EX-99.2 4 a2021-12x31ex992.htm EXHIBIT 99.2 Document

Exhibit 99.2



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement

December 31, 2021

A.Financial Highlights
Non-GAAP Financial Measures
B.Product Summary
C.Investment Summary
D.
E.




AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2021December 31, 2020 (a)
Assets
Investments:
Fixed maturity securities, available for sale, at fair value$51,305,943 $47,538,893 
Mortgage loans on real estate5,687,998 4,165,489 
Real estate investments337,939 — 
Derivative instruments1,277,480 1,310,954 
Other investments1,767,144 590,078 
Total investments60,376,504 53,605,414 
Cash and cash equivalents4,508,982 9,095,522 
Coinsurance deposits8,850,608 4,844,927 
Accrued investment income445,097 398,082 
Deferred policy acquisition costs2,222,769 2,225,199 
Deferred sales inducements1,546,073 1,448,375 
Income taxes recoverable166,586 862 
Other assets232,490 70,198 
Total assets$78,349,109 $71,688,579 
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves$65,477,778 $62,352,882 
Other policy funds and contract claims226,844 240,904 
Notes payable496,250 495,668 
Subordinated debentures78,421 78,112 
Deferred income taxes541,972 504,000 
Funds withheld for reinsurance liabilities3,124,740 — 
Other liabilities2,079,977 1,668,025 
Total liabilities72,025,982 65,339,591 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 12 
Common stock92,514 95,721 
Additional paid-in capital1,614,374 1,681,127 
Accumulated other comprehensive income1,848,789 2,203,557 
Retained earnings2,767,422 2,368,555 
Total stockholders' equity6,323,127 6,348,988 
Total liabilities and stockholders' equity$78,349,109 $71,688,579 
(a)The December 31, 2020 balance sheet includes reclassifications from previously reported amounts for the correction of an immaterial error in the calculation of the impact of unrealized gains and losses on lifetime income benefit reserves which was determined in the first quarter of 2021. This is reflected in deferred policy acquisition costs, deferred sales inducements, policy benefit reserves, deferred income taxes and accumulated other comprehensive income.


Page 1


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended 
 December 31,		Year Ended 
 December 31,
2021202020212020
Revenues:
Premiums and other considerations$14,553 $10,279 $58,202 $39,382 
Annuity product charges60,310 65,963 242,631 251,227 
Net investment income514,599 521,725 2,037,475 2,182,078 
Change in fair value of derivatives522,251 443,867 1,348,735 34,666 
Net realized losses on investments(10,478)(12,135)(13,242)(80,680)
Other revenue8,026 — 15,670 — 
Loss on extinguishment of debt— — — (2,024)
Total revenues1,109,261 1,029,699 3,689,471 2,424,649 
Benefits and expenses:
Insurance policy benefits and change in future policy benefits16,975 13,066 67,983 49,742 
Interest sensitive and index product benefits574,816 325,912 2,681,406 1,543,270 
Amortization of deferred sales inducements59,409 22,768 152,692 438,164 
Change in fair value of embedded derivatives186,802 568,836 (358,302)(1,286,787)
Interest expense on notes payable6,259 6,391 25,581 25,552 
Interest expense on subordinated debentures1,330 1,325 5,324 5,557 
Amortization of deferred policy acquisition costs82,999 26,145 268,328 649,554 
Other operating costs and expenses66,279 55,321 243,712 183,636 
Total benefits and expenses994,869 1,019,764 3,086,724 1,608,688 
Income before income taxes114,392 9,935 602,747 815,961 
Income tax expense21,255 1,193 128,755 144,501 
Net income93,137 8,742 473,992 671,460 
Less: Preferred stock dividends10,919 15,004 43,675 33,515 
Net income (loss) available to common stockholders$82,218 $(6,262)$430,317 $637,945 
Earnings (loss) per common share$0.89 $(0.07)$4.58 $6.93 
Earnings (loss) per common share - assuming dilution$0.88 $(0.07)$4.55 $6.90 
Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share92,479 92,904 93,860 92,055 
Earnings (loss) per common share - assuming dilution93,378 93,352 94,491 92,392 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters
Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
Revenues:
Traditional life insurance premiums$677 $697 $708 $706 $701 
Life contingent immediate annuity considerations13,876 15,144 13,887 12,507 9,578 
Surrender charges13,638 16,481 18,057 19,481 17,009 
Lifetime income benefit rider fees46,672 41,999 45,702 40,601 48,954 
Net investment income514,599 526,366 499,320 497,190 521,725 
Change in fair value of derivatives522,251 (70,701)500,880 396,305 443,867 
Net realized gains (losses) on investments(10,478)4,933 (3,114)(4,583)(12,135)
Other revenue (a)8,026 7,644 — — — 
Total revenues1,109,261 542,563 1,075,440 962,207 1,029,699 
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits
624 798 502 1,049 1,091 
Life contingent immediate annuity benefits and change in future policy benefits
16,351 17,958 15,326 15,375 11,975 
Interest sensitive and index product benefits (b)574,816 817,014 812,981 476,595 325,912 
Amortization of deferred sales inducements (c)59,409 (17,172)(12,520)122,975 22,768 
Change in fair value of embedded derivatives (d)186,802 (536,404)273,713 (282,413)568,836 
Interest expense on notes payable6,259 6,535 6,394 6,393 6,391 
Interest expense on subordinated debentures1,330 1,342 1,326 1,326 1,325 
Amortization of deferred policy acquisition costs (c)82,999 (1,588)(16,906)203,823 26,145 
Other operating costs and expenses66,279 56,518 65,050 55,865 55,321 
Total benefits and expenses994,869 345,001 1,145,866 600,988 1,019,764 
Income (loss) before income taxes114,392 197,562 (70,426)361,219 9,935 
Income tax expense (benefit)21,255 44,697 (15,732)78,535 1,193 
Net income (loss) (b)(c)(d)93,137 152,865 (54,694)282,684 8,742 
Less: Preferred stock dividends10,919 10,918 10,919 10,919 15,004 
Net income (loss) available to common stockholders (b)(c)(d)$82,218 $141,947 $(65,613)$271,765 $(6,262)
Earnings (loss) per common share$0.89 $1.53 $(0.69)$2.84 $(0.07)
Earnings (loss) per common share - assuming dilution (b)(c)(d)$0.88 $1.53 $(0.69)$2.82 $(0.07)
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share92,479 92,478 94,801 95,735 92,904 
Earnings (loss) per common share - assuming dilution93,378 93,044 95,379 96,216 93,352 
(a)Other revenue consists of $2.8 million in Q4 2021 and $2.7 million in Q3 2021 related to asset liability management fees and $5.3 million in Q4 2021 and $4.9 million in Q3 2021 related to amortization of the deferred gain associated with the cost of reinsurance. The deferred gain, which is recorded in Other Liabilities on the Consolidated Balance Sheet, was $321.7 million at December 31, 2021. The deferred gain consists primarily of a difference between liabilities ceded and assets transferred and the present value of the ceding commissions offset by a reduction in deferred policy acquisition costs associated with the in-force business ceded.
(b)Q4 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $10.5 million and decreased both net income and net income available to common stockholders by $8.2 million and decreased earnings per common share - assuming dilution by $0.09 per share.
Q3 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $233.2 million and decreased both net income and net income available to common stockholders by $183.0 million and decreased earnings per common share - assuming dilution by $1.97 per share.
(c)Q4 2021 includes expense from the update of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $6.3 million and $6.9 million, respectively, and decreased both net income and net income available to common stockholders by $10.4 million and decreased earnings per common share - assuming dilution by $0.11 per share
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands, except per share data)

