8-K

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 2, 2018

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 Identification 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933

(17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02  Results of Operations and Financial Condition

On May 2, 2018, the registrant issued a press release announcing its financial results for the quarter endedMarch 31, 2018, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The registrant's financial supplement for the quarter endedMarch 31, 2018, 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 2, 2018, announcing American Equity Investment Life Holding Company's financial results for the quarter ended March 31, 2018.
99.2	American Equity Investment Life Holding Company's Financial Supplement for the quarter ended March 31, 2018.

SIGNATURE

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

Date: May 2, 2018

AMERICAN EQUITY
INVESTMENT LIFE HOLDING COMPANY
By:	/s/ John M. Matovina
	John M. Matovina
	Chief Executive Officer and President

EX-99.1

Exhibit 99.1

	For more information, contact:
	Steven D. Schwartz, Vice President-Investor Relations
	(515) 273-3763, sschwartz@american-equity.com
FOR IMMEDIATE RELEASE
May 2, 2018

American Equity Reports First Quarter2018 Results

Company Highlights

• First quarter2018 net income of $141.0 million or $1.55 per diluted common share

• First quarter2018 non-GAAP operating income¹ of $77.7 million or $0.85 per diluted common share

• First quarter2018 annuity sales of $1.0 billion

• Policyholder funds under management of $49.1 billion

• First quarter2018 investment spread of 2.54%

• Estimated risk-based capital ratio of 383% compared to 378% at December 31, 2017

WEST DES MOINES, Iowa (May 2, 2018) - American Equity Investment Life Holding Company (NYSE: AEL), a leading issuer of fixed index annuities, today reported first quarter2018 net income of $141.0 million, or $1.55 per diluted common share, compared to net income of $53.9 million, or $0.60 per diluted common share, for first quarter2017.

Non-GAAP operating income¹ for the first quarter of 2018 was $77.7 million, or $0.85 per diluted common share, compared to non-GAAP operating income¹ of $59.6 million, or $0.66 per diluted common share, for first quarter2017. On a trailing twelve-month basis, non-GAAP operating¹ return on average equity excluding average AOCI¹ was 14.6% based upon reported results and 13.5% excluding both the impact of assumption revisions and losses on extinguishment of debt.

POLICYHOLDER FUNDS UNDER MANAGEMENT UP 1.5% ON $1.0 BILLION OF SALES

Policyholder funds under management at March 31, 2018 were $49.1 billion, a $747 million or 1.5% increase from December 31, 2017. First quarter sales were $1.0 billion before coinsurance ceded and $941 million after coinsurance ceded. Gross sales and net sales for the quarter were down 4.5% and 6.6%, respectively, from first quarter 2017 sales. However, on a sequential basis, gross and net sales increased 2.2% and 6.6%, respectively.

Total sales by independent agents for American Equity Investment Life Insurance Company increased 9.5% sequentially while total sales by broker-dealers and banks for Eagle Life Insurance Company fell by $52 million or 23.7% sequentially, in part due to a $25 million decline in sales of non-core multi-year fixed rate annuities. Sales of fixed index annuities (FIAs) were up 5.2% sequentially to $994 million driven by the gain in sales for American Equity Life.

Commenting on sales, John Matovina, Chairman and Chief Executive Officer, said: "We are pleased with another sequential increase in FIA sales and the momentum we have in sales by American Equity Life's independent agents. Sales in that channel appear to have bottomed in the third quarter of last year. FIA sales for Eagle Life of $161 million were down $27 million or 14.5% sequentially but still got our year off to a good start and were 83% higher than Eagle Life's 2017 first quarter FIA sales."

Commenting on the market environment and the outlook for FIA sales, Matovina added: "The market in each of our distribution channels remains competitive. Despite the increase in equity market volatility since early February, a number of competitors raised rates and guaranteed income. However, the changes we made to our products in September and October of last year kept us in good stead, and we continue to be in a strong competitive position for guaranteed income, caps and participation rates."

Matovina continued: "In March, we introduced our new IncomeShield series of fixed index annuity products. IncomeShield was designed to allow policyholders to tailor their lifetime income benefit rider to their specific time horizons for guaranteed income. IncomeShield 10 is now our highest guaranteed income product. In addition, one version of the IncomeShield lifetime income benefit rider allows policyholders to begin receiving lifetime income payments 30 days after the policy is issued which is a new feature for us which enhances our competitive positioning in the guaranteed income segment of the market. Initial agent response to IncomeShield has been very positive. Just one month after its introduction, IncomeShield is accounting for more than 18% of American Equity Life's new applications. While some of this may be agents pivoting from one of our products to the new IncomeShield, there are also indications that we're picking up incremental sales from agents who have returned to selling American Equity products."

INVESTMENT SPREAD DECLINES LARGELY ON NON-TRENDABLE ITEMS; OUTLOOK FOR INVESTMENT YIELD MORE FAVORABLE; RENEWAL RATE ADJUSTMENTS TO MITIGATE IMPACT OF RISING OPTION COSTS

American Equity’s investment spread was 2.54% for the first quarter of 2018 compared to 2.75% for the fourth quarter of 2017 and 2.71% for the first quarter of 2017. On a sequential basis, the average yield on invested assets decreased by eleven basis points while the cost of money rose ten basis points.Average yield on invested assets fell to 4.36% for the first quarter of 2018 compared to 4.47% for the fourth quarter of 2017 primarily reflecting a decrease in the benefit from fee income from bond transactions and prepayment income to three basis points in the first quarter of 2018 from eleven basis points in the fourth quarter of 2017. The average yield on fixed income securities purchased and commercial mortgage loans funded in the first quarter of 2018 was 4.43% compared to 4.27% in the fourth quarter of 2017.

