Exhibit

Exhibit 99.2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement

September 30, 2016

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)



	September 30, 2016		December 31, 2015
Assets
Investments:
Fixed maturity securities:
Available for sale, at fair value	$	42,304,410	$	36,421,839
Held for investment, at amortized cost	76,773		76,622
Equity securities, available for sale, at fair value	7,843		7,828
Mortgage loans on real estate	2,419,230		2,435,257
Derivative instruments	706,007		337,256
Other investments	297,068		291,530
Total investments	45,811,331		39,570,332

Cash and cash equivalents	812,814		397,749
Coinsurance deposits	4,453,320		3,187,470
Accrued investment income	405,996		362,104
Deferred policy acquisition costs	2,370,781		2,905,136
Deferred sales inducements	1,800,435		2,232,148
Deferred income taxes	—		232,683
Income taxes recoverable	12,652		29,599
Other assets	180,892		112,171
Total assets	$	55,848,221	$	49,029,392

Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves	$	50,814,665	$	45,495,431
Other policy funds and contract claims	302,849		324,850
Notes and loan payable	493,445		393,227
Subordinated debentures	241,751		241,452
Deferred income taxes	110,551		—
Other liabilities	1,072,098		629,897
Total liabilities	53,035,359		47,084,857

Stockholders' equity:
Common stock	87,898		81,354
Additional paid-in capital	767,570		630,367
Accumulated other comprehensive income	963,796		201,663
Retained earnings	993,598		1,031,151
Total stockholders' equity	2,812,862		1,944,535
Total liabilities and stockholders' equity	$	55,848,221	$	49,029,392

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Revenues:
Premiums and other considerations	$	12,731		$	8,335		$	31,534		$	25,369
Annuity product charges	47,675			37,975			125,304			99,066
Net investment income	463,583			436,085			1,374,239			1,253,930
Change in fair value of derivatives	103,794			(351,360		)	68,828			(405,484		)
Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses	5,256			1,159			10,680			10,362
OTTI losses on investments:
Total OTTI losses	(4,554		)	(10,000		)	(11,334		)	(10,132		)
Portion of OTTI losses recognized in (from) other comprehensive income	1,575			4,771			(1,785		)	3,943
Net OTTI losses recognized in operations	(2,979		)	(5,229		)	(13,119		)	(6,189		)
Total revenues	630,060			126,965			1,597,466			977,054

Benefits and expenses:
Insurance policy benefits and change in future policy benefits	15,065			10,959			37,567			32,629
Interest sensitive and index product benefits	278,943			213,465			487,735			802,431
Amortization of deferred sales inducements	69,245			65,807			127,396			152,278
Change in fair value of embedded derivatives	144,404			(414,724		)	694,564			(583,112		)
Interest expense on notes and loan payable	6,887			7,283			20,649			21,976
Interest expense on subordinated debentures	3,253			3,075			9,627			9,138
Amortization of deferred policy acquisition costs	98,108			67,885			198,486			186,871
Other operating costs and expenses	25,133			24,497			78,786			70,487
Total benefits and expenses	641,038			(21,753		)	1,654,810			692,698
Income (loss) before income taxes	(10,978		)	148,718			(57,344		)	284,356
Income tax expense (benefit)	(3,558		)	51,412			(19,791		)	98,302
Net income (loss)	$	(7,420	)	$	97,306		$	(37,553	)	$	186,054

Earnings (loss) per common share	$	(0.09	)	$	1.22		$	(0.45	)	$	2.39
Earnings (loss) per common share - assuming dilution	$	(0.09	)	$	1.19		$	(0.45	)	$	2.33

Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share	86,262			79,676			83,645			77,995
Earnings (loss) per common share - assuming dilution	87,044			81,559			84,413			79,977

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Quarterly Summary - Most Recent 5 Quarters (Unaudited)



	Q3 2016			Q2 2016			Q1 2016			Q4 2015			Q3 2015
	(Dollars in thousands, except per share data)
Revenues:
Traditional life insurance premiums	$	2,147		$	2,398		$	2,634		$	2,891		$	2,664
Life contingent immediate annuity considerations	10,584			9,060			4,711			7,788			5,671
Surrender charges	13,819			11,997			14,565			10,543			13,104
Lifetime income benefit rider fees	33,856			29,127			21,940			26,559			24,871
Net investment income	463,583			459,830			450,826			438,262			436,085
Change in fair value of derivatives	103,794			39,099			(74,065		)	69,338			(351,360		)
Net realized gains (losses) on investments, excluding OTTI	5,256			2,737			2,687			(151		)	1,159
Net OTTI losses recognized in operations	(2,979		)	(4,446		)	(5,694		)	(13,347		)	(5,229		)
Total revenues	630,060			549,802			417,604			541,883			126,965

Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits	1,348			2,177			1,545			2,044			1,730
Life contingent immediate annuity benefits and change in future policy benefits	13,717			11,216			7,564			10,785			9,229
Interest sensitive and index product benefits (b)(e)(f)	278,943			111,121			97,671			165,622			213,465
Amortization of deferred sales inducements (c)(d)(g)	69,245			30,672			27,479			57,112			65,807
Change in fair value of embedded derivatives	144,404			284,303			265,857			118,414			(414,724		)
Interest expense on notes and loan payable	6,887			6,882			6,880			6,873			7,283
Interest expense on subordinated debentures	3,253			3,206			3,168			3,101			3,075
Amortization of deferred policy acquisition costs (c)(d)(g)	98,108			50,665			49,713			99,243			67,885
Other operating costs and expenses (a)	25,133			26,823			26,830			25,731			24,497
Total benefits and expenses	641,038			527,065			486,707			488,925			(21,753		)
Income (loss) before income taxes	(10,978		)	22,737			(69,103		)	52,958			148,718
Income tax expense (benefit)	(3,558		)	8,029			(24,262		)	19,182			51,412
Net income (loss) (a)(b)(c)(d)(e)(f)(g)	$	(7,420	)	$	14,708		$	(44,841	)	$	33,776		$	97,306

Earnings (loss) per common share	$	(0.09	)	$	0.18		$	(0.55	)	$	0.41		$	1.22
Earnings (loss) per common share - assuming dilution (a)(b)(c)(d)(e)(f)(g)	$	(0.09	)	$	0.18		$	(0.55	)	$	0.40		$	1.19

Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share	86,262			82,517			82,129			81,733			79,676
Earnings (loss) per common share - assuming dilution	87,044			83,184			82,961			83,851			81,559

Q3 2016 includes a benefit of $2.8 million based upon developments in the claims process associated with a lawsuit settlement, which after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, decreased the net loss and loss per common share - assuming dilution by $1.1 million and $0.01 per share, respectively.

Q3 2016 includes expense from the revision of assumptions used in determining reserves held for living income benefit riders. The impact increased interest sensitive and index product benefits by $42.0 million and increased the net loss and loss per common share - assuming dilution by $27.1 million and $0.31 per share, respectively.

Q3 2016 includes expense from unlocking which increased amortization of deferred sales inducements and deferred policy acquisition costs by $17.9 million and $22.1 million, respectively, and increased the net loss and loss per common share- assuming dilution by $25.8 million and $0.30 per share, respectively.

Q1 2016 includes expense from unlocking which increased amortization of deferred sales inducements and deferred policy acquisition costs by $17.9 million and $26.1 million, respectively, and increased the net loss and loss per common share- assuming dilution by $28.4 million and $0.35 per share, respectively.

Q4 2015 includes an adjustment to reserves for living income benefit riders which reduced interest sensitive and index product benefits by $1.9 million, which after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, increased net income and earnings per common share-assuming dilution by $0.7 million and $0.01 per share, respectively.

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Q3 2015 includes expense from the revision of assumptions used in determining reserves held for living income benefit riders. The impact increased interest sensitive and index product benefits by $18.3 million and decreased net income and earnings per common share - assuming dilution by $11.8 million and $0.14 per share, respectively.

Q3 2015 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $5.6 million and $11.0 million, respectively, and increased net income and earnings per common share- assuming dilution by $10.7 million and $0.13 per share, respectively.

NON-GAAP FINANCIAL MEASURES

In addition to net income (loss), we have consistently utilized operating income (loss) and operating income (loss) 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 (loss) equals net income (loss) 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 operating income (loss) eliminate the impact of 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 the combined presentation and evaluation of operating income (loss) together with net income (loss) provides information that may enhance an investor’s understanding of our underlying results and profitability.

Reconciliation from Net Income (Loss) to Operating Income (Loss) (Unaudited)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(Dollars in thousands, except per share data)
Net income (loss)	$	(7,420	)	$	97,306		$	(37,553	)	$	186,054
Adjustments to arrive at operating income (loss): (a)
Net realized investment (gains) losses, including OTTI	(1,008		)	2,542			752			(2,835		)
Change in fair value of derivatives and embedded derivatives - index annuities	9,400			(83,410		)	160,078			(61,277		)
Change in fair value of derivatives and embedded derivatives - debt	(1,049		)	2,575			2,483			2,746
Litigation reserve	(1,957		)	—			(1,957		)	—
Income taxes	(2,689		)	26,903			(57,426		)	20,991
Operating income (loss) (a non-GAAP financial measure)	$	(4,723	)	$	45,916		$	66,377		$	145,679

