attractive relative value sectors, driven by our tactical asset allocation as different private asset sectors reprice risk-return attractiveness in the going forward macro-environment. This is a good indicator of the strategic benefits and resilience we expect from our curated approach to private asset investing.”
The aggregate cost of money for annuity liabilities of 1.69% in the second quarter of 2022 was up 5 basis points compared to the first quarter of 2022, in line with market costs. The cost of money in the second quarter of 2022 was positively affected by 2 basis points of over-hedging of index-linked credits compared to 3 basis points of hedge gain in the first quarter of 2022.
SALES FOCUS ON FIA AND PRICING DISCIPLINE4
Second quarter sales were $781 million, of which 99%, or $776 million, were in fixed index annuities. This is in line with the company's focus strategy for driving low single-digit growth in FIA sales in 2022 as the macro-economic environment and interest rates go through a potential regime change based on Federal Reserve policy making action in light of sustained supply constraints in the economy and its outlook for balancing its mandate between stable prices and maximum employment. Compared to the second quarter of 2021, total enterprise FIA sales decreased 13% driven primarily by Eagle Life in the bank channel, while the Independent Marketing Organization (IMO) American Equity channel decreased 4%. On a sequential quarterly basis, FIA sales decreased 12% primarily due to lower sales in the IMO space.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
The forward-looking statements in this release or that American Equity uses on its conference call, such as ability, aim, anticipate, become, believe, can, continue, could, estimate, expect, exposure, forward, future, goal, grow, guidance, intend, introduce, likely, look to, may, might, need, opportunistic, opportunity, outlook, over time, plan, potential, predictable, prepare, proactive, project, ramp, risk, scenario, should, signal, strategy, stress test, target, then, to be, toward, trends, will, would, and their derivative forms and similar words, as well as any projections of future results, are based on assumptions and expectations that involve risks and uncertainties, including the "Risk Factors" the company describes in its U.S. Securities and Exchange Commission filings. The Company's future results could differ, and it has no obligation to correct or update any of these statements.
CONFERENCE CALL
American Equity will hold a conference call to discuss second quarter 2022 earnings on Tuesday, August 9, at 10:00 a.m. CDT.
The conference call will be webcast live on the Internet. Investors and interested parties who wish to listen to the webcast may register to access it on our IR website at https://ir.american-equity.com. An audio replay will also be available via the same link on our website shortly after the completion of the call for 30 days.
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The call may also be accessed by telephone. Investors and interested parties may register for the call with the form available at this link, and upon submission (and via follow-up email) will receive the dial-in number and a unique PIN to access the call. Registration is available now or any time up to and during the time of the call. Registration is also available by visiting our IR website at https://ir.american-equity.com.
ABOUT AMERICAN EQUITY    
At American Equity Investment Life Holding Company, we think of ourselves as The Financial Dignity CompanyTM that offers solutions designed to create financial dignity in retirement. Our policyholders work with independent agents, banks and broker-dealers, through our wholly-owned operating subsidiaries, to choose one of our leading annuity products best suited for their personal needs. To deliver on our promises to policyholders, American Equity has reframed its investment focus, building a stronger emphasis on insurance liability driven asset allocation as well as the origination and management of private assets. Our company is headquartered in West Des Moines, Iowa with satellite offices slated to open in 2022 in Charlotte, NC and New York, NY. For more information, please visit www.american-equity.com.
1    Use of non-GAAP financial measures, including those that isolate notable items, is discussed in this release in the tables that follow the text of the release.
2    Notional value represents the initial cash surrender value of business ceded subject to recurring fees under reinsurance agreements.
3    Non-trendable items are the impact of investment yield – additional prepayment income and cost of money effect of over (under) hedging as shown in our June 30, 2022 financial supplement on page 10, “Spread Results”.
4    For the purposes of this document, all references to sales are on a gross basis. Gross sales is defined as sales before the use of reinsurance.

###
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American Equity Investment Life Holding Company
Unaudited (Dollars in thousands, except per share data)


Consolidated Statements of Operations
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2022202120222021
Revenues:
Premiums and other considerations$3,831 $14,595 $13,909 $27,808 
Annuity product charges55,514 63,759 107,869 123,841 
Net investment income592,308 499,320 1,159,731 996,510 
Change in fair value of derivatives(506,181)500,880 (983,700)897,185 
Net realized losses on investments(33,272)(3,114)(46,399)(7,697)
Other revenue9,195 — 17,784 — 
Total revenues121,395 1,075,440 269,194 2,037,647 
Benefits and expenses:
Insurance policy benefits and change in future policy benefits7,091 15,828 19,729 32,252 
Interest sensitive and index product benefits234,855 812,981 607,517 1,289,576 
Amortization of deferred sales inducements90,446 (12,520)233,991 110,455 
Change in fair value of embedded derivatives(885,984)273,713 (2,279,633)(8,700)
Interest expense on notes payable6,461 6,394 12,886 12,787 
Interest expense on subordinated debentures1,346 1,326 2,663 2,652 
Amortization of deferred policy acquisition costs142,354 (16,906)367,780 186,917 
Other operating costs and expenses59,923 65,050 118,043 120,915 
Total benefits and expenses(343,508)1,145,866 (917,024)1,746,854 
Income (loss) before income taxes464,903 (70,426)1,186,218 290,793 
Income tax expense (benefit)104,327 (15,732)259,419 62,803 
Net income (loss)360,576 (54,694)926,799 227,990 
Less: Net income (loss) available to noncontrolling interests(4)— (4)— 
Net income (loss) available to American Equity Investment Life Holding Company stockholders360,580 (54,694)926,803 227,990 
Less: Preferred stock dividends10,919 10,919 21,838 21,838 
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$349,661 $(65,613)$904,965 $206,152 
Earnings (loss) per common share$3.78 $(0.69)$9.56 $2.16 
Earnings (loss) per common share - assuming dilution$3.74 $(0.69)$9.46 $2.15 
Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share92,544 94,801 94,693 95,265 
Earnings (loss) per common share - assuming dilution93,375 95,379 95,652 95,795 