The aggregate cost of money for annuity liabilities of 1.82% in the first quarter of 2018 was up ten basis points from 1.72% in the fourth quarter of 2017. The benefit from over hedging index linked interest obligations was two basis points in the fourth quarter of 2017 compared to eight basis points in the fourth quarter of 2017.

Commenting on investment spread, Matovina said: “Two thirds of the first quarter's sequential decline in investment spread was attributable to a fourteen basis point decrease in the benefit from non-trendable items including fee income from bond transactions, prepayment income and over-hedging. Our investment spread was also under pressure in the first quarter of 2018 in part due to the escalation of option costs for certain index strategies in the latter half of 2017 that is recognized in the cost of money ratably over the twelve month option period. To counteract this impact, we began reducing caps on the monthly point to point index strategy in March and will be expanding the universe of policies subject to monthly point to point cap reductions later this quarter. We have flexibility to reduce our crediting rates and could decrease our cost of money by approximately 0.54% through further reductions in renewal rates to guaranteed minimums should the cost of money not return to acceptable levels."

Matovina went on to say: "Our investment spread should also benefit from the recent increases in the benchmark 10-year U.S. Treasury rate and rates available to us on asset classes we have targeted for purchase. In addition to the uplift in investment yield on new purchases we've received from higher rates, we're also benefiting from the continued deployment of money into asset classes that were not traditionally in our portfolio including allocations to asset-backed securities. We're also positioned to benefit from further increases in short-term interest rates with 5% of our portfolio at March 31st in floating rate instruments. The prospect for higher investment yields is quite good and the trend of declining investment yields that has persisted for more than eight years is likely to end this year."

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 quarter2018 earnings on Thursday, May 3, 2018 at 8:00 a.m. CT. 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 855-865-0606, passcode 5069026 (international callers, please dial 704-859-4382). An audio replay will be available shortly after the call on AEL’s website. An audio replay will also be available via telephone through May 10, 2018 at 855-859-2056, passcode 5069026 (international callers will need to dial 404-537-3406).

ABOUT AMERICAN EQUITY

American Equity Investment Life Holding Company, through its wholly-owned operating subsidiaries, issues fixed annuity and life insurance products, with a primary emphasis on the sale of fixed 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.

1    Use of non-GAAP financial measures is discussed in this release in the tables that follow the text of the release.

###

American Equity Investment Life Holding Company

Unaudited (Dollars in thousands, except per share data)

Consolidated Statements of Operations

	Three Months Ended   March 31,
	2018			2017
Revenues:
Premiums and other considerations	$	9,053		$	9,402
Annuity product charges	50,723			43,572
Net investment income	510,784			485,597
Change in fair value of derivatives	(451,083		)	386,533
Net realized gains on investments, excluding other than temporary impairment ("OTTI") losses	302			2,338
OTTI losses on investments:
Total OTTI losses	(907		)	—
Portion of OTTI losses recognized in (from) other comprehensive income	—			(141		)
Net OTTI losses recognized in operations	(907		)	(141		)
Total revenues	118,872			927,301
Benefits and expenses:
Insurance policy benefits and change in future policy benefits	12,094			11,875
Interest sensitive and index product benefits	514,095			419,139
Amortization of deferred sales inducements	100,423			62,325
Change in fair value of embedded derivatives	(867,232		)	224,170
Interest expense on notes and loan payable	6,372			7,722
Interest expense on subordinated debentures	3,630			3,336
Amortization of deferred policy acquisition costs	140,639			89,678
Other operating costs and expenses	31,240			27,579
Total benefits and expenses	(58,739		)	845,824
Income before income taxes	177,611			81,477
Income tax expense	36,649			27,538
Net income	$	140,962		$	53,939
Earnings per common share	$	1.57		$	0.61
Earnings per common share - assuming dilution	$	1.55		$	0.60
Weighted average common shares outstanding (in thousands):
Earnings per common share	90,017			88,647
Earnings per common share - assuming dilution	91,139			89,976

Page 1

American Equity Investment Life Holding Company

Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES

In addition to net income, the Company has consistently utilized non-GAAP operating income and non-GAAP operating income per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate its financial performance. Non-GAAP operating income equals net income adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and the Company believes measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income eliminate the impact of fair value accounting for the Company's fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. The Company believes the combined presentation and evaluation of non-GAAP operating income together with net income provides information that may enhance an investor’s understanding of its underlying results and profitability.

Reconciliation from Net Income to Non-GAAP Operating Income

	Three Months Ended   March 31,
	2018			2017
Net income	$	140,962		$	53,939
Adjustments to arrive at non-GAAP operating income: (a)
Net realized investment (gains) losses, including OTTI	23			(1,942		)
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(78,818		)	10,977
Change in fair value of derivatives - debt	(1,832		)	(247		)
Income taxes	17,359			(3,105		)
Non-GAAP operating income	$	77,694		$	59,622
Per common share - assuming dilution:
Net income	$	1.55		$	0.60
Adjustments to arrive at non-GAAP operating income:
Net realized investment (gains) losses, including OTTI	—			(0.02		)
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(0.87		)	0.12
Change in fair value of derivatives - debt	(0.02		)	—
Income taxes	0.19			(0.04		)
Non-GAAP operating income	$	0.85		$	0.66

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

Page 2

American Equity Investment Life Holding Company

Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

Average Stockholders' Equity and Return on Average Equity

Return on average equity measures how efficiently the Company generates profits from the resources provided by its net assets.  Return on average equity is calculated by dividing net income and non-GAAP operating income for the trailing twelve months by average equity excluding average accumulated other comprehensive income ("AOCI").  The Company excludes AOCI because AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments.

