2013-03-31 AEL 8K

0001039828-13-000067.txt : 20130501 0001039828-13-000067.hdr.sgml : 20130501 20130501171203 ACCESSION NUMBER: 0001039828-13-000067 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20130501 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130501 DATE AS OF CHANGE: 20130501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN EQUITY INVESTMENT LIFE HOLDING CO CENTRAL INDEX KEY: 0001039828 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 421447959 STATE OF INCORPORATION: IA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31911 FILM NUMBER: 13804226 BUSINESS ADDRESS: STREET 1: 6000 WESTOWN PARKWAY CITY: WEST DEMOINES STATE: IA ZIP: 50266 BUSINESS PHONE: 5152210002 MAIL ADDRESS: STREET 1: 6000 WESTOWN PARKWAY CITY: WEST DES MOINES STATE: IA ZIP: 50266 8-K 1 a2013-03x31ael8k.htm 8-K 2013-03-31 AEL 8K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): May 1, 2013

AMERICAN EQUITY

INVESTMENT LIFE HOLDING COMPANY

(Exact Name of Registrant as Specified in its Charter)



Iowa	001-31911	42-1447959
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Indentification No.)



6000 Westown Parkway, West Des Moines, Iowa	50266
(Address of Principal Executive Offices)	(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:

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

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

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

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

Item 2.02 Results of Operations and Financial Condition

On May 1, 2013, the registrant issued a press release announcing its financial results for the first quarter ended March 31, 2013, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The registrant's financial supplement for March 31, 2013, 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



(d)		Exhibits

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



Exhibit Number		Description
99.1		Press release dated May 1, 2013, announcing American Equity Investment Life Holding Company's financial results for the first quarter ended March 31, 2013.
99.2		American Equity Investment Life Holding Company's Financial Supplement for March 31, 2013.

SIGNATURES

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

Date: May 1, 2013



	AMERICAN EQUITY
	INVESTMENT LIFE HOLDING COMPANY


	By:	/s/ John M. Matovina
		John M. Matovina
		Chief Executive Officer and President

EXHIBIT INDEX



Exhibit Number		Description
99.1		Press release dated May 1, 2013, announcing American Equity Investment Life Holding Company's financial results for the first quarter ended March 31, 2013.
99.2		American Equity Investment Life Holding Company's Financial Supplement for March 31, 2013.

EX-99.1 2 a2013-03x31ael8kexhibit991.htm PRESS RELEASE 2013-03-31 AEL 8K Exhibit 99.1

Exhibit 99.1



		For more information, contact:

		John M. Matovina, Chief Executive Officer
		(515) 457-1813, jmatovina@american-equity.com

		Ted M. Johnson, Chief Financial Officer
		(515) 457-1980, tjohnson@american-equity.com

FOR IMMEDIATE RELEASE		Debra J. Richardson, Chief Administrative Officer
May 1, 2013		(515) 273-3551, drichardson@american-equity.com

		Julie L. LaFollette, Director of Investor Relations
		(515) 273-3602, jlafollette@american-equity.com

American Equity Reports First Quarter 2013 Results

WEST DES MOINES, Iowa (May 1, 2013) - American Equity Investment Life Holding Company (NYSE: AEL), a leading underwriter of index and fixed rate annuities, today reported first quarter 2013 net income of $26.0 million, or $0.38 per diluted common share, compared to first quarter 2012 net income of $10.5 million or $0.16 per diluted common share.

Non-GAAP operating income¹ for the first quarter of 2013 was $33.5 million, or $0.49 per diluted common share, compared to first quarter 2012 non-GAAP operating income¹ of $29.8 million or $0.46 per diluted common share.

Highlights for the first quarter of 2013 include:


•	Annuity sales (before coinsurance) for the quarter were $930 million compared to fourth quarter 2012 annuity sales of $1.07 billion.


▪	Total invested assets grew to $29.2 billion (amortized cost basis = $26.6 billion).


▪	Investment spread for the quarter was 2.68% compared to 2.59% for the fourth quarter of 2012.


▪	Estimated risk-based capital (RBC) ratio at March 31, 2013 remained above target at 330%.


▪	Book value per share (excluding accumulated other comprehensive income) increased to $16.84 at March 31, 2013 compared to $16.49 at December 31, 2012.

¹ In addition to net income, we have consistently utilized operating income and operating income per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. See accompanying tables for reconciliations of net income to operating income and descriptions of reconciling items. See Company's Quarterly Report on Form 10-Q for a more complete discussion of the reconciling items and their impact on net income for the periods presented. Because these items fluctuate from period to period in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income, provides information that may enhance an investor's understanding of our underlying results and profitability.

Commenting on results, David J. Noble, founder and Executive Chairman said: “2013 is off to a satisfactory start. Assets under management grew 3% from last quarter which includes sales of $930 million. Our operating income was the second highest quarterly amount in the company's history and translated into an 11.2% return on average equity for the trailing 12 months. As we predicted earlier this year, our investment spread began widening as we made significant progress investing our excess cash and short-term investments into higher yielding investments.”

SPREAD IMPROVES AS CASH AND SHORT-TERM INVESTMENTS REDUCED

American Equity's investment spread for the first quarter of 2013 increased to 2.68% compared to 2.59% for the fourth quarter of 2012. First quarter 2013 investment spread and average yield on invested assets continued to be affected by the impact of high levels of low yielding cash and other short-term investments during the quarter. The average yield on invested assets including the excess cash and other short-term investments balances was 5.01% for the first quarter of 2013 compared to 5.03% in the fourth quarter of 2012 and 5.61% in the first quarter of 2012.

