Exhibit 99.2
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement
December 31, 2012
| 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, 2012
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
| December 31, 2012 | December 31, 2011 | ||||||
| Assets | |||||||
| Investments: | |||||||
| Fixed maturity securities: | |||||||
| Available for sale, at fair value | $ | 24,172,136 | $ | 18,464,109 | |||
| Held for investment, at amortized cost | 76,088 | 2,644,206 | |||||
| Equity securities, available for sale, at fair value | 53,422 | 62,845 | |||||
| Mortgage loans on real estate | 2,623,940 | 2,823,047 | |||||
| Derivative instruments | 415,258 | 273,314 | |||||
| Other investments | 196,366 | 115,930 | |||||
| Total investments | 27,537,210 | 24,383,451 | |||||
| Cash and cash equivalents | 1,268,545 | 404,952 | |||||
| Coinsurance deposits | 2,910,701 | 2,818,642 | |||||
| Accrued investment income | 261,833 | 228,937 | |||||
| Deferred policy acquisition costs | 1,709,799 | 1,683,857 | |||||
| Deferred sales inducements | 1,292,341 | 1,242,787 | |||||
| Deferred income taxes | — | 21,981 | |||||
| Income taxes recoverable | — | 8,441 | |||||
| Other assets | 153,049 | 81,671 | |||||
| Total assets | $ | 35,133,478 | $ | 30,874,719 | |||
| Liabilities and Stockholders' Equity | |||||||
| Liabilities: | |||||||
| Policy benefit reserves | $ | 31,773,988 | $ | 28,118,716 | |||
| Other policy funds and contract claims | 455,752 | 400,594 | |||||
| Notes payable | 309,869 | 297,608 | |||||
| Subordinated debentures | 245,869 | 268,593 | |||||
| Deferred income taxes | 49,303 | — | |||||
| Income taxes payable | 4,756 | — | |||||
| Other liabilities | 573,704 | 380,529 | |||||
| Total liabilities | 33,413,241 | 29,466,040 | |||||
| Stockholders' equity: | |||||||
| Common stock | 61,751 | 57,837 | |||||
| Additional paid-in capital | 496,715 | 468,281 | |||||
| Unallocated common stock held by ESOP | (2,583 | ) | (3,620 | ) | |||
| Accumulated other comprehensive income | 686,807 | 457,229 | |||||
| Retained earnings | 477,547 | 428,952 | |||||
| Total stockholders' equity | 1,720,237 | 1,408,679 | |||||
| Total liabilities and stockholders' equity | $ | 35,133,478 | $ | 30,874,719 | |||
Page 1
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Revenues: | |||||||||||||||
| Traditional life insurance premiums | $ | 3,107 | $ | 2,820 | $ | 12,877 | $ | 12,151 | |||||||
| Annuity product charges | 23,830 | 18,930 | 89,006 | 76,189 | |||||||||||
| Net investment income | 321,160 | 324,272 | 1,286,923 | 1,218,780 | |||||||||||
| Change in fair value of derivatives | (48,266 | ) | 92,269 | 221,138 | (114,728 | ) | |||||||||
| Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses | 1,471 | 698 | (6,454 | ) | (18,641 | ) | |||||||||
| OTTI losses on investments: | |||||||||||||||
| Total OTTI losses | (3,255 | ) | (9,834 | ) | (5,411 | ) | (20,180 | ) | |||||||
| Portion of OTTI losses recognized from other comprehensive income | (6,132 | ) | (6,451 | ) | (9,521 | ) | (13,796 | ) | |||||||
| Net OTTI losses recognized in operations | (9,387 | ) | (16,285 | ) | (14,932 | ) | (33,976 | ) | |||||||
| Total revenues | 291,915 | 422,704 | 1,588,558 | 1,139,775 | |||||||||||
| Benefits and expenses: | |||||||||||||||
| Insurance policy benefits and change in future policy benefits | 1,843 | 1,588 | 8,075 | 7,870 | |||||||||||
| Interest sensitive and index product benefits (a) (d) | 290,126 | 154,440 | 818,087 | 775,757 | |||||||||||
| Amortization of deferred sales inducements (c) | 36,798 | 48,889 | 87,157 | 71,781 | |||||||||||
| Change in fair value of embedded derivatives | (179,379 | ) | 33,031 | 286,899 | (105,194 | ) | |||||||||
| Interest expense on notes payable | 7,271 | 7,910 | 28,479 | 31,633 | |||||||||||
| Interest expense on subordinated debentures | 3,074 | 3,542 | 13,458 | 13,977 | |||||||||||
| Interest expense on amounts due under repurchase agreements | — | 25 | — | 30 | |||||||||||
| Amortization of deferred policy acquisition costs (c) | 59,833 | 78,323 | 164,919 | 143,478 | |||||||||||
| Other operating costs and expenses (b) (e) | 18,710 | 17,518 | 95,495 | 67,529 | |||||||||||
| Total benefits and expenses | 238,276 | 345,266 | 1,502,569 | 1,006,861 | |||||||||||
| Income before income taxes | 53,639 | 77,438 | 85,989 | 132,914 | |||||||||||
| Income tax expense | 17,242 | 27,739 | 28,191 | 46,666 | |||||||||||
| Net income (a) (b) (c) (d) (e) | $ | 36,397 | $ | 49,699 | $ | 57,798 | $ | 86,248 | |||||||
| Earnings per common share | $ | 0.58 | $ | 0.83 | $ | 0.94 | $ | 1.45 | |||||||
| Earnings per common share - assuming dilution (a) (b) (c) (d) (e) | $ | 0.55 | $ | 0.79 | $ | 0.89 | $ | 1.37 | |||||||
| Weighted average common shares outstanding (in thousands): | |||||||||||||||
| Earnings per common share | 62,856 | 59,641 | 61,259 | 59,482 | |||||||||||
| Earnings per common share - assuming dilution | 65,897 | 63,582 | 65,676 | 63,619 | |||||||||||
See notes (a), (b), (c), (d) and (e) on page 3.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Notes for Consolidated Statements of Operations
| (a) | The year ended December 31, 2011 includes an adjustment recorded in the first quarter 2011 to single premium immediate annuity reserves which reduced interest sensitive and index product benefits by $4.2 million and increased net income and earnings per common share - assuming dilution by $2.7 million and $0.04 per share, respectively. |
| (b) | Other operating costs and expenses for the three months and year ended December 31, 2012 include $2.0 million and $9.1 million, respectively, of expense related to the impact of the prospective adoption (effective January 1, 2012) of revised accounting guidance for deferred policy acquisition costs. This change, including the impact on related amortization expense, decreased net income for the three months and year ended December 31, 2012 by $1.2 million and $5.8 million, respectively, and decreased earnings per common share - assuming dilution for the three months and year ended December 31, 2012 by $0.02 and $0.09 per share, respectively. |
| (c) | The year ended December 31, 2012 includes expense from unlocking which reduced amortization of deferred sales inducements by $0.2 million, increased amortization of deferred policy acquisition costs by $3.7 million, and decreased net income and earnings per common share - assuming dilution for the year ended December 31, 2012 by $2.2 million and $0.03 per share, respectively. |
The year ended December 31, 2011, includes benefit from unlocking which reduced amortization of deferred sales inducements and amortization of deferred policy acquisition costs by $5.0 million and $9.1 million, respectively, and increased net income and earnings per common share - assuming dilution for the year ended December 31, 2011 by $9.1 million and $0.14 per share, respectively.