Q3 2021 includes a benefit from the update of assumptions which decreased amortization of deferred sales inducements and deferred policy acquisition costs by $51.4 million and $52.6 million, respectively, and increased both net income and net income available to common stockholders by $81.7 million and increased earnings per common share - assuming dilution by $0.88 per share.
(d)Q4 2021 includes expense from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact increased change in fair value of embedded derivatives by $3.5 million and decreased both net income and net income available to common stockholders by $2.7 million and decreased earnings per common share - assuming dilution by $0.03 per share.
Q3 2021 includes a benefit from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact decreased change in fair value of embedded derivatives by $125.8 million and increased both net income and net income available to common stockholders by $98.7 million and increased earnings per common share - assuming dilution by $1.06 per share.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
In addition to net income (loss) available to common stockholders, we have consistently utilized non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Non-GAAP operating income available to common stockholders equals net income (loss) available to common stockholders adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income available to common stockholders eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income available to common stockholders together with net income (loss) available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Three Months Ended 
 December 31,		Year Ended 
 December 31,
2021202020212020
Net income (loss) available to common stockholders$82,218 $(6,262)$430,317 $637,945 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized losses on financial assets, including credit losses7,771 9,369 10,299 59,355 
Change in fair value of derivatives and embedded derivatives(14,544)90,616 (187,290)(784,005)
Income taxes383 (21,996)37,184 155,808 
Non-GAAP operating income available to common stockholders75,828 71,727 290,510 69,103 
Impact of notable items (b)21,235 — 78,036 310,117 
Non-GAAP operating income available to common stockholders, excluding notable items$97,063 $71,727 $368,546 $379,220 
Per common share - assuming dilution:
Net income (loss) available to common stockholders$0.88 $(0.07)$4.55 $6.90 
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized losses on financial assets, including credit losses0.08 0.10 0.11 0.64 
Change in fair value of derivatives and embedded derivatives(0.15)0.97 (1.98)(8.48)
Income taxes— (0.23)0.39 1.69 
Non-GAAP operating income available to common stockholders0.81 0.77 3.07 0.75 
Impact of notable items0.23 — 0.83 3.36 
Non-GAAP operating income available to common stockholders, excluding notable items$1.04 $0.77 $3.90 $4.11 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands, except per share data)