Page 1



American Equity Investment Life Holding Company
Unaudited (Dollars in thousands, except per share data)


NON-GAAP FINANCIAL MEASURES
In addition to net income (loss) available to common stockholders, we have consistently utilized non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Non-GAAP operating income available to common stockholders equals net income (loss) available to common stockholders adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income available to common stockholders eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income available to common stockholders together with net income (loss) available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2022202120222021
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$349,661 $(65,613)$904,965 $206,152 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized losses on financial assets, including credit losses31,572 2,912 41,857 6,428 
Change in fair value of derivatives and embedded derivatives(367,145)200,767 (970,499)(96,867)
Income taxes77,056 (44,278)204,717 19,516 
Non-GAAP operating income available to common stockholders91,144 93,788 181,040 135,229 
Impact of notable items (b)— — — — 
Non-GAAP operating income available to common stockholders, excluding notable items$91,144 $93,788 $181,040 $135,229 
Per common share - assuming dilution:
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$3.74 $(0.69)$9.46 $2.15 
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized losses on financial assets, including credit losses0.34 0.03 0.44 0.07 
Change in fair value of derivatives and embedded derivatives(3.93)2.10 (10.15)(1.01)
Income taxes0.83 (0.46)2.14 0.20 
Non-GAAP operating income available to common stockholders0.98 0.98 1.89 1.41 
Impact of notable items— — — — 
Non-GAAP operating income available to common stockholders, excluding notable items$0.98 $0.98 $1.89 $1.41 
(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 primarily include the impact from actuarial assumption updates. 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
Unaudited (Dollars in thousands, except share and per share data)
Book Value per Common Share
Q2 2022
Total stockholders’ equity attributable to American Equity Investment Life Holding Company$3,882,217 
Equity available to preferred stockholders (a)(700,000)
Total common stockholders' equity (b)3,182,217 
Accumulated other comprehensive income (AOCI)1,387,968 
Total common stockholders’ equity excluding AOCI (b)4,570,185 
Net impact of fair value accounting for derivatives and embedded derivatives(1,031,257)
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (b)
$3,538,928 
Common shares outstanding90,168,512 
Book Value per Common Share: (c)
Book value per common share$35.29 
Book value per common share excluding AOCI (b)$50.68 
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (b)$39.25 
(a)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(b)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.
(c)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.

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American Equity Investment Life Holding Company
Unaudited (Dollars in thousands)


NON-GAAP FINANCIAL MEASURES
Average Common Stockholders' Equity and Return on Average Common Stockholders' Equity
Return on average common stockholders' equity measures how efficiently we generate profits from the resources provided by our net assets.  Return on average common stockholders' equity is calculated by dividing net income available to common stockholders, for the trailing twelve months, by average equity available to common stockholders. Non-GAAP operating return on average common stockholders' equity excluding average accumulated other comprehensive income (AOCI) and average net impact of fair value accounting for derivatives and embedded derivatives is calculated by dividing non-GAAP operating income available to common stockholders, for the trailing twelve months, by average common stockholders' equity excluding average AOCI and average net impact of fair value accounting for derivatives and embedded derivatives. We exclude AOCI because AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments. We exclude the net impact of fair value accounting for derivatives and embedded derivatives as the amounts are not economic in nature but rather impact the timing of reported results.
Twelve Months Ended
June 30, 2022
Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company, Excluding Average AOCI and Average Net Impact of Fair Value Accounting for Derivatives and Embedded Derivatives
Average total stockholders’ equity$5,088,976 
Average equity available to preferred stockholders(700,000)
Average equity available to common stockholders4,388,976 
Average AOCI(317,972)
Average common stockholders' equity excluding average AOCI4,071,004 
Average net impact of fair value accounting for derivatives and embedded derivatives(636,840)
Average common stockholders' equity excluding average AOCI and average net impact of fair value accounting for derivatives and embedded derivatives3,434,164 
Impact of notable items on average common stockholders' equity excluding average AOCI and average net impact of fair value accounting for derivatives and embedded derivatives39,018 
Average common stockholders' equity excluding average AOCI, average net impact of fair value accounting for derivatives and embedded derivatives and notables$3,473,182 
Net income available to American Equity Investment Life Holding Company common stockholders$1,129,130 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized losses on financial assets, including credit losses45,728 
Change in fair value of derivatives and embedded derivatives(1,060,922)
Income taxes222,385 
Non-GAAP operating income available to common stockholders336,321 
Impact of notable items (b)78,036 
Non-GAAP operating income available to common stockholders, excluding notable items$414,357 
Return on Average Common Stockholders' Equity Attributable to American Equity Investment Life Holding Company
Net income available to common stockholders25.7 %
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 Derivatives and Embedded Derivatives
Non-GAAP operating income available to common stockholders9.8 %
Non-GAAP operating income available to common stockholders, excluding notable items11.9 %
Notable ItemsTwelve Months Ended
June 30, 2022
Notable items impacting non-GAAP operating income available to common stockholders:
Impact of actuarial assumption updates$78,036 
Total notable items (b)$78,036 
(a)Adjustments to net income 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 primarily include the impact from actuarial assumption updates. 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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Exhibit 99.2