Per common share - assuming dilution:
Net income (loss)	$	(0.09	)	$	1.19		$	(0.45	)	$	2.33
Adjustments to arrive at operating income (loss):
Anti-dilutive effect of net loss	—			—			0.01			—
Net realized investment (gains) losses, including OTTI	(0.01		)	0.03			0.01			(0.03		)
Change in fair value of derivatives and embedded derivatives - index annuities	0.11			(1.02		)	1.89			(0.77		)
Change in fair value of derivatives and embedded derivatives - debt	(0.01		)	0.03			0.03			0.03
Litigation reserve	(0.02		)	—			(0.02		)	—
Income taxes	(0.03		)	0.33			(0.68		)	0.26
Operating income (loss) (a non-GAAP financial measure)	$	(0.05	)	$	0.56		$	0.79		$	1.82

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

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

NON-GAAP FINANCIAL MEASURES

Summary of Adjustments to Arrive at Operating Income (Loss) (Unaudited)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(Dollars in thousands)
Net realized investment gains and losses, including OTTI:
Net realized (gains) losses on investments, including OTTI	$	(2,277	)	$	4,070		$	2,439		$	(4,173	)
Amortization of DAC and DSI	1,269			(1,528		)	(1,687		)	1,338
Income taxes	358			(903		)	(267		)	1,006
	$	(650	)	$	1,639		$	485		$	(1,829	)
Change in fair value of derivatives and embedded derivatives:
Index annuities	$	29,145		$	(93,752	)	$	345,469		$	(27,466	)
Interest rate caps and swap	(1,049		)	2,575			2,483			2,746
Amortization of DAC and DSI	(19,745		)	10,342			(185,391		)	(33,811		)
Income taxes	(3,742		)	27,806			(57,854		)	19,985
	$	4,609		$	(53,029	)	$	104,707		$	(38,546	)
Litigation reserve:
Change in litigation reserve recorded in other operating costs	$	(2,829	)	$	—		$	(2,829	)	$	—
Amortization of DAC and DSI	872			—			872			—
Income taxes	695			—			695			—
	$	(1,262	)	$	—		$	(1,262	)	$	—

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

NON-GAAP FINANCIAL MEASURES

Quarterly Summary - Most Recent 5 Quarters (Unaudited)

Reconciliation from Net Income (Loss) to Operating Income (Loss)



	Q3 2016			Q2 2016			Q1 2016			Q4 2015			Q3 2015
	(Dollars in thousands, except per share data)
Net income (loss)	$	(7,420	)	$	14,708		$	(44,841	)	$	33,776		$	97,306
Adjustments to arrive at operating income (loss): (a)
Net realized investment (gains) losses, including OTTI	(1,008		)	605			1,155			8,572			2,542
Change in fair value of derivatives and embedded derivatives - index annuities	9,400			53,129			97,549			17,221			(83,409		)
Change in fair value of derivatives and embedded derivatives - debt	(1,049		)	768			2,764			(1,449		)	2,574
Litigation reserve	(1,957		)	—			—			—			—
Income taxes	(2,689		)	(19,108		)	(35,629		)	(7,979		)	26,903
Operating income (loss) (a non-GAAP financial measure) (b)(c)(d)(e)(f)(g)	$	(4,723	)	$	50,102		$	20,998		$	50,141		$	45,916

Per common share - assuming dilution:
Net income (loss)	$	(0.09	)	$	0.18		$	(0.55	)	$	0.40		$	1.19
Adjustments to arrive at operating income (loss):
Anti-dilutive effect of net loss	—			—			0.01			—			—
Net realized investment (gains) losses, including OTTI	(0.01		)	—			0.01			0.10			0.03
Change in fair value of derivatives and embedded derivatives - index annuities	0.11			0.64			1.18			0.21			(1.02		)
Change in fair value of derivatives and embedded derivatives - debt	(0.01		)	0.01			0.03			(0.02		)	0.03
Litigation reserve	(0.02		)	—			—			—			—
Income taxes	(0.03		)	(0.23		)	(0.43		)	(0.09		)	0.33
Operating income (loss) (a non-GAAP financial measure) (b)(c)(d)(e)(f)(g)	$	(0.05	)	$	0.60		$	0.25		$	0.60		$	0.56

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

Q3 2016 includes expense from unlocking which increased amortization of deferred sales inducements and deferred policy acquisition costs by $18.1 million and $21.5 million, respectively, and increased the operating loss and operating loss per common share- assuming dilution by $25.5 million and $0.29 per share, respectively.

Q3 2016 includes expense from the revision of assumptions used in determining reserves held for living income benefit riders. The impact increased interest sensitive and index product benefits by $42.0 million and increased the operating loss and operating loss per common share - assuming dilution by $27.1 million and $0.31 per share, respectively.

