American National (ANG-PB) 8-K American Equity Reports Fourth Quarter and Full Year 2019 Results

Exhibit 99.2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement

December 31, 2019

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 (Loss) to Non-GAAP Operating Income	6
	Quarterly Summary - Summary of Adjustments to Arrive at Non-GAAP Operating Income	7
	Capitalization/Book Value per Common 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 - December 31, 2019

Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

	December 31, 2019		December 31, 2018
Assets
Investments:
Fixed maturity securities, available for sale, at fair value	$	51,580,490	$	45,923,727
Mortgage loans on real estate	3,448,793		2,943,091
Derivative instruments	1,355,989		205,149
Other investments	492,301		355,531
Total investments	56,877,573		49,427,498
Cash and cash equivalents	2,293,392		344,396
Coinsurance deposits	5,115,013		4,954,068
Accrued investment income	472,826		468,729
Deferred policy acquisition costs	2,923,454		3,535,838
Deferred sales inducements	1,966,723		2,516,721
Deferred income taxes	—		291,169
Income taxes recoverable	—		26,537
Other assets	47,571		60,608
Total assets	$	69,696,552	$	61,625,564
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves	$	61,893,945	$	57,606,009
Other policy funds and contract claims	256,105		270,858
Notes payable	495,116		494,591
Subordinated debentures	157,265		242,982
Amounts due under repurchase agreements	—		109,298
Deferred income taxes	177,897		—
Income taxes payable	429		—
Other liabilities	2,145,676		502,725
Total liabilities	65,126,433		59,226,463
Stockholders' equity:
Preferred stock	16		—
Common stock	91,107		90,369
Additional paid-in capital	1,212,311		811,186
Accumulated other comprehensive income (loss)	1,497,921		(52,432		)
Retained earnings	1,768,764		1,549,978
Total stockholders' equity	4,570,119		2,399,101
Total liabilities and stockholders' equity	$	69,696,552	$	61,625,564

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

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,
	2019			2018			2019			2018
Revenues:
Premiums and other considerations	$	8,846		$	4,430		$	23,534		$	26,480
Annuity product charges	62,722			60,394			240,035			224,488
Net investment income	588,217			554,355			2,307,635			2,147,812
Change in fair value of derivatives	466,434			(1,054,281		)	906,906			(777,848		)
Net realized gains (losses) on investments, excluding other than temporary impairment (OTTI) losses	7,029			3,097			6,962			(37,178		)
OTTI losses on investments:
Total OTTI losses	(17,412		)	(18,980		)	(18,511		)	(35,005		)
Portion of OTTI losses recognized from other comprehensive income	—			—			(215		)	(1,651		)
Net OTTI losses recognized in operations	(17,412		)	(18,980		)	(18,726		)	(36,656		)
Loss on extinguishment of debt	(2,001		)	—			(2,001		)	—
Total revenues	1,113,835			(450,985		)	3,464,345			1,547,098
Benefits and expenses:
Insurance policy benefits and change in future policy benefits	11,553			7,439			35,418			39,530
Interest sensitive and index product benefits	399,514			255,700			1,287,576			1,610,835
Amortization of deferred sales inducements	91,260			(11,578		)	88,585			222,201
Change in fair value of embedded derivatives	147,879			(804,026		)	1,454,042			(1,389,491		)
Interest expense on notes payable	6,384			6,376			25,525			25,498
Interest expense on subordinated debentures	3,651			4,041			15,764			15,491
Amortization of deferred policy acquisition costs	133,573			(8,750		)	87,717			327,991
Other operating costs and expenses	39,194			33,597			154,153			129,301
Total benefits and expenses	833,008			(517,201		)	3,148,780			981,356
Income before income taxes	280,827			66,216			315,565			565,742
Income tax expense	60,677			12,393			69,475			107,726
Net income	$	220,150		$	53,823		$	246,090		$	458,016
Earnings per common share	$	2.41		$	0.59		$	2.70		$	5.07
Earnings per common share - assuming dilution	$	2.40		$	0.59		$	2.68		$	5.01
Weighted average common shares outstanding (in thousands):
Earnings per common share	91,314			90,555			91,139			90,348
Earnings per common share - assuming dilution	91,883			91,622			91,782			91,423