Notable Items
Three Months Ended 
 December 31,		Year Ended 
 December 31,
2021202020212020
Notable items impacting non-GAAP operating income available to common stockholders:
Impact of actuarial assumption updates$21,235 $— $78,036 $340,895 
Tax benefit related to the CARES Act— — — (30,778)
Total notable items (b)$21,235 $— $78,036 $310,117 
(a)Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and accretion of lifetime income benefit rider (LIBR) reserves where applicable.
(b)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items primarily include the impact from actuarial assumption updates. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders
Three Months Ended 
 December 31,		Year Ended 
 December 31,
2021202020212020
Net realized losses on financial assets, including credit losses:
Net realized losses on financial assets, including credit losses$10,045 $11,374 $13,618 $79,330 
Amortization of DAC and DSI and accretion of LIBR reserves(2,274)(2,005)(3,319)(19,975)
Income taxes(1,670)(2,024)(2,214)(12,821)
$6,101 $7,345 $8,085 $46,534 
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities$(26,797)$152,386 $(314,403)$(1,279,644)
Reinsurance contracts(2,362)— (2,362)— 
Interest rate caps and swap— — — (848)
Amortization of DAC and DSI14,615 (61,770)129,475 496,487 
Income taxes2,053 (19,972)39,398 168,629 
$(12,491)$70,644 $(147,892)$(615,376)