American Equity reduced the average balance for excess cash and other short-term investments to $1.8 billion in the first quarter of 2013 from $2.7 billion in the fourth quarter of 2012. The average balance in the first quarter of 2012 was $759 million. The growth of this balance in 2012 was primarily attributable to calls of U.S. Government agency securities. At March 31, 2013, the Company held $1.3 billion in excess cash and other short-term investments compared to $2.2 billion at December 31, 2012. The call exposure for the remainder of 2013 includes $678 million of U.S. Government agency securities with book yields and coupon rates of 4.00% or higher that were called in April 2013.

Average yield on invested assets continues to decline as proceeds from securities called for redemption and new premiums are invested at rates below the portfolio rate. The average yield on fixed income securities purchased and commercial mortgage loans funded in the first quarter of 2013 was 3.48% compared to an average yield of 3.65% in the fourth quarter of 2012.

The decrease in investment yield was offset by a reduction in the aggregate cost of money on annuity liabilities to 2.33% in the first quarter of 2013 compared to 2.44% in the fourth quarter of 2012 and 2.68% in the first quarter of 2012. The reductions in the cost of money reflect management's adjustments to new money and renewal crediting rates to policyholders in response to the declining investment yield environment.

John M. Matovina, Chief Executive Officer and President commented: “We are committed to restoring our investment spread to the 3.00% target by effectively managing both sides of the measure. We are investing net cash flows from policyholders into high quality investments and are appropriately managing crediting rates to policyholders. We significantly reduced our excess cash and short-term investments in the first quarter of 2013 as calls were modest and we deployed cash into investments meeting our yield, quality and cash flow standards.”

Matovina continued, “We must caution that our progress in reducing the excess cash and short-term investments is likely to be interrupted in the second quarter of 2013 as we had $678 million in government agency securities called in April. We expect to make substantial progress in reducing the excess cash and short-term investments during the second half of this year.”

Matovina concluded, “At the same time, we expect further declines in our cost of money from rate adjustments already implemented and are prepared to make further adjustments in 2013. Our cost of money could be reduced by 0.60% if necessary by reducing fixed crediting rates, caps and participation rates to minimum guaranteed rates.”

OUTLOOK

Commenting on the outlook for 2013, David Noble said: “Our sales momentum picked up toward the end of the first quarter and we anticipate that second quarter 2013 sales will surpass $1 billion. We are optimistic that momentum will carry through the balance of the year. While the recent stock market rally is attracting attention and investors' funds, we believe that as more Americans approach and enter retirement, interest in 'safe money' retirement savings and income products will continue to grow, especially considering the volatility exhibited by the equity markets over the last decade.”

Noble continued, “American Equity is well positioned to capitalize on growing demand for guaranteed retirement savings and income products. We provide the 'sleep insurance' of a safe money instrument with guaranteed returns, yet also offer potential upside participation in stock market rallies. With attractive products that are right for our times, and the established strength of an industry leader with over $29 billion of invested assets, we are optimistic that our invested assets and earnings will continue to grow in the periods ahead.”

5.25% CONVERTIBLE NOTES CALLED

On March 25, 2013, notice of mandatory redemption was issued for the Company's 5.25% Contingent Convertible Senior Notes Due 2024. Approximately $25.8 million principal amount or 91% of the convertible notes exercised their conversion rights prior to the April 30, 2013 mandatory redemption date. The holders of these notes will receive the principal amount of their notes in cash and the conversion premium in shares of American Equity common stock. The final number of shares to be issued will be determined based upon the “ten day average closing price” for American Equity common stock on the ten consecutive trading days beginning on the second trading day following the day the notes were submitted for conversion. If the ten day average closing price for each conversion was $15.00 per share, approximately 158,000 shares of American Equity common stock would be issued to satisfy the conversion obligation. The balance of the convertible notes ($2.45 million principal amount) has been redeemed for cash of $2.5 million (includes accrued interest of $0.05 million).

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

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

CONFERENCE CALL

American Equity will hold a conference call to discuss first quarter 2013 earnings on Thursday, May 2, 2013, at 11:00 a.m. CDT. The conference call will be webcast live on the Internet. Investors and interested parties who wish to listen to the call on the Internet may do so at www.american-equity.com.

The call may also be accessed by telephone at 877-280-4962, passcode 59392520 (international callers, please dial 857-244-7319). An audio replay will be available via telephone through May 23, 2013 at 1-888-286-8010, passcode 18195792 (international callers will need to dial 617-801-6888).

ABOUT AMERICAN EQUITY

American Equity Investment Life Holding Company, through its wholly-owned operating subsidiaries, is a full service underwriter of a broad line of fixed annuity and life insurance products, with a primary emphasis on the sale of index and fixed rate annuities. American Equity Investment Life Holding Company, a New York Stock Exchange Listed company (NYSE: AEL), is headquartered in West Des Moines, Iowa. For more information, please visit www.american-equity.com.

###

American Equity Investment Life Holding Company

Consolidated Statements of Operations (Unaudited)



	Three Months Ended March 31,
	2013			2012
	(Dollars in thousands, except per share data)
Revenues:
Traditional life insurance premiums	$	2,698		$	3,222
Annuity product charges	21,481			19,393
Net investment income	329,690			326,910
Change in fair value of derivatives	373,962			259,161
Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses	10,585			(6,076		)
OTTI losses on investments:
Total OTTI losses	(2,189		)	(1,781		)
Portion of OTTI losses recognized from other comprehensive income	(1,048		)	(1,100		)
Net OTTI losses recognized in operations	(3,237		)	(2,881		)
Total revenues	735,179			599,729

Benefits and expenses:
Insurance policy benefits and change in future policy benefits	1,735			2,117
Interest sensitive and index product benefits	225,809			139,123
Amortization of deferred sales inducements	28,831			16,710
Change in fair value of embedded derivatives	363,272			359,066
Interest expense on notes payable	7,248			6,995
Interest expense on subordinated debentures	3,009			3,586
Amortization of deferred policy acquisition costs	46,230			34,284
Other operating costs and expenses	19,520			21,713
Total benefits and expenses	695,654			583,594
Income before income taxes	39,525			16,135
Income tax expense	13,494			5,664
Net income	$	26,031		$	10,471

Earnings per common share	$	0.41		$	0.18
Earnings per common share - assuming dilution	$	0.38		$	0.16

Weighted average common shares outstanding (in thousands):
Earnings per common share	63,314			59,701
Earnings per common share - assuming dilution	68,706			65,930

Page 1

American Equity Investment Life Holding Company

NON-GAAP FINANCIAL MEASURES

In addition to net income, we have consistently utilized operating income and operating income per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Operating income equals net income adjusted to eliminate the impact of net realized gains and losses on investments including net OTTI losses recognized in operations, fair value changes in derivatives and embedded derivatives and litigation reserves. Because these items fluctuate from quarter to quarter in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income provides information that may enhance an investor’s understanding of our underlying results and profitability.