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters

	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
Revenues:
Traditional life insurance premiums	$	762		$	778		$	799		$	829		$	845
Life contingent immediate annuity considerations	8,084			4,374			3,327			4,581			3,585
Surrender charges	15,092			20,537			19,480			16,456			15,710
Lifetime income benefit rider fees	47,630			43,110			41,220			36,510			44,684
Net investment income	588,217			590,412			570,568			558,438			554,355
Change in fair value of derivatives	466,434			(20,042		)	76,045			384,469			(1,054,281		)
Net realized gains (losses) on investments, excluding OTTI	7,029			4,328			(3,832		)	(563		)	3,097
Net OTTI losses recognized in operations	(17,412		)	(101		)	(1,213		)	—			(18,980		)
Loss on extinguishment of debt	(2,001		)	—			—			—			—
Total revenues	1,113,835			643,396			706,394			1,000,720			(450,985		)
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits	835			758			576			878			731
Life contingent immediate annuity benefits and change in future policy benefits	10,718			6,869			6,363			8,421			6,708
Interest sensitive and index product benefits (a)	399,514			500,285			251,103			136,674			255,700
Amortization of deferred sales inducements (b)	91,260			(55,769		)	19,785			33,309			(11,578		)
Change in fair value of embedded derivatives (c)	147,879			212,278			327,562			766,323			(804,026		)
Interest expense on notes payable	6,384			6,382			6,380			6,379			6,376
Interest expense on subordinated debentures	3,651			3,968			4,057			4,088			4,041
Amortization of deferred policy acquisition costs (b)	133,573			(120,934		)	29,946			45,132			(8,750		)
Other operating costs and expenses	39,194			38,554			37,426			38,979			33,597
Total benefits and expenses	833,008			592,391			683,198			1,040,183			(517,201		)
Income (loss) before income taxes	280,827			51,005			23,196			(39,463		)	66,216
Income tax expense (benefit)	60,677			13,645			4,606			(9,453		)	12,393
Net income (loss) (a)(b)(c)	$	220,150		$	37,360		$	18,590		$	(30,010	)	$	53,823
Earnings (loss) per common share	$	2.41		$	0.41		$	0.20		$	(0.33	)	$	0.59
Earnings (loss) per common share - assuming dilution (a)(b)(c)	$	2.40		$	0.41		$	0.20		$	(0.33	)	$	0.59
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share	91,314			91,252			91,103			90,883			90,555
Earnings (loss) per common share - assuming dilution	91,883			91,711			91,785			91,744			91,622

(a) Q3 2019 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 $315.4 million and decreased net income and earnings per common share - assuming dilution by $247.3 million and $2.70 per share, respectively.

(b) Q3 2019 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $104.7 million and $193.0 million, respectively, and increased net income and earnings per common share - assuming dilution by $233.4 million and $2.54 per share, respectively.

(c) Q3 2019 includes expense from the revision 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 $28.2 million and decreased net income and earnings per common share - assuming dilution by $22.1 million and $0.24 per share, respectively.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

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   December 31,						Year Ended   December 31,
	2019			2018			2019			2018
Net income	$	220,150		$	53,823		$	246,090		$	458,016
Adjustments to arrive at non-GAAP operating income: (a)
Net realized investment gains/losses, including OTTI	7,606			9,525			7,361			45,450
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(127,777		)	36,186			373,221			(72,181		)
Change in fair value of derivatives - interest rate caps and swap	(167		)	1,276			1,247			(1,892		)
Income taxes	26,023			(10,475		)	(79,736		)	(3,653		)
Non-GAAP operating income	$	125,835		$	90,335		$	548,183		$	425,740
Per common share - assuming dilution:
Net income	$	2.40		$	0.59		$	2.68		$	5.01
Adjustments to arrive at non-GAAP operating income:
Net realized investment gains/losses, including OTTI	0.08			0.10			0.08			0.50
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(1.39		)	0.40			4.07			(0.79		)
Change in fair value of derivatives - interest rate caps and swap	—			0.01			0.01			(0.02		)
Income taxes	0.28			(0.11		)	(0.87		)	(0.04		)
Non-GAAP operating income	$	1.37		$	0.99		$	5.97		$	4.66