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
Quarterly Summary - Most Recent 5 Quarters
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
Net income (loss) available to common stockholders$82,218 $141,947 $(65,613)$271,765 $(6,262)
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized (gains) losses on financial assets, including credit losses7,771 (3,900)2,912 3,516 9,369 
Change in fair value of derivatives and embedded derivatives(14,544)(75,879)200,767 (297,634)90,616 
Income taxes383 17,285 (44,278)63,794 (21,996)
Non-GAAP operating income available to common stockholders (b)(c)75,828 79,453 93,788 41,441 71,727 
Impact of notable items (d)21,235 56,801 — — — 
Non-GAAP operating income available to common stockholders, excluding notable items$97,063 $136,254 $93,788 $41,441 $71,727 
Per common share - assuming dilution:
Net income (loss) available to common stockholders$0.88 $1.53 $(0.69)$2.82 $(0.07)
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized (gains) losses on financial assets, including credit losses0.08 (0.04)0.03 0.04 0.10 
Change in fair value of derivatives and embedded derivatives(0.15)(0.82)2.10 (3.09)0.97 
Income taxes— 0.18 (0.46)0.66 (0.23)
Non-GAAP operating income available to common stockholders (b)(c)0.81 0.85 0.98 0.43 0.77 
Impact of notable items (d)0.23 0.61 — — — 
Non-GAAP operating income available to common stockholders, excluding notable items$1.04 $1.46 $0.98 $0.43 $0.77 
Notable Items
Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
Notable items impacting non-GAAP operating income (loss) available to common stockholders:
Impact of actuarial assumption updates (b)(c)$21,235 $56,801 $— $— $— 
Total notable items (d)$21,235 $56,801 $— $— $— 
(a)Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and accretion of lifetime income benefit rider (LIBR) reserves where applicable.
(b)Q4 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $10.5 million and decreased both non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per share - assuming dilution by $8.2 million and $0.09 per share, respectively.
Q3 2021 includes expense from the update of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $233.2 million and decreased both non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per share - assuming dilution by $183.0 million and $1.97 per share, respectively.
(c)Q4 2021 includes expense from the update of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $7.7 million and $8.8 million, respectively, and decreased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $13.0 million and $0.14 per share, respectively.
Q3 2021 includes a benefit from the update of assumptions which decreased amortization of deferred sales inducements and deferred policy acquisition costs by $73.8 million and $87.0 million, respectively, and increased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $126.2 million and $1.36 per share, respectively.
(d)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items primarily include the impact from actuarial assumption updates. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders
Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
Net realized (gains) losses on investments$10,478 $(4,933)$3,114 $4,583 $12,135 
Change in fair value of derivatives(215,961)411,330 57,555 (211,387)(416,450)
Increase (decrease) in total revenues(205,483)406,397 60,669 (206,804)(404,315)
Amortization of deferred sales inducements(4,506)(17,682)52,074 (69,788)22,785 
Change in fair value of embedded derivatives(186,802)536,404 (273,713)282,413 (568,836)
Interest sensitive and index product benefits (a)971 (944)227 (145)761 
Amortization of deferred policy acquisition costs(8,373)(31,602)78,402 (125,166)40,990 
Increase (decrease) in total benefits and expenses(198,710)486,176 (143,010)87,314 (504,300)
Increase (decrease) in income (loss) before income taxes(6,773)(79,779)203,679 (294,118)99,985 
Increase (decrease) in income tax expense (benefit)(383)(17,285)44,278 (63,794)21,996 
Increase (decrease) in net income (loss) available to common stockholders$(6,390)$(62,494)$159,401 $(230,324)$77,989 
(a)Interest sensitive and index product benefits adjustment reflects the change in the allowance for credit losses on our reinsurance recoverable/coinsurance deposits under a revised impairment model for financial assets measured at amortized cost which we were required to adopt on January 1, 2020. The change in this allowance is reflected in the net realized (gains) losses of financial assets, including credit losses line in the other Non-GAAP financial measures tables in this financial supplement.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share
Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
Capitalization:
Notes payable$500,000 $500,000 $500,000 $500,000 $500,000 
Subordinated debentures payable to subsidiary trusts78,421 78,342 78,264 78,187 78,112 
Total debt
578,421 578,342 578,264 578,187 578,112 
Total stockholders’ equity (a)
6,323,127 6,375,208 6,295,735 5,928,760 6,348,988 
Total capitalization (a)
6,901,548 6,953,550 6,873,999 6,506,947 6,927,100 
Accumulated other comprehensive income (AOCI) (a)(1,848,789)(1,956,974)(2,023,911)(1,505,260)(2,203,557)
Total capitalization excluding AOCI (b)
$5,052,759 $4,996,576 $4,850,088 $5,001,687 $4,723,543 
Total stockholders’ equity (a)
$6,323,127 $6,375,208 $6,295,735 $5,928,760 $6,348,988 
Equity available to preferred stockholders (c)(700,000)(700,000)(700,000)(700,000)(700,000)
Total common stockholders' equity (a)(d)
5,623,127 5,675,208 5,595,735 5,228,760 5,648,988 
Accumulated other comprehensive income (a)(1,848,789)(1,956,974)(2,023,911)(1,505,260)(2,203,557)
Total common stockholders’ equity excluding AOCI (d)
3,774,338 3,718,234 3,571,824 3,723,500 3,445,431 
Net impact of fair value accounting for derivatives and embedded derivatives(274,981)(265,018)(242,423)(399,538)(166,453)
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (d)
$3,499,357 $3,453,216 $3,329,401 $3,323,962 $3,278,978 
Common shares outstanding92,513,517 92,513,517 92,553,825 95,482,733 95,720,622 
Book Value per Common Share: (e)
Book value per common share (a)$60.78 $61.34 $60.46 $54.76 $59.02 
Book value per common share excluding AOCI (d)$40.80 $40.19 $38.59 $39.00 $35.99 
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (d)$37.83 $37.33 $35.97 $34.81 $34.26 
Debt-to-Capital Ratios: (f)
Senior debt / Total capitalization9.9 %10.0 %10.3 %10.0 %10.6 %
Total debt / Total capitalization11.4 %11.6 %11.9 %11.6 %12.2 %
(a)Q4 2020 includes the impact of a correction of an immaterial error in the calculation of the impact of unrealized gains and losses on lifetime income benefit reserves which was determined in Q1 2021. This had the impact of reducing AOCI as of December 31, 2020 by $225.7 million and decreased book value per common share by $2.35 compared to amounts previously reported.
(b)Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.
(c)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(d)Total common stockholders' equity, total common stockholders' equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives, non-GAAP financial measures, exclude equity available to preferred stockholders. Total common stockholders’ equity and book value per common share excluding AOCI, non-GAAP financial measures, are based on common stockholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale securities, we believe these non-GAAP financial measures provide useful supplemental information. Total common stockholders' equity and book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives. Since the net impact of fair value accounting for our derivatives and embedded derivatives fluctuates from quarter to quarter and the most significant impacts relate to fair value accounting for our fixed index annuity business and are not economic in nature but rather impact the timing of reported results, we believe these non-GAAP financial measures provide useful supplemental information.
(e)Book value per common share including and excluding AOCI and book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives are calculated as total common stockholders’ equity, total common stockholders’ equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives divided by the total number of shares of common stock outstanding.
(f)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

Spread Results
Year Ended 
 December 31,
20212020Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
3.73%4.12%Average yield on invested assets3.80%3.91%3.51%3.58%3.88%
1.55%1.69%Aggregate cost of money1.51%1.51%1.56%1.58%1.63%
2.18%2.43%Aggregate investment spread2.29%2.40%1.95%2.00%2.25%
Impact of:
0.11%0.08%
Investment yield - additional prepayment income
0.12%0.12%0.10%0.11%0.11%
0.07%0.02%Cost of money effect of over hedging0.14%0.08%0.04%0.02%0.01%
$54,750,862$53,096,408Weighted average investments$54,407,554$53,781,352$56,991,393$55,712,648$53,836,378
54,617,96854,587,072Ending investments54,617,96854,197,14057,144,56356,838,22454,587,072
Weighted average investments include fixed maturity securities at amortized cost and mortgage loans on real estate and other investments at carrying values as reflected in the consolidated balance sheets. The numerator for average yield on invested assets includes net investment income and the tax effect of investment income that is exempt from income taxes.
Summary of Cost of Money for Deferred Annuities
Year Ended 
 December 31,
20212020Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
Included in interest sensitive and index product benefits:
$1,977,888 $747,489 Index credits$442,568 $475,292 $714,291 $345,737 $195,927 
245,892 192,468 Interest credited63,974 62,804 62,637 56,477 49,551 
Included in change in fair value of derivatives:
(2,019,477)(758,604)Proceeds received at option expiration(459,982)(489,902)(720,474)(349,119)(197,921)
630,015 716,857 Pro rata amortization of option cost153,399 150,262 162,124 164,230 170,505 
$834,318 $898,210 Cost of money for deferred annuities$199,959 $198,456 $218,578 $217,325 $218,062 
$53,681,684 $53,269,994 
Weighted average liability balance outstanding
$53,064,893 $52,644,622 $56,221,809 $54,935,106 $53,531,441 
Page 10