Reconciliation from Net Income to Operating Income (Unaudited)



	Three Months Ended March 31,
	2013			2012
	(Dollars in thousands, except per share data)
Net income	$	26,031		$	10,471
Adjustments to arrive at operating income:
Net realized investment (gains) losses, including OTTI (a)	(2,804		)	3,547
Change in fair value of derivatives and embedded derivatives (a)	10,237			15,742
Operating income (a non-GAAP financial measure)	$	33,464		$	29,760
Per common share - assuming dilution:
Net income	$	0.38		$	0.16
Adjustments to arrive at operating income:
Net realized investment (gains) losses, including OTTI	(0.04		)	0.06
Change in fair value of derivatives and embedded derivatives	0.15			0.24
Operating income (a non-GAAP financial measure)	$	0.49		$	0.46


(a)	Adjustments to net income to arrive at operating income are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and net of income taxes.

Page 2

American Equity Investment Life Holding Company

NON-GAAP FINANCIAL MEASURES

Average Stockholders' Equity and Return on Average Equity

Return on equity measures how efficiently we generate profits from the resources provided by our net assets. Return on equity is calculated by dividing net income and operating income for the trailing twelve months by average equity excluding average accumulated other comprehensive income ("AOCI").



	Twelve Months Ended
	March 31, 2013
	(Dollars in thousands)
Average Stockholders' Equity ¹
Average equity including average AOCI	$	1,551,907
Average AOCI	(535,205		)
Average equity excluding average AOCI	$	1,016,702

Net income	$	73,358
Operating income	113,890

Return on Average Equity Excluding Average AOCI
Net income	7.22		%
Operating income	11.20		%

1 - simple average based on stockholders' equity at beginning and end of the twelve month period.

Page 3

EX-99.2 3 a2013-03x31ael8kexhibit992.htm FINANCIAL SUPPLEMENT 2013-03-31 AEL 8K Exhibit 99.2

Exhibit 99.2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement

March 31, 2013



A.	Financial Highlights
	Condensed Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Quarterly Summary - Most Recent 5 Quarters	3
	Non-GAAP Financial Measures
	Reconciliation from Net Income to Operating Income	4
	Summary of Adjustments to Arrive at Operating Income	4
	Quarterly Summary - Reconciliation from Net Income (Loss) to Operating Income	5
	Quarterly Summary - Summary of Adjustments to Arrive at Operating Income	5
	Capitalization/Book Value per Share	6
	Spread Results	7

B.	Product Summary
	Summary of Cost of Money Summary for Deferred Annuities	7
	Annuity Account Balance Rollforward	7
	Annuity Deposits by Product Type	8
	Surrender Charge Protection and Account Values by Product Type	8
	Annuity Liability Characteristics	9

C.	Investment Summary
	Summary of Invested Assets	12
	Credit Quality of Fixed Maturity Securities	12
	Watch List Securities	13
	Summary of Residential Mortgage Backed Securities	13
	Fixed Maturity Securities by Sector	14
	Mortgage Loans on Commercial Real Estate	15

D.	Shareholder Information	16

E.	Research Analyst Coverage	17

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



	March 31, 2013			December 31, 2012
	(Unaudited)
Assets
Investments:
Fixed maturity securities:
Available for sale, at fair value	$	25,609,218		$	24,172,136
Held for investment, at amortized cost	76,129			76,088
Equity securities, available for sale, at fair value	55,215			53,422
Mortgage loans on real estate	2,591,897			2,623,940
Derivative instruments	719,683			415,258
Other investments	193,714			196,366
Total investments	29,245,856			27,537,210

Cash and cash equivalents	882,097			1,268,545
Coinsurance deposits	2,941,816			2,910,701
Accrued investment income	298,341			261,833
Deferred policy acquisition costs	1,803,498			1,709,799
Deferred sales inducements	1,370,285			1,292,341
Other assets	311,076			153,049
Total assets	$	36,852,969		$	35,133,478

Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves	$	32,937,308		$	31,773,988
Other policy funds and contract claims	447,301			455,752
Notes payable	313,043			309,869
Subordinated debentures	245,913			245,869
Deferred income taxes	33,313			49,303
Income taxes payable	10,194			4,756
Other liabilities	1,135,668			573,704
Total liabilities	35,122,740			33,413,241

Stockholders' equity:
Common stock	62,784			61,751
Additional paid-in capital	504,470			496,715
Unallocated common stock held by ESOP	(2,266		)	(2,583		)
Accumulated other comprehensive income	661,663			686,807
Retained earnings	503,578			477,547
Total stockholders' equity	1,730,229			1,720,237
Total liabilities and stockholders' equity	$	36,852,969		$	35,133,478

Page 1

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(Unaudited)



	Three Months Ended March 31,
	2013			2012
Revenues:
Traditional life insurance premiums	$	2,698		$	3,222
Annuity product charges	21,481			19,393
Net investment income	329,690			326,910
Change in fair value of derivatives	373,962			259,161
Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses	10,585			(6,076		)
OTTI losses on investments:
Total OTTI losses	(2,189		)	(1,781		)
Portion of OTTI losses recognized from other comprehensive income	(1,048		)	(1,100		)
Net OTTI losses recognized in operations	(3,237		)	(2,881		)
Total revenues	735,179			599,729

