American Equity Investment Life : 2Q23 Financial Supplement

Exhibit 99.2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement

June 30, 2023

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 Available to Common Stockholders to Non-GAAP Operating	5
	Income Available to Common Stockholders
	Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common	6
	Stockholders
	Quarterly Summary - Reconciliation from Net Income (Loss) Available to Common Stockholders	7
	to Non-GAAP Operating Income (Loss) Available to Common Stockholders
	Quarterly Summary - Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss)	8
	Available to Common Stockholders
	Capitalization/Book Value per Common Share	9
	Spread Results	10
	Investment Yields	10
B.	Product Summary
	Summary of Cost of Money for Deferred Annuities	11
	Annuity Account Balance Rollforward	11
	MRB Liability	12
	Account Values Subject to Recurring Fees Under Reinsurance Agreements	12
	Annuity Deposits by Product Type	13
	Surrender Charge Protection and Account Values by Product Type	13
	Annuity Liability Characteristics	14

1. Investment Summary

	Summary of Invested Assets	16
	Credit Quality of Fixed Maturity Securities	16
	Watch List Securities	17
	Fixed Maturity Securities by Sector	18
	Mortgage Loans on Real Estate	19
D.	Shareholder Information	21
E.	Research Analyst Coverage	22

Effective January 1, 2023, American Equity Investment Life Holding Company (the "Company") adopted Accounting Standards Update 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company applied this guidance as of the transition date of January 1, 2021, and retrospectively adjusted prior period amounts to reflect the new guidance. The prior period numbers within this financial supplement have been recast, to the extent impacted by LDTI, from the original financial supplements published by the Company.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - June 30, 2023

Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

		June 30, 2023		December 31, 2022
Assets
Investments:
Fixed maturity securities, available for sale, at fair value	$	38,680,457	$	39,804,617
Mortgage loans on real estate		7,373,609			6,949,027
Real estate investments		1,270,213			1,056,063
Limited partnerships and limited liability companies		1,649,959			1,266,779
Derivative instruments		1,131,597			431,727
Other investments		1,412,939			1,817,085
Total investments		51,518,774			51,325,298
Cash and cash equivalents		5,000,657			1,919,669
Coinsurance deposits		14,247,284			13,254,956
Market risk benefits		234,470			229,871
Accrued investment income		488,396			497,851
Deferred policy acquisition costs		2,842,615			2,773,643
Deferred sales inducements		2,134,254			2,045,683
Deferred income taxes		293,466			438,434
Income taxes recoverable		55,678			55,498
Other assets		829,831			642,696
Total assets	$	77,645,425	$	73,183,599
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves	$	59,856,677	$	58,781,836
Market risk benefits		2,673,272			2,455,492
Other policy funds and contract claims		202,251			512,790
Notes and loan payable		788,754			792,073
Subordinated debentures		78,927			78,753
Funds withheld for reinsurance liabilities		7,565,295			6,577,426
Other liabilities		3,885,208			1,614,479
Total liabilities		75,050,384			70,812,849
Stockholders' equity:
Preferred stock, Series A		16			16
Preferred stock, Series B		12			12
Common stock		78,048			84,810
Additional paid-in capital		1,055,963			1,325,316
Accumulated other comprehensive loss		(3,425,248)			(3,746,230)
Retained earnings		4,863,124			4,685,593
Total stockholders' equity attributable to American Equity Investment Life Holding Company		2,571,915			2,349,517
Noncontrolling interests		23,126			21,233
Total stockholders' equity		2,595,041			2,370,750
Total liabilities and stockholders' equity	$	77,645,425	$	73,183,599

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - June 30, 2023

Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

		Three Months Ended			Six Months Ended
		June 30,				June 30,
		2023			2022			2023			2022
Revenues:
Premiums and other considerations	$	2,516	$	3,831	$	6,653	$	13,909
Annuity product charges		71,642			55,514			134,233			107,869
Net investment income		542,685			592,308			1,104,008			1,159,731
Change in fair value of derivatives		242,739			(506,181)			288,629			(983,700)
Net realized losses on investments		(24,679)			(33,272)			(52,466)			(46,399)
Other revenue		16,736			9,408			33,130			18,225
Total revenues		851,639			121,608			1,514,187			269,635
Benefits and expenses:
Insurance policy benefits and change in future policy benefits		5,125			6,998			12,333			20,613
Interest sensitive and index product benefits		122,387			140,346			180,298			428,263
Market risk benefits (gains) losses		(144,124)			(299,278)			39,570			(107,385)
Amortization of deferred sales inducements		46,951			44,696			93,552			89,781
Change in fair value of embedded derivatives		213,764			(885,984)			618,204			(2,279,633)
Interest expense on notes and loan payable		11,227			6,461			22,245			12,886
Interest expense on subordinated debentures		1,338			1,346			2,674			2,663
Amortization of deferred policy acquisition costs		68,476			72,485			136,711			145,454
Other operating costs and expenses		75,697			59,872			149,701			117,667
Total benefits and expenses		400,841			(853,058)			1,255,288			(1,569,691)
Income before income taxes		450,798			974,666			258,899			1,839,326
Income tax expense		95,652			211,377			59,644			396,572
Net income		355,146			763,289			199,255			1,442,754
Less: Net loss available to noncontrolling interests		(217)			(4)			(114)			(4)
Net income available to American Equity Investment Life Holding		355,363			763,293			199,369			1,442,758
Company stockholders
Less: Preferred stock dividends		10,919			10,919			21,838			21,838
Net income available to American Equity Investment Life Holding	$	344,444		$	752,374		$	177,531		$	1,420,920
Company common stockholders
Earnings per common share	$	4.43	$	8.13	$	2.20	$	15.01
Earnings per common share - assuming dilution	$	4.36	$	8.06	$	2.17	$	14.86
Weighted average common shares outstanding (in thousands):
Earnings per common share		77,767			92,544			80,576			94,693
Earnings per common share - assuming dilution		78,928			93,375			81,824			95,652