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement

June 30, 2022

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, 2022
Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2022December 31, 2021
Assets
Investments:
Fixed maturity securities, available for sale, at fair value$45,323,775 $51,305,943 
Mortgage loans on real estate6,228,616 5,687,998 
Real estate investments672,475 337,939 
Derivative instruments200,781 1,277,480 
Other investments2,112,169 1,767,144 
Total investments54,537,816 60,376,504 
Cash and cash equivalents1,287,225 4,508,982 
Coinsurance deposits8,600,297 8,850,608 
Accrued investment income492,539 445,097 
Deferred policy acquisition costs3,474,319 2,222,769 
Deferred sales inducements2,380,288 1,546,073 
Deferred income taxes76,936 — 
Income taxes recoverable135,241 166,586 
Other assets678,605 232,490 
Total assets$71,663,266 $78,349,109 
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves$62,280,575 $65,477,778 
Other policy funds and contract claims522,763 226,844 
Notes payable496,552 496,250 
Subordinated debentures78,584 78,421 
Deferred income taxes— 541,972 
Funds withheld for reinsurance liabilities2,936,366 3,124,740 
Other liabilities1,465,040 2,079,977 
Total liabilities67,779,880 72,025,982 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 12 
Common stock90,169 92,514 
Additional paid-in capital1,507,601 1,614,374 
Accumulated other comprehensive income (loss)(1,387,968)1,848,789 
Retained earnings3,672,387 2,767,422 
Total stockholders' equity attributable to American Equity Investment Life Holding Company3,882,217 6,323,127 
Noncontrolling interests1,169 — 
Total stockholders' equity3,883,386 6,323,127 
Total liabilities and stockholders' equity$71,663,266 $78,349,109 

Page 1



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
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,
2022202120222021
Revenues:
Premiums and other considerations$3,831 $14,595 $13,909 $27,808 
Annuity product charges55,514 63,759 107,869 123,841 
Net investment income592,308 499,320 1,159,731 996,510 
Change in fair value of derivatives(506,181)500,880 (983,700)897,185 
Net realized losses on investments(33,272)(3,114)(46,399)(7,697)
Other revenue9,195 — 17,784 — 
Total revenues121,395 1,075,440 269,194 2,037,647 
Benefits and expenses:
Insurance policy benefits and change in future policy benefits7,091 15,828 19,729 32,252 
Interest sensitive and index product benefits234,855 812,981 607,517 1,289,576 
Amortization of deferred sales inducements90,446 (12,520)233,991 110,455 
Change in fair value of embedded derivatives(885,984)273,713 (2,279,633)(8,700)
Interest expense on notes payable6,461 6,394 12,886 12,787 
Interest expense on subordinated debentures1,346 1,326 2,663 2,652 
Amortization of deferred policy acquisition costs142,354 (16,906)367,780 186,917 
Other operating costs and expenses59,923 65,050 118,043 120,915 
Total benefits and expenses(343,508)1,145,866 (917,024)1,746,854 
Income (loss) before income taxes464,903 (70,426)1,186,218 290,793 
Income tax expense (benefit)104,327 (15,732)259,419 62,803 
Net income (loss)360,576 (54,694)926,799 227,990 
Less: Net income (loss) available to noncontrolling interests(4)— (4)— 
Net income (loss) available to American Equity Investment Life Holding Company stockholders360,580 (54,694)926,803 227,990 
Less: Preferred stock dividends10,919 10,919 21,838 21,838 
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$349,661 $(65,613)$904,965 $206,152 
Earnings (loss) per common share$3.78 $(0.69)$9.56 $2.16 
Earnings (loss) per common share - assuming dilution$3.74 $(0.69)$9.46 $2.15 
Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share92,544 94,801 94,693 95,265 
Earnings (loss) per common share - assuming dilution93,375 95,379 95,652 95,795 

Page 2



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters
Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Revenues:
Traditional life insurance premiums$691 $675 $677 $697 $708 
Life contingent immediate annuity considerations3,140 9,403 13,876 15,144 13,887 
Surrender charges15,345 15,541 13,638 16,481 18,057 
Lifetime income benefit rider fees40,169 36,814 46,672 41,999 45,702 
Net investment income592,308 567,423 514,599 526,366 499,320 
Change in fair value of derivatives(506,181)(477,519)522,251 (70,701)500,880 
Net realized gains (losses) on investments(33,272)(13,127)(10,478)4,933 (3,114)
Other revenue (a)9,195 8,589 8,026 7,644 — 
Total revenues121,395 147,799 1,109,261 542,563 1,075,440 
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits
785 765 624 798 502 
Life contingent immediate annuity benefits and change in future policy benefits
6,306 11,873 16,351 17,958 15,326 
Interest sensitive and index product benefits (b)234,855 372,662 574,816 817,014 812,981 
Amortization of deferred sales inducements (c)90,446 143,545 59,409 (17,172)(12,520)
Change in fair value of embedded derivatives (d)(885,984)(1,393,649)186,802 (536,404)273,713 
Interest expense on notes payable6,461 6,425 6,259 6,535 6,394 
Interest expense on subordinated debentures1,346 1,317 1,330 1,342 1,326 
Amortization of deferred policy acquisition costs (c)142,354 225,426 82,999 (1,588)(16,906)
Other operating costs and expenses59,923 58,120 66,279 56,518 65,050 
Total benefits and expenses(343,508)(573,516)994,869 345,001 1,145,866 
Income (loss) before income taxes464,903 721,315 114,392 197,562 (70,426)
Income tax expense (benefit)104,327 155,092 21,255 44,697 (15,732)
Net income (loss) (b)(c)(d)360,576 566,223 93,137 152,865 (54,694)
Less: Net income (loss) available to noncontrolling interests(4)— — — — 
Net income (loss) available to American Equity Investment Life Holding Company stockholders (b)(c)(d)360,580 566,223 93,137 152,865 (54,694)
Less: Preferred stock dividends10,919 10,919 10,919 10,918 10,919 
Net income (loss) available to American Equity Investment Life Holding Company common stockholders (b)(c)(d)$349,661 $555,304 $82,218 $141,947 $(65,613)
Earnings (loss) per common share$3.78 $5.73 $0.89 $1.53 $(0.69)
Earnings (loss) per common share - assuming dilution (b)(c)(d)$3.74 $5.67 $0.88 $1.53 $(0.69)
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share92,544 96,866 92,479 92,478 94,801 
Earnings (loss) per common share - assuming dilution93,375 97,953 93,378 93,044 95,379 
(a)Other revenue consists of $3.0 million in Q2 2022, $2.9 million in Q1 2022, $2.8 million in Q4 2021 and $2.7 million in Q3 2021 related to asset liability management fees and $6.2 million in Q2 2022, $5.7 million in Q1 2022, $5.3 million in Q4 2021 and $4.9 million in Q3 2021 related to amortization of the deferred gain associated with the cost of reinsurance. The deferred gain, which is recorded in Other liabilities on the Consolidated Balance Sheets, was $372.3 million and $321.7 million at June 30, 2022 and December 31, 2021, respectively. The deferred gain consists primarily of a difference between liabilities ceded and assets transferred and the present value of the ceding commissions offset by a reduction in deferred policy acquisition costs associated with the in-force business ceded.
(b)Q4 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $10.5 million and decreased both net income and net income available to common stockholders by $8.2 million and decreased earnings per common share - assuming dilution by $0.09 per share.
Page 3