Benefits and expenses:
Insurance policy benefits and change in future policy benefits	1,735			2,117
Interest sensitive and index product benefits	225,809			139,123
Amortization of deferred sales inducements	28,831			16,710
Change in fair value of embedded derivatives	363,272			359,066
Interest expense on notes payable	7,248			6,995
Interest expense on subordinated debentures	3,009			3,586
Amortization of deferred policy acquisition costs	46,230			34,284
Other operating costs and expenses	19,520			21,713
Total benefits and expenses	695,654			583,594
Income before income taxes	39,525			16,135
Income tax expense	13,494			5,664
Net income	$	26,031		$	10,471

Earnings per common share	$	0.41		$	0.18
Earnings per common share - assuming dilution	$	0.38		$	0.16
Weighted average common shares outstanding (in thousands):
Earnings per common share	63,314			59,701
Earnings per common share - assuming dilution	68,706			65,930

Page 2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Quarterly Summary - Most Recent 5 Quarters (Unaudited)



	Q1 2013			Q4 2012			Q3 2012			Q2 2012			Q1 2012
	(Dollars in thousands, except per share data)
Revenues:
Traditional life insurance premiums	$	2,698		$	3,107		$	3,300		$	3,248		$	3,222
Annuity product charges	21,481			23,830			23,875			21,908			19,393
Net investment income	329,690			321,160			318,594			320,259			326,910
Change in fair value of derivatives	373,962			(48,266		)	161,090			(150,847		)	259,161
Net realized gains (losses) on investments, excluding OTTI	10,585			1,471			(1,238		)	(611		)	(6,076		)
Net OTTI losses recognized in operations	(3,237		)	(9,387		)	(1,686		)	(978		)	(2,881		)
Total revenues	735,179			291,915			503,935			192,979			599,729

Benefits and expenses:
Insurance policy benefits and change in future policy benefits	1,735			1,843			1,865			2,250			2,117
Interest sensitive and index product benefits (b)	225,809			290,126			246,105			142,733			139,123
Amortization of deferred sales inducements (a)	28,831			36,798			7,709			25,940			16,710
Change in fair value of embedded derivatives	363,272			(179,379		)	188,201			(80,989		)	359,066
Interest expense on notes payable	7,248			7,271			7,141			7,072			6,995
Interest expense on subordinated debentures	3,009			3,074			3,235			3,563			3,586
Amortization of deferred policy acquisition costs (a)	46,230			59,833			25,954			44,848			34,284
Other operating costs and expenses (c)	19,520			18,710			36,170			18,902			21,713
Total benefits and expenses	695,654			238,276			516,380			164,319			583,594
Income (loss) before income taxes	39,525			53,639			(12,445		)	28,660			16,135
Income tax expense (benefit)	13,494			17,242			(4,616		)	9,901			5,664
Net income (loss) (a) (b) (c)	$	26,031		$	36,397		$	(7,829	)	$	18,759		$	10,471

Earnings (loss) per common share	$	0.41		$	0.58		$	(0.13	)	$	0.31		$	0.18
Earnings (loss) per common share - assuming dilution (a) (b) (c)	$	0.38		$	0.55		$	(0.13	)	$	0.30		$	0.16
Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share	63,314			62,856			62,504			59,943			59,701
Earnings (loss) per common share - assuming dilution	68,706			65,897			65,262			64,254			65,930


(a)	Q3 2012 includes expense from unlocking which reduced amortization of deferred sales inducements by $0.2 million, increased amortization of deferred policy acquisition costs by $3.7 million, and increased net loss and loss per common share - assuming dilution for Q3 2012 by $2.2 million and $0.03 per share, respectively.

(b)

Q3 2012 includes a benefit from the revision of assumptions used in determining reserves held for living income benefit riders consistent with unlocking for deferred policy acquisition costs and deferred sales inducements. The impact decreased interest sensitive and index product benefits by $2.2 million and decreased net loss and loss per common share - assuming dilution by $1.4 million $0.02 per share, respectively.


(c)	Q3 2012 includes expense from recognizing an estimated litigation liability of $17.5 million, which, after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, increased net loss and loss per common share - assuming dilution by $9.6 million and $0.15 per share.

Page 3

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

NON-GAAP FINANCIAL MEASURES

In addition to net income (loss), we have consistently utilized operating income and operating income per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Operating income equals net income adjusted to eliminate the impact of net realized gains and losses on investments including net OTTI losses recognized in operations and fair value changes in derivatives and embedded derivatives. Because these items fluctuate from quarter to quarter in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income provides information that may enhance an investor’s understanding of our underlying results and profitability.

Reconciliation from Net Income to Operating Income (Unaudited)



	Three Months Ended March 31,
	2013			2012
	(Dollars in thousands, except per share data)
Net income	$	26,031		$	10,471
Adjustments to arrive at operating income:
Net realized investment (gains) losses, including OTTI (a)	(2,804		)	3,547
Change in fair value of derivatives and embedded derivatives (a)	10,237			15,742
Operating income (a non-GAAP financial measure)	$	33,464		$	29,760

Per common share - assuming dilution:
Net income	$	0.38		$	0.16
Adjustments to arrive at operating income:
Net realized investment (gains) losses, including OTTI	(0.04		)	0.06
Changes in fair value of derivatives and embedded derivatives	0.15			0.24
Operating income (a non-GAAP financial measure)	$	0.49		$	0.46


(a)	Adjustments to net income to arrive at operating income are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and net of income taxes.