| (d) | The year ended December 31, 2012 includes a benefit from the revision of assumptions used in determining reserves held for living income benefit riders consistent with unlocking for deferred policy acquisition costs and deferred sales inducements. The impact decreased interest sensitive and index product benefits for the year ended December 31, 2012 by $2.2 million and increased net income and earnings per common share - assuming dilution for the year ended December 31, 2012 by $1.4 million and $0.02 per share. |
| (e) | The year ended December 31, 2012 includes expense from recognizing an estimated litigation liability of $17.5 million during the third quarter of 2012, which, after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, decreased net income and earnings per common share - assuming dilution for the year ended December 31, 2012 by $9.6 million and $0.15 per share. |
Page 3
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Quarterly Summary - Most Recent 5 Quarters (Unaudited)
| Q4 2012 | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Revenues: | |||||||||||||||||||
| Traditional life insurance premiums | $ | 3,107 | $ | 3,300 | $ | 3,248 | $ | 3,222 | $ | 2,820 | |||||||||
| Annuity product charges | 23,830 | 23,875 | 21,908 | 19,393 | 18,930 | ||||||||||||||
| Net investment income | 321,160 | 318,594 | 320,259 | 326,910 | 324,272 | ||||||||||||||
| Change in fair value of derivatives | (48,266 | ) | 161,090 | (150,847 | ) | 259,161 | 92,269 | ||||||||||||
| Net realized gains (losses) on investments, excluding OTTI | 1,471 | (1,238 | ) | (611 | ) | (6,076 | ) | 698 | |||||||||||
| Net OTTI losses recognized in operations | (9,387 | ) | (1,686 | ) | (978 | ) | (2,881 | ) | (16,285 | ) | |||||||||
| Total revenues | 291,915 | 503,935 | 192,979 | 599,729 | 422,704 | ||||||||||||||
| Benefits and expenses: | |||||||||||||||||||
| Insurance policy benefits and change in future policy benefits | 1,843 | 1,865 | 2,250 | 2,117 | 1,588 | ||||||||||||||
| Interest sensitive and index product benefits (b) | 290,126 | 246,105 | 142,733 | 139,123 | 154,440 | ||||||||||||||
| Amortization of deferred sales inducements (a) | 36,798 | 7,709 | 25,940 | 16,710 | 48,889 | ||||||||||||||
| Change in fair value of embedded derivatives | (179,379 | ) | 188,201 | (80,989 | ) | 359,066 | 33,031 | ||||||||||||
| Interest expense on notes payable | 7,271 | 7,141 | 7,072 | 6,995 | 7,910 | ||||||||||||||
| Interest expense on subordinated debentures | 3,074 | 3,235 | 3,563 | 3,586 | 3,542 | ||||||||||||||
| Interest expense on amounts due under repurchase agreements | — | — | — | — | 25 | ||||||||||||||
| Amortization of deferred policy acquisition costs (a) | 59,833 | 25,954 | 44,848 | 34,284 | 78,323 | ||||||||||||||
| Other operating costs and expenses (c) | 18,710 | 36,170 | 18,902 | 21,713 | 17,518 | ||||||||||||||
| Total benefits and expenses | 238,276 | 516,380 | 164,319 | 583,594 | 345,266 | ||||||||||||||
| Income before income taxes | 53,639 | (12,445 | ) | 28,660 | 16,135 | 77,438 | |||||||||||||
| Income tax expense | 17,242 | (4,616 | ) | 9,901 | 5,664 | 27,739 | |||||||||||||
| Net income (loss) (a) (b) (c) | $ | 36,397 | $ | (7,829 | ) | $ | 18,759 | $ | 10,471 | $ | 49,699 | ||||||||
| Earnings (loss) per common share | $ | 0.58 | $ | (0.13 | ) | $ | 0.31 | $ | 0.18 | $ | 0.83 | ||||||||
| Earnings (loss) per common share - assuming dilution (a) (b) (c) | $ | 0.55 | $ | (0.13 | ) | $ | 0.30 | $ | 0.16 | $ | 0.79 | ||||||||
| Weighted average common shares outstanding (in thousands): | |||||||||||||||||||
| Earnings (loss) per common share | 62,856 | 62,504 | 59,943 | 59,701 | 59,641 | ||||||||||||||
| Earnings (loss) per common share - assuming dilution | 65,897 | 65,262 | 64,254 | 65,930 | 63,582 | ||||||||||||||
| (a) | Q3 2012 includes expense from unlocking which reduced amortization of deferred sales inducements by $0.2 million, increased amortization of deferred policy acquisition costs by $3.7 million, and increased net loss and loss per common share - assuming dilution for Q3 2012 by $2.2 million and $0.03 per share, respectively. |
| (b) | Q3 2012 includes a benefit from the revision of assumptions used in determining reserves held for living income benefit riders consistent with unlocking for deferred policy acquisition costs and deferred sales inducements. The impact decreased interest sensitive and index product benefits by $2.2 million and decreased net loss and loss per common share - assuming dilution by $1.4 million $0.02 per share, respectively. |
| (c) | Q3 2012 includes expense from recognizing an estimated litigation liability of $17.5 million during the third quarter of 2012, which, after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, increased net loss and loss per common share - assuming dilution by $9.6 million and $0.15 per share. |
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
NON-GAAP FINANCIAL MEASURES
In addition to net income (loss), we have consistently utilized operating income and operating income per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Operating income equals net income (loss) adjusted to eliminate the impact of net realized gains and losses on investments including net OTTI losses recognized in operations, fair value changes in derivatives and embedded derivatives and litigation reserves. Because these items fluctuate from quarter to quarter in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income to Operating Income (Unaudited)
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||
| Net income | $ | 36,397 | $ | 49,699 | $ | 57,798 | $ | 86,248 | |||||||