	Twelve Months Ended
	March 31, 2018
Average Stockholders' Equity
Average equity including average AOCI	$	2,491,611
Average AOCI	(412,263		)
Average equity excluding average AOCI	$	2,079,348
Net income	$	261,668
Non-GAAP operating income	303,122
Return on Average Equity Excluding Average AOCI
Net income	12.58		%
Non-GAAP operating income	14.58		%

Page 3

EX-99.2

Exhibit 99.2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement

March 31, 2018

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 Non-GAAP Operating Income	4
	Summary of Adjustments to Arrive at Non-GAAP Operating Income	5
	Quarterly Summary - Reconciliation from Net Income to Non-GAAP Operating Income	6
	Quarterly Summary - Summary of Adjustments to Arrive at Non-GAAP Operating Income	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	14
	Fixed Maturity Securities by Sector	15
	Mortgage Loans on Commercial Real Estate	16
D.	Shareholder Information	17
E.	Research Analyst Coverage	18

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2018		December 31, 2017
Assets
Investments:
Fixed maturity securities:
Available for sale, at fair value	$	45,551,348	$	45,372,989
Held for investment, at amortized cost	77,043		77,041
Mortgage loans on real estate	2,699,637		2,665,531
Derivative instruments	847,741		1,568,380
Other investments	481,825		616,764
Total investments	49,657,594		50,300,705
Cash and cash equivalents	723,784		1,434,045
Coinsurance deposits	4,871,912		4,858,289
Accrued investment income	454,519		429,008
Deferred policy acquisition costs	3,039,311		2,714,523
Deferred sales inducements	2,219,597		2,001,892
Deferred income taxes	159,601		38,147
Other assets	175,006		254,127
Total assets	$	61,301,324	$	62,030,736
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves	$	56,072,140	$	56,142,673
Other policy funds and contract claims	280,072		282,884
Notes payable	494,215		494,093
Subordinated debentures	242,667		242,565
Amounts due under repurchase agreements	137,223		—
Income taxes payable	72,191		34,285
Other liabilities	1,455,826		1,984,079
Total liabilities	58,754,334		59,180,579
Stockholders' equity:
Common stock	89,984		89,331
Additional paid-in capital	798,835		791,446
Accumulated other comprehensive income	399,982		724,599
Retained earnings	1,258,189		1,244,781
Total stockholders' equity	2,546,990		2,850,157
Total liabilities and stockholders' equity	$	61,301,324	$	62,030,736

Page 1

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended   March 31,
	2018			2017
Revenues:
Premiums and other considerations	$	9,053		$	9,402
Annuity product charges	50,723			43,572
Net investment income	510,784			485,597
Change in fair value of derivatives	(451,083		)	386,533
Net realized gains on investments, excluding other than temporary impairment ("OTTI") losses	302			2,338
OTTI losses on investments:
Total OTTI losses	(907		)	—
Portion of OTTI losses recognized in (from) other comprehensive income	—			(141		)
Net OTTI losses recognized in operations	(907		)	(141		)
Total revenues	118,872			927,301
Benefits and expenses:
Insurance policy benefits and change in future policy benefits	12,094			11,875
Interest sensitive and index product benefits	514,095			419,139
Amortization of deferred sales inducements	100,423			62,325
Change in fair value of embedded derivatives	(867,232		)	224,170
Interest expense on notes and loan payable	6,372			7,722
Interest expense on subordinated debentures	3,630			3,336
Amortization of deferred policy acquisition costs	140,639			89,678
Other operating costs and expenses	31,240			27,579
Total benefits and expenses	(58,739		)	845,824
Income before income taxes	177,611			81,477
Income tax expense	36,649			27,538
Net income	$	140,962		$	53,939
Earnings per common share	$	1.57		$	0.61
Earnings per common share - assuming dilution	$	1.55		$	0.60
Weighted average common shares outstanding (in thousands):
Earnings per common share	90,017			88,647
Earnings per common share - assuming dilution	91,139			89,976