(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.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

Summary of Adjustments to Arrive at Non-GAAP Operating Income

	Three Months Ended   December 31,						Year Ended   December 31,
	2019			2018			2019			2018
Net realized investment gains and losses, including OTTI:
Net realized gains/losses on investments, including OTTI	$	10,383		$	15,883		$	11,764		$	73,834
Amortization of DAC and DSI	(2,777		)	(6,358		)	(4,403		)	(28,384		)
Income taxes	(1,643		)	(2,374		)	875			(12,282		)
	$	5,963		$	7,151		$	8,236		$	33,168
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities	$	(222,927	)	$	212,253		$	368,650		$	(42,394	)
Interest rate caps and swap	(167		)	1,276			1,247			(1,892		)
Amortization of DAC and DSI	95,150			(176,067		)	4,571			(29,787		)
Income taxes	27,666			(8,101		)	(80,611		)	16,077
	$	(100,278	)	$	29,361		$	293,857		$	(57,996	)
Worthless stock deduction:
Income taxes	$	—		$	—		$	—		$	(7,448	)

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES

Quarterly Summary - Most Recent 5 Quarters

Reconciliation from Net Income (Loss) to Non-GAAP Operating Income

	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
Net income (loss)	$	220,150		$	37,360		$	18,590		$	(30,010	)	$	53,823
Adjustments to arrive at non-GAAP operating income: (a)
Net realized investment gains/losses, including OTTI	7,606			(3,175		)	2,625			305			9,525
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(127,777		)	250,186			99,868			150,944			36,186
Change in fair value of derivatives - interest rate caps and swap	(167		)	(76		)	854			636			1,276
Income taxes	26,023			(50,940		)	(22,346		)	(32,473		)	(10,475		)
Non-GAAP operating income (b)(c)	$	125,835		$	233,355		$	99,591		$	89,402		$	90,335
Per common share - assuming dilution:
Net income (loss)	$	2.40		$	0.41		$	0.20		$	(0.33	)	$	0.59
Adjustments to arrive at non-GAAP operating income:
Net realized investment gains/losses, including OTTI	0.08			(0.04		)	0.03			—			0.10
Change in fair value of derivatives and embedded derivatives - fixed index annuities	(1.39		)	2.73			1.09			1.64			0.40
Change in fair value of derivatives - interest rate caps and swap	—			—			0.01			0.01			0.01
Income taxes	0.28			(0.56		)	(0.24		)	(0.35		)	(0.11		)
Non-GAAP operating income (b)(c)	$	1.37		$	2.54		$	1.09		$	0.97		$	0.99

(a) Adjustments to net income (loss) 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) Q3 2019 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 $315.4 million and decreased non-GAAP operating income and non-GAAP operating income per common share - assuming dilution by $247.3 million and $2.70 per share, respectively.