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands, except per share data)

Q3 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $233.2 million and decreased both net income and net income available to common stockholders by $183.0 million and decreased earnings per common share - assuming dilution by $1.97 per share.
(c)Q4 2021 includes expense from the update of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $6.3 million and $6.9 million, respectively, and decreased both net income and net income available to common stockholders by $10.4 million and decreased earnings per common share - assuming dilution by $0.11 per share
Q3 2021 includes a benefit from the update of assumptions which decreased amortization of deferred sales inducements and deferred policy acquisition costs by $51.4 million and $52.6 million, respectively, and increased both net income and net income available to common stockholders by $81.7 million and increased earnings per common share - assuming dilution by $0.88 per share.
(d)Q4 2021 includes expense from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact increased change in fair value of embedded derivatives by $3.5 million and decreased both net income and net income available to common stockholders by $2.7 million and decreased earnings per common share - assuming dilution by $0.03 per share.
Q3 2021 includes a benefit from the update 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 $125.8 million and increased both net income and net income available to common stockholders by $98.7 million and increased earnings per common share - assuming dilution by $1.06 per share.
Page 4



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
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,
2022202120222021
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$349,661 $(65,613)$904,965 $206,152 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized losses on financial assets, including credit losses31,572 2,912 41,857 6,428 
Change in fair value of derivatives and embedded derivatives(367,145)200,767 (970,499)(96,867)
Income taxes77,056 (44,278)204,717 19,516 
Non-GAAP operating income available to common stockholders91,144 93,788 181,040 135,229 
Impact of notable items (b)— — — — 
Non-GAAP operating income available to common stockholders, excluding notable items$91,144 $93,788 $181,040 $135,229 
Per common share - assuming dilution:
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$3.74 $(0.69)$9.46 $2.15 
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized losses on financial assets, including credit losses0.34 0.03 0.44 0.07 
Change in fair value of derivatives and embedded derivatives(3.93)2.10 (10.15)(1.01)
Income taxes0.83 (0.46)2.14 0.20 
Non-GAAP operating income available to common stockholders0.98 0.98 1.89 1.41 
Impact of notable items— — — — 
Non-GAAP operating income available to common stockholders, excluding notable items$0.98 $0.98 $1.89 $1.41 
(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 primarily include the impact from actuarial assumption updates. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

Page 5



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2022202120222021
Net realized losses on financial assets, including credit losses:
Net realized losses on financial assets, including credit losses$37,054 $2,862 $50,779 $7,589 
Amortization of DAC and DSI and accretion of LIBR reserves(5,482)50 (8,922)(1,161)
Income taxes(6,788)(626)(8,999)(1,382)
$24,784 $2,286 $32,858 $5,046 
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities$(275,057)$331,268 $(919,820)$(162,531)
Reinsurance contracts(199,422)— (401,866)— 
Interest rate swaps3,666 — 3,666 — 
Amortization of DAC and DSI103,668 (130,501)347,521 65,664 
Income taxes83,844 (43,652)213,716 20,898 
$(283,301)$157,115 $(756,783)$(75,969)

Page 6



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
Quarterly Summary - Most Recent 5 Quarters
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$349,661 $555,304 $82,218 $141,947 $(65,613)
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized (gains) losses on financial assets, including credit losses31,572 10,285 7,771 (3,900)2,912 
Change in fair value of derivatives and embedded derivatives(367,145)(603,354)(14,544)(75,879)200,767 
Income taxes77,056 127,661 383 17,285 (44,278)
Non-GAAP operating income available to common stockholders (b)(c)91,144 89,896 75,828 79,453 93,788 
Impact of notable items (d)— — 21,235 56,801 — 
Non-GAAP operating income available to common stockholders, excluding notable items$91,144 $89,896 $97,063 $136,254 $93,788 
Per common share - assuming dilution:
Net income (loss) available to American Equity Investment Life Holding Company common stockholders$3.74 $5.67 $0.88 $1.53 $(0.69)
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized (gains) losses on financial assets, including credit losses0.34 0.11 0.08 (0.04)0.03 
Change in fair value of derivatives and embedded derivatives(3.93)(6.16)(0.15)(0.82)2.10 
Income taxes0.83 1.30 — 0.18 (0.46)
Non-GAAP operating income available to common stockholders (b)(c)0.98 0.92 0.81 0.85 0.98 
Impact of notable items (d)— — 0.23 0.61 — 
Non-GAAP operating income available to common stockholders, excluding notable items$0.98 $0.92 $1.04 $1.46 $0.98 
Notable Items
Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Notable items impacting non-GAAP operating income available to common stockholders:
Impact of actuarial assumption updates (b)(c)$— $— $21,235 $56,801 $— 
Total notable items (d)$— $— $21,235 $56,801 $— 
(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)Q4 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $10.5 million and decreased both non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per share - assuming dilution by $8.2 million and $0.09 per share, respectively.
Q3 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $233.2 million and decreased both non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per share - assuming dilution by $183.0 million and $1.97 per share, respectively.
(c)Q4 2021 includes expense from the update of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $7.7 million and $8.8 million, respectively, and decreased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $13.0 million and $0.14 per share, respectively.
Q3 2021 includes a benefit from the update of assumptions which decreased amortization of deferred sales inducements and deferred policy acquisition costs by $73.8 million and $87.0 million, respectively, and increased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $126.2 million and $1.36 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 primarily include the impact from actuarial assumption updates. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.
Page 7