Page 2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters

	Q1 2018			Q4 2017			Q3 2017			Q2 2017			Q1 2017
Revenues:
Traditional life insurance premiums	$	972		$	2,989		$	2,832		$	2,590		$	2,790
Life contingent immediate annuity considerations	8,081			5,548			5,737			5,130			6,612
Surrender charges	16,282			13,573			13,521			13,896			13,634
Lifetime income benefit rider fees	34,441			42,815			38,410			34,707			29,938
Net investment income	510,784			512,709			500,202			493,489			485,597
Change in fair value of derivatives	(451,083		)	661,993			362,525			266,820			386,533
Net realized gains on investments, excluding OTTI	302			2,719			1,579			3,873			2,338
Net OTTI losses recognized in operations	(907		)	(3,076		)	(464		)	(949		)	(141		)
Loss on extinguishment of debt (b)	—			—			(18,389		)	(428		)	—
Total revenues	118,872			1,239,270			905,953			819,128			927,301
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits	821			1,528			1,898			2,020			2,185
Life contingent immediate annuity benefits and change in future policy benefits	11,273			9,007			8,925			7,966			9,690
Interest sensitive and index product benefits (c)	514,095			630,905			501,028			472,596			419,139
Amortization of deferred sales inducements (d)	100,423			65,885			14,707			33,695			62,325
Change in fair value of embedded derivatives	(867,232		)	290,890			229,702			174,973			224,170
Interest expense on notes and loan payable	6,372			6,371			7,597			8,678			7,722
Interest expense on subordinated debentures	3,630			3,864			3,502			3,422			3,336
Amortization of deferred policy acquisition costs (d)	140,639			93,716			23,023			49,547			89,678
Other operating costs and expenses	31,240			29,366			28,782			25,964			27,579
Total benefits and expenses	(58,739		)	1,131,532			819,164			778,861			845,824
Income before income taxes	177,611			107,738			86,789			40,267			81,477
Income tax expense (a)	36,649			70,935			29,832			13,321			27,538
Net income (a)(b)(c)(d)	$	140,962		$	36,803		$	56,957		$	26,946		$	53,939
Earnings per common share	$	1.57		$	0.41		$	0.64		$	0.30		$	0.61
Earnings per common share - assuming dilution (a)(b)(c)(d)	$	1.55		$	0.41		$	0.63		$	0.30		$	0.60
Weighted average common shares outstanding (thousands):
Earnings per common share	90,017			89,308			89,069			88,897			88,647
Earnings per common share - assuming dilution	91,139			90,727			90,421			90,112			89,976

(a) Q4 2017 includes income tax expense related to the revaluation of our deferred tax assets and liabilities using the new enacted federal tax rate resulting from the Tax Cuts and Jobs Act of 2017. The change in the federal income tax rate decreased net income and earnings per common share - assuming dilution by $35.9 million and $0.40 per share, respectively.

(b) Q3 2017 includes a loss on the extinguishment of our 6.625% Notes due in 2021. The loss decreased net income and earnings per common share - assuming dilution by $10.8 million and $0.12 per share, respectively.

(c) Q3 2017 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index product benefits by $21.6 million and decreased net income and earnings per common share - assuming dilution by $13.9 million and $0.15 per share, respectively.

(d) Q3 2017 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $34.3 million and $48.2 million, respectively, and increased net income and earnings per common share - assuming dilution by $53.1 million and $0.59 per share, respectively.

Page 3

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES

In addition to net income, we have consistently utilized non-GAAP operating income and non-GAAP 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. Non-GAAP operating income equals net income adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income together with net income provides information that may enhance an investor’s understanding of our underlying results and profitability.

Reconciliation from Net Income to Non-GAAP Operating Income

	Three Months Ended   March 31,
	2018			2017
Net income	$	140,962		$	53,939
Adjustments to arrive at non-GAAP operating income: (a)
Net realized investment (gains) losses, including OTTI	23			(1,942		)
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(78,818		)	10,977
Change in fair value of derivatives - debt	(1,832		)	(247		)
Income taxes	17,359			(3,105		)
Non-GAAP operating income	$	77,694		$	59,622
Per common share - assuming dilution:
Net income	$	1.55		$	0.60
Adjustments to arrive at non-GAAP operating income:
Net realized investment (gains) losses, including OTTI	—			(0.02		)
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(0.87		)	0.12
Change in fair value of derivatives - debt	(0.02		)	—
Income taxes	0.19			(0.04		)
Non-GAAP operating income	$	0.85		$	0.66

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

Page 4

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

Summary of Adjustments to Arrive at Non-GAAP Operating Income

	Three Months Ended   March 31,
	2018			2017
Net realized investment gains and losses, including OTTI:
Net realized (gains) losses on investments, including OTTI	$	605		$	(2,197	)
Amortization of DAC and DSI	(582		)	255
Income taxes	(5		)	692
	$	18		$	(1,250	)
Change in fair value of derivatives and embedded derivatives:
Index annuities	$	(157,811	)	$	22,443
Interest rate caps and swap	(1,832		)	(247		)
Amortization of DAC and DSI	78,993			(11,466		)
Income taxes	17,364			(3,797		)
	$	(63,286	)	$	6,933

Page 5

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES

Quarterly Summary - Most Recent 5 Quarters

Reconciliation from Net Income to Non-GAAP Operating Income

	Q1 2018			Q4 2017			Q3 2017			Q2 2017			Q1 2017
Net income (b)	$	140,962		$	36,803		$	56,957		$	26,946		$	53,939
Adjustments to arrive at non-GAAP operating income: (a)
Net realized investment (gains) losses, including OTTI	23			(676		)	(916		)	(1,559		)	(1,942		)
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(78,818		)	5,463			47,835			57,571			10,977
Change in fair value of derivatives - debt	(1,832		)	(1,085		)	(357		)	465			(247		)
Income taxes (b)	17,359			34,003			(16,281		)	(19,741		)	(3,105		)
Non-GAAP operating income (c)(d)(e)	$	77,694		$	74,508		$	87,238		$	63,682		$	59,622
Per common share - assuming dilution:
Net income	$	1.55		$	0.41		$	0.63		$	0.30		$	0.60
Adjustments to arrive at non-GAAP operating income:
Net realized investment (gains) losses, including OTTI	—			(0.01		)	(0.01		)	(0.02		)	(0.02		)
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(0.87		)	0.06			0.52			0.64			0.12
Change in fair value of derivatives - debt	(0.02		)	(0.01		)	—			0.01			—
Income taxes	0.19			0.37			(0.18		)	(0.22		)	(0.04		)
Non-GAAP operating income (c)(d)(e)	$	0.85		$	0.82		$	0.96		$	0.71		$	0.66

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

(b) Q4 2017 includes income tax expense related to the revaluation of our deferred tax assets and liabilities using the new enacted federal tax rate resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform"). The change in the federal income tax rate decreased net income and earnings per common share - assuming dilution by $35.9 million and $0.40 per share, respectively. The impact of Tax Reform has been excluded from non-GAAP operating income.