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - June 30, 2023

Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters

		Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
Revenues:
Traditional life insurance premiums	$	629	$	698	$	626	$	634	$	691
Life contingent immediate annuity considerations		1,887			3,439			2,365			2,205			3,140
Surrender charges		33,777			26,542			22,030			19,783			15,345
Lifetime income benefit rider fees		37,865			36,049			39,636			41,036			40,169
Net investment income		542,685			561,323			537,995			609,737			592,308
Change in fair value of derivatives		242,739			45,890			22,243			(176,671)			(506,181)
Net realized gains (losses) on investments		(24,679)			(27,787)			14,411			(15,860)			(33,272)
Other revenue (a)		16,736			16,394			13,032			10,988			9,408
Total revenues		851,639			662,548			652,338			491,852			121,608
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy		940			1,206			944			118			495
benefits (b)
Life contingent immediate annuity benefits and change in future policy		4,185			6,002			5,004			6,541			6,503
benefits (c)
Interest sensitive and index product benefits		122,387			57,911			57,626			68,982			140,346
Market risk benefits (gains) losses (d)		(144,124)			183,694			33,490			77,579			(299,278)
Amortization of deferred sales inducements		46,951			46,601			45,966			46,223			44,696
Change in fair value of embedded derivatives (e)		213,764			404,440			342,409			(415,374)			(885,984)
Interest expense on notes payable		11,227			11,018			10,228			8,984			6,461
Interest expense on subordinated debentures		1,338			1,336			1,335			1,333			1,346
Amortization of deferred policy acquisition costs		68,476			68,235			66,831			71,726			72,485
Other operating costs and expenses		75,697			74,004			62,389			59,470			59,872
Total benefits and expenses		400,841			854,447			626,222			(74,418)			(853,058)
Income (loss) before income taxes		450,798			(191,899)			26,116			566,270			974,666
Income tax expense (benefit)		95,652			(36,008)			(6,817)			121,380			211,377
Net income (loss) (b)(c)(d)(e)		355,146			(155,891)			32,933			444,890			763,289
Less: Net income (loss) available to noncontrolling interests		(217)			103			361			1			(4)
Net income (loss) available to American Equity Investment Life Holding		355,363			(155,994)			32,572			444,889			763,293
Company stockholders (b)(c)(d)(e)
Less: Preferred stock dividends		10,919			10,919			10,919			10,918			10,919
Net income (loss) available to American Equity Investment Life Holding	$	344,444		$	(166,913)		$	21,653		$	433,971		$	752,374
Company common stockholders (b)(c)(d)(e)
Earnings (loss) per common share	$	4.43	$	(2.00)	$	0.25	$	4.95	$	8.13
Earnings (loss) per common share - assuming dilution (b)(c)(d)(e)	$	4.36	$	(2.00)	$	0.25	$	4.90	$	8.06
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share		77,767			83,417			85,274			87,707			92,544
Earnings (loss) per common share - assuming dilution		78,928			83,417			86,402			88,581			93,375

1. Other revenue consists of reinsurance related fee revenue including asset liability management fees and amortization of the deferred gain associated with the cost of reinsurance.
2. Q3 2022 includes benefit from the update of assumptions used in determining the deferred profit liability. The impact decreased traditional life insurance policy benefits and change in future policy benefits by $0.5 million and increased both net income and net income available to common stockholders by $0.4 million and did not impact earnings per common share - assuming dilution.
3. Q3 2022 includes expense from the update of assumptions used in determining the liability for future policyholder benefits. The impact increased life contingent immediate annuity benefits and change in future policy benefits by $1.3 million and decreased both net income and net income available to common stockholders by $1.0 million and decreased earnings per common share - assuming dilution by $0.01 per share.

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement - June 30, 2023

Unaudited (Dollars in thousands, except per share data)

1. Q3 2022 includes expense from the update of assumptions used in determining the reserves held for market risk benefits. The impact increased market risk benefits (gains) losses by $229.4 million and decreased both net income and net income available to common stockholders by $181.3 million and decreased earnings per common share - assuming dilution by $2.05 per share.
2. Q3 2022 includes a benefit from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact decreased change in fair value of embedded derivatives by $94.8 million and increased both net income and net income available to common stockholders by $74.4 million and increased earnings per common share - assuming dilution by $0.84 per share.

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