| Adjustments to arrive at operating income: | |||||||||||||||
| Net realized investment losses, including OTTI (a) | 2,825 | 5,616 | 8,648 | 18,354 | |||||||||||
| Change in fair value of derivatives and embedded derivatives (a) | (8,317 | ) | (22,713 | ) | 34,161 | 29,051 | |||||||||
| Litigation reserve (a) | — | — | 9,580 | — | |||||||||||
| Operating income (a non-GAAP financial measure) (b) (c) (d) (e) | $ | 30,905 | $ | 32,602 | $ | 110,187 | $ | 133,653 | |||||||
| Per common share - assuming dilution: | |||||||||||||||
| Net income | $ | 0.55 | $ | 0.79 | $ | 0.89 | $ | 1.37 | |||||||
| Adjustments to arrive at operating income: | |||||||||||||||
| Net realized investment losses, including OTTI | 0.04 | 0.09 | 0.13 | 0.29 | |||||||||||
| Changes in fair value of derivatives and embedded derivatives | (0.12 | ) | (0.36 | ) | 0.52 | 0.46 | |||||||||
| Litigation reserve | — | — | 0.15 | — | |||||||||||
| Operating income (a non-GAAP financial measure) (b) (c) (d) (e) | $ | 0.47 | $ | 0.52 | $ | 1.69 | $ | 2.12 | |||||||
| (a) | Adjustments to net income to arrive at operating income are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) and net of income taxes. |
| (b) | The three months and year ended December 31, 2012 includes $2.0 million and $9.1 million, respectively, of expense related to the impact of the prospective adoption (effective January 1, 2012) of revised accounting guidance for deferred policy acquisition costs. This change, including the impact on related amortization expense, decreased operating income for the three months and year ended December 31, 2012 by $1.2 million and $5.8 million, respectively, and decreased operating income per common share - assuming dilution for the three months and year ended December 31, 2012 by $0.02 and $0.09 per share, respectively. |
| (c) | The year ended December 31, 2012 includes expense from unlocking which decreased operating income by $6.3 million and operating income per common share - assuming dilution by $0.09 per share. |
The year ended December 31, 2011 includes benefit from unlocking which increased operating income by $12.5 million and operating income per common share - assuming dilution by $0.20 per share.
| (d) | The year ended December 31, 2011, includes an adjustment recorded in the first quarter of 2011 to single premium immediate annuity reserves which reduced interest sensitive and index product benefits by $4.2 million, increased net income and operating income by $2.7 million and increased earnings per common share - assuming dilution and operating income per common share - assuming dilution by $0.04 per share. |
| (e) | The estimated annual effective tax rate applied to operating income for the first nine months of 2012 was 35.3%. The actual final rate for the year was 34.3%. Because the lower rate was applied retroactively to all 2012 income, income tax expense in the fourth quarter of 2012 was reduced by $1.3 million ($0.02 per share) for the portion of the year prior to the fourth quarter. |
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Operating Income (Unaudited)
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Net realized investment losses, including OTTI: | |||||||||||||||
| Net realized losses on investments, including OTTI | $ | 7,916 | $ | 15,587 | $ | 21,386 | $ | 52,617 | |||||||
| Amortization of DAC and DSI | (3,561 | ) | (6,866 | ) | (7,989 | ) | (24,117 | ) | |||||||
| Income taxes | (1,530 | ) | (3,105 | ) | (4,749 | ) | (10,146 | ) | |||||||
| $ | 2,825 | 5,616 | $ | 8,648 | $ | 18,354 | |||||||||
| Change in fair value of derivatives and embedded derivatives: | |||||||||||||||
| Change in fair value of derivatives and embedded derivatives | $ | (26,342 | ) | $ | (84,412 | ) | $ | 151,695 | $ | 125,721 | |||||
| Amortization of DAC and DSI | 13,447 | 49,032 | (98,306 | ) | (80,858 | ) | |||||||||
| Income taxes | 4,578 | 12,667 | (19,228 | ) | (15,812 | ) | |||||||||
| $ | (8,317 | ) | $ | (22,713 | ) | $ | 34,161 | $ | 29,051 | ||||||
| Litigation reserve: | |||||||||||||||
| Litigation reserve recorded in other operating costs | $ | — | $ | — | $ | 17,532 | $ | — | |||||||
| Amortization of DAC and DSI | — | — | (2,656 | ) | — | ||||||||||
| Income taxes | — | — | (5,296 | ) | — | ||||||||||
| $ | — | $ | — | $ | 9,580 | $ | — | ||||||||
Page 6
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
NON-GAAP FINANCIAL MEASURES
Quarterly Summary - Most Recent 5 Quarters (Unaudited)
Reconciliation from Net Income (Loss) to Operating Income
| Q4 2012 | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Net income (loss) | $ | 36,397 | $ | (7,829 | ) | $ | 18,759 | $ | 10,471 | $ | 49,699 | ||||||||
| Adjustments to arrive at operating income: | |||||||||||||||||||
| Net realized investment losses (a) | 2,825 | 1,415 | 861 | 3,547 | 5,616 | ||||||||||||||
| Change in fair value of derivatives and embedded derivatives (a) | (8,317 | ) | 19,000 | 7,736 | 15,742 | (22,713 | ) | ||||||||||||
| Litigation reserve (a) | — | 9,580 | — | — | — | ||||||||||||||
| Operating income (a non-GAAP financial measure) (b) (c) | $ | 30,905 | $ | 22,166 | $ | 27,356 | $ | 29,760 | $ | 32,602 | |||||||||
| Operating income per common share - assuming dilution (b) (c) | $ | 0.47 | $ | 0.34 | $ | 0.43 | $ | 0.46 | $ | 0.52 | |||||||||
| (a) | Adjustments to net income (loss) to arrive at operating income are presented net of related adjustments to amortization and deferred sales inducements and deferred policy acquisition costs and net of income taxes. |