Q1 2016 includes expense from unlocking which increased amortization of deferred sales inducements and deferred policy acquisition costs by $18.1 million and $26.3 million, respectively, and decreased operating income and operating income per common share- assuming dilution by $28.6 million and $0.35 per share, respectively.

Q4 2015 includes an adjustment to reserves for living income benefit riders which reduced interest sensitive and index product benefits by $1.9 million, which after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, increased operating income and operating income per common share-assuming dilution by $0.5 million and $0.01 per share, respectively.

Q3 2015 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $0.5 million and $4.3 million, respectively, and increased operating income and operating income per common share- assuming dilution by $3.1 million and $0.04 per share, respectively.

Q3 2015 includes expense from the revision of assumptions used in determining reserves held for living income benefit riders. The impact increased interest sensitive and index product benefits by $18.3 million and decreased operating income and operating income per common share - assuming dilution by $11.8 million and $0.14 per share, respectively.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

NON-GAAP FINANCIAL MEASURES

Summary of Adjustments to Arrive at Operating Income (Loss) (Unaudited)



	Q3 2016			Q2 2016			Q1 2016			Q4 2015			Q3 2015
	(Dollars in thousands)
Net realized (gains) losses on investments	$	(5,256	)	$	(2,737	)	$	(2,687	)	$	151		$	(1,159	)
Net OTTI losses recognized in operations	2,979			4,446			5,694			13,347			5,229
Change in fair value of derivatives	(116,308		)	(170,795		)	(59,509		)	(132,818		)	322,406
Decrease (increase) in total revenues	(118,585		)	(169,086		)	(56,502		)	(119,320		)	326,476

Amortization of deferred sales inducements	8,934			28,027			48,002			(3,075		)	(12,644		)
Change in fair value of embedded derivatives	(144,404		)	(284,303		)	(265,857		)	(118,414		)	413,583
Amortization of deferred policy acquisition costs	8,670			32,688			59,885			(22,175		)	3,830
Other operating costs and expenses	2,829			—			—			—			—
Increase (decrease) in total benefits and expenses	(123,971		)	(223,588		)	(157,970		)	(143,664		)	404,769
Increase (decrease) in income (loss) before income taxes	5,386			54,502			101,468			24,344			(78,293		)
Increase (decrease) in income tax expense	2,689			19,108			35,629			7,979			(26,903		)
Increase (decrease) in net income (loss)	$	2,697		$	35,394		$	65,839		$	16,365		$	(51,390	)

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Capitalization/Book Value per Share



	September 30, 2016			December 31, 2015

Capitalization:
Notes and loan payable	$	500,000		$	400,000
Subordinated debentures payable to subsidiary trusts	246,615			246,450
Total debt	746,615			646,450
Total stockholders’ equity	2,812,862			1,944,535
Total capitalization	3,559,477			2,590,985
Accumulated other comprehensive income (AOCI)	(963,796		)	(201,663		)
Total capitalization excluding AOCI (a)	$	2,595,681		$	2,389,322

Total stockholders’ equity	$	2,812,862		$	1,944,535
Accumulated other comprehensive income	(963,796		)	(201,663		)
Total stockholders’ equity excluding AOCI (a)	$	1,849,066		$	1,742,872

Common shares outstanding (b)	87,913,510			81,584,091

Book Value per Share: (c)
Book value per share including AOCI	$	32.00		$	23.83
Book value per share excluding AOCI (a)	$	21.03		$	21.36

Debt-to-Capital Ratios: (d)
Senior debt / Total capitalization	19.3		%	16.7		%
Adjusted debt / Total capitalization	19.3		%	16.7		%

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.

Common shares outstanding include shares held by the NMO Deferred Compensation Trust: 2016 - 15,058 shares; 2015 - 230,012 shares

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.

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.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016



	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
Average yield on invested assets	4.46%	4.79%	4.52%	4.77%
Aggregate cost of money	1.89%	1.96%	1.91%	1.96%
Aggregate investment spread	2.57%	2.83%	2.61%	2.81%

Impact of:
Investment yield - additional prepayment income	0.04%	0.14%	0.05%	0.08%
Cost of money effect of over hedging	0.02%	0.02%	0.01%	0.05%

Weighted average investments (in thousands)	$41,693,486	$36,518,093	$40,586,396	$35,124,768

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 September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(Dollars in thousands)
Included in interest sensitive and index product benefits:
Index credits	$	126,653		$	101,170		$	142,084		$	515,675
Interest credited	69,715			62,519			198,682			187,946
Included in change in fair value of derivatives:
Proceeds received at option expiration	(128,293		)	(103,750		)	(144,343		)	(529,196		)
Pro rata amortization of option cost	140,286			130,956			420,529			374,466
Cost of money for deferred annuities	$	208,361		$	190,895		$	616,952		$	548,891