(c) Q3 2017 includes a loss on the extinguishment of our 6.625% Notes due in 2021. The loss decreased non-GAAP operating income and non-GAAP operating income per common share - assuming dilution by $10.8 million and $0.12 per share, respectively

(d) Q3 2017 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $31.3 million and $43.7 million, respectively, and increased non-GAAP operating income and non-GAAP operating income per common share- assuming dilution by $48.3 million and $0.53 per share, respectively.

(e) Q3 2017 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index product benefits by $21.6 million and decreased non-GAAP operating income and non-GAAP operating income per common share - assuming dilution by $13.9 million and $0.15 per share, respectively.

Page 6

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

Summary of Adjustments to Arrive at Non-GAAP Operating Income

	Q1 2018			Q4 2017			Q3 2017			Q2 2017			Q1 2017
Net realized gains on investments	$	(302	)	$	(2,719	)	$	(1,579	)	$	(3,873	)	$	(2,338	)
Net OTTI losses recognized in operations	907			3,076			464			949			141
Change in fair value of derivatives	707,589			(283,801		)	(130,150		)	(34,225		)	(201,974		)
Increase (decrease) in total revenues	708,194			(283,444		)	(131,265		)	(37,149		)	(204,171		)
Amortization of deferred sales inducements	(33,212		)	1,499			22,442			34,550			5,459
Change in fair value of embedded derivatives	867,232			(290,890		)	(229,702		)	(174,973		)	(224,170		)
Amortization of deferred policy acquisition costs	(45,199		)	2,245			29,433			46,797			5,752
Increase (decrease) in total benefits and expenses	788,821			(287,146		)	(177,827		)	(93,626		)	(212,959		)
Increase (decrease) in income before income taxes	(80,627		)	3,702			46,562			56,477			8,788
Increase (decrease) in income tax expense	(17,359		)	(34,003		)	16,281			19,741			3,105
Increase (decrease) in net income	$	(63,268	)	$	37,705		$	30,281		$	36,736		$	5,683

Page 7

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Share

	Q1 2018			Q4 2017			Q3 2017			Q2 2017			Q1 2017
Capitalization:
Notes and loan payable	$	500,000		$	500,000		$	500,000		$	900,000		$	500,000
Subordinated debentures payable to subsidiary trusts	246,969			246,908			246,847			246,787			246,729
Total debt	746,969			746,908			746,847			1,146,787			746,729
Total stockholders’ equity	2,546,990			2,850,157			2,762,667			2,651,408			2,436,231
Total capitalization	3,293,959			3,597,065			3,509,514			3,798,195			3,182,960
Accumulated other comprehensive income (AOCI)	(399,982		)	(724,599		)	(659,491		)	(610,122		)	(424,543		)
Total capitalization excluding AOCI (a)	$	2,893,977		$	2,872,466		$	2,850,023		$	3,188,073		$	2,758,417
Total stockholders’ equity	$	2,546,990		$	2,850,157		$	2,762,667		$	2,651,408		$	2,436,231
Accumulated other comprehensive income	(399,982		)	(724,599		)	(659,491		)	(610,122		)	(424,543		)
Total stockholders’ equity excluding AOCI(a)	$	2,147,008		$	2,125,558		$	2,103,176		$	2,041,286		$	2,011,688
Common shares outstanding	89,983,823			89,331,087			88,948,986			88,756,072			88,645,741
Book Value per Share: (b)
Book value per share including AOCI	$	28.30		$	31.91		$	31.06		$	29.87		$	27.48
Book value per share excluding AOCI (a)	$	23.86		$	23.79		$	23.64		$	23.00		$	22.69
Debt-to-Capital Ratios: (c)
Senior debt / Total capitalization	17.3		%	17.4		%	17.5		%	28.2		%	18.1		%
Adjusted debt / Total capitalization	17.3		%	17.4		%	17.5		%	28.2		%	18.1		%

(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) 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.

(c) Debt-to-capital ratios are computed using total capitalization excluding AOCI. Adjusted debt includes notes and loan 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 8

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

Spread Results

	Q1 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017
Average yield on invested assets	4.36%	4.47%	4.43%	4.45%	4.48%
Aggregate cost of money	1.82%	1.72%	1.73%	1.73%	1.77%
Aggregate investment spread	2.54%	2.75%	2.70%	2.72%	2.71%
Impact of:
Investment yield - additional prepayment income	0.03%	0.11%	0.05%	0.07%	0.07%
Cost of money effect of over hedging	0.02%	0.08%	0.06%	0.06%	0.05%
Weighted average investments	$46,898,365	$46,031,966	$45,228,136	$44,379,879	$43,552,928

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

	Q1 2018			Q4 2017			Q3 2017			Q2 2017			Q1 2017
Included in interest sensitive and index product benefits:
Index credits	$	423,940		$	526,200		$	375,019		$	371,623		$	321,880
Interest credited	55,067			59,065			62,725			62,930			65,178
Included in change in fair value of derivatives:
Proceeds received at option expiration	(425,557		)	(535,328		)	(382,949		)	(378,517		)	(326,552		)
Pro rata amortization of option cost	168,732			156,782			150,163			145,502			141,543
Cost of money for deferred annuities	$	222,182		$	206,719		$	204,958		$	201,538		$	202,049
Weighted average liability balance outstanding	$	48,774,490		$	48,014,427		$	47,281,417		$	46,478,748		$	45,613,388

