American Equity Reports Record Operating
Earnings of $29.2 Million or $0.48 Per Diluted
Common Share for the Second Quarter 2010
August 04, 2010 04:17 PM Eastern Daylight Time
WEST DES MOINES, Iowa--(EON: Enhanced Online News)--American Equity Investment Life Holding
Company (NYSE: AEL), a leading underwriter of index and fixed rate annuities, reported record operating income1
of $29.2 million, or $0.48 per diluted common share for the second quarter of 2010, a 35% increase over 2009
second quarter operating income of $21.6 million, or $0.38 per common diluted share. Highlights for the second
quarter and first six months of 2010 include:
l American Equity’s annuity sales (before coinsurance) increased 5% to $1.9 billion for the first six months of
2010 compared to $1.8 billion for the same period in 2009.
l Invested assets at June 30, 2010 increased 21% to $17.3 billion compared to $14.3 billion at June 30, 2009.
l Investment spread on annuity liabilities reached a record 3.23% for the second quarter of 2010 compared to
2.97% for the same period in 2009.
l Book value per share including accumulated other comprehensive income of increased to $15.85 at June 30,
2010 compared to $13.08 at December 31, 2009.
l The Securities and Exchange Commission (“SEC”) declared effective the registration statement for the
company’s first registered index annuity to be offered by subsidiary Eagle Life Insurance Company.
Net loss for the second quarter of 2010 was $1.5 million, compared to net income of $9.0 million for the same
period in 2009. The net loss for the second quarter of 2010 included $30.5 million for the impact of fair value
accounting for index annuity derivatives and embedded derivativescompared to a reduction in net income of $13.9
million for the same period in 2009. The increase in the impact of this item during the second quarter of 2010 reflects
a decline from the preceding quarter in the risk-adjusted discount rate utilized in the fair value measurement of index