Weighted average liability balance outstanding (in thousands)	$	44,050,773		$	38,863,688		$	43,005,333		$	37,358,304

Annuity Account Balance Rollforward



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(Dollars in thousands)
Account balances at beginning of period	$	43,640,978		$	38,117,343		$	41,249,647		$	35,363,041
Net deposits	1,114,817			1,718,755			4,241,271			4,640,646
Premium bonuses	74,784			127,220			270,991			346,410
Fixed interest credited and index credits	196,368			163,689			340,766			703,621
Surrender charges	(13,819		)	(13,104		)	(40,381		)	(36,071		)
Lifetime income benefit rider fees	(33,856		)	(24,871		)	(84,923		)	(62,995		)
Surrenders, withdrawals, deaths, etc.	(518,703		)	(478,998		)	(1,516,802		)	(1,344,618		)
Account balances at end of period	$	44,460,569		$	39,610,034		$	44,460,569		$	39,610,034

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Annuity Deposits by Product Type



	Three Months Ended September 30,				Nine Months Ended September 30,				Year Ended December 31,
Product Type	2016		2015		2016		2015		2015
	(Dollars in thousands)
Fixed index annuities	$	1,291,236	$	1,764,179	$	4,504,784	$	4,748,612	$	6,791,689
Annual reset fixed rate annuities	13,877		8,425		46,448		32,612		45,182
Multi-year fixed rate annuities	225,937		45,032		1,161,527		132,249		214,356
Single premium immediate annuities	11,730		8,921		25,357		27,085		32,752
Total before coinsurance ceded	1,542,780		1,826,557		5,738,116		4,940,558		7,083,979
Coinsurance ceded	416,233		98,881		1,471,488		272,827		471,822
Net after coinsurance ceded	$	1,126,547	$	1,727,676	$	4,266,628	$	4,667,731	$	6,612,157

Surrender Charge Protection and Account Values by Product Type

Annuity Surrender Charges and Net (of Coinsurance) Account Values at September 30, 2016:



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

Fixed Index Annuities	13.8	9.0	14.3%	$	42,369,303	95.3	%
Annual Reset Fixed Rate Annuities	10.8	3.6	7.5%	1,416,343		3.2	%
Multi-Year Fixed Rate Annuities	6.6	2.9	5.7%	674,923		1.5	%
Total	13.6	8.8	13.9%	$	44,460,569	100.0	%

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Annuity Liability Characteristics



	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	(Dollars in thousands)
SURRENDER CHARGE PERCENTAGES:
No surrender charge	$	776,102	$	1,596,107
0.0% < 2.0%	11,638		676,660
2.0% < 3.0%	46,169		70,526
3.0% < 4.0%	35,888		464,095
4.0% < 5.0%	54,517		114,561
5.0% < 6.0%	72,837		451,844
6.0% < 7.0%	58,033		436,029
7.0% < 8.0%	67,284		458,314
8.0% < 9.0%	94,677		1,262,936
9.0% < 10.0%	307,600		1,771,409
10.0% or greater	566,522		35,066,821
	$	2,091,267	$	42,369,302



	Fixed and Fixed Index Annuities Account Value		Weighted Average Surrender Charge
	(Dollars in thousands)
SURRENDER CHARGE EXPIRATION BY YEAR:
Out of Surrender Charge	$	2,372,209	0.00	%
2016	220,108		1.61	%
2017	783,356		1.96	%
2018	722,608		4.36	%
2019	539,567		5.85	%
2020	900,010		7.80	%
2021	1,378,466		9.23	%
2022	2,018,728		10.89	%
2023	4,801,715		12.67	%
2024	5,364,094		13.90	%
2025	5,894,593		14.20	%
2026	4,424,030		15.18	%
2027	2,728,745		17.55	%
2028	2,422,450		18.26	%
2029	3,029,702		18.64	%
2030	2,562,884		19.09	%
2031	2,851,489		19.64	%
2032	1,422,141		19.99	%
2033	23,674		20.00	%
	$	44,460,569	13.91	%

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Annuity Liability Characteristics



	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	(Dollars in thousands)
CREDITED RATE VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL:
No differential	$	929,513	$	1,185,311
› 0.0% - 0.25%	168,222		54,273
› 0.25% - 0.5%	237,554		128,337
› 0.5% - 1.0%	136,326		758,001
› 1.0% - 1.5%	12,554		1,940
› 1.5% - 2.0%	1,379		—
› 2.0% - 2.5%	31		—
1.00% ultimate guarantee - 2.71% wtd avg interest rate (a)	367,420		124,476
1.50% ultimate guarantee - 1.32% wtd avg interest rate (a)	141,609		4,881,972
2.00% ultimate guarantee - 2.24% wtd avg interest rate (a)	96,659		—
2.25% ultimate guarantee - 2.29% wtd avg interest rate (a)	—		1,296,283
3.00% ultimate guarantee - 2.49% wtd avg interest rate (a)	—		2,509,866
Allocated to index strategies (see tables that follow)	—		31,428,843
	$	2,091,267	$	42,369,302

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 September 30, 2016 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.32%.

