American Equity Investment Life : Insurance Company – Second Quarter 2022 Statement

STATEMENT AS OF JUNE 30, 2022 OF THE AMERICAN EQUITY INVESTMENT LIFE INSURANCE COMPANY

ASSETS

			Current Statement Date		4
		1	2		3	December 31
					Net Admitted Assets	Prior Year Net
		Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1.	Bonds	47,949,616,613			47,949,616,613	47,113,897,532
2.	Stocks:
	2.1 Preferred stocks	65,693,642			65,693,642	50,940,039
	2.2 Common stocks	479,185,459			479,185,459	490,043,022

3. Mortgage loans on real estate:

3.1	First liens	6,774,159,923	6,774,159,923	6,192,693,809
3.2	Other than first liens

4. Real estate:

1. Properties occupied by the company (less $ encumbrances)
2. Properties held for the production of income (less

	$		encumbrances)
	4.3 Properties held for sale (less $
	encumbrances)
5.	Cash ($	(27,990,983) ), cash equivalents
	($	845,342,449	) and short-term
	investments ($	744,965,353 )		1,562,316,819		1,562,316,819	3,818,265,839
6.	Contract loans (including $	premium notes)		721,015		721,015	752,389
7.	Derivatives				386,781,994		386,781,994	379,441,218
8.	Other invested assets			1,256,540,555	238,574	1,256,301,981	1,338,461,951
9.	Receivables for securities			567,291,982		567,291,982	36,845,091
10.	Securities lending reinvested collateral assets

11. Aggregate write-ins for invested assets

12.	Subtotals, cash and invested assets (Lines 1 to 11)	59,042,308,001	238,574	59,042,069,427	59,421,340,889
13.	Title plants less $	charged off (for Title insurers
	only)
14.	Investment income due and accrued		500,058,459	2,526,570	497,531,889	452,973,100
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	908,387	791,741	116,646	181,703

15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $

earned but unbilled premiums)		1,002,313		1,002,313	1,035,693
15.3 Accrued retrospective premiums ($	) and
contracts subject to redetermination ($	)

16. Reinsurance:

1. Amounts recoverable from reinsurers
2. Funds held by or deposited with reinsured companies

16.3 Other amounts receivable under reinsurance contracts

323,108,848

171,151,902

151,956,946

22,890,199

17. Amounts receivable relating to uninsured plans

18.1	Current federal and foreign income tax recoverable and interest thereon
18.2	Net deferred tax asset		141,189,361	10,316,851	130,872,510	123,293,729
19.	Guaranty funds receivable or on deposit
20.	Electronic data processing equipment and software	5,382,515	7,544,202	(2,161,687)	1,155,849
21.	Furniture and equipment, including health care delivery assets
	($	)	1,342,997	1,342,997

22. Net adjustment in assets and liabilities due to foreign exchange rates

23.	Receivables from parent, subsidiaries and affiliates	1,344,281		1,344,281	14,888,838
24.	Health care ($	) and other amounts receivable
25.	Aggregate write-ins for other than invested assets	395,129,056	3,397,355	391,731,701	384,660,381
26.	Total assets excluding Separate Accounts, Segregated Accounts and
	Protected Cell Accounts (Lines 12 to 25)	60,411,774,218	197,310,192	60,214,464,026	60,422,420,380

27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts

28.	Total (Lines 26 and 27)	60,411,774,218	197,310,192	60,214,464,026	60,422,420,380
	DETAILS OF WRITE-INS
1101.
1102.
1103.
1198.	Summary of remaining write-ins for Line 11 from overflow page
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)
2501.	COLI	391,197,417		391,197,417	384,254,313
2502.	PREPAID ASSETS	3,055,020	3,055,020
2503.	MISCELLANEOUS RECEIVABLES	855,435	342,335	513,100	376,398
2598.	Summary of remaining write-ins for Line 25 from overflow page	21,184		21,184	29,671
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	395,129,056	3,397,355	391,731,701	384,660,381

2

STATEMENT AS OF JUNE 30, 2022 OF THE AMERICAN EQUITY INVESTMENT LIFE INSURANCE COMPANY

LIABILITIES, SURPLUS AND OTHER FUNDS

						1	2
						Current	December 31
						Statement Date	Prior Year
1.	Aggregate reserve for life contracts $	48,806,717,388	less $	included in Line 6.3
	(including $	5,928,660,585	Modco Reserve)			48,806,717,387	48,808,006,893
2.	Aggregate reserve for accident and health contracts (including $	Modco Reserve)	465,344	501,439
3.	Liability for deposit-type contracts (including $	877,341 Modco Reserve)		510,418,003	213,790,029

4. Contract claims:

4.1	Life		183,134,148	181,496,710
4.2	Accident and health			2,000	1,500
5. Policyholders' dividends/refunds to members $	and coupons $	due
and unpaid