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands, except per share data)

Annuity Account Balance Rollforward
Year Ended 
 December 31,
20212020Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
$54,056,725 $53,233,898 Account balances at beginning of period$52,938,493 $56,630,138 $55,813,480 $54,056,725 $53,006,150 
(4,279,394)— Reserves ceded - in-force— (4,279,394)— — — 
49,777,331 53,233,898 Account balance at beginning of period, net of reinsurance ceded52,938,493 52,350,744 55,813,480 54,056,725 53,006,150 
5,485,205 3,613,269 Net deposits815,890 1,090,461 1,161,125 2,417,729 1,830,816 
95,160 93,610 Premium bonuses23,476 22,021 24,813 24,850 25,143 
2,223,780 939,957 Fixed interest credited and index credits506,542 538,096 776,928 402,214 245,478 
(67,657)(72,551)Surrender charges(13,638)(16,481)(18,057)(19,481)(17,009)
(174,974)(178,676)Lifetime income benefit rider fees(46,672)(41,999)(45,702)(40,601)(48,954)
(4,147,568)(3,572,782)Surrenders, withdrawals, deaths, etc.(1,032,814)(1,004,349)(1,082,449)(1,027,956)(984,899)
$53,191,277 $54,056,725 Account balances at end of period$53,191,277 $52,938,493 $56,630,138 $55,813,480 $54,056,725 
$2,311,842 $1,900,487 Lifetime income benefit rider reserves, excluding unrealized gain/loss adjustment$2,311,842 $2,245,040 $2,007,394 $1,973,223 $1,900,487 
Notional Values Subject to Recurring Fees Under Reinsurance Agreements
Year Ended 
 December 31,
20212020Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
$— $— Cash surrender value of business ceded at beginning of period subject to recurring fees$3,900,540 $3,736,355 $— $— $— 
4,083,301 — Cash surrender value of business ceded during the period subject to recurring fees182,761 164,185 — — — 
$4,083,301 $— Cash surrender value of business ceded at end of period subject to recurring fees (a) $4,083,301 $3,900,540 $— $— $— 
0.30%— Asset liability management fee0.30%0.30%— — — 
0.57%— Weighted average ceding commission fee0.57%0.53%— — — 
(a)The business ceded to Brookfield Asset Management Re receives an annual ceding commission equal to 49 basis points for business written before July 1, 2021 and 140 basis points for business written after July 1, 2021 and an annual asset liability management fee of 30 basis points calculated based on initial cash surrender value of liabilities ceded. These annual fees are fixed and contractually guaranteed for six years with the additional and final seventh year payment being contingent on certain performance obligations for both parties.
Page 11


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

Annuity Deposits by Product Type
Year Ended 
 December 31,
20212020Q4 2021Q3 2021Q2 2021Q1 2021Q4 2020
American Equity Life:
$2,753,479 $1,992,059 Fixed index annuities$806,238 $727,641 $702,605 $516,995 $500,495 
6,133 8,128 Annual reset fixed rate annuities848 1,462 1,656 2,167 1,664 
855,702 395,982 Multi-year fixed rate annuities6,640 14,196 47,674 787,192 394,999 
59,816 33,461 Single premium immediate annuities14,145 16,282 15,430 13,959 7,774 
3,675,130 2,429,630 827,871 759,581 767,365 1,320,313 904,932 
Eagle Life:
697,068 345,519 Fixed index annuities176,101 187,611 184,520 148,836 106,170 
350 97 Annual reset fixed rate annuities13 — 175 162 — 
1,597,292 907,151 Multi-year fixed rate annuities40,901 362,769 228,197 965,425 833,765 
2,294,710 1,252,767 217,015 550,380 412,892 1,114,423 939,935 
Consolidated:
3,450,547 2,337,578 Fixed index annuities982,339 915,252 887,125 665,831 606,665 
6,483 8,225 Annual reset fixed rate annuities861 1,462 1,831 2,329 1,664 
2,452,994 1,303,133 Multi-year fixed rate annuities47,541 376,965 275,871 1,752,617 1,228,764 
59,816 33,461 Single premium immediate annuities14,145 16,282 15,430 13,959 7,774 
5,969,840 3,682,397 Total before coinsurance ceded1,044,886 1,309,961 1,180,257 2,434,736 1,844,867 
424,819 35,667 Coinsurance ceded214,851 203,218 3,702 3,048 6,277 
$5,545,021 $3,646,730 Net after coinsurance ceded$830,035 $1,106,743 $1,176,555 $2,431,688 $1,838,590 
Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of Coinsurance) Account Values at December 31, 2021:
Surrender ChargeNet Account Value
Product TypeAvg.
Years
At Issue		Avg.
Years
Remaining		Avg.
%
Remaining		Dollars in Thousands%
Fixed Index Annuities12.65.89.3%$47,572,198 89.4 %
Annual Reset Fixed Rate Annuities8.12.65.1%1,487,975 2.8 %
Multi-Year Fixed Rate Annuities3.92.68.4%4,131,104 7.8 %
Total11.85.59.1%$53,191,277 100.0 %