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

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	$	1,718	$	69,508	$	1,762,800	$	48,725	$	222,040
1.75% - 3%	4,518,324		—		—		—		—
3% - 4%	2,605,257		33,485		—		—		—
4% - 5%	191,918		186,084		3,696,787		—		—
5% - 6%	352,471		133,955		1,809,884		—		—
6% - 7%	—		—		19		—		—
>= 7%	—		16,156		776		63,987		14,593



Annual Monthly Average and Point-to-Point with Participation Rates
	Minimum Guaranteed Participation Rate
	10%		20% - 25%		35%		50% +
Current Participation Rate	(Dollars in thousands)
At minimum	$	431	$	430,299	$	134,033	$	155,323
< 20%	403,854		—		—		—
20% - 40%	775,128		198,530		—		—
40% - 60%	532,633		123,270		92,672		—
>= 60%	4,785		—		—		—



S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
(Dollars in thousands)
Current Cap
At minimum	$	15,742
1.20% - 1.40%	3,875,048
1.45% - 1.70%	2,756,316
1.80% - 2.00%	2,787,266
>= 2.10%	912,713



Volatility Control Index
(Dollars in thousands)
Current Asset Fee
At Maximum	$	—
0.75% - 1.75%	149,851
2.25% - 2.75%	1,205,334
3.00% - 3.50%	938,071

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 0.64% based upon prices of options for the week ended October 18, 2016.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Summary of Invested Assets



	September 30, 2016				December 31, 2015
	Carrying Amount		Percent		Carrying Amount		Percent
	(Dollars in thousands)
Fixed maturity securities:
United States Government full faith and credit	$	418,465	0.9	%	$	471,256	1.3	%
United States Government sponsored agencies	1,472,904		3.2	%	1,398,611		3.5	%
United States municipalities, states and territories	4,052,210		8.8	%	3,755,367		9.5	%
Foreign government obligations	254,420		0.6	%	212,565		0.5	%
Corporate securities	27,992,430		61.1	%	23,879,016		60.3	%
Residential mortgage backed securities	1,358,174		3.0	%	1,462,072		3.7	%
Commercial mortgage backed securities	5,310,156		11.6	%	4,174,396		10.5	%
Other asset backed securities	1,522,424		3.3	%	1,145,178		2.9	%
Total fixed maturity securities	42,381,183		92.5	%	36,498,461		92.2	%
Equity securities	7,843		—	%	7,828		—	%
Mortgage loans on real estate	2,419,230		5.3	%	2,435,257		6.2	%
Derivative instruments	706,007		1.5	%	337,256		0.9	%
Other investments	297,068		0.7	%	291,530		0.7	%
	$	45,811,331	100.0	%	$	39,570,332	100.0	%

Credit Quality of Fixed Maturity Securities - September 30, 2016



NAIC Designation	Carrying Amount		Percent		Rating Agency Rating	Carrying Amount		Percent
	(Dollars in thousands)					(Dollars in thousands)
1	$	27,489,043	64.9	%	Aaa/Aa/A	$	27,509,994	64.9	%
2	13,679,587		32.3	%	Baa	13,278,853		31.3	%
3	1,063,846		2.5	%	Ba	931,771		2.2	%
4	124,317		0.3	%	B	147,965		0.4	%
5	18,839		—	%	Caa	59,636		0.1	%
6	5,551		—	%	Ca and lower	452,964		1.1	%
	$	42,381,183	100.0	%		$	42,381,183	100.0	%

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Watch List Securities - September 30, 2016



General Description	Amortized Cost		Unrealized Losses			Fair Value		Months Below Amortized Cost
	(Dollars in thousands)
Investment grade
Corporate securities:
Utilities	$	10,452	$	(4,023	)	$	6,429	13
Other asset backed securities:
Financials	2,218		(1,153		)	1,065		66
Utilities	4,995		(1,805		)	3,190		1
	$	17,665	$	(6,981	)	$	10,684
Below investment grade
Corporate securities:
Energy	$	45,044	$	(10,668	)	$	34,376	25 - 41
Industrials	4,981		(3,181		)	1,800		23
Materials	29,772		(3,518		)	26,254		15 - 44
Telecommunications	2,171		(686		)	1,485		27
Other asset backed securities:
Financials	4,854		(3,209		)	1,645		40
	$	86,822	$	(21,262	)	$	65,560
	$	104,487	$	(28,243	)	$	76,244