Summary of Adjustments to Arrive at Operating Income (Unaudited)



	Three Months Ended March 31,
	2013			2012
	(Dollars in thousands)
Net realized investment gains and losses, including OTTI:
Net realized (gains) losses on investments, including OTTI	$	(7,348	)	$	8,957
Amortization of DAC and DSI	3,093			(3,450		)
Income taxes	1,451			(1,960		)
	$	(2,804	)	$	3,547
Change in fair value of derivatives and embedded derivatives:
Change in fair value of derivatives and embedded derivatives	$	35,680		$	59,050
Amortization of DAC and DSI	(20,240		)	(34,663		)
Income taxes	(5,203		)	(8,645		)
	$	10,237		$	15,742

Page 4

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

NON-GAAP FINANCIAL MEASURES

Quarterly Summary - Most Recent 5 Quarters (Unaudited)

Reconciliation from Net Income (Loss) to Operating Income



	Q1 2013			Q4 2012			Q3 2012			Q2 2012		Q1 2012
	(Dollars in thousands, except per share data)
Net income (loss)	$	26,031		$	36,397		$	(7,829	)	$	18,759	$	10,471
Adjustments to arrive at operating income:
Net realized investment (gains) losses (a)	(2,804		)	2,825			1,415			861		3,547
Change in fair value of derivatives and embedded derivatives (a)	10,237			(8,317		)	19,000			7,736		15,742
Litigation reserve (a)	—			—			9,580			—		—
Operating income (a non-GAAP financial measure) (b) (c)	$	33,464		$	30,905		$	22,166		$	27,356	$	29,760

Operating income per common share - assuming dilution (b) (c)	$	0.49		$	0.47		$	0.34		$	0.43	$	0.46


(a)	Adjustments to net income (loss) to arrive at operating income are presented net of related adjustments to amortization and deferred sales inducements and deferred policy acquisition costs and net of income taxes.


(b)	Q3 2012 includes expense from unlocking which increased amortization of deferred sales inducements and amortization of deferred policy acquisition costs by $2.4 million and $7.3 million, respectively, and decreased operating income and operating income per common share - assuming dilution for Q3 2012 by $6.3 million and $0.09 per share, respectively.

(c)

Q3 2012 includes a benefit from the revision of assumptions used in determining reserves held for living income benefit riders consistent with unlocking for deferred policy acquisition costs and deferred sales inducements. The impact reduced interest sensitive and index product benefits by $2.2 million and increased operating income and operating income per common share - assuming dilution by $1.4 million $0.02 per share, respectively.

Summary of Adjustments to Arrive at Operating Income



	Q1 2013			Q4 2012			Q3 2012			Q2 2012		Q1 2012
	(Dollars in thousands)
Net realized (gains) losses on investments	$	(10,585	)	$	(1,471	)	$	1,238		$	611	$	6,076
Net OTTI losses recognized in operations	3,237			9,387			1,686			978		2,881
Change in fair value of derivatives	(299,494		)	156,123			(96,232		)	85,683		(283,265		)
Increase (decrease) in total revenues	(306,842		)	164,039			(93,308		)	87,272		(274,308		)

Amortization of deferred sales inducements	7,447			(3,140		)	28,278			7,201		16,758
Change in fair value of embedded derivatives	(335,174		)	182,465			(186,362		)	56,826		(342,315		)
Amortization of deferred policy acquisition costs	9,700			(6,746		)	35,636			9,609		21,355
Other operating costs and expenses	—			—			(17,532		)	—		—
Increase (decrease) in total benefits and expenses	(318,027		)	172,579			(139,980		)	73,636		(304,202		)
Increase (decrease) in income (loss) before income taxes	11,185			(8,540		)	46,672			13,636		29,894
Increase (decrease) in income tax expense	3,752			(3,048		)	16,677			5,039		10,605
Increase (decrease) in net income (loss)	$	7,433		$	(5,492	)	$	29,995		$	8,597	$	19,289

Page 5

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Capitalization/Book Value per Share



	March 31, 2013			December 31, 2012
	(Dollars in thousands, except per share data)
Capitalization:
Notes payable	$	313,043		$	309,869
Subordinated debentures payable to subsidiary trusts	245,913			245,869
Total debt	558,956			555,738
Total stockholders’ equity	1,730,229			1,720,237
Total capitalization	2,289,185			2,275,975
Accumulated other comprehensive income (AOCI)	(661,663		)	(686,807		)
Total capitalization excluding AOCI (a)	$	1,627,522		$	1,589,168

Total stockholders’ equity	$	1,730,229		$	1,720,237
Accumulated other comprehensive income	(661,663		)	(686,807		)
Total stockholders’ equity excluding AOCI (a)	$	1,068,566		$	1,033,430

Common shares outstanding (b)	63,436,860			62,653,134

Book Value per Share: (c)
Book value per share including AOCI	$	27.27		$	27.46
Book value per share excluding AOCI (a)	$	16.84		$	16.49

Debt-to-Capital Ratios: (d)
Senior debt / Total capitalization	19.2		%	19.5		%
Adjusted debt / Total capitalization	19.3		%	20.0		%


(a)	Total capitalization, total stockholders’ equity and book value per share excluding AOCI, non-GAAP financial measures, are based on 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 investments, we believe these non-GAAP financial measures provide useful supplemental information.


(b)	Common shares outstanding include shares held by the NMO Deferred Compensation Trust: 2013 - 892,688 shares; 2012 - 1,142,332 shares and exclude unallocated shares held by ESOP: 2013 - 239,799 shares; 2012 - 239,799 shares.


(c)	Book value per share including and excluding AOCI is calculated as total stockholders’ equity and total stockholders’ equity excluding AOCI divided by the total number of shares of common stock outstanding.


(d)	Debt-to-capital ratios are computed using total capitalization excluding AOCI. Adjusted debt includes notes payable and the portion of the total subordinated debentures payable to subsidiary trusts outstanding (qualifying trust preferred securities) that exceeds 15% of total capitalization excluding AOCI.