Page 12


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
Surrender Charge Percentages:Fixed
Annuities
Account Value		Fixed Index
Annuities
Account Value
No surrender charge$872,907 $3,617,906 
0.0% < 2.0%69,127 1,472,369 
2.0% < 3.0%78,301 4,157,514 
3.0% < 4.0%40,814 1,612,468 
4.0% < 5.0%103,272 2,697,975 
5.0% < 6.0%31,902 3,037,826 
6.0% < 7.0%58,710 3,183,880 
7.0% < 8.0%77,871 2,795,483 
8.0% < 9.0%1,446,090 3,274,759 
9.0% < 10.0%2,485,624 3,940,488 
10.0% or greater354,461 17,781,530 
$5,619,079 $47,572,198 
Surrender Charge Expiration By Year:Fixed and
Fixed Index
Annuities
Account Value		Weighted
Average
Surrender
Charge
Out of Surrender Charge$4,490,813 0.00 %
20221,525,145 2.33 %
20234,753,293 4.14 %
20246,287,305 5.65 %
20255,976,719 5.65 %
20266,342,864 7.95 %
20274,272,941 9.46 %
20284,024,050 10.44 %
20294,058,156 11.76 %
20302,930,632 14.07 %
20314,109,166 14.62 %
20321,947,561 17.41 %
20331,123,593 18.05 %
2034712,706 18.47 %
2035365,559 18.99 %
2036156,919 19.49 %
2037113,855 20.00 %
$53,191,277 9.07 %
Page 13


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
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$978,892 $1,095,818 
› 0.00% - 0.25%37,700 122,973 
› 0.25% - 0.50%223,835 6,196 
› 0.50% - 1.00%5,954 847 
› 1.00% - 1.50%9,818 — 
1.00% ultimate guarantee - 2.14% wtd avg interest rate (a)4,117,113 905,712 
1.50% ultimate guarantee - 1.08% wtd avg interest rate (a)131,593 2,832,602 
1.75% ultimate guarantee - 1.79% wtd avg interest rate (a)47,992 294,634 
2.00% ultimate guarantee - 1.85% wtd avg interest rate (a)66,182 — 
2.25% ultimate guarantee - 1.64% wtd avg interest rate (a)— 588,442 
3.00% ultimate guarantee - 1.95% wtd avg interest rate (a)— 1,198,589 
Allocated to index strategies (see tables that follow)— 40,526,385 
$5,619,079 $47,572,198 
(a)The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy ranges from 0.5% - 1.75%. The ultimate guaranteed rate is applied on less than 100% of the premium.
If all crediting rates were reduced to minimum guaranteed rates (subject to limitations imposed by ultimate minimum guaranteed rates where applicable) the weighted average crediting rate as of December 31, 2021 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.13%.
Page 14


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
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$1,238 $90,486 $4,622,921 $54,754 $124,552 
1.75% - 3%7,685,925 — — — — 
3% - 4%224,335 1,957 — — — 
4% - 5%1,864,196 203,636 970,681 — — 
5% - 6%684,501 189,793 27,840 — — 
6% - 7%3,294 — 741 — — 
>= 7%287 7,775 604 4,612 — 
Annual Monthly Average and Point-to-Point with Participation Rates
Minimum Guaranteed Participation Rate
10%20% - 25%35%50% +
Current Participation Rate
At minimum$153,877 $538,897 $80,970 $88,367 
< 20%1,659,564 — — — 
20% - 40%3,456,784 297,181 5,060 — 
40% - 60%491,379 13,975 37,855 — 
60% - 100%969,154 — — — 
> 100%1,137,338 — — — 
S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum$1,796,701 
1.10% - 1.30%5,923,642 
1.40% - 1.60%1,856,957 
1.70% - 2.00%343,086 
>= 2.10%18,684 
Volatility Control Index
Current Asset Fee
At Maximum$— 
0.75% - 1.75%378,294 
2.00% - 2.75%174,948 
3.00% - 3.50%1,061,805 
3.75% - 5.25%3,108,250 
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 0.79% based upon prices of options for the week ended January 1, 2022.
Page 15