(c) Q3 2019 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $184.9 million and $288.3 million, respectively, and increased non-GAAP operating income and non-GAAP operating income per common share- assuming dilution by $371.0 million and $4.05 per share, respectively.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES

Summary of Adjustments to Arrive at Non-GAAP Operating Income

	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
Net realized (gains) losses on investments	$	(7,029	)	$	(4,328	)	$	3,832		$	563		$	(3,097	)
Net OTTI losses recognized in operations	17,412			101			1,213			—			18,980
Change in fair value of derivatives	(370,973		)	(79,943		)	(108,662		)	(524,567		)	1,017,555
Increase (decrease) in total revenues	(360,590		)	(84,170		)	(103,617		)	(524,004		)	1,033,438
Amortization of deferred sales inducements	(37,374		)	(57,408		)	49,101			35,494			77,745
Change in fair value of embedded derivatives	(147,879		)	(212,278		)	(327,562		)	(766,323		)	804,026
Amortization of deferred policy acquisition costs	(54,999		)	(61,419		)	71,497			54,940			104,680
Increase (decrease) in total benefits and expenses	(240,252		)	(331,105		)	(206,964		)	(675,889		)	986,451
Increase in income (loss) before income taxes	(120,338		)	246,935			103,347			151,885			46,987
Increase (decrease) in income tax expense (benefit)	(26,023		)	50,940			22,346			32,473			10,475
Increase (decrease) in net income (loss)	$	(94,315	)	$	195,995		$	81,001		$	119,412		$	36,512

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

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

Capitalization/Book Value per Common Share

	Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
Capitalization:
Notes payable	$	500,000		$	500,000		$	500,000		$	500,000		$	500,000
Subordinated debentures payable to subsidiary trusts	159,272			247,362			247,294			247,227			247,161
Total debt	659,272			747,362			747,294			747,227			747,161
Total stockholders’ equity	4,570,119			4,126,716			3,497,475			2,939,537			2,399,101
Total capitalization	5,229,391			4,874,078			4,244,769			3,686,764			3,146,262
Accumulated other comprehensive (income) loss (AOCI)	(1,497,921		)	(1,639,429		)	(1,049,984		)	(513,697		)	52,432
Total capitalization excluding AOCI (a)	$	3,731,470		$	3,234,649		$	3,194,785		$	3,173,067		$	3,198,694
Total stockholders’ equity	$	4,570,119		$	4,126,716		$	3,497,475		$	2,939,537		$	2,399,101
Equity available to preferred stockholders (c)	(400,000		)	—			—			—			—
Total common stockholders' equity (b)	4,170,119			4,126,716			3,497,475			2,939,537			2,399,101
Accumulated other comprehensive (income) loss	(1,497,921		)	(1,639,429		)	(1,049,984		)	(513,697		)	52,432
Total common stockholders’ equity excluding AOCI (b)	$	2,672,198		$	2,487,287		$	2,447,491		$	2,425,840		$	2,451,533
Common shares outstanding	91,107,555			91,006,950			90,936,324			90,784,123			90,369,229
Book Value per Common Share: (d)
Book value per common share (b)	$	45.77		$	45.35		$	38.46		$	32.38		$	26.55
Book value per common share excluding AOCI (b)	$	29.33		$	27.33		$	26.91		$	26.72		$	27.13
Debt-to-Capital Ratios: (e)
Senior debt / Total capitalization	13.4		%	15.5		%	15.7		%	15.8		%	15.6		%
Total debt / Total capitalization	17.7		%	23.1		%	23.4		%	23.5		%	23.4		%

(a) Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.

(b) 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 total common stockholder's equity excluding AOCI, non-GAAP financial measures, exclude equity available to preferred stockholders.

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

(e) 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, 2019

Unaudited (Dollars in thousands)

Spread Results

Year Ended   December 31,
2019	2018		Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018
4.52%	4.47%	Average yield on invested assets	4.52%	4.59%	4.51%	4.48%	4.51%
1.84%	1.87%	Aggregate cost of money	1.75%	1.84%	1.88%	1.90%	1.95%
2.68%	2.60%	Aggregate investment spread	2.77%	2.75%	2.63%	2.58%	2.56%
		Impact of:
0.06%	0.08%	Investment yield - additional prepayment income	0.08%	0.11%	0.04%	0.01%	0.09%
0.03%	0.05%	Cost of money effect of over hedging	0.05%	0.02%	0.04%	0.02%	0.03%
$51,072,498	$48,104,780	Weighted average investments	$52,141,459	$51,529,850	$50,709,966	$49,908,718	$49,258,548