Annuity Account Balance Rollforward

	Q1 2018			Q4 2017			Q3 2017			Q2 2017			Q1 2017
Account balances at beginning of period	$	48,400,755		$	47,628,099		$	46,934,736		$	46,022,759		$	45,204,015
Net deposits	930,734			874,952			826,885			1,060,638			1,002,509
Premium bonuses	43,670			41,098			46,982			62,848			65,244
Fixed interest credited and index credits	479,007			585,265			437,744			434,553			387,058
Surrender charges	(16,282		)	(13,573		)	(13,521		)	(13,896		)	(13,634		)
Lifetime income benefit rider fees	(34,441		)	(42,815		)	(38,410		)	(34,707		)	(29,938		)
Surrenders, withdrawals, deaths, etc.	(655,219		)	(672,271		)	(566,317		)	(597,459		)	(592,495		)
Account balances at end of period	$	49,148,224		$	48,400,755		$	47,628,099		$	46,934,736		$	46,022,759

Page 9

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

Annuity Deposits by Product Type

	Q1 2018		Q4 2017		Q3 2017		Q2 2017		Q1 2017
American Equity:
Fixed index annuities	$	833,350	$	757,160	$	738,257	$	953,560	$	941,167
Annual reset fixed rate annuities	16,490		18,974		20,142		20,870		14,843
Multi-year fixed rate annuities	2,001		3,773		5,717		7,541		6,393
Single premium immediate annuities	10,630		7,909		6,505		4,981		5,551
	862,471		787,816		770,621		986,952		967,954
Eagle Life:
Fixed index annuities	160,564		187,888		133,503		167,632		87,672
Multi-year fixed rate annuities	8,024		32,953		10,717		19,994		23,508
	168,588		220,841		144,220		187,626		111,180
Consolidated:
Fixed index annuities	993,914		945,048		871,760		1,121,192		1,028,839
Annual reset fixed rate annuities	16,490		18,974		20,142		20,870		14,843
Multi-year fixed rate annuities	10,025		36,726		16,434		27,535		29,901
Single premium immediate annuities	10,630		7,909		6,505		4,981		5,551
Total before coinsurance ceded	1,031,059		1,008,657		914,841		1,174,578		1,079,134
Coinsurance ceded	89,695		125,796		81,451		108,959		71,074
Net after coinsurance ceded	$	941,364	$	882,861	$	833,390	$	1,065,619	$	1,008,060

Surrender Charge Protection and Account Values by Product Type

Annuity Surrender Charges and Net (of Coinsurance) Account Values at March 31, 2018:

	Surrender Charge			Net Account Value
Product Type	Avg. Years At Issue	Avg. Years Remaining	Avg. % Remaining	Dollars in Thousands		%
Fixed Index Annuities	13.5	8.2	13.1%	$	47,098,120	95.8	%
Annual Reset Fixed Rate Annuities	10.8	4.3	7.5%	1,411,296		2.9	%
Multi-Year Fixed Rate Annuities	6.7	2.4	5.4%	638,808		1.3	%
Total	13.4	8.0	12.8%	$	49,148,224	100.0	%

Page 10

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

Annuity Liability Characteristics

Surrender Charge Percentages:	Fixed Annuities Account Value		Fixed Index Annuities Account Value
No surrender charge	$	752,501	$	2,318,604
0.0% < 2.0%	38,026		229,306
2.0% < 3.0%	15,842		222,682
3.0% < 4.0%	13,535		169,894
4.0% < 5.0%	24,181		532,196
5.0% < 6.0%	64,419		479,101
6.0% < 7.0%	62,386		798,791
7.0% < 8.0%	193,474		1,999,074
8.0% < 9.0%	214,763		2,036,165
9.0% < 10.0%	39,474		2,865,583
10.0% or greater	631,503		35,446,724
	$	2,050,104	$	47,098,120

Surrender Charge Expiration By Year:	Fixed and Fixed Index Annuities Account Value		Weighted Average Surrender Charge
Out of Surrender Charge	$	3,071,105	0.00	%
2018	493,943		2.44	%
2019	496,602		3.61	%
2020	845,159		5.49	%
2021	1,347,780		7.14	%
2022	1,960,056		8.50	%
2023	4,769,803		10.27	%
2024	5,277,373		11.67	%
2025	6,076,283		12.00	%
2026	5,111,147		13.32	%
2027	4,367,656		14.67	%
2028	2,843,790		16.25	%
2029	2,986,467		18.01	%
2030	2,745,553		18.42	%
2031	3,322,021		18.89	%
2032	2,046,147		19.32	%
2033	1,154,767		19.83	%
2034	232,572		19.96	%
	$	49,148,224	12.82	%

Page 11

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

Annuity Liability Characteristics

Credited Rate vs. Ultimate Minimum Guaranteed Rate Differential:	Fixed Annuities Account Value		Fixed Index Annuities Account Value
No differential	$	952,117	$	1,517,682
› 0.0% - 0.25%	64,997		244,924
› 0.25% - 0.5%	248,637		3,914
› 0.5% - 1.0%	67,471		19,640
› 1.0% - 1.5%	11,801		—
1.00% ultimate guarantee - 2.52% wtd avg interest rate (a)	456,698		327,308
1.50% ultimate guarantee - 1.26% wtd avg interest rate (a)	158,204		4,218,934
2.00% ultimate guarantee - 1.86% wtd avg interest rate (a)	90,179		—
2.25% ultimate guarantee - 1.96% wtd avg interest rate (a)	—		1,024,234
3.00% ultimate guarantee - 2.15% wtd avg interest rate (a)	—		1,929,788
Allocated to index strategies (see tables that follow)	—		37,811,696
	$	2,050,104	$	47,098,120

(a) 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, 2018 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.17%.