| (b) | Q3 2012 includes expense from unlocking which increased amortization of deferred sales inducements and amortization of deferred policy acquisition costs by $2.4 million and $7.3 million, respectively, and decreased operating income and operating income per common share - assuming dilution for Q3 2012 by $6.3 million and $0.09 per share, respectively. |
| (c) | Q3 2012 includes a benefit from the revision of assumptions used in determining reserves held for living income benefit riders consistent with unlocking for deferred policy acquisition costs and deferred sales inducements. The impact reduced interest sensitive and index product benefits by $2.2 million and increased operating income and operating per common share - assuming dilution by $1.4 million $0.02 per share, respectively. |
Summary of Adjustments to Arrive at Operating Income
| Q4 2012 | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Net realized (gains) losses on investments | $ | (1,471 | ) | $ | 1,238 | $ | 611 | $ | 6,076 | $ | (698 | ) | |||||||
| Net OTTI losses recognized in operations | 9,387 | 1,686 | 978 | 2,881 | 16,285 | ||||||||||||||
| Change in fair value of derivatives | 156,123 | (96,232 | ) | 85,683 | (283,265 | ) | (93,544 | ) | |||||||||||
| Increase (decrease) in total revenues | 164,039 | (93,308 | ) | 87,272 | (274,308 | ) | (77,957 | ) | |||||||||||
| Amortization of deferred sales inducements | (3,140 | ) | 28,278 | 7,201 | 16,758 | (17,368 | ) | ||||||||||||
| Change in fair value of embedded derivatives | 182,465 | (186,362 | ) | 56,826 | (342,315 | ) | (9,132 | ) | |||||||||||
| Amortization of deferred policy acquisition costs | (6,746 | ) | 35,636 | 9,609 | 21,355 | (24,798 | ) | ||||||||||||
| Other operating costs and expenses | — | (17,532 | ) | — | — | — | |||||||||||||
| Increase (decrease) in total benefits and expenses | 172,579 | (139,980 | ) | 73,636 | (304,202 | ) | (51,298 | ) | |||||||||||
| Increase (decrease) in income tax expense | (3,048 | ) | 16,677 | 5,039 | 10,605 | (9,562 | ) | ||||||||||||
| Increase (decrease) in net income (loss) | (5,492 | ) | 29,995 | 8,597 | 19,289 | (17,097 | ) | ||||||||||||
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Capitalization/Book Value per Share
| December 31, 2012 | December 31, 2011 | ||||||
| (Dollars in thousands, except per share data) | |||||||
| Capitalization: | |||||||
| Notes payable | $ | 309,869 | $ | 297,608 | |||
| Subordinated debentures payable to subsidiary trusts | 245,869 | 268,593 | |||||
Total debt | 555,738 | 566,201 | |||||
| Total stockholders’ equity | 1,720,237 | 1,408,679 | |||||
| Total capitalization | 2,275,975 | 1,974,880 | |||||
| Accumulated other comprehensive income (AOCI) | (686,807 | ) | (457,229 | ) | |||
| Total capitalization excluding AOCI (a) | $ | 1,589,168 | $ | 1,517,651 | |||
| Total stockholders’ equity | $ | 1,720,237 | $ | 1,408,679 | |||
| Accumulated other comprehensive income | (686,807 | ) | (457,229 | ) | |||
Total stockholders’ equity excluding AOCI (a) | $ | 1,033,430 | $ | 951,450 | |||
| Common shares outstanding (b) | 62,653,134 | 59,131,995 | |||||
Book Value per Share: (c) | |||||||
| Book value per share including AOCI | $ | 27.46 | $ | 23.82 | |||
| Book value per share excluding AOCI (a) | $ | 16.49 | $ | 16.09 | |||
Debt-to-Capital Ratios: (d) | |||||||
| Senior debt / Total capitalization | 19.5 | % | 19.6 | % | |||
| Adjusted debt / Total capitalization | 20.0 | % | 22.3 | % | |||
| (a) | Total capitalization, total stockholders’ equity and book value per share excluding AOCI, non-GAAP financial measures, are based on stockholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, we believe these non-GAAP financial measures provide useful supplemental information. |
| (b) | Common shares outstanding include shares held by the NMO Deferred Compensation Trust: 2012 - 1,142,332 shares; 2011 - 1,631,548 shares and exclude unallocated shares held by ESOP: 2012 - 239,799 shares; 2011 - 336,093 shares. |
| (c) | Book value per share including and excluding AOCI is calculated as total stockholders’ equity and total stockholders’ equity excluding AOCI divided by the total number of shares of common stock outstanding. |
| (d) | Debt-to-capital ratios are computed using total capitalization excluding AOCI. Adjusted debt includes notes payable and the portion of the total subordinated debentures payable to subsidiary trusts outstanding (qualifying trust preferred securities) that exceeds 15% of total capitalization excluding AOCI. |
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Spread Results
| Three Months Ended December 31, | Year Ended December 31, | ||||||
| 2012 | 2011 | 2012 | 2011 | ||||
| Average yield on invested assets | 5.03% | 5.76% | 5.28% | 5.80% | |||
| Aggregate cost of money | 2.44% | 2.79% | 2.58% | 2.77% | |||
| Aggregate investment spread | 2.59% | 2.97% | 2.70% | 3.03% | |||
| Impact of: | |||||||
| Investment yield - additional prepayment income | 0.11% | —% | 0.06% | —% | |||
| Cost of money benefit from over hedging | 0.03% | 0.02% | 0.01% | 0.06% | |||
Summary of Cost of Money for Deferred Annuities
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Included in interest sensitive and index product benefits: | |||||||||||||||
| Index credits | $ | 193,903 | $ | 65,036 | $ | 447,393 | $ | 448,248 | |||||||
| Interest credited | 76,809 | 76,867 | 306,981 | 289,846 | |||||||||||
| Included in change in fair value of derivatives: | |||||||||||||||
| Proceeds received at option expiration | (193,544 | ) | (65,495 | ) | (447,163 | ) | (454,212 | ) | |||||||
| Pro rata amortization of option cost | 88,773 | 90,493 | 361,260 | 336,162 | |||||||||||