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,
2019			2018				Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
						Included in interest sensitive and index product benefits:
$	587,818		$	1,285,555		Index credits	$	277,798		$	92,343		$	161,752		$	55,925		$	157,999
196,907			214,166			Interest credited	49,482			49,511			50,478			47,436			53,559
						Included in change in fair value of derivatives:
(605,005		)	(1,307,755		)	Proceeds received at option expiration	(284,624		)	(95,491		)	(166,430		)	(58,460		)	(162,433		)
781,841			739,558			Pro rata amortization of option cost	188,984			195,354			199,006			198,497			198,999
$	961,561		$	931,524		Cost of money for deferred annuities	$	231,640		$	241,717		$	244,806		$	243,398		$	248,124
$	52,278,357		$	49,855,778		Weighted average liability balance outstanding	$	53,092,419		$	52,682,886		$	52,009,407		$	51,328,715		$	50,832,984

Annuity Account Balance Rollforward

Year Ended   December 31,
2019			2018				Q4 2019			Q3 2019			Q2 2019			Q1 2019			Q4 2018
$	51,053,450		$	48,400,755		Account balances at beginning of period	$	52,950,937		$	52,414,835		$	51,603,979		$	51,053,450		$	50,612,519
4,661,171			3,967,928			Net deposits	838,761			1,216,720			1,425,325			1,180,365			1,040,857
177,942			179,465			Premium bonuses	36,983			46,968			48,370			45,621			44,450
784,725			1,499,721			Fixed interest credited and index credits	327,280			141,854			212,230			103,361			211,558
(71,565		)	(65,644		)	Surrender charges	(15,092		)	(20,537		)	(19,480		)	(16,456		)	(15,710		)
(168,470		)	(158,844		)	Lifetime income benefit rider fees	(47,630		)	(43,110		)	(41,220		)	(36,510		)	(44,684		)
(3,203,355		)	(2,769,931		)	Surrenders, withdrawals, deaths, etc.	(857,341		)	(805,793		)	(814,369		)	(725,852		)	(795,540		)
$	53,233,898		$	51,053,450		Account balances at end of period	$	53,233,898		$	52,950,937		$	52,414,835		$	51,603,979		$	51,053,450

Page 9

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands)

Annuity Deposits by Product Type

Year Ended   December 31,
2019		2018			Q4 2019		Q3 2019		Q2 2019		Q1 2019		Q4 2018
				American Equity Life:
$	4,058,638	$	3,560,881	Fixed index annuities	$	765,180	$	1,054,796	$	1,211,004	$	1,027,658	$	944,097
11,245		45,636		Annual reset fixed rate annuities	1,843		2,340		3,614		3,448		5,574
1,613		3,581		Multi-year fixed rate annuities	306		593		566		148		332
12,002		23,813		Single premium immediate annuities	4,873		3,314		1,747		2,068		2,893
4,083,498		3,633,911			772,202		1,061,043		1,216,931		1,033,322		952,896
				Eagle Life:
646,903		660,401		Fixed index annuities	67,784		166,081		235,558		177,480		162,847
199		1,555		Annual reset fixed rate annuities	6		—		66		127		484
232,613		109,096		Multi-year fixed rate annuities	81,041		79,000		47,004		25,568		12,802
879,715		771,052			148,831		245,081		282,628		203,175		176,133
				Consolidated:
4,705,541		4,221,282		Fixed index annuities	832,964		1,220,877		1,446,562		1,205,138		1,106,944
11,444		47,191		Annual reset fixed rate annuities	1,849		2,340		3,680		3,575		6,058
234,226		112,677		Multi-year fixed rate annuities	81,347		79,593		47,570		25,716		13,134
12,002		23,813		Single premium immediate annuities	4,873		3,314		1,747		2,068		2,893
4,963,213		4,404,963		Total before coinsurance ceded	921,033		1,306,124		1,499,559		1,236,497		1,129,029
290,040		413,222		Coinsurance ceded	77,399		86,090		72,487		54,064		85,279
$	4,673,173	$	3,991,741	Net after coinsurance ceded	$	843,634	$	1,220,034	$	1,427,072	$	1,182,433	$	1,043,750