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders
Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Net realized (gains) losses on investments$33,272 $13,127 $10,478 $(4,933)$3,114 
Change in fair value of derivatives415,171 546,442 (215,961)411,330 57,555 
Increase (decrease) in total revenues448,443 559,569 (205,483)406,397 60,669 
Amortization of deferred sales inducements(37,179)(90,361)(4,506)(17,682)52,074 
Change in fair value of embedded derivatives885,984 1,393,649 (186,802)536,404 (273,713)
Interest sensitive and index product benefits (a)(2,569)143 971 (944)227 
Amortization of deferred policy acquisition costs(62,220)(150,793)(8,373)(31,602)78,402 
Increase (decrease) in total benefits and expenses784,016 1,152,638 (198,710)486,176 (143,010)
Increase (decrease) in income (loss) before income taxes(335,573)(593,069)(6,773)(79,779)203,679 
Increase (decrease) in income tax expense (benefit)(77,056)(127,661)(383)(17,285)44,278 
Increase (decrease) in net income (loss) available to common stockholders$(258,517)$(465,408)$(6,390)$(62,494)$159,401 
(a)Interest sensitive and index product benefits adjustment reflects the change in the allowance for credit losses on our reinsurance recoverable/coinsurance deposits. The change in this allowance is reflected in the net realized (gains) losses of financial assets, including credit losses line in the other Non-GAAP financial measures tables in this financial supplement.
Page 8



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share
Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Capitalization:
Notes payable$500,000 $500,000 $500,000 $500,000 $500,000 
Subordinated debentures payable to subsidiary trusts78,584 78,502 78,421 78,342 78,264 
Total debt
578,584 578,502 578,421 578,342 578,264 
Total stockholders’ equity attributable to American Equity Investment Life Holding Company3,882,217 5,171,086 6,323,127 6,375,208 6,295,735 
Total capitalization4,460,801 5,749,588 6,901,548 6,953,550 6,873,999 
Accumulated other comprehensive income (AOCI)1,387,968 (63,706)(1,848,789)(1,956,974)(2,023,911)
Total capitalization excluding AOCI (a)
$5,848,769 $5,685,882 $5,052,759 $4,996,576 $4,850,088 
Total stockholders’ equity attributable to American Equity Investment Life Holding Company$3,882,217 $5,171,086 $6,323,127 $6,375,208 $6,295,735 
Equity available to preferred stockholders (b)(700,000)(700,000)(700,000)(700,000)(700,000)
Total common stockholders' equity (c)
3,182,217 4,471,086 5,623,127 5,675,208 5,595,735 
Accumulated other comprehensive income1,387,968 (63,706)(1,848,789)(1,956,974)(2,023,911)
Total common stockholders’ equity excluding AOCI (c)
4,570,185 4,407,380 3,774,338 3,718,234 3,571,824 
Net impact of fair value accounting for derivatives and embedded derivatives(1,031,257)(750,229)(274,981)(265,018)(242,423)
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (c)
$3,538,928 $3,657,151 $3,499,357 $3,453,216 $3,329,401 
Common shares outstanding90,168,512 95,019,904 92,513,517 92,513,517 92,553,825 
Book Value per Common Share: (d)
Book value per common share$35.29 $47.05 $60.78 $61.34 $60.46 
Book value per common share excluding AOCI (c)$50.68 $46.38 $40.80 $40.19 $38.59 
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (c)$39.25 $38.49 $37.83 $37.33 $35.97 
Debt-to-Capital Ratios: (e)
Senior debt / Total capitalization8.5 %8.8 %9.9 %10.0 %10.3 %
Total debt / Total capitalization9.9 %10.2 %11.4 %11.6 %11.9 %
(a)Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.
(b)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(c)Total common stockholders' equity, total common 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.
(d)Book value per common share including and excluding AOCI and book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives are calculated as total common stockholders’ equity, total common stockholders’ equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives divided by the total number of shares of common stock outstanding.
(e)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
Page 9



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

Spread Results
Six Months Ended 
 June 30,
20222021Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
4.24%3.54%Average yield on invested assets4.33%4.15%3.80%3.91%3.51%
1.66%1.57%Aggregate cost of money1.69%1.64%1.51%1.51%1.56%
2.58%1.97%Aggregate investment spread2.64%2.51%2.29%2.40%1.95%
Impact of:
0.04%0.11%
Investment yield - additional prepayment income
0.05%0.03%0.12%0.12%0.10%
0.02%0.03%Cost of money effect of over hedging0.02%0.03%0.14%0.08%0.04%
$54,748,602$56,352,021Weighted average investments$54,768,966$54,728,239$54,407,554$53,781,352$56,991,393
54,699,42257,144,563Ending investments54,699,42254,838,50954,617,96854,197,14057,144,563
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,
20222021Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Included in interest sensitive and index product benefits:
$296,783 $1,060,028 Index credits$72,398 $224,385 $442,568 $475,292 $714,291 
122,104 119,114 Interest credited60,770 61,334 63,974 62,804 62,637 
Included in change in fair value of derivatives:
(303,207)(1,069,593)Proceeds received at option expiration(75,115)(228,092)(459,982)(489,902)(720,474)
325,472 326,354 Pro rata amortization of option cost165,375 160,097 153,399 150,262 162,124 
$441,152 $435,903 Cost of money for deferred annuities$223,428 $217,724 $199,959 $198,456 $218,578 
$53,048,016 $55,578,458 
Weighted average liability balance outstanding
$52,940,739 $53,155,293 $53,064,893 $52,644,622 $56,221,809 
Page 10