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Fixed Maturity Securities by Sector



	September 30, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Available for sale:
United States Government full faith and credit and sponsored agencies	$	1,827,263	$	1,891,369	$	1,856,786	$	1,869,867
United States municipalities, states and territories	3,548,586		4,052,210		3,422,667		3,755,367
Foreign government obligations	233,825		254,420		210,953		212,565
Corporate securities:
Consumer discretionary	2,099,757		2,273,231		1,983,595		2,012,874
Consumer staples	1,874,753		2,062,630		1,612,382		1,649,408
Energy	2,692,289		2,773,070		2,622,284		2,410,184
Financials	5,809,449		6,265,900		4,955,851		5,134,209
Health care	2,012,020		2,240,504		1,944,109		2,007,107
Industrials	3,456,068		3,776,857		3,236,836		3,295,598
Information technology	1,918,390		2,049,504		1,689,259		1,694,466
Materials	1,853,284		1,965,256		1,732,123		1,624,073
Telecommunications	625,722		671,452		543,689		547,424
Utilities	3,409,769		3,837,247		3,277,402		3,427,041
Residential mortgage backed securities:
Government agency	668,231		755,536		687,515		741,431
Prime	365,024		386,461		474,756		493,096
Alt-A	192,465		216,177		204,714		227,545
Commercial mortgage backed securities:
Government agency	553,433		595,614		359,273		370,966
Other	4,567,928		4,714,542		3,878,992		3,803,430
Other asset backed securities:
Consumer discretionary	117,140		116,850		62,852		61,759
Energy	8,009		8,676		8,143		9,097
Financials	1,138,936		1,160,432		816,906		821,343
Industrials	213,903		224,870		223,414		231,678
Telecommunications	7,838		8,406		13,789		14,575
Utilities	4,995		3,190		5,420		6,726
Redeemable preferred stock - financials	—		6		—		10
	$	39,199,077	$	42,304,410	$	35,823,710	$	36,421,839
Held for investment:
Corporate security - financials	$	76,773	$	75,547	$	76,622	$	65,377

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Fixed Maturity Securities by Sector

Energy and Metals & Mining

In the table on the previous page, oil and metals and mining exposure is reflected within the foreign government, energy, material, utilities, and industrial sectors. Our privately placed available for sale fixed maturity securities at September 30, 2016 total $175.1 million fair value ($176.6 million amortized cost) in Energy and $43.4 million fair value ($45.6 million amortized cost) in Metals & Mining and are not included in the following tables.



	September 30, 2016
Sector and Subsector	Amortized Cost		Fair Value		Unrealized Gain (Loss)			Average Credit Rating
	(Dollars in thousands)
Energy
Independent	$	505,553	$	506,918	$	1,365		Baa
Integrated	497,369		532,324		34,955			A
Oil field services	405,148		385,393		(19,755		)	Baa
Refining	119,571		126,823		7,252			Baa
Midstream	760,316		790,623		30,307			Baa
Government owned no guarantee	308,695		336,258		27,563			A
Metals & Mining	559,112		583,469		24,357			Baa
Total Energy and Metals & Mining	$	3,155,764	$	3,261,808	$	106,044		Baa



	Amortized Cost at September 30, 2016
	Energy
NRSRO Rating	Independent		Integrated		Oil field services		Refining		Midstream		Government Owned No Guarantee		Metals & Mining		Total
	(Dollars in thousands)
Aaa	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Aa	—		228,200		—		—		—		44,662		—		272,862
A	89,493		84,765		90,631		500		90,842		214,194		76,594		647,019
Baa	369,837		149,192		185,220		119,071		635,467		25,264		287,846		1,771,897
Ba	46,223		35,212		100,235		—		34,007		—		129,897		345,574
B	—		—		29,062		—		—		24,575		54,092		107,729
Below B	—		—		—		—		—		—		10,683		10,683
	$	505,553	$	497,369	$	405,148	$	119,571	$	760,316	$	308,695	$	559,112	$	3,155,764



	Fair Value at September 30, 2016
	Energy
NRSRO Rating	Independent		Integrated		Oil field services		Refining		Midstream		Government Owned No Guarantee		Metals & Mining		Total
	(Dollars in thousands)
Aaa	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Aa	—		249,998		—		—		—		47,087		—		297,085
A	93,882		88,981		98,603		551		99,269		242,485		83,669		707,440
Baa	369,909		159,716		183,741		126,272		658,477		25,936		304,529		1,828,580
Ba	43,127		33,629		83,138		—		32,877		—		129,763		322,534
B	—		—		19,911		—		—		20,750		49,452		90,113
Below B	—		—		—		—		—		—		16,056		16,056
	$	506,918	$	532,324	$	385,393	$	126,823	$	790,623	$	336,258	$	583,469	$	3,261,808