Surrender Charge Protection and Account Values by Product Type

Annuity Surrender Charges and Net (of Coinsurance) Account Values at December 31, 2019:

	Surrender Charge			Net Account Value
Product Type	Avg. Years At Issue	Avg. Years Remaining	Avg. % Remaining	Dollars in Thousands		%
Fixed Index Annuities	12.9	6.9	11.0%	$	51,200,043	96.2	%
Annual Reset Fixed Rate Annuities	9.6	3.4	6.2%	1,421,259		2.7	%
Multi-Year Fixed Rate Annuities	4.2	0.7	1.9%	612,596		1.1	%
Total	12.7	6.7	10.8%	$	53,233,898	100.0	%

Page 10

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands)

Annuity Liability Characteristics

Surrender Charge Percentages:	Fixed Annuities Account Value		Fixed Index Annuities Account Value
No surrender charge	$	809,540	$	2,646,816
0.0% < 2.0%	13,700		226,563
2.0% < 3.0%	9,894		481,526
3.0% < 4.0%	59,363		1,484,260
4.0% < 5.0%	54,923		1,157,238
5.0% < 6.0%	90,011		2,553,299
6.0% < 7.0%	285,493		1,134,898
7.0% < 8.0%	67,225		5,126,742
8.0% < 9.0%	38,681		3,915,131
9.0% < 10.0%	106,631		4,192,664
10.0% or greater	498,394		28,280,906
	$	2,033,855	$	51,200,043

Surrender Charge Expiration By Year:	Fixed and Fixed Index Annuities Account Value		Weighted Average Surrender Charge
Out of Surrender Charge	$	3,456,356	0.00	%
2020	741,765		2.58	%
2021	1,219,601		4.33	%
2022	1,747,549		5.46	%
2023	4,244,073		6.00	%
2024	5,256,078		8.30	%
2025	5,918,598		9.31	%
2026	5,266,175		10.84	%
2027	4,462,910		12.25	%
2028	4,781,322		13.12	%
2029	6,000,531		14.28	%
2030	2,578,809		17.11	%
2031	3,144,762		17.86	%
2032	2,145,751		18.30	%
2033	1,252,193		18.75	%
2034	699,504		19.33	%
2035	317,921		20.00	%
	$	53,233,898	10.78	%

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

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	$	958,763	$	1,334,400
› 0.0% - 0.25%	51,338		168,517
› 0.25% - 0.5%	241,152		5,826
› 0.5% - 1.0%	37,957		12,745
› 1.0% - 1.5%	11,704		—
1.00% ultimate guarantee - 2.39% wtd avg interest rate (a)	456,845		671,589
1.50% ultimate guarantee - 1.20% wtd avg interest rate (a)	145,717		3,425,873
1.75% ultimate guarantee - 1.98% wtd avg interest rate (a)	49,359		461,336
2.00% ultimate guarantee - 1.85% wtd avg interest rate (a)	81,020		—
2.25% ultimate guarantee - 1.84% wtd avg interest rate (a)	—		815,101
3.00% ultimate guarantee - 2.05% wtd avg interest rate (a)	—		1,566,836
Allocated to index strategies (see tables that follow)	—		42,737,820
	$	2,033,855	$	51,200,043

(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 December 31, 2019 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.16%.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

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	$	1,434	$	91,846	$	4,810,024	$	67,045	$	158,331
1.75% - 3%	8,374,483		—		—		—		—
3% - 4%	264,045		12,531		—		—		—
4% - 5%	786,914		224,780		1,644,751		—		—
5% - 6%	601,161		195,814		32,070		—		—
6% - 7%	—		—		422		—		—
>= 7%	10,895		6,819		710		5,961		183