Page 6

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Spread Results



	Three Months Ended March 31,
	2013		2012
Average yield on invested assets	5.01%		5.61%
Aggregate cost of money	2.33%		2.68%
Aggregate investment spread	2.68%		2.93%

Impact of:
Investment yield - additional prepayment income	0.08%		0.07%
Cost of money benefit from over hedging	0.03%		0.01%

Weighted average investments	$	26,382,116	$	23,352,928

Weighted average investments include fixed maturity securities at amortized cost and equity securities at cost. 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



	Three Months Ended March 31,
	2013			2012
	(Dollars in thousands)
Included in interest sensitive and index product benefits:
Index credits	$	135,341		$	50,658
Interest credited	74,417			75,016
Included in change in fair value of derivatives:
Proceeds received at option expiration	(135,225		)	(50,862		)
Pro rata amortization of option cost	88,855			91,717
Cost of money for deferred annuities	$	163,388		$	166,529

Weighted average liability balance outstanding (in thousands)	$	28,060,075		$	24,829,275

Annuity Account Balance Rollforward



	Three Months Ended March 31,
	2013			2012
	(Dollars in thousands)
Account balances at beginning of period	$	27,669,669		$	24,483,118
Net deposits	872,329			834,853
Premium and interest bonuses	73,898			70,019
Fixed interest credited and index credits	209,758			125,674
Surrender charges	(11,502		)	(11,662		)
Lifetime income benefit charges	(9,979		)	(7,731		)
Surrenders, withdrawals, deaths, etc.	(353,695		)	(318,838		)
Account balances at end of period	$	28,450,478		$	25,175,433

Page 7

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Annuity Deposits by Product Type



	Three Months Ended March 31,				Year Ended December 31,
Product Type	2013		2012		2012
	(Dollars in thousands)
Fixed Index Annuities:
Index Strategies	$	604,641	$	488,126	$	2,225,902
Fixed Strategy	243,129		289,354		1,208,324
	847,770		777,480		3,434,226
Fixed Rate Annuities:
Single-Year Rate Guaranteed	19,910		34,487		98,821
Multi-Year Rate Guaranteed	47,256		121,665		249,228
Single premium immediate annuities	14,980		45,813		164,657
	82,146		201,965		512,706
Total before coinsurance ceded	929,916		979,445		3,946,932
Coinsurance ceded	42,607		98,779		203,734
Net after coinsurance ceded	$	887,309	$	880,666	3,743,198

Surrender Charge Protection and Account Values by Product Type

Annuity Surrender Charges and Net (of coinsurance) Account Values at March 31, 2013:



	Surrender Charge			Net Account Value
Product Type	Avg. Years At Issue	Avg. Years Remaining	Avg. % Remaining	Dollars in Thousands		%

Fixed Index Annuities	14.2	10.3	16.0%	$	26,434,249	92.9	%
Single-Year Fixed Rate Guaranteed Annuities	11.2	4.7	8.0%	1,441,686		5.1	%
Multi-Year Fixed Rate Guaranteed Annuities (a)	6.1	1.7	4.4%	574,543		2.0	%
Total	13.9	9.8	15.3%	$	28,450,478	100.0	%

(a) 57% of Net Account Value is no longer in multi-year guarantee period and can be adjusted annually.

Page 8

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Annuity Liability Characteristics



	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	(Dollars in thousands)
SURRENDER CHARGE PERCENTAGES:
No surrender charge	$	610,936	$	623,208
0.0% < 2.0%	40,092		278,495
2.0% < 3.0%	88,709		189,831
3.0% < 4.0%	24,190		299,890
4.0% < 5.0%	49,313		215,568
5.0% < 6.0%	78,985		265,458
6.0% < 7.0%	174,895		217,070
7.0% < 8.0%	197,497		682,312
8.0% < 9.0%	172,552		486,775
9.0% < 10.0%	58,608		433,318
10.0% or greater	520,452		22,742,324
	$	2,016,229	$	26,434,249



	Fixed and Fixed Index Annuities Account Value		Weighted Average Surrender Charge
	(Dollars in thousands)
SURRENDER CHARGE EXPIRATION BY YEAR:
Out of Surrender Charge	$	1,234,144	0.00	%
2013	363,127		1.86	%
2014	520,581		2.95	%
2015	563,972		4.75	%
2016	817,451		6.33	%
2017	977,275		7.48	%
2018	835,561		9.67	%
2019	587,453		10.46	%
2020	922,707		11.86	%
2021	1,225,065		13.56	%
2022	2,052,386		15.60	%
2023	4,037,764		17.84	%
2024	4,119,108		18.81	%
2025	3,187,938		18.83	%
2026	2,710,522		18.90	%
2027	2,163,248		19.34	%
2028	1,705,743		19.87	%
2029	415,650		19.99	%
2030	10,783		20.00	%
	$	28,450,478	15.33	%

Page 9

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Annuity Liability Characteristics



	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	(Dollars in thousands)
CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL:
No differential	$	764,715	$	794,499
› 0.0% - 0.25%	302,957		543,743
› 0.25% - 0.5%	121,435		38,583
› 0.5% - 1.0% (a)	327,190		1,091,187
› 1.0% - 1.5% (a)	108,052		24,142
› 1.5% - 2.0%	121,459		2,348
› 2.0% - 2.5%	2,367		—
› 2.5% - 3.0%	41,809		—
1.00% ultimate guarantee - 2.34% wtd avg interest rate (b)	33,516		—
1.50% ultimate guarantee - 1.74% wtd avg interest rate (b)	85,724		2,318,536
2.00% ultimate guarantee - 2.66% wtd avg interest rate (b)	107,005		—
2.25% ultimate guarantee - 2.72% wtd avg interest rate (b)	—		1,559,112
3.00% ultimate guarantee - 2.92% wtd avg interest rate (b)	—		3,076,290
Allocated to index strategies (see tables that follow)	—		16,985,809
	$	2,016,229	$	26,434,249


(a)	$137,972 of Fixed Annuities Account Value have a guarantee of 2.25% for the first 10 years and 3.00% thereafter. They begin increasing in 2014. $625,886 of Index Annuities Account Value is in fixed rate strategies that have a guarantee of 2.25% for the first 10 years and 3.00% thereafter. They begin increasing in 2014.