Page 12

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

Annuity Liability Characteristics

FIXED INDEX ANNUITIES ACCOUNT VALUE - INDEX STRATEGIES

Annual Monthly Average and Point-to-Point with Caps
	Minimum Guaranteed Cap
	1%		3%		4%		7%		8% +
Current Cap
At minimum	$	1,556	$	97,216	$	2,691,926	$	84,808	$	199,615
1.75% - 3%	6,709,531		—		—		—		—
3% - 4%	971,592		13,390		—		—		—
4% - 5%	440,123		192,953		4,206,351		—		—
5% - 6%	442,181		149,746		37,242		—		—
6% - 7%	—		—		139		—		—
>= 7%	—		7,124		1,535		8,419		1,655

Annual Monthly Average and Point-to-Point with Participation Rates
	Minimum Guaranteed Participation Rate
	10%		20% - 25%		35%		50% +
Current Participation Rate
At minimum	$	611	$	418,631	$	125,236	$	144,011
< 20%	564,247		—		—		—
20% - 40%	917,836		185,437		—		—
40% - 60%	1,143,067		112,884		73,706		—
>= 60%	13,646		—		—		—

S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum	$	342,852
1.10% - 1.30%	5,527,265
1.40% - 1.60%	4,923,924
1.70% - 2.00%	3,148,315
>= 2.10%	3,197

Volatility Control Index
Current Asset Fee
At Maximum	$	—
0.75% - 1.75%	255,114
2.25% - 2.75%	843,753
3.00% - 4.00%	2,212,876

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 0.65% based upon prices of options for the week ended April 10, 2018.

Page 13

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

Summary of Invested Assets

	March 31, 2018				December 31, 2017
	Carrying Amount		Percent		Carrying Amount		Percent
Fixed maturity securities:
United States Government full faith and credit	$	11,433	—	%	$	11,876	—	%
United States Government sponsored agencies	1,270,106		2.6	%	1,305,017		2.6	%
United States municipalities, states and territories	4,137,005		8.3	%	4,166,812		8.3	%
Foreign government obligations	231,671		0.5	%	239,360		0.5	%
Corporate securities	29,661,171		59.7	%	29,956,012		59.6	%
Residential mortgage backed securities	1,102,609		2.2	%	1,105,567		2.2	%
Commercial mortgage backed securities	5,596,882		11.3	%	5,544,850		11.0	%
Other asset backed securities	3,617,514		7.3	%	3,120,536		6.2	%
Total fixed maturity securities	45,628,391		91.9	%	45,450,030		90.4	%
Mortgage loans on real estate	2,699,637		5.4	%	2,665,531		5.3	%
Derivative instruments	847,741		1.7	%	1,568,380		3.1	%
Other investments	481,825		1.0	%	616,764		1.2	%
	$	49,657,594	100.0	%	$	50,300,705	100.0	%

Credit Quality of Fixed Maturity Securities - March 31, 2018

NAIC Designation	Carrying Amount		Percent		Rating Agency Rating	Carrying Amount		Percent
1	$	27,984,297	61.3	%	Aaa/Aa/A	$	27,823,308	61.0	%
2	16,147,267		35.4	%	Baa	16,267,301		35.7	%
3	1,323,748		2.9	%	Ba	1,097,231		2.4	%
4	145,085		0.3	%	B	156,922		0.3	%
5	19,926		0.1	%	Caa	152,903		0.3	%
6	8,068		—	%	Ca and lower	130,726		0.3	%
	$	45,628,391	100.0	%		$	45,628,391	100.0	%

Watch List Securities - March 31, 2018

General Description	Amortized Cost		Unrealized Gains (Losses)			Fair Value		Months Below Amortized Cost
Below investment grade
Corporate securities:
Consumer discretionary	$	25,974	$	(5,061	)	$	20,913	4 - 38
Energy	29,054		(6,538		)	22,516		2 - 43
Industrials	2,585		(785		)	1,800		41
Materials	3,990		1,172			5,162		—
Other asset backed securities:
Financials	6,036		(3,143		)	2,893		58 - 84
	$	67,639	$	(14,355	)	$	53,284

