American Equity Investment Life Holding Co (AEL) |
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Price: $55.8900
$-0.06
-0.107%
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Day's High:
| $56.15
| Week Perf:
| 0.41 %
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Day's Low: |
$ 55.88 |
30 Day Perf: |
0.92 % |
Volume (M): |
816 |
52 Wk High: |
$ 56.15 |
Volume (M$): |
$ 45,589 |
52 Wk Avg: |
$50.14 |
Open: |
$55.92 |
52 Wk Low: |
$33.89 |
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Market Capitalization (Millions $) |
4,527 |
Shares
Outstanding (Millions) |
81 |
Employees |
490 |
Revenues (TTM) (Millions $) |
2,836 |
Net Income (TTM) (Millions $) |
212 |
Cash Flow (TTM) (Millions $) |
7,853 |
Capital Exp. (TTM) (Millions $) |
50 |
American Equity Investment Life Holding Co
We are a leader in the development and sale of fixed index and fixed rate annuity
products. We were incorporated in the state of Iowa on December 15, 1995. We
issue fixed annuity and life insurance products through our wholly-owned life
insurance subsidiaries, American Equity Investment Life Insurance Company ("American
Equity Life"), American Equity Investment Life Insurance Company of New
York and Eagle Life Insurance Company ("Eagle Life"). We have one
business segment which represents our core business comprised of the sale of
fixed index and fixed rate annuities. Our business strategy is focused on growing
our policyholder funds and earning predictable returns by managing investment
spreads and investment risk. We are licensed to sell our products in 50 states
and the District of Columbia. Throughout this report, unless otherwise specified
or the context otherwise requires
Our target market includes the group of individuals ages 45-75 who are seeking
to accumulate tax-deferred savings or create guaranteed lifetime income. We
believe that significant growth opportunities exist for annuity products because
of favorable demographic and economic trends. According to the U.S. Census Bureau,
there were approximately 39 million Americans age 65 and older in 2010, representing
13% of the U.S. population and this group has grown to 44.7 million in 2013.
By 2030, this sector of the population is expected to increase to 20% of the
total population. Our fixed index and fixed rate annuity products are particularly
attractive to this group due to their principal protection, competitive rates
of credited interest, tax-deferred growth, guaranteed lifetime income and alternative
payout options. Our competitive fixed index and fixed rate annuity products
have enabled us to enjoy favorable growth in recent years and since our formation.
Key elements of executing our strategy include the following:
Enhance our Current Independent Agency Network. We believe that our successful
relationships with approximately 35 national marketing organizations, through
which we have 35,000 independent agents under contract, represent a significant
competitive advantage. Our objective is to improve the productivity and efficiency
of our core distribution channel by focusing our marketing and recruiting efforts
on those independent agents capable of selling $1 million or more of annuity
premium annually. This level of production qualifies them for our Gold Eagle
program which was introduced at the beginning of 2007. We believe the Gold Eagle
program has been effective as evidenced by the number of qualified Gold Eagle
agents ranging from 991 to as many as 1,377 during the last three calendar years.
Our Gold Eagle agents accounted for 65% of total production in 2015, 63% of
total production in 2014 and 61% of total production in 2013. Agents who produce
at least $1 million in annuity premium in a year qualify for Gold Eagle status
and receive benefits such as express mail discounts. Agents who produce at least
$2 million in annuity premium in a year earn cash and equity-based compensation.
The equity-based compensation component of our Gold Eagle program is unique
in our industry and distinguishes us from our competitors. We will also be alert
for opportunities to establish relationships with national marketing organizations
and agents not presently associated with us and will strive to provide all of
our marketers with the highest quality service possible.
Continue to Introduce Innovative and Competitive Products. We intend to be at
the forefront of the fixed index and fixed rate annuity industry in developing
and introducing innovative and new competitive products. We were one of the
first companies to offer a fixed index annuity that allows a choice among interest
crediting strategies including both equity and bond indices as well as a traditional
fixed rate strategy. We were one of the first companies to include a lifetime
income benefit rider with our fixed index annuities and first to have a lifetime
income benefit rider with gender-based income payments. We believe that our
continued focus on anticipating and being responsive to the product needs of
our independent agents and policyholders will lead to increased customer loyalty,
revenues and profitability.
Use our Expertise to Achieve Targeted Spreads on Annuity Products. We have had
a successful track record in achieving the targeted spreads on our annuity products.
This historical success has been challenged in the current extended low interest
rate environment. However, we intend to continue to leverage our experience
and expertise in managing the investment spread during a range of interest rate
environments to achieve, or work towards achieving, our targeted spreads.
Maintain our Profitability Focus and Improve Operating Efficiency. We are committed
to improving our profitability by advancing the scope and sophistication of
our investment management and spread capabilities and continuously seeking out
efficiencies within our operations. We have implemented competitive incentive
programs for our national marketing organizations, agents and employees to stimulate
performance.
Take Advantage of the Growing Popularity of Index Products. We believe that
the growing popularity of fixed index annuity products that allow equity and
bond market participation without the risk of loss of the premium deposit presents
an attractive opportunity to grow our business. The popularity of fixed index
annuity products has increased in recent years with the availability of lifetime
income benefit riders that provide an attractive alternative for converting
accumulated retirement savings into lifetime income. We intend to capitalize
on our reputation as a leading provider of fixed index annuities in this expanding
segment of the annuity market.