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

Summary of Invested Assets
December 31, 2021December 31, 2020
Carrying
Amount		PercentCarrying
Amount		Percent
Fixed maturity securities:
United States Government full faith and credit$37,793 0.1 %$39,771 0.1 %
United States Government sponsored agencies1,040,953 1.7 %1,039,551 1.9 %
United States municipalities, states and territories3,927,201 6.5 %3,776,131 7.0 %
Foreign government obligations402,545 0.7 %202,706 0.4 %
Corporate securities34,660,234 57.4 %31,156,827 58.1 %
Residential mortgage backed securities1,125,049 1.9 %1,512,831 2.8 %
Commercial mortgage backed securities4,840,311 8.0 %4,261,227 8.0 %
Other asset backed securities5,271,857 8.7 %5,549,849 10.4 %
Total fixed maturity securities51,305,943 85.0 %47,538,893 88.7 %
Mortgage loans on real estate5,687,998 9.4 %4,165,489 7.8 %
Real estate investments337,939 0.6 %— — %
Derivative instruments1,277,480 2.1 %1,310,954 2.4 %
Other investments1,767,144 2.9 %590,078 1.1 %
$60,376,504 100.0 %$53,605,414 100.0 %
Credit Quality of Fixed Maturity Securities - December 31, 2021
NAIC DesignationCarrying
Amount		PercentRating Agency RatingCarrying
Amount		Percent
1$28,785,839 56.1 %Aaa/Aa/A$28,275,431 55.2 %
221,396,020 41.7 %Baa21,875,939 42.6 %
3941,210 1.9 %Ba930,384 1.8 %
4147,160 0.3 %B118,065 0.2 %
515,357 — %Caa39,354 0.1 %
620,357 — %Ca and lower66,770 0.1 %
$51,305,943 100.0 %$51,305,943 100.0 %
Watch List Securities - December 31, 2021
General Description (a)Amortized
Cost		Allowance for Credit LossesAmortized Cost, Net of AllowanceNet Unrealized
Gains (Losses),
Net of Allowance		Fair Value
Corporate securities - Public securities$6,564 $— $6,564 $(580)$5,984 
Corporate securities - Private placement securities10,646 — 10,646 (1,140)9,506 
Residential mortgage backed securities27,451 (70)27,381 316 27,697 
Commercial mortgage backed securities114,815 — 114,815 291 115,106 
United States municipalities, states and territories19,062 (2,776)16,286 (574)15,712 
$178,538 $(2,846)$175,692 $(1,687)$174,005 
(a)The watch list consists of all fixed maturity securities we have determined contain elevated credit risk, including those we have taken credit losses on.

Page 16


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector
December 31, 2021December 31, 2020
Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Available for sale:
United States Government full faith and credit and sponsored agencies$1,046,029 $1,078,746 $1,032,936 $1,079,322 
United States municipalities, states and territories3,495,563 3,927,201 3,236,767 3,776,131 
Foreign government obligations380,646 402,545 177,062 202,706 
Corporate securities:
Capital goods2,357,470 2,694,887 2,295,927 2,721,465 
Consumer discretionary6,396,009 7,210,975 5,674,845 6,734,249 
Energy2,120,185 2,365,991 2,140,768 2,359,893 
Financials8,043,912 8,761,157 5,971,097 6,877,472 
Government non-guaranteed471,015 541,233 539,148 632,178 
Industrials465,334 514,635 276,352 319,823 
Information technology1,885,278 2,083,179 1,556,654 1,840,942 
Materials1,702,910 1,906,150 1,543,032 1,803,501 
Other350,641 401,207 315,628 370,204 
Telecommunications1,750,183 1,937,493 1,340,484 1,582,329 
Transportation1,344,629 1,486,405 1,362,858 1,511,499 
Utilities4,197,063 4,756,922 3,728,403 4,403,272 
Residential mortgage backed securities:
Government agency455,136 500,698 549,677 627,201 
Prime537,559 544,084 771,031 788,933 
Alt-A59,129 75,361 79,248 96,697 
Sub prime4,954 4,906 — — 
Commercial mortgage backed securities:
Government agency380,339 415,026 398,141 447,726 
Non-agency4,328,539 4,425,285 3,721,509 3,813,501 
Other asset backed securities:
Auto218,106 222,364 258,286 266,065 
Energy7,091 8,353 7,301 8,946 
Financials4,441 4,887 4,441 3,911 
Industrials33,381 34,357 60,894 61,147 
Collateralized loan obligations3,861,962 3,817,352 4,255,839 4,112,318 
Military housing464,321 531,689 464,684 538,356 
Other637,358 652,855 541,724 559,106 
$46,999,183 $51,305,943 $42,304,736 $47,538,893 