| Cost of money for deferred annuities | $ | 165,941 | $ | 166,901 | $ | 668,471 | $ | 620,044 | |||||||
| Weighted average liability balance outstanding | $ | 27,191,019 | $ | 23,925,376 | $ | 25,955,834 | $ | 22,360,771 | |||||||
Page 9
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Annuity Deposits by Product Type
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| Product Type | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Fixed Index Annuities: | ||||||||||||||||
| Index Strategies | $ | 656,913 | $ | 763,495 | $ | 2,225,902 | $ | 2,839,295 | ||||||||
| Fixed Strategy | 322,735 | 391,263 | 1,208,324 | 1,377,987 | ||||||||||||
| 979,648 | 1,154,758 | 3,434,226 | 4,217,282 | |||||||||||||
| Fixed Rate Annuities: | ||||||||||||||||
| Single-Year Rate Guaranteed | 20,780 | 51,220 | 98,821 | 169,304 | ||||||||||||
| Multi-Year Rate Guaranteed | 43,294 | 118,518 | 249,228 | 397,925 | ||||||||||||
| Single premium immediate annuities | 24,392 | 47,608 | 164,657 | 305,603 | ||||||||||||
| 88,466 | 217,346 | 512,706 | 872,832 | |||||||||||||
| Total before coinsurance ceded | 1,068,114 | 1,372,104 | 3,946,932 | 5,090,114 | ||||||||||||
| Coinsurance ceded | 35,748 | 95,911 | 203,734 | 326,531 | ||||||||||||
| Net after coinsurance ceded | $ | 1,032,366 | $ | 1,276,193 | $ | 3,743,198 | $ | 4,763,583 | ||||||||
Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of coinsurance) Account Values at December 31, 2012:
| Surrender Charge | Net Account Value | ||||||||||||
| Product Type | Avg. Years At Issue | Avg. Years Remaining | Avg. % Remaining | Dollars in Thousands | % | ||||||||
| Fixed Index Annuities | 14.2 | 10.4 | 16.0% | $ | 25,654,890 | 92.7 | % | ||||||
| Single-Year Fixed Rate Guaranteed Annuities | 11.1 | 4.7 | 8.0% | 1,444,849 | 5.2 | % | |||||||
| Multi-Year Fixed Rate Guaranteed Annuities (a) | 6.2 | 1.8 | 4.5% | 569,930 | 2.1 | % | |||||||
| Total | 13.9 | 9.9 | 15.4% | $ | 27,669,669 | 100.0 | % | ||||||
(a) 56% of Net Account Value is no longer in multi-year guarantee period and can be adjusted annually.
Page 10
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Annuity Liability Characteristics
Fixed Annuities Account Value | Fixed Index Annuities Account Value | |||||||
| (Dollars in thousands) | ||||||||
| SURRENDER CHARGE PERCENTAGES: | ||||||||
| No surrender charge | $ | 582,163 | $ | 567,549 | ||||
| 0.0% < 2.0% | 41,762 | 242,093 | ||||||
| 2.0% < 3.0% | 117,407 | 202,723 | ||||||
| 3.0% < 4.0% | 26,065 | 326,137 | ||||||
| 4.0% < 5.0% | 48,678 | 223,529 | ||||||
| 5.0% < 6.0% | 39,120 | 248,123 | ||||||
| 6.0% < 7.0% | 189,065 | 211,062 | ||||||
| 7.0% < 8.0% | 195,760 | 603,118 | ||||||
| 8.0% < 9.0% | 185,739 | 560,779 | ||||||
| 9.0% < 10.0% | 73,553 | 439,303 | ||||||
| 10.0% or greater | 515,467 | 22,030,474 | ||||||
| $ | 2,014,779 | $ | 25,654,890 | |||||
Fixed and Fixed Index Annuities Account Value | Weighted Average Surrender Charge | ||||||
| (Dollars in thousands) | |||||||
| SURRENDER CHARGE EXPIRATION BY YEAR: | |||||||
| Out of Surrender Charge | $ | 1,149,712 | 0.00 | % | |||
| 2013 | 477,273 | 1.85 | % | ||||
| 2014 | 530,863 | 3.33 | % | ||||
| 2015 | 573,143 | 4.99 | % | ||||
| 2016 | 827,026 | 6.60 | % | ||||
| 2017 | 985,980 | 7.78 | % | ||||
| 2018 | 834,102 | 10.03 | % | ||||
| 2019 | 594,626 | 10.69 | % | ||||
| 2020 | 930,474 | 12.00 | % | ||||
| 2021 | 1,238,191 | 13.78 | % | ||||
| 2022 | 2,045,416 | 15.78 | % | ||||
| 2023 | 3,794,590 | 18.13 | % | ||||
| 2024 | 4,137,527 | 19.01 | % | ||||
| 2025 | 3,189,272 | 18.89 | % | ||||
| 2026 | 2,694,167 | 18.99 | % | ||||
| 2027 | 1,964,077 | 19.49 | % | ||||
| 2028 | 1,671,267 | 19.98 | % | ||||
| 2029 | 31,963 | 20.00 | % | ||||
| $ | 27,669,669 | 15.36 | % | ||||
Page 11
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Annuity Liability Characteristics
Fixed Annuities Account Value | Fixed Index Annuities Account Value | |||||||
| (Dollars in thousands) | ||||||||
| CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL: | ||||||||
| No differential | $ | 750,494 | $ | 782,138 | ||||
| › 0.0% - 0.25% | 310,451 | 563,054 | ||||||
| › 0.25% - 0.5% | 126,260 | 40,227 | ||||||
| › 0.5% - 1.0% (a) | 319,570 | 1,108,809 | ||||||
| › 1.0% - 1.5% (a) | 118,742 | 24,550 | ||||||
| › 1.5% - 2.0% | 133,229 | 2,349 | ||||||
| › 2.0% - 2.5% | 2,442 | — | ||||||
| › 2.5% - 3.0% | 41,616 | — | ||||||
| 1.00% ultimate guarantee - 2.34% wtd avg interest rate (b) | 23,824 | — | ||||||
| 1.50% ultimate guarantee - 1.78% wtd avg interest rate (b) | 80,614 | 2,126,436 | ||||||
| 2.00% ultimate guarantee - 2.68% wtd avg interest rate (b) | 107,537 | — | ||||||
| 2.25% ultimate guarantee - 2.74% wtd avg interest rate (b) | — | 1,577,147 | ||||||
| 3.00% ultimate guarantee - 2.93% wtd avg interest rate (b) | — | 3,123,690 | ||||||
| Allocated to index strategies (see tables that follow) | — | 16,306,490 | ||||||
| $ | 2,014,779 | $ | 25,654,890 | |||||
| (a) | $164,437 of Fixed Annuities Account Value have a guarantee of 2.25% for the first 10 years and 3.00% thereafter. They begin increasing in 2014. $635,545 of Index Annuities Account Value is in fixed rate strategies that have a guarantee of 2.25% for the first 10 years and 3.00% thereafter. They begin increasing in 2014. |
| (b) | The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy is 1.00%. The ultimate guaranteed rate is applied on less than 100% of the premium. |
If all crediting rates were reduced to minimum guaranteed rates (subject to limitations imposed by ultimate minimum guaranteed rates where applicable) the weighted average crediting rate as of December 31, 2012 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.63%.