Focus on High Quality Service to Agents and Policyholders. We have maintained
high quality personal service as one of our highest priorities since the inception
of our company and continue to strive for an unprecedented level of timely and
accurate service to both our agents and policyholders. Examples of our high
quality service include answering our phone calls by a live person and issuing
policies within 24 hours of receiving the application if the paperwork is in
good order. We believe high quality service is one of our strongest competitive
advantages and intend to continue enhancing our digital customer service experience
for agents and policyholders.
Expand our Distribution Channels. We formed Eagle Life with the vision of developing
a network of broker/dealers, banks and registered investment advisors that have
the ability to distribute fixed index and fixed rate annuity products in large
volume.
Company Address: 6000 Westown Parkway West Des Moines 50266 IA
Company Phone Number: 221-0002 Stock Exchange / Ticker: NYSE AEL
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Customers Net Income fell by |
AEL's Customers Net Profit Margin fell to |
-46.78 % |
9.52 %
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Stock Performances by Major Competitors |
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Stock Market Announcement
Published Wed, Mar 13 2024 7:43 PM UTC
Brookfield Reinsurance Acquisition of American Equity Investment Life Holding Company Moves Forward Brookfield Reinsurance has announced that the Iowa Insurance Division has set a hearing date of April 5, 2024 for the acquisition of American Equity Investment Life Holding Company. This acquisition has been highly anticipated, with Brookfield Reinsurance (BNRE) making sig...
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American Equity Investment Life Holding Co
The financial results reported by American Equity Investment Life Holding Company for the fourth quarter of 2023 and the financial 12 months of 2023 have presented a mixed picture of the company's performance. While there are certain positive aspects to highlight, there are also areas of concern that may impact the company going forward. One positive aspect is the strong sales of fixed index annuities, which remained robust throughout the fourth quarter. This was attributed to the company's focus on guaranteed retirement income product offerings. The emphasis on these products has contributed to the company's overall success in the fixed index annuity market.
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American Equity Investment Life Holding Co
During the past week, American Equity Investment Life Holding Co stock showed improvement with a 1.65% increase, bringing its year-to-date performance to 16.74%. Despite this growth, the stock is still 1.5% short of its 52-week high. On the financial side, American Equity Investment Life Holding Co reported a significant increase in income of 70.67% to $5.82 per share. However, the company experienced a decline in revenue of -45.786% to $266.65 million in the most recent fiscal period compared to the previous year. This represents a substantial drop from $851.64 million in the preceding financial reporting period. Despite the decline in revenue, the company's net income in the fiscal third quarter of 2023 rose by 52.31% to $476.114 million compared to $312.601 million in the same quarter the previous year. American Equity Investment Life Holding Co also highlighted its improving profit margins, with a net margin increase to 178.55% and an operating margin increase to 335.07% in the fiscal third quarter of 2023. However, the company's operating earnings showed more modest improvement, increasing by 51.29% to $893.464 million. Additionally, the level of accounts receivable has declined to $443.6 million, which some analysts believe may be due to slowing demand. Looking ahead, the next financial results report from American Equity Investment Life Holding Co is expected on February 27, 2024. The company's President and CEO, Anant Bhalla, highlighted the company's record sales in the independent agent channel and bank and broker-dealer channel, as well as an increase in the investment portfolio yield from the second quarter of 2023In summary, American Equity Investment Life Holding Co experienced stock improvement during the past week. While the company reported a decline in revenue, it saw a significant increase in income. The company's net income and profit margins also showed improvement. These positive indicators suggest that American Equity Investment Life Holding Co is making strides towards strong financial performance.
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Dividend
Published Wed, Nov 1 2023 8:15 PM UTC
American Equity Investment Life Holding Company Announces Dividend Declaration for Series A Preferred Stock In an exciting development for investors, American Equity Investment Life Holding Company (NYSE: AEL) has declared a cash dividend of $371.8750000 per share of its 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A. This announcement comes as a result ...
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American Equity Investment Life Holding Co
As an avid investor and financial analyst, I closely follow the quarterly reports of various companies, always searching for potential investment opportunities. Today, I am pleased to analyze the second-quarter financial results of American Equity Investment Life Holding Co and provide some insights for the esteemed readers of the Wall Street Journal. In what appears to be a promising performance, American Equity Investment Life Holding Co announced a surge in income for the second quarter of 2023. Income saw a significant increase of 16.58%, reaching $4.36 per share, compared to $3.74 per share in the same period last year. More impressively, the company managed to turn its EPS from a negative $-2.00 per share in the prior financial reporting period into a positive figure. This improvement showcases the diligent efforts of the management team to enhance profitability and deliver growth to shareholders.
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Per Share |
Current |
Earnings (TTM) |
2.13 $ |
Revenues (TTM) |
35.01 $
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Cash Flow (TTM) |
96.95 $ |
Cash |
120.65 $
|
Book Value |
37.63 $
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Dividend (TTM) |
0 $ |
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Per Share |
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Earnings (TTM) |
2.13 $
|
Revenues (TTM) |
35.01 $ |
Cash Flow (TTM) |
96.95 $ |
Cash |
120.65 $
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Book Value |
37.63 $ |
Dividend (TTM) |
0 $ |
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