Annual Monthly Average and Point-to-Point with Participation Rates
	Minimum Guaranteed Participation Rate
	10%		20% - 25%		35%		50% +
Current Participation Rate
At minimum	$	980	$	368,796	$	101,284	$	108,619
< 20%	772,874		—		—		—
20% - 40%	1,026,625		161,404		—		—
40% - 60%	3,119,243		93,718		59,843		—
60% - 100%	449,364		—		—		—
> 100%	364,083		—		—		—

S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum	$	1,704,610
1.10% - 1.30%	7,695,584
1.40% - 1.60%	2,319,064
1.70% - 2.00%	434,754
>= 2.10%	1,653

Volatility Control Index
Current Asset Fee
At Maximum	$	—
0.75% - 1.75%	406,445
2.25% - 2.75%	210,571
3.00% - 3.50%	3,155,631
3.75% - 4.50%	1,579,560

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 0.70% based upon prices of options for the week ended January 29, 2020.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands)

Summary of Invested Assets

	December 31, 2019				December 31, 2018
	Carrying Amount		Percent		Carrying Amount		Percent
Fixed maturity securities:
United States Government full faith and credit	$	161,765	0.3	%	$	11,652	—	%
United States Government sponsored agencies	625,020		1.1	%	1,138,529		2.3	%
United States municipalities, states and territories	4,527,671		7.9	%	4,126,267		8.3	%
Foreign government obligations	205,096		0.3	%	230,274		0.5	%
Corporate securities	32,536,839		57.2	%	28,371,514		57.4	%
Residential mortgage backed securities	1,575,664		2.8	%	1,202,159		2.4	%
Commercial mortgage backed securities	5,786,279		10.2	%	5,379,003		10.9	%
Other asset backed securities	6,162,156		10.8	%	5,464,329		11.1	%
Total fixed maturity securities	51,580,490		90.6	%	45,923,727		92.9	%
Mortgage loans on real estate	3,448,793		6.1	%	2,943,091		6.0	%
Derivative instruments	1,355,989		2.4	%	205,149		0.4	%
Other investments	492,301		0.9	%	355,531		0.7	%
	$	56,877,573	100.0	%	$	49,427,498	100.0	%

Credit Quality of Fixed Maturity Securities - December 31, 2019

NAIC Designation	Carrying Amount		Percent		Rating Agency Rating	Carrying Amount		Percent
1	$	30,122,657	58.4	%	Aaa/Aa/A	$	30,662,644	59.4	%
2	20,316,911		39.4	%	Baa	19,833,309		38.4	%
3	977,191		1.9	%	Ba	821,902		1.6	%
4	112,534		0.2	%	B	81,407		0.2	%
5	45,205		0.1	%	Caa	95,676		0.2	%
6	5,992		—	%	Ca and lower	85,552		0.2	%
	$	51,580,490	100.0	%		$	51,580,490	100.0	%

Watch List Securities - December 31, 2019

General Description	Amortized Cost		Unrealized Gains (Losses)			Fair Value		Months Below Amortized Cost
Below investment grade
Corporate securities:
Consumer discretionary	$	52,654	$	(3,575	)	$	49,079	0 - 59
Energy	38,386		(5,742		)	32,644		0 - 64
Industrials	563		(363		)	200		7
Materials	3,990		560			4,550		—
Other asset backed securities:
Financials	977		261			1,238		—
Industrials	8,364		(2,420		)	5,944		50
	$	104,934	$	(11,279	)	$	93,655