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands, except per share data)

Annuity Account Balance Rollforward
Six Months Ended 
 June 30,
20222021Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
$53,191,277 $54,056,725 Account balances at beginning of period$53,119,291 $53,191,277 $52,938,493 $56,630,138 $55,813,480 
— — Reserves ceded - in-force— — — (4,279,394)— 
53,191,277 54,056,725 Account balance at beginning of period, net of reinsurance ceded53,119,291 53,191,277 52,938,493 52,350,744 55,813,480 
1,237,291 3,578,854 Net deposits562,366 674,925 815,890 1,090,461 1,161,125 
46,689 49,663 Premium bonuses23,547 23,142 23,476 22,021 24,813 
418,887 1,179,142 Fixed interest credited and index credits133,168 285,719 506,542 538,096 776,928 
(30,886)(37,538)Surrender charges(15,345)(15,541)(13,638)(16,481)(18,057)
(76,983)(86,303)Lifetime income benefit rider fees(40,169)(36,814)(46,672)(41,999)(45,702)
(2,023,717)(2,110,405)Surrenders, withdrawals, deaths, etc.(1,020,300)(1,003,417)(1,032,814)(1,004,349)(1,082,449)
$52,762,558 $56,630,138 Account balances at end of period$52,762,558 $53,119,291 $53,191,277 $52,938,493 $56,630,138 
$2,491,096 $2,007,394 Lifetime income benefit rider reserves, excluding unrealized gain/loss adjustment$2,491,096 $2,396,587 $2,311,842 $2,245,040 $2,007,394 
Notional Values Subject to Recurring Fees Under Reinsurance Agreements
Six Months Ended 
 June 30,
20222021Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
$4,083,301 $— Cash surrender value of business ceded at beginning of period subject to recurring fees$4,264,133 $4,083,301 $3,900,540 $3,736,355 $— 
374,434 — Cash surrender value of business ceded during the period subject to recurring fees193,602 180,832 182,761 164,185 — 
$4,457,735 $— Cash surrender value of business ceded at end of period subject to recurring fees (a) $4,457,735 $4,264,133 $4,083,301 $3,900,540 $— 
0.30%— Asset liability management fee0.30%0.30%0.30%0.30%— 
0.64%— Weighted average ceding commission fee0.64%0.60%0.57%0.53%— 
(a)The business ceded to Brookfield Asset Management Re receives an annual ceding commission equal to 49 basis points for business written before July 1, 2021 and 140 basis points for business written after July 1, 2021 and an annual asset liability management fee of 30 basis points calculated based on initial cash surrender value of liabilities ceded. These annual fees are fixed and contractually guaranteed for six years with the additional and final seventh year payment being contingent on certain performance obligations for both parties.
Page 11



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

Annuity Deposits by Product Type
Six Months Ended 
 June 30,
20222021Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
American Equity Life:
$1,427,676 $1,219,600 Fixed index annuities$671,696 $755,980 $806,238 $727,641 $702,605 
2,202 3,823 Annual reset fixed rate annuities1,140 1,062 848 1,462 1,656 
2,830 834,866 Multi-year fixed rate annuities485 2,345 6,640 14,196 47,674 
16,526 29,389 Single premium immediate annuities3,073 13,453 14,145 16,282 15,430 
1,449,234 2,087,678 676,394 772,840 827,871 759,581 767,365 
Eagle Life:
231,128 333,356 Fixed index annuities104,374 126,754 176,101 187,611 184,520 
337 Annual reset fixed rate annuities— 13 — 175 
2,463 1,193,622 Multi-year fixed rate annuities123 2,340 40,901 362,769 228,197 
233,598 1,527,315 104,497 129,101 217,015 550,380 412,892 
Consolidated:
1,658,804 1,552,956 Fixed index annuities776,070 882,734 982,339 915,252 887,125 
2,209 4,160 Annual reset fixed rate annuities1,140 1,069 861 1,462 1,831 
5,293 2,028,488 Multi-year fixed rate annuities608 4,685 47,541 376,965 275,871 
16,526 29,389 Single premium immediate annuities3,073 13,453 14,145 16,282 15,430 
1,682,832 3,614,993 Total before coinsurance ceded780,891 901,941 1,044,886 1,309,961 1,180,257 
429,015 6,750 Coinsurance ceded215,452 213,563 214,851 203,218 3,702 
$1,253,817 $3,608,243 Net after coinsurance ceded$565,439 $688,378 $830,035 $1,106,743 $1,176,555 
Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of Coinsurance) Account Values at June 30, 2022:
Surrender ChargeNet Account Value
Product TypeAvg.
Years
At Issue
Avg.
Years
Remaining
Avg.
%
Remaining
Dollars in Thousands%
Fixed Index Annuities12.75.18.2%$47,188,701 89.4 %
Annual Reset Fixed Rate Annuities8.32.03.9%1,384,261 2.6 %
Multi-Year Fixed Rate Annuities4.02.17.7%4,189,596 8.0 %
Total11.84.88.1%$52,762,558 100.0 %