Page 12
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Annuity Liability Characteristics
FIXED INDEX ANNUITIES ACCOUNT VALUE - INDEX STRATEGIES
| Annual Monthly Average and Point-to-Point with Caps | |||||||||||||||||||
| Minimum Guaranteed Cap | |||||||||||||||||||
| 1% | 3% | 4% | 7% | 8% + | |||||||||||||||
| Current Cap | (Dollars in thousands) | ||||||||||||||||||
| At minimum | $ | 315 | $ | 11,397 | $ | 839,973 | $ | 51,210 | $ | 290,905 | |||||||||
| 2.5% - 3% | 48,088 | — | — | — | — | ||||||||||||||
| 3% - 4% | 1,528,736 | — | — | — | — | ||||||||||||||
| 4% - 5% | 18,459 | 110,498 | 1,236,577 | — | — | ||||||||||||||
| 5% - 6% | — | 6,598 | 2,446,497 | — | — | ||||||||||||||
| 6% - 7% | — | — | 3,205,869 | — | — | ||||||||||||||
| >= 7% | — | 12,766 | 33,767 | 133,463 | 75,672 | ||||||||||||||
| Annual Monthly Average and Point-to-Point with Participation Rates | |||||||||||||||
| Minimum Guaranteed Participation Rate | |||||||||||||||
| 10% | 25% | 35% | 50% + | ||||||||||||
| Current Participation Rate | (Dollars in thousands) | ||||||||||||||
| At minimum | $ | 19 | $ | 338,525 | $ | 175,534 | $ | 215,347 | |||||||
| < 20% | 135,842 | — | — | — | |||||||||||
| 20% - 40% | 106,074 | 497,842 | — | — | |||||||||||
| 40% - 60% | — | 182,519 | 155,519 | 1,488 | |||||||||||
| >= 60% | — | 46 | 232 | 42 | |||||||||||
S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1% (Dollars in thousands) | |||
| Current Cap | |||
| At minimum | $ | 11,970 | |
| 1.6% - 1.8% | 1,512,554 | ||
| 2.0% - 2.4% | 1,576,237 | ||
| >= 2.4% | 1,336,697 | ||
If all caps and participation rates were reduced to minimum caps and participation rates, the cost of options would decrease by 0.63% based upon prices of options for the week ended January 15, 2013.
Page 13
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Summary of Invested Assets
| December 31, 2012 | December 31, 2011 | ||||||||||||
Carrying Amount | Percent | Carrying Amount | Percent | ||||||||||
| (Dollars in thousands) | |||||||||||||
| Fixed maturity securities: | |||||||||||||
| United States Government full faith and credit | $ | 5,154 | — | % | $ | 4,678 | — | % | |||||
| United States Government sponsored agencies | 1,772,025 | 6.5 | % | 4,368,053 | 17.9 | % | |||||||
| United States municipalities, states and territories | 3,578,323 | 13.0 | % | 3,333,383 | 13.7 | % | |||||||
| Foreign government obligations | 105,259 | 0.4 | % | 68,333 | 0.3 | % | |||||||
| Corporate securities | 14,542,860 | 52.8 | % | 10,167,188 | 41.7 | % | |||||||
| Residential mortgage backed securities | 2,888,113 | 10.5 | % | 2,703,290 | 11.1 | % | |||||||
| Commercial mortgage backed securities | 357,982 | 1.3 | % | — | — | % | |||||||
| Other asset backed securities | 998,508 | 3.6 | % | 463,390 | 1.9 | % | |||||||
| Total fixed maturity securities | 24,248,224 | 88.1 | % | 21,108,315 | 86.6 | % | |||||||
| Equity securities | 53,422 | 0.2 | % | 62,845 | 0.2 | % | |||||||
| Mortgage loans on real estate | 2,623,940 | 9.5 | % | 2,823,047 | 11.6 | % | |||||||
| Derivative instruments | 415,258 | 1.5 | % | 273,314 | 1.1 | % | |||||||
| Other investments | 196,366 | 0.7 | % | 115,930 | 0.5 | % | |||||||
| $ | 27,537,210 | 100.0 | % | $ | 24,383,451 | 100.0 | % | ||||||
Credit Quality of Fixed Maturity Securities - December 31, 2012
| NAIC Designation | Carrying Amount | Percent | Rating Agency Rating | Carrying Amount | Percent | |||||||||||
| (Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
| 1 | $ | 15,250,560 | 62.9 | % | Aaa/Aa/A | $ | 14,613,775 | 60.3 | % | |||||||
| 2 | 8,533,121 | 35.2 | % | Baa | 8,190,220 | 33.8 | % | |||||||||
| 3 | 401,789 | 1.7 | % | Ba | 365,102 | 1.5 | % | |||||||||
| 4 | 56,151 | 0.2 | % | B | 79,789 | 0.3 | % | |||||||||
| 5 | — | — | % | Caa and lower | 862,650 | 3.5 | % | |||||||||
| 6 | 6,603 | — | % | In or near default | 136,688 | 0.6 | % | |||||||||
| $ | 24,248,224 | 100.0 | % | $ | 24,248,224 | 100.0 | % | |||||||||
Page 14
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Watch List Securities - December 31, 2012
| General Description | Amortized Cost | Unrealized Losses | Fair Value | Months Below Amortized Cost | ||||||||||
| (Dollars in thousands) | ||||||||||||||
| Corporate bonds: | ||||||||||||||
| Finance | $ | 49,480 | $ | (7,911 | ) | $ | 41,569 | 16 - 25 | ||||||
| Industrial | 38,867 | (3,994 | ) | 34,873 | 17 - 28 | |||||||||