Page 14

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector

	December 31, 2019				December 31, 2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale:
United States Government full faith and credit and sponsored agencies	$	763,164	$	786,785	$	1,220,340	$	1,150,181
United States municipalities, states and territories	4,147,343		4,527,671		3,880,703		4,126,267
Foreign government obligations	186,993		205,096		226,860		230,274
Corporate securities:
Capital goods	2,550,750		2,794,986		2,491,620		2,485,845
Consumer discretionary	6,082,974		6,658,120		5,742,182		5,665,192
Energy	2,499,030		2,677,646		2,543,114		2,468,545
Financials	6,737,325		7,323,150		6,046,859		6,054,591
Government non-guaranteed	539,639		606,308		564,912		578,657
Industrials	311,269		336,537		302,078		298,620
Information technology	1,868,131		2,051,175		1,794,676		1,781,800
Materials	1,818,048		1,961,033		1,771,359		1,759,325
Other	439,171		469,344		434,228		432,739
Telecommunications	1,510,836		1,664,350		1,604,307		1,594,978
Transportation	1,486,540		1,603,997		1,438,723		1,428,378
Utilities	3,978,459		4,390,193		3,749,080		3,822,844
Residential mortgage backed securities:
Government agency	591,100		646,787		604,998		636,632
Prime	793,357		815,916		420,350		434,991
Alt-A	93,281		112,961		109,275		130,536
Commercial mortgage backed securities:
Government agency	414,626		437,420		442,287		438,063
Non-agency	5,176,541		5,348,859		5,049,984		4,940,940
Other asset backed securities:
Auto	403,860		411,371		315,439		318,616
Energy	7,495		8,603		—		—
Financials	4,967		5,493		8,322		8,931
Industrials	167,466		171,273		217,358		216,724
Collateralized loan obligations	4,787,402		4,612,694		4,579,467		4,320,168
Military housing	471,621		539,029		438,350		464,071
Other	407,558		413,693		134,319		135,819
	$	48,238,946	$	51,580,490	$	46,131,190	$	45,923,727

Page 15

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

Unaudited (Dollars in thousands)

Mortgage Loans on Commercial Real Estate

	December 31, 2019						December 31, 2018
	Principal			Percent			Principal		Percent
Geographic distribution
East	$	645,991		18.7		%	$	586,773	19.9	%
Middle Atlantic	284,597			8.2		%	168,969		5.7	%
Mountain	389,892			11.3		%	357,642		12.1	%
New England	9,152			0.3		%	9,418		0.3	%
Pacific	655,518			19.0		%	521,363		17.7	%
South Atlantic	751,199			21.7		%	694,599		23.5	%
West North Central	302,534			8.7		%	291,890		9.9	%
West South Central	420,031			12.1		%	321,810		10.9	%
	$	3,458,914		100.0		%	$	2,952,464	100.0	%
Property type distribution
Office	$	250,287		7.3		%	$	268,932	9.1	%
Medical office	29,990			0.9		%	33,467		1.1	%
Retail	1,225,670			35.4		%	1,091,627		37.0	%
Industrial/Warehouse	896,558			25.9		%	762,887		25.8	%
Apartment	858,679			24.8		%	600,638		20.3	%
Agricultural	51,303			1.5		%	25,000		0.9	%
Mixed use/other	146,427			4.2		%	169,913		5.8	%
	$	3,458,914		100.0		%	$	2,952,464	100.0	%
	December 31, 2019			December 31, 2018
Credit exposure - by payment activity
Performing	$	3,458,914		$	2,952,464
In workout	—			—
Delinquent	—			—
Collateral dependent	—			—
	3,458,914			2,952,464
Specific loan loss allowance	(229		)	(229		)
General loan loss allowance	(8,950		)	(8,010		)
Deferred prepayment fees	(942		)	(1,134		)
	$	3,448,793		$	2,943,091

Page 16

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

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
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
2018
First Quarter	$35.79	$28.90	$29.36	$0.00
Second Quarter	$37.16	$27.06	$36.00	$0.00
Third Quarter	$38.57	$34.51	$35.36	$0.00
Fourth Quarter	$36.39	$25.27	$27.94	$0.28
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

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 17

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - December 31, 2019

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

Mark A. Dwelle

RBC Capital Markets, LLC

(804) 782-4008

mark.dwelle@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

Page 18