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Mortgage Loans on Commercial Real Estate



	September 30, 2016						December 31, 2015
	Principal			Percent			Principal		Percent
	(Dollars in thousands)
Geographic distribution
East	$	652,230		26.9		%	$	698,113	28.5	%
Middle Atlantic	155,249			6.4		%	160,261		6.6	%
Mountain	231,561			9.5		%	252,442		10.3	%
New England	12,834			0.5		%	13,161		0.5	%
Pacific	387,212			16.0		%	355,268		14.5	%
South Atlantic	474,238			19.5		%	456,227		18.6	%
West North Central	319,341			13.2		%	313,120		12.8	%
West South Central	195,240			8.0		%	201,317		8.2	%
	$	2,427,905		100.0		%	$	2,449,909	100.0	%

Property type distribution
Office	$	321,297		13.2		%	$	396,154	16.2	%
Medical office	54,129			2.2		%	77,438		3.2	%
Retail	825,490			34.0		%	790,158		32.2	%
Industrial/Warehouse	677,342			27.9		%	686,400		28.0	%
Hotel	1,142			0.1		%	3,361		0.1	%
Apartment	376,189			15.5		%	352,971		14.4	%
Mixed use/other	172,316			7.1		%	143,427		5.9	%
	$	2,427,905		100.0		%	$	2,449,909	100.0	%

	September 30, 2016			December 31, 2015
Credit Exposure - By Payment Activity
Performing	$	2,426,284		$	2,438,341
In workout	1,621			11,568
Delinquent	—			—
Collateral dependent	—			—
	2,427,905			2,449,909
Specific loan loss allowance	(1,327		)	(7,842		)
General loan loss allowance	(6,200		)	(6,300		)
Deferred prepayment fees	(1,148		)	(510		)
	$	2,419,230		$	2,435,257

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Shareholder Information

American Equity Investment Life Holding Company

6000 Westown Parkway

West Des Moines, IA 50266

Steven Schwartz, Vice President-Investor Relations

(515) 273-3673, sschwartz@american-equity.com

Common Stock and Dividend Information:

New York Stock Exchange symbol: “AEL”



	High	Low	Close	Dividend Declared
2016
First Quarter	$23.65	$12.65	$16.80	$0.00
Second Quarter	$16.96	$12.77	$14.25	$0.00
Third Quarter	$18.32	$13.07	$17.73	$0.00

2015
First Quarter	$29.62	$25.46	$29.13	$0.00
Second Quarter	$29.90	$25.06	$26.98	$0.00
Third Quarter	$30.02	$22.36	$23.31	$0.00
Fourth Quarter	$28.30	$22.55	$24.03	$0.22

2014
First Quarter	$26.42	$18.84	$23.62	$0.00
Second Quarter	$25.15	$20.97	$24.60	$0.00
Third Quarter	$25.25	$21.69	$22.88	$0.00
Fourth Quarter	$29.75	$21.36	$29.19	$0.20

Computershare Trust Company, N.A.

Providence, RI 02940-0310

Phone: (877) 282-1169

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 web site at www.american-equity.com.

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - September 30, 2016

Research Analyst Coverage

john.nadel@credit-suisse.com

thomas.gallagher@evercoreisi.com

Friedman, Billings, Ramsey & Co., Inc.

pablo.s.singzon@jpmorgan.com

Raymond James & Associates, Inc.

greg.peters@raymondjames.com

RBC Capital Markets, LLC

kenneth.s.lee@rbccm.com

Sandler O'Neill & Partners, L.P.

jbarnidge@sandleroneill.com

SunTrust Robinson Humphrey

mark.hughes@suntrust.com



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 (Loss) to Operating Income (Loss)	4
	Summary of Adjustments to Arrive at Operating Income (Loss)	5
	Quarterly Summary - Reconciliation from Net Income (Loss) to Operating Income (Loss)	6
	Quarterly Summary - Summary of Adjustments to Arrive at Operating Income (Loss)	7
	Capitalization/Book Value per Share	8
	Spread Results	9

B.	Product Summary
	Summary of Cost of Money for Deferred Annuities	9
	Annuity Account Balance Rollforward	9
	Annuity Deposits by Product Type	10
	Surrender Charge Protection and Account Values by Product Type	10
	Annuity Liability Characteristics	11

C.	Investment Summary
	Summary of Invested Assets	14
	Credit Quality of Fixed Maturity Securities	14
	Watch List Securities	15
	Fixed Maturity Securities by Sector	16
	Mortgage Loans on Commercial Real Estate	18

D.	Shareholder Information	19

E.	Research Analyst Coverage	20