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

If all crediting rates were reduced to minimum guaranteed rates (subject to limitations imposed by ultimate minimum guaranteed rates where applicable) the weighted average crediting rate as of March 31, 2013 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.60%.

Page 10

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

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	(Dollars in thousands)
At minimum	$	445	$	11,342	$	855,480	$	49,280	$	285,448
2.5% - 3%	406,145		—		—		—		—
3% - 4%	1,563,687		—		—		—		—
4% - 5%	18,682		113,573		1,264,778		—		—
5% - 6%	—		8,215		2,685,390		—		—
6% - 7%	—		—		3,012,812		—		—
>= 7%	—		12,345		33,238		128,794		73,769



Annual Monthly Average and Point-to-Point with Participation Rates
	Minimum Guaranteed Participation Rate
	10%		25%		35%		50% +
Current Participation Rate	(Dollars in thousands)
At minimum	$	97	$	333,213	$	171,517	$	209,713
< 20%	163,959		—		—		—
20% - 40%	130,450		484,591		—		—
40% - 60%	—		176,945		150,656		1,449
>= 60%	—		—		—		—



S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1% (Dollars in thousands)
Current Cap
At minimum	$	12,341
1.45% - 1.8%	1,747,867
2.0% - 2.3%	1,540,038
>= 2.3%	1,330,495

If all caps and participation rates were reduced to minimum caps and participation rates, the cost of options would decrease by 0.60% based upon prices of options for the week ended April 16, 2013.

Page 11

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Summary of Invested Assets



	March 31, 2013				December 31, 2012
	Carrying Amount		Percent		Carrying Amount		Percent
	(Dollars in thousands)
Fixed maturity securities:
United States Government full faith and credit	$	4,616	—	%	$	5,154	—	%
United States Government sponsored agencies	1,857,377		6.4	%	1,772,025		6.5	%
United States municipalities, states and territories	3,657,164		12.5	%	3,578,323		13.0	%
Foreign government obligations	100,460		0.3	%	105,259		0.4	%
Corporate securities	15,627,095		53.4	%	14,542,860		52.8	%
Residential mortgage backed securities	2,668,454		9.1	%	2,888,113		10.5	%
Commercial mortgage backed securities	748,601		2.6	%	357,982		1.3	%
Other asset backed securities	1,021,580		3.5	%	998,508		3.6	%
Total fixed maturity securities	25,685,347		87.8	%	24,248,224		88.1	%
Equity securities	55,215		0.2	%	53,422		0.2	%
Mortgage loans on real estate	2,591,897		8.9	%	2,623,940		9.5	%
Derivative instruments	719,683		2.4	%	415,258		1.5	%
Other investments	193,714		0.7	%	196,366		0.7	%
	$	29,245,856	100.0	%	$	27,537,210	100.0	%

Credit Quality of Fixed Maturity Securities - March 31, 2013



NAIC Designation	Carrying Amount		Percent		Rating Agency Rating	Carrying Amount		Percent
	(Dollars in thousands)					(Dollars in thousands)
1	$	16,121,041	62.8	%	Aaa/Aa/A	$	15,468,699	60.2	%
2	9,087,432		35.4	%	Baa	8,713,460		33.9	%
3	422,134		1.6	%	Ba	430,094		1.7	%
4	53,006		0.2	%	B	104,973		0.4	%
5	—		—	%	Caa and lower	803,058		3.1	%
6	1,734		—	%	In or near default	165,063		0.7	%
	$	25,685,347	100.0	%		$	25,685,347	100.0	%

Page 12

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Watch List Securities - March 31, 2013



General Description	Amortized Cost		Unrealized Gains (Losses)			Fair Value		Months Below Amortized Cost
	(Dollars in thousands)
Corporate bonds:
Finance	$	49,505	$	(5,924	)	$	43,581	19 - 28
Industrial	49,488		(6,993		)	42,495		5 - 31
Industrial	9,372		101			9,473
	108,365		(12,816		)	95,549

Summary of Residential Mortgage Backed Securities



Collateral Type	Principal Amount		Amortized Cost		Fair Value
	(Dollars in thousands)
OTTI has not been recognized
Government agency	$	932,891	$	902,583	$	986,934
Prime	771,283		733,472		785,450
Alt-A	39,149		39,645		40,070
	$	1,743,323	$	1,675,700	$	1,812,454
OTTI has been recognized
Prime	$	569,382	$	494,102	$	517,473
Alt-A	403,365		318,633		338,527
	$	972,747	$	812,735	$	856,000
Total by collateral type
Government agency	$	932,891	$	902,583	$	986,934
Prime	1,340,665		1,227,574		1,302,923
Alt-A	442,514		358,278		378,597
	$	2,716,070	$	2,488,435	$	2,668,454
Total by NAIC designation
1	$	2,304,669	$	2,119,514	$	2,287,198
2	333,818		301,506		312,413
3	43,642		38,352		39,077
4	30,454		26,825		28,042
6	3,487		2,238		1,724
	$	2,716,070	$	2,488,435	$	2,668,454

Page 13

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Fixed Maturity Securities by Sector