Page 12



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
Surrender Charge Percentages:Fixed
Annuities
Account Value
Fixed Index
Annuities
Account Value
No surrender charge$890,066 $4,002,141 
0.0% < 2.0%80,608 2,182,310 
2.0% < 3.0%85,097 4,490,359 
3.0% < 4.0%66,281 1,448,618 
4.0% < 5.0%22,612 2,996,812 
5.0% < 6.0%38,838 3,028,489 
6.0% < 7.0%55,540 2,991,878 
7.0% < 8.0%86,532 2,821,646 
8.0% < 9.0%3,472,176 3,148,328 
9.0% < 10.0%476,797 3,827,571 
10.0% or greater299,310 16,250,549 
$5,573,857 $47,188,701 
Surrender Charge Expiration By Year:Fixed and
Fixed Index
Annuities
Account Value
Weighted
Average
Surrender
Charge
Out of Surrender Charge$4,892,207 0.00 %
2022806,005 2.22 %
20234,577,887 3.74 %
20246,098,987 4.96 %
20255,763,003 5.09 %
20266,161,558 7.06 %
20274,302,999 8.58 %
20283,916,687 9.70 %
20294,160,709 11.02 %
20302,862,230 13.46 %
20314,082,998 14.18 %
20322,630,456 15.16 %
20331,101,022 17.67 %
2034697,161 18.22 %
2035359,787 18.71 %
2036175,784 19.20 %
2037113,186 19.74 %
203859,892 20.00 %
$52,762,558 8.05 %
Page 13



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
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$991,377 $1,065,694 
› 0.00% - 0.25%26,514 112,894 
› 0.25% - 0.50%216,280 6,142 
› 0.50% - 1.00%5,449 546 
› 1.00% - 1.50%7,493 — 
1.00% ultimate guarantee - 2.12% wtd avg interest rate (a)4,087,549 1,037,428 
1.50% ultimate guarantee - 1.07% wtd avg interest rate (a)127,549 2,761,442 
1.75% ultimate guarantee - 1.83% wtd avg interest rate (a)47,730 305,864 
2.00% ultimate guarantee - 1.78% wtd avg interest rate (a)63,916 — 
2.25% ultimate guarantee - 1.60% wtd avg interest rate (a)— 561,905 
3.00% ultimate guarantee - 1.89% wtd avg interest rate (a)— 1,146,147 
Allocated to index strategies (see tables that follow)— 40,190,639 
$5,573,857 $47,188,701 
(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, 2022 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.14%.
Page 14



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
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$1,147 $86,501 $4,757,927 $52,346 $117,456 
1.75% - 3%7,469,760 — — — — 
3% - 4%486,643 1,869 — — — 
4% - 5%2,079,812 348,382 615,850 — — 
5% - 6%331,851 116,495 12,806 — — 
6% - 7%7,394 — 264 — — 
>= 7%7,455 14,700 338 4,448 — 
Annual Monthly Average and Point-to-Point with Participation Rates
Minimum Guaranteed Participation Rate
10%20% - 25%35%50% +
Current Participation Rate
At minimum$170,917 $520,089 $71,601 $83,809 
< 20%1,654,041 — — — 
20% - 40%3,365,652 296,062 5,379 — 
40% - 60%530,652 13,364 34,767 — 
60% - 100%1,269,558 — — — 
> 100%1,499,608 — — — 
S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum$1,745,374 
1.10% - 1.30%5,909,781 
1.40% - 1.60%1,502,494 
1.70% - 2.00%359,853 
>= 2.10%22,687 
Volatility Control Index
Current Asset Fee
At Maximum$— 
0.75% - 1.75%350,326 
2.00% - 2.75%162,982 
3.00% - 3.50%653,082 
3.75% - 5.25%3,271,729 
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 0.86% based upon prices of options for the week ended July 1, 2022.
Page 15



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

Summary of Invested Assets
June 30, 2022December 31, 2021
Carrying
Amount
PercentCarrying
Amount
Percent
Fixed maturity securities:
U.S. Government and agencies$186,491 0.3 %$1,078,746 1.8 %
States, municipalities and territories4,390,844 8.0 %3,927,201 6.5 %
Foreign corporate securities and foreign governments969,883 1.8 %402,545 0.7 %
Corporate securities29,825,798 54.7 %34,660,234 57.4 %
Residential mortgage backed securities1,391,707 2.6 %1,125,049 1.9 %
Commercial mortgage backed securities4,188,392 7.7 %4,840,311 8.0 %
Other asset backed securities4,370,660 8.0 %5,271,857 8.7 %
Total fixed maturity securities45,323,775 83.1 %51,305,943 85.0 %
Mortgage loans on real estate6,228,616 11.4 %5,687,998 9.4 %
Real estate investments672,475 1.2 %337,939 0.6 %
Derivative instruments200,781 0.4 %1,277,480 2.1 %
Other investments2,112,169 3.9 %1,767,144 2.9 %
Total investments54,537,816 100.0 %60,376,504 100.0 %
Modified coinsurance investments2,911,733 3,101.833 
Investments, net of modified coinsurance investments$51,626,083 $58,609,360 
Credit Quality of Fixed Maturity Securities - June 30, 2022
NAIC DesignationCarrying
Amount (a)
PercentRating Agency RatingCarrying
Amount (a)
Percent
1$25,453,818 58.9 %Aaa/Aa/A$25,316,525 58.6 %
216,967,885 39.2 %Baa17,099,172 39.5 %
3630,715 1.5 %Ba629,536 1.5 %
4117,336 0.2 %B104,137 0.2 %
540,995 0.1 %Caa23,137 0.1 %
627,334 0.1 %Ca and lower65,576 0.1 %
$43,238,083 100.0 %$43,238,083 100.0 %
(a)Excludes fixed maturity securities related to reinsurance business ceded under a modified coinsurance agreement of $2,085,692 as of June 30, 2022.
Watch List Securities - June 30, 2022
General Description (a)Amortized
Cost
Allowance for Credit LossesAmortized Cost, Net of AllowanceNet Unrealized
Gains (Losses),
Net of Allowance
Fair Value
States, municipalities and territories$19,062 $(1,834)$17,228 $16 $17,244 
Corporate securities - Public securities16,526 — 16,526 (731)15,795 
Corporate securities - Private placement securities10,417 (3,743)6,674 (945)5,729 
Residential mortgage backed securities31,586 (610)30,976 (1,882)29,094 
Commercial mortgage backed securities84,362 — 84,362 (1,934)82,428 
Other asset backed securities48,739 — 48,739 (236)48,503 
$210,692 $(6,187)$204,505 $(5,712)$198,793 
(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 16