Page 17


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

Mortgage Loans on Real Estate
December 31, 2021December 31, 2020
PrincipalPercentPrincipalPercent
Geographic distribution: commercial mortgage loans
East$614,406 16.9 %$699,741 19.5 %
Middle Atlantic293,494 8.1 %281,971 7.9 %
Mountain452,818 12.5 %391,025 10.9 %
New England60,172 1.6 %24,774 0.7 %
Pacific863,879 23.8 %659,743 18.4 %
South Atlantic785,679 21.6 %832,739 23.3 %
West North Central235,864 6.5 %266,050 7.4 %
West South Central326,819 9.0 %424,111 11.9 %
$3,633,131 100.0 %$3,580,154 100.0 %
Property type distribution: commercial mortgage loans
Office$315,374 8.7 %$297,065 8.3 %
Medical Office10,827 0.3 %20,584 0.6 %
Retail1,016,101 28.0 %1,187,484 33.2 %
Industrial/Warehouse924,779 25.4 %929,325 25.9 %
Apartment864,580 23.8 %939,084 26.2 %
Hotel283,500 7.8 %— — %
Mixed Use/Other217,970 6.0 %206,612 5.8 %
$3,633,131 100.0 %$3,580,154 100.0 %

Page 18


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021
Unaudited (Dollars in thousands)

December 31, 2021
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,633,131 $408,135 $1,645,905 $5,687,171 
In workout— — — — 
Delinquent— — 7,005 7,005 
Principal outstanding3,633,131 408,135 1,652,910 5,694,176 
Unamortized discounts and premiums, net— — 22,143 22,143 
Deferred fees and costs, net(4,629)(1,136)1,468 (4,297)
Amortized cost3,628,502 406,999 1,676,521 5,712,022 
Valuation allowance(17,926)(519)(5,579)(24,024)
Carrying value$3,610,576 $406,480 $1,670,942 $5,687,998 
December 31, 2020
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,580,154 $245,807 $366,047 $4,192,008 
In workout— — — — 
Delinquent— — 273 273 
Principal outstanding3,580,154 245,807 366,320 4,192,281 
Unamortized discounts and premiums, net— — 5,212 5,212 
Deferred fees and costs, net(1,266)(634)925 (975)
Amortized cost3,578,888 245,173 372,457 4,196,518 
Valuation allowance(25,529)(2,130)(3,370)(31,029)
Carrying value$3,553,359 $243,043 $369,087 $4,165,489 



Page 19


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021

Shareholder Information
Corporate Offices:
American Equity Investment Life Holding Company
6000 Westown Parkway
West Des Moines, IA 50266
Inquiries:
Steven Schwartz, Vice President-Investor Relations
(515) 273-3763, sschwartz@american-equity.com
Common Stock and Dividend Information:
New York Stock Exchange symbol: “AEL”
HighLowCloseDividend Declared
2021
First Quarter$32.54$26.21$31.53$0.00
Second Quarter$33.68$29.18$32.32$0.00
Third Quarter$33.79$27.12$29.57$0.00
Fourth Quarter$39.88$29.46$38.92$0.34
2020
First Quarter$34.16$9.07$18.80$0.00
Second Quarter$27.09$14.76$24.71$0.00
Third Quarter$27.32$19.06$21.99$0.00
Fourth Quarter$34.25$22.37$27.66$0.32
2019
First Quarter$33.57$26.34$27.02$0.00
Second Quarter$30.91$25.84$27.16$0.00
Third Quarter$27.80$20.16$24.20$0.00
Fourth Quarter$30.96$21.75$29.93$0.30
Transfer Agent:
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-0310
Phone: (877) 282-1169
Fax: (781) 575-2723
www.computershare.com
Annual Report and Other Information:
Shareholders may receive when available, without charge, a copy of American Equity’s Annual Report, SEC filings and/or press releases by calling Steven Schwartz, Vice President-Investor Relations, at (515) 273-3763 or by visiting our website at www.american-equity.com.


Page 20


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2021

Research Analyst Coverage
Erik Bass
Autonomous Research US LP
(646) 561-6248
ebass@autonomous.com
Wilma Burdis
Credit Suisse Securities
Equity Research | Life Insurance
(919) 306-1023
wilma.burdis@credit-suisse.com
Thomas Gallagher
Evercore ISI
(212) 446-9439
thomas.gallagher@evercoreisi.com
Daniel Bergman
Jefferies
(617) 345-8688
dbergman@jefferies.com
Pablo Singzon II
JP Morgan
(212) 622-2295
pablo.s.singzon@jpmorgan.com
Ryan Krueger
Keefe, Bruyette & Woods
(860) 722-5930
rkrueger@kbw.com

Nigel Dally
Morgan Stanley Research
(212) 761-4132
Nigel.Dally@morganstanley.com
John Barnidge
Piper Sandler & Co.
(312) 281-3412
John.Barnidge@psc.com
C. Gregory Peters
Raymond James & Associates, Inc.
(727) 567-1534
greg.peters@raymondjames.com
Mark A. Dwelle
RBC Capital Markets, LLC
(804) 782-4008
mark.dwelle@rbccm.com
Mark Hughes
Truist Securities
(615) 748-4422
mark.hughes@research.truist.com


Page 21