| 88,347 | (11,905 | ) | 76,442 | |||||||||||
Summary of Residential Mortgage Backed Securities
| Collateral Type | Principal Amount | Amortized Cost | Fair Value | |||||||||
| (Dollars in thousands) | ||||||||||||
| OTTI has not been recognized | ||||||||||||
| Government agency | $ | 1,052,139 | $ | 1,024,731 | $ | 1,119,249 | ||||||
| Prime | 862,805 | 821,727 | 877,356 | |||||||||
| Alt-A | 40,631 | 41,164 | 41,685 | |||||||||
| $ | 1,955,575 | $ | 1,887,622 | $ | 2,038,290 | |||||||
| OTTI has been recognized | ||||||||||||
| Prime | $ | 600,945 | $ | 523,048 | $ | 515,385 | ||||||
| Alt-A | 419,868 | 332,867 | 334,438 | |||||||||
| $ | 1,020,813 | $ | 855,915 | $ | 849,823 | |||||||
| Total by collateral type | ||||||||||||
| Government agency | $ | 1,052,139 | $ | 1,024,731 | $ | 1,119,249 | ||||||
| Prime | 1,463,750 | 1,344,775 | 1,392,741 | |||||||||
| Alt-A | 460,499 | 374,031 | 376,123 | |||||||||
| $ | 2,976,388 | $ | 2,743,537 | $ | 2,888,113 | |||||||
| Total by NAIC designation | ||||||||||||
| 1 | $ | 2,477,404 | $ | 2,303,619 | $ | 2,447,562 | ||||||
| 2 | 415,472 | 365,763 | 364,421 | |||||||||
| 3 | 48,054 | 43,778 | 44,734 | |||||||||
| 4 | 31,612 | 27,900 | 29,584 | |||||||||
| 6 | 3,846 | 2,477 | 1,812 | |||||||||
| $ | 2,976,388 | $ | 2,743,537 | $ | 2,888,113 | |||||||
Page 15
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Fixed Maturity Securities by Sector
| December 31, 2012 | December 31, 2011 | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Available for sale: | |||||||||||||||
| United States Government full faith and credit and sponsored agencies | $ | 1,768,379 | $ | 1,777,179 | $ | 1,784,485 | $ | 1,804,457 | |||||||
| United States municipalities, states and territories | 3,116,678 | 3,578,323 | 2,981,699 | 3,333,383 | |||||||||||
| Foreign government obligations | 86,099 | 105,259 | 60,809 | 68,333 | |||||||||||
| Corporate securities: | |||||||||||||||
| Consumer discretionary | 1,237,208 | 1,366,504 | 885,834 | 992,042 | |||||||||||
| Consumer staples | 876,654 | 1,003,651 | 614,531 | 701,192 | |||||||||||
| Energy | 1,463,923 | 1,655,363 | 1,018,520 | 1,141,179 | |||||||||||
| Financials | 2,476,780 | 2,713,351 | 1,808,076 | 1,868,055 | |||||||||||
| Health care | 926,136 | 1,064,097 | 667,014 | 765,274 | |||||||||||
| Industrials | 1,497,435 | 1,672,681 | 1,029,933 | 1,151,961 | |||||||||||
| Information technology | 854,347 | 923,263 | 486,545 | 547,195 | |||||||||||
| Materials | 1,076,133 | 1,189,410 | 562,272 | 627,405 | |||||||||||
| Telecommunications | 356,486 | 400,995 | 251,202 | 268,924 | |||||||||||
| Utilities | 2,143,026 | 2,453,736 | 1,727,993 | 1,988,764 | |||||||||||
| Residential mortgage backed securities: | |||||||||||||||
| Government agency | 1,024,731 | 1,119,249 | 449,720 | 547,987 | |||||||||||
| Prime | 1,344,775 | 1,392,741 | 1,738,801 | 1,761,890 | |||||||||||
| Alt-A | 374,031 | 376,123 | 429,519 | 393,413 | |||||||||||
| Commercial mortgage backed securities: | |||||||||||||||
| Government agency | 35,697 | 37,976 | — | — | |||||||||||
| Other | 319,173 | 320,006 | — | — | |||||||||||
| Other asset backed securities: | |||||||||||||||
| Consumer discretionary | 77,464 | 81,772 | 18,061 | 18,512 | |||||||||||
| Energy | 8,304 | 9,152 | 8,338 | 8,680 | |||||||||||
| Financials | 659,058 | 677,948 | 331,467 | 344,219 | |||||||||||
| Industrials | 154,358 | 166,567 | 57,547 | 61,285 | |||||||||||
| Materials | 28,813 | 29,150 | 5,000 | 5,038 | |||||||||||
| Telecommunications | 14,835 | 17,421 | 7,334 | 8,435 | |||||||||||
| Utilities | 14,459 | 16,498 | 14,762 | 17,221 | |||||||||||
| Redeemable preferred stock - financials | 22,045 | 23,721 | 40,817 | 39,265 | |||||||||||
| $ | 21,957,027 | $ | 24,172,136 | $ | 16,980,279 | $ | 18,464,109 | ||||||||
| Held for investment: | |||||||||||||||
| United States Government sponsored agencies | $ | — | $ | — | $ | 2,568,274 | $ | 2,585,080 | |||||||
| Corporate security - financials | 76,088 | 61,521 | 75,932 | 59,342 | |||||||||||
| $ | 76,088 | $ | 61,521 | $ | 2,644,206 | $ | 2,644,422 | ||||||||
Page 16
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Mortgage Loans on Commercial Real Estate
| December 31, 2012 | December 31, 2011 | |||||||||||||
| Principal | Percent | Principal | Percent | |||||||||||
| (Dollars in thousands) | ||||||||||||||
| Geographic distribution | ||||||||||||||