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector
June 30, 2022December 31, 2021
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available for sale:
U.S. Government and agencies$178,840 $186,491 $1,046,029 $1,078,746 
States, municipalities and territories4,598,477 4,390,844 3,495,563 3,927,201 
Foreign corporate securities and foreign governments1,010,706 969,883 380,646 402,545 
Corporate securities:
Capital goods2,332,614 2,210,292 2,357,470 2,694,887 
Consumer discretionary6,899,906 6,340,590 6,396,009 7,210,975 
Energy1,877,428 1,789,043 2,120,185 2,365,991 
Financials8,971,317 8,297,022 8,043,912 8,761,157 
Government non-guaranteed239,119 221,568 471,015 541,233 
Industrials333,175 295,524 465,334 514,635 
Information technology2,212,643 2,070,221 1,885,278 2,083,179 
Materials1,661,002 1,562,281 1,702,910 1,906,150 
Telecommunications1,854,290 1,674,266 1,750,183 1,937,493 
Transportation1,313,110 1,236,962 1,344,629 1,486,405 
Utilities4,371,715 4,066,683 4,197,063 4,756,922 
Other60,680 61,346 350,641 401,207 
Residential mortgage backed securities:
Government agency834,785 825,205 455,136 500,698 
Prime411,491 379,909 537,559 544,084 
Alt-A58,159 71,175 59,129 75,361 
Non-qualified mortgage81,122 75,560 — — 
Other40,440 39,858 4,954 4,906 
Commercial mortgage backed securities:
Government agency182,476 175,541 380,339 415,026 
Non-agency4,260,374 4,012,851 4,328,539 4,425,285 
Other asset backed securities:
Auto49,418 48,737 218,106 222,364 
Consumer discretionary132,319 129,571 — — 
Financials298,414 283,978 4,441 4,887 
Collateralized loan obligations3,774,251 3,504,950 3,861,962 3,817,352 
Other429,756 403,424 1,142,151 1,227,254 
$48,468,027 $45,323,775 $46,999,183 $51,305,943 

Page 17



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

Mortgage Loans on Real Estate
June 30, 2022December 31, 2021
PrincipalPercentPrincipalPercent
Geographic distribution: commercial mortgage loans
East$562,705 15.6 %$614,406 16.9 %
Middle Atlantic293,754 8.1 %293,494 8.1 %
Mountain442,861 12.3 %452,818 12.5 %
New England62,910 1.7 %60,172 1.6 %
Pacific859,389 23.8 %863,879 23.8 %
South Atlantic844,862 23.4 %785,679 21.6 %
West North Central211,508 5.9 %235,864 6.5 %
West South Central330,970 9.2 %326,819 9.0 %
$3,608,959 100.0 %$3,633,131 100.0 %
Property type distribution: commercial mortgage loans
Office$404,964 11.2 %$315,374 8.7 %
Medical Office10,549 0.3 %10,827 0.3 %
Retail944,423 26.2 %1,016,101 28.0 %
Industrial/Warehouse889,113 24.6 %924,779 25.4 %
Apartment865,637 24.0 %864,580 23.8 %
Hotel286,271 7.9 %283,500 7.8 %
Mixed Use/Other208,002 5.8 %217,970 6.0 %
$3,608,959 100.0 %$3,633,131 100.0 %

Page 18



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022
Unaudited (Dollars in thousands)

June 30, 2022
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,608,959 $568,180 $2,031,120 $6,208,259 
In workout— — — — 
Delinquent— — 20,185 20,185 
Principal outstanding3,608,959 568,180 2,051,305 6,228,444 
Unamortized discounts and premiums, net— — 38,303 38,303 
Deferred fees and costs, net(5,681)(1,716)1,654 (5,743)
Amortized cost3,603,278 566,464 2,091,262 6,261,004 
Valuation allowance(24,244)(664)(7,480)(32,388)
Carrying value$3,579,034 $565,800 $2,083,782 $6,228,616 
December 31, 2021
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,633,131 $408,135 $1,645,905 $5,687,171 
In workout— — — — 
Delinquent— — 7,005 7,005 
Principal outstanding3,633,131 408,135 1,652,910 5,694,176 
Unamortized discounts and premiums, net— — 22,143 22,143 
Deferred fees and costs, net(4,629)(1,136)1,468 (4,297)
Amortized cost3,628,502 406,999 1,676,521 5,712,022 
Valuation allowance(17,926)(519)(5,579)(24,024)
Carrying value$3,610,576 $406,480 $1,670,942 $5,687,998 



Page 19



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022

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
2022
First Quarter$44.49$35.05$39.91$0.00
Second Quarter$42.18$32.65$36.57$0.00
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
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
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 20



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - June 30, 2022

Research Analyst Coverage
Erik Bass
Autonomous Research US LP
(646) 561-6248
ebass@autonomous.com
Andrew Kligerman
Credit Suisse Securities
(919) 593-7737
andrew.kligerman@credit-suisse.com
Thomas Gallagher
Evercore ISI
(212) 446-9439
thomas.gallagher@evercoreisi.com
Daniel Bergman
Jefferies
(617) 345-8688
dbergman@jefferies.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

Nigel Dally
Morgan Stanley Research
(212) 761-4132
Nigel.Dally@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 21


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