	March 31, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Available for sale:
United States Government full faith and credit and sponsored agencies	$	1,857,709	$	1,861,993	$	1,768,379	$	1,777,179
United States municipalities, states and territories	3,191,793		3,657,164		3,116,678		3,578,323
Foreign government obligations	86,102		100,460		86,099		105,259
Corporate securities:
Consumer discretionary	1,414,122		1,522,755		1,237,208		1,366,504
Consumer staples	951,002		1,058,668		876,654		1,003,651
Energy	1,541,871		1,707,486		1,463,923		1,655,363
Financials	2,787,037		3,034,881		2,476,780		2,713,351
Health care	1,098,677		1,213,674		926,136		1,064,097
Industrials	1,613,794		1,772,367		1,497,435		1,672,681
Information technology	924,668		982,347		854,347		923,263
Materials	1,146,380		1,243,393		1,076,133		1,189,410
Telecommunications	449,179		480,254		356,486		400,995
Utilities	2,218,211		2,511,289		2,143,026		2,453,736
Residential mortgage backed securities:
Government agency	902,583		986,934		1,024,731		1,119,249
Prime	1,227,574		1,302,923		1,344,775		1,392,741
Alt-A	358,278		378,597		374,031		376,123
Commercial mortgage backed securities:
Government agency	136,367		136,465		35,697		37,976
Other	606,598		612,136		319,173		320,006
Other asset backed securities:
Consumer discretionary	86,037		89,870		77,464		81,772
Energy	8,295		9,535		8,304		9,152
Financials	711,666		728,864		659,058		677,948
Industrials	151,623		166,602		154,358		166,567
Materials	—		—		28,813		29,150
Telecommunications	14,835		17,453		14,835		17,421
Utilities	6,670		9,256		14,459		16,498
Redeemable preferred stock - financials	22,108		23,852		22,045		23,721
	$	23,513,179	$	25,609,218	$	21,957,027	$	24,172,136
Held for investment:
Corporate security - financials	$	76,129	$	62,173	$	76,088	$	61,521

Page 14

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Mortgage Loans on Commercial Real Estate



	March 31, 2013						December 31, 2012
	Principal			Percent			Principal		Percent
	(Dollars in thousands)
Geographic distribution
East	$	744,863		28.4		%	$	732,762	27.5	%
Middle Atlantic	163,497			6.2		%	155,094		5.8	%
Mountain	371,550			14.2		%	387,599		14.6	%
New England	24,675			0.9		%	26,385		1.0	%
Pacific	317,017			12.1		%	320,982		12.1	%
South Atlantic	459,579			17.5		%	458,802		17.3	%
West North Central	354,299			13.5		%	370,168		13.9	%
West South Central	190,257			7.2		%	207,091		7.8	%
	$	2,625,737		100.0		%	$	2,658,883	100.0	%

Property type distribution
Office	$	684,553		26.1		%	$	666,467	25.1	%
Medical Office	130,874			5.0		%	136,764		5.1	%
Retail	656,187			25.0		%	677,951		25.5	%
Industrial/Warehouse	672,522			25.6		%	692,637		26.1	%
Hotel	89,376			3.4		%	94,045		3.5	%
Apartment	220,698			8.4		%	219,335		8.2	%
Mixed use/other	171,527			6.5		%	171,684		6.5	%
	$	2,625,737		100.0		%	$	2,658,883	100.0	%

	March 31, 2013			December 31, 2012
Credit Exposure - By Payment Activity
Performing	$	2,578,031		$	2,597,440
In workout	28,326			26,723
Delinquent	—			—
Collateral dependent	19,380			34,720
	2,625,737			2,658,883
Specific Loan Loss Allowance	(22,631		)	(23,134		)
General Loan Loss Allowance	(10,400		)	(11,100		)
Deferred prepayment fees	(809		)	(709		)
	$	2,591,897		$	2,623,940

Page 15

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Shareholder Information

Corporate Offices:

American Equity Investment Life Holding Company

6000 Westown Parkway

West Des Moines, IA 50266

Inquiries:

D. J. Noble, Executive Chairman

(515) 457-1703, dnoble@american-equity.com

John M. Matovina, Chief Executive Officer and President

(515) 457-1813, jmatovina@american-equity.com

Debra J. Richardson, Executive Vice President and Secretary

(515) 273-3551, drichardson@american-equity.com

Ted M. Johnson, Chief Financial Officer and Treasurer

(515) 457-1980, tjohnson@american-equity.com

Common Stock and Dividend Information:

New York Stock Exchange symbol: “AEL”



	High	Low	Close	Dividend Declared
2013
First Quarter	$15.03	$12.33	$14.89	$0.00

2012
First Quarter	$13.09	$10.13	$12.77	$0.00
Second Quarter	$12.95	$10.00	$11.01	$0.00
Third Quarter	$12.41	$10.62	$11.63	$0.00
Fourth Quarter	$12.40	$10.56	$12.21	$0.15

2011
First Quarter	$13.93	$11.27	$13.12	$0.00
Second Quarter	$13.53	$11.91	$12.71	$0.00
Third Quarter	$13.22	$8.01	$8.75	$0.00
Fourth Quarter	$11.82	$8.05	$10.40	$0.12

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 Julie L. LaFollette, Investor Relations, at (515) 273-3602 or by visiting our web site at www.american-equity.com.

Page 16

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2013

Research Analyst Coverage

Steven Schwartz

Raymond James & Associates, Inc.

(312) 612-7686

steven.schwartz@raymondjames.com

Randy Binner

Friedman, Billings, Ramsey & Co., Inc.

(703) 312-1890

rbinner@fbr.com

Edward Shields

Sandler O’Neill & Partners

(312) 281-3487

eshields@sandleroneill.com

Mark Hughes

SunTrust Robinson Humphrey

(615) 748-5680

mark_hughes@rhco.com

Daniel Furtado

Jefferies & Company, Inc.

(415) 229-1569

dfurtado@jefferies.com

Paul Sarran, Mark Finkelstein

Evercore Partners

(312) 445-6441 paul.sarran@evercore.com

(312) 445-6440 mark.finkelstein@evercore.com

Page 17

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