| East | $ | 732,762 | 27.5 | % | $ | 719,231 | 25.2 | % | ||||||
| Middle Atlantic | 155,094 | 5.8 | % | 169,240 | 5.9 | % | ||||||||
| Mountain | 387,599 | 14.6 | % | 411,054 | 14.4 | % | ||||||||
| New England | 26,385 | 1.0 | % | 36,815 | 1.3 | % | ||||||||
| Pacific | 320,982 | 12.1 | % | 309,693 | 10.8 | % | ||||||||
| South Atlantic | 458,802 | 17.3 | % | 493,764 | 17.3 | % | ||||||||
| West North Central | 370,168 | 13.9 | % | 487,693 | 17.1 | % | ||||||||
| West South Central | 207,091 | 7.8 | % | 228,521 | 8.0 | % | ||||||||
| $ | 2,658,883 | 100.0 | % | $ | 2,856,011 | 100.0 | % | |||||||
| Property type distribution | ||||||||||||||
| Office | $ | 666,467 | 25.1 | % | $ | 777,343 | 27.2 | % | ||||||
| Medical Office | 136,764 | 5.1 | % | 175,580 | 6.1 | % | ||||||||
| Retail | 677,951 | 25.5 | % | 635,916 | 22.3 | % | ||||||||
| Industrial/Warehouse | 692,637 | 26.1 | % | 710,426 | 24.9 | % | ||||||||
| Hotel | 94,045 | 3.5 | % | 139,193 | 4.9 | % | ||||||||
| Apartment | 219,335 | 8.2 | % | 187,548 | 6.6 | % | ||||||||
| Mixed use/other | 171,684 | 6.5 | % | 230,005 | 8.0 | % | ||||||||
| $ | 2,658,883 | 100.0 | % | $ | 2,856,011 | 100.0 | % | |||||||
| December 31, | ||||||||||||||
| 2012 | 2011 | |||||||||||||
| Credit Exposure - By Payment Activity | ||||||||||||||
| Performing | $ | 2,597,440 | $ | 2,743,068 | ||||||||||
| In workout | 26,723 | 67,425 | ||||||||||||
| Delinquent | — | 6,595 | ||||||||||||
| Collateral dependent | 34,720 | 38,923 | ||||||||||||
| 2,658,883 | 2,856,011 | |||||||||||||
| Specific Loan Loss Allowance | (23,134 | ) | (23,664 | ) | ||||||||||
| General Loan Loss Allowance | (11,100 | ) | (9,300 | ) | ||||||||||
| Deferred prepayment fees | (709 | ) | — | |||||||||||
| $ | 2,623,940 | $ | 2,823,047 | |||||||||||
Page 17
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Shareholder Information
Corporate Offices:
American Equity Investment Life Holding Company
6000 Westown Parkway
West Des Moines, IA 50266
Inquiries:
D. J. Noble, Executive Chairman
(515) 457-1703, dnoble@american-equity.com
John M. Matovina, Chief Executive Officer and President
(515) 457-1813, jmatovina@american-equity.com
Debra J. Richardson, Executive Vice President and Secretary
(515) 273-3551, drichardson@american-equity.com
Ted M. Johnson, Chief Financial Officer and Treasurer
(515) 457-1980, tjohnson@american-equity.com
Common Stock and Dividend Information:
New York Stock Exchange symbol: “AEL”
| High | Low | Close | Dividend Declared | ||||
| 2012 | |||||||
| First Quarter | $13.09 | $10.13 | $12.77 | $0.00 | |||
| Second Quarter | $12.95 | $10.00 | $11.01 | $0.00 | |||
| Third Quarter | $12.41 | $10.62 | $11.63 | $0.00 | |||
| Fourth Quarter | $12.40 | $10.56 | $12.21 | $0.15 | |||
| 2011 | |||||||
| First Quarter | $13.93 | $11.27 | $13.12 | $0.00 | |||
| Second Quarter | $13.53 | $11.91 | $12.71 | $0.00 | |||
| Third Quarter | $13.22 | $8.01 | $8.75 | $0.00 | |||
| Fourth Quarter | $11.82 | $8.05 | $10.40 | $0.12 | |||
| 2010 | |||||||
| First Quarter | $10.99 | $6.65 | $10.65 | $0.00 | |||
| Second Quarter | $11.64 | $8.53 | $10.32 | $0.00 | |||
| Third Quarter | $11.19 | $9.19 | $10.24 | $0.00 | |||
| Fourth Quarter | $13.01 | $10.11 | $12.55 | $0.10 | |||
Transfer Agent:
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-0310
Phone: (877) 282-1169
Fax: (781) 575-2723
www.computershare.com
Annual Report and Other Information:
Shareholders may receive when available, without charge, a copy of American Equity’s Annual Report, SEC filings and/or press releases by calling Julie L. LaFollette, Investor Relations, at (515) 273-3602 or by visiting our web site at www.american-equity.com.
Page 18
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement-December 31, 2012
Research Analyst Coverage
Steven Schwartz
Raymond James & Associates, Inc.
(312) 612-7686
steven.schwartz@raymondjames.com
Randy Binner
Friedman, Billings, Ramsey & Co., Inc.
(703) 312-1890
rbinner@fbr.com
Edward Shields
Sandler O’Neill & Partners
(312) 281-3487
eshields@sandleroneill.com
Mark Hughes
SunTrust Robinson Humphrey
(615) 748-5680
mark_hughes@rhco.com
Daniel Furtado
Jefferies & Company, Inc.
(415) 229-1569
dfurtado@jefferies.com
Paul Sarran, Mark Finkelstein
Evercore Partners
(312) 445-6440 mark.finkelstein@evercore.com
(312) 445-6441 paul.sarran@evercore.com
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