Page 14

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector

	March 31, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale:
United States Government full faith and credit and sponsored agencies	$	1,320,008	$	1,281,539	$	1,320,151	$	1,316,893
United States municipalities, states and territories	3,853,098		4,137,005		3,804,360		4,166,812
Foreign government obligations	227,617		231,671		228,214		239,360
Corporate securities:
Capital goods	2,482,603		2,561,017		2,405,102		2,570,734
Consumer discretionary	5,997,115		6,115,715		5,889,227		6,232,728
Energy	2,644,095		2,682,268		2,554,199		2,666,172
Financials	6,105,310		6,270,600		6,004,618		6,369,575
Industrials	301,841		301,765		283,915		291,174
Information technology	1,879,595		1,921,253		1,829,396		1,932,131
Materials	1,811,957		1,858,545		1,801,312		1,901,090
Other	989,366		1,016,899		989,641		1,052,676
Telecommunications	1,519,649		1,557,743		1,461,536		1,539,840
Transportation	1,242,529		1,268,859		1,152,637		1,218,964
Utilities	3,827,291		4,029,464		3,756,070		4,103,887
Residential mortgage backed securities:
Government agency	626,594		651,417		628,320		668,641
Prime	292,470		304,648		269,407		282,360
Alt-A	124,968		146,544		130,757		154,566
Commercial mortgage backed securities:
Government agency	552,502		547,978		554,514		564,400
Non-agency	5,132,788		5,048,904		4,977,408		4,980,450
Other asset backed securities:
Auto	298,176		297,676		298,142		299,688
Financials	2,461,188		2,471,064		1,976,720		1,986,259
Industrials	238,523		242,894		243,859		251,321
Military housing	437,207		463,800		433,840		461,452
Other	144,323		142,080		123,414		121,816
	$	44,510,813	$	45,551,348	$	43,116,759	$	45,372,989
Held for investment:
Corporate security - financials	$	77,043	$	69,441	$	77,041	$	76,460

Page 15

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Unaudited (Dollars in thousands)

Mortgage Loans on Commercial Real Estate

	March 31, 2018						December 31, 2017
	Principal			Percent			Principal		Percent
Geographic distribution
East	$	563,593		20.8		%	$	548,067	20.5	%
Middle Atlantic	166,782			6.2		%	163,485		6.1	%
Mountain	317,872			11.7		%	308,486		11.5	%
New England	12,146			0.5		%	12,265		0.5	%
Pacific	482,593			17.8		%	466,030		17.4	%
South Atlantic	613,999			22.7		%	609,736		22.8	%
West North Central	315,339			11.6		%	324,808		12.2	%
West South Central	235,028			8.7		%	241,438		9.0	%
	$	2,707,352		100.0		%	$	2,674,315	100.0	%
Property type distribution
Office	$	270,066		10.0		%	$	283,926	10.6	%
Medical office	32,902			1.2		%	34,338		1.3	%
Retail	1,051,749			38.8		%	1,040,028		38.9	%
Industrial/Warehouse	703,892			26.0		%	677,770		25.3	%
Apartment	471,097			17.4		%	462,897		17.3	%
Mixed use/other	177,646			6.6		%	175,356		6.6	%
	$	2,707,352		100.0		%	$	2,674,315	100.0	%
	March 31, 2018			December 31, 2017
Credit exposure - by payment activity
Performing	$	2,705,957		$	2,670,657
In workout	1,395			1,436
Delinquent	—			—
Collateral dependent	—			2,222
	2,707,352			2,674,315
Specific loan loss allowance	(696		)	(1,418		)
General loan loss allowance	(5,800		)	(6,100		)
Deferred prepayment fees	(1,219		)	(1,266		)
	$	2,699,637		$	2,665,531

Page 16

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Shareholder Information

Corporate Offices:

American Equity Investment Life Holding Company

6000 Westown Parkway

West Des Moines, IA 50266

Inquiries:

Steven Schwartz, Vice President-Investor Relations

(515) 273-3763, sschwartz@american-equity.com

Common Stock and Dividend Information:

New York Stock Exchange symbol: “AEL”

	High	Low	Close	Dividend Declared
2018
First Quarter	$35.79	$28.90	$29.36	$0.00
2017
First Quarter	$28.00	$21.66	$23.63	$0.00
Second Quarter	$26.65	$22.23	$26.28	$0.00
Third Quarter	$29.43	$25.43	$29.08	$0.00
Fourth Quarter	$32.54	$28.06	$30.73	$0.26
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
Fourth Quarter	$23.41	$15.39	$22.54	$0.24

Transfer Agent:

Computershare Trust Company, N.A.

P.O. Box 43010

Providence, RI 02940-0310

Phone: (877) 282-1169

Fax: (781) 575-2723

www.computershare.com

Annual Report and Other Information:

Shareholders may receive when available, without charge, a copy of American Equity’s Annual Report, SEC filings and/or press releases by calling Steven Schwartz, Vice President-Investor Relations, at (515) 273-3763 or by visiting our web site at www.american-equity.com.

Page 17

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - March 31, 2018

Research Analyst Coverage

Erik Bass

Autonomous Research US LP

(646) 561-6248

ebass@autonomous.com

Randy Binner

B. Riley FBR, Inc.

(703) 312-1890

rbinner@fbr.com

Daniel Bergman

Citi Research

(212) 816-2132

daniel.bergman@citi.com

Thomas Gallagher

Evercore ISI

(212) 446-9439

thomas.gallagher@evercoreisi.com

Alex Scott

Goldman Sachs & Co. LLC

(917) 343-7160

alex.scott@gs.com

Pablo Singzon II

JP Morgan

(212) 622-2295

pablo.s.singzon@jpmorgan.com

Ryan Krueger

Keefe, Bruyette & Woods

(860) 722-5930

rkrueger@kbw.com

C. Gregory Peters

Raymond James & Associates, Inc.

(727) 567-1534

greg.peters@raymondjames.com

Kenneth S. Lee

RBC Capital Markets, LLC

(212) 905-5995

kenneth.s.lee@rbccm.com

John Barnidge

Sandler O'Neill & Partners, L.P.

(312) 281-3412

jbarnidge@sandleroneill.com

Mark Hughes

SunTrust Robinson Humphrey

(615) 748-4422

mark.hughes@suntrust.com

John Nadel

UBS Investment Bank

(212) 713-4299

john.nadel@ubs.com

Page 18