6. Provision for policyholders' dividends, refunds to members and coupons payable in following calendar year - estimated amounts:

6.1 Policyholders' dividends and refunds to members apportioned for payment (including $

	Modco)
6.2	Policyholders' dividends and refunds to members not yet apportioned (including $	Modco)
6.3	Coupons and similar benefits (including $	Modco)

1. Amount provisionally held for deferred dividend policies not included in Line 6
2. Premiums and annuity considerations for life and accident and health contracts received in advance less

$

discount; including $

1,816 accident and health premiums

20,442

28,607

9. Contract liabilities not included elsewhere:

	9.1	Surrender values on canceled contracts
	9.2	Provision for experience rating refunds, including the liability of $		accident and health
		experience rating refunds of which $	is for medical loss ratio rebate per the Public Health
		Service Act
	9.3 Other amounts payable on reinsurance, including $		assumed and $
		ceded
	9.4 Interest Maintenance Reserve			68,134,511	73,496,177
10.	Commissions to agents due or accrued-life and annuity contracts $		7,318,507 , accident and health
	$	and deposit-type contract funds $			7,318,507	13,295,258
11.	Commissions and expense allowances payable on reinsurance assumed
12.	General expenses due or accrued			15,599,476	19,386,737
13.	Transfers to Separate Accounts due or accrued (net) (including $		accrued for expense
	allowances recognized in reserves, net of reinsured allowances)
14.	Taxes, licenses and fees due or accrued, excluding federal income taxes		881,951	2,926,553
15.1 Current federal and foreign income taxes, including $		on realized capital gains (losses)	99,073,422	47,158,305
15.2 Net deferred tax liability

16. Unearned investment income

17.	Amounts withheld or retained by reporting entity as agent or trustee	6,196,772	5,755,733
18.	Amounts held for agents' account, including $	agents' credit balances
19.	Remittances and items not allocated	34,723,688	30,849,470

20. Net adjustment in assets and liabilities due to foreign exchange rates

21. Liability for benefits for employees and agents if not included above

22. Borrowed money $and interest thereon $

23. Dividends to stockholders declared and unpaid

24. Miscellaneous liabilities:

24.01	Asset valuation reserve				410,024,952	347,507,829
24.02 Reinsurance in unauthorized and certified ($	) companies		29,396,119
24.03 Funds held under reinsurance treaties with unauthorized and certified ($	) reinsurers	4,463,838,646	4,591,252,087
24.04	Payable to parent, subsidiaries and affiliates			1,974,537	5,265,320
24.05	Drafts outstanding
24.06	Liability for amounts held under uninsured plans
24.07	Funds held under coinsurance				668,777,472	563,802,573
24.08	Derivatives
24.09	Payable for securities				446,295,934	34,908,122
24.10	Payable for securities lending
24.11 Capital notes $	and interest thereon $
25. Aggregate write-ins for liabilities				452,998,911	1,404,459,176
26. Total liabilities excluding Separate Accounts business (Lines 1 to 25)			56,205,992,222	56,343,888,516

27. From Separate Accounts Statement

28.	Total liabilities (Lines 26 and 27)	56,205,992,222	56,343,888,516
29.	Common capital stock	2,500,000	2,500,000

1. Preferred capital stock
2. Aggregate write-ins for other than special surplus funds

32.	Surplus notes	51,000,000	51,000,000
33.	Gross paid in and contributed surplus	1,589,602,221	1,586,600,540

34. Aggregate write-ins for special surplus funds

35. Unassigned funds (surplus)

2,365,369,583

2,438,431,325

36. Less treasury stock, at cost:

	36.1	shares common (value included in Line 29	$	)
	36.2	shares preferred (value included in Line 30	$	)
37.	Surplus (Total Lines 31+32+33+34+35-36) (including $		in Separate Accounts Statement)	4,005,971,804	4,076,031,864
38.	Totals of Lines 29, 30 and 37				4,008,471,804	4,078,531,864
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)			60,214,464,026	60,422,420,381
	DETAILS OF WRITE-INS
2501.	INTEREST RATE DERIVATIVE COLLATERAL			241,508,736	1,293,317,176
2502.	AMOUNT DUE REINSURERS				200,158,205	111,058,350
2503.	INTEREST EXPENSE D&A SWAPS				10,410,802
2598.	Summary of remaining write-ins for Line 25 from overflow page			921,168	83,650
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)
		452,998,911	1,404,459,176
3101.
3102.
3103.
3198.	Summary of remaining write-ins for Line 31 from overflow page
3199.	Totals (Lines 3101 through 3103 plus 3198)(Line 31 above)
3401.
3402.
3403.
3498.	Summary of remaining write-ins for Line 34 from overflow page
3499.	Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)

3

STATEMENT AS OF JUNE 30, 2022 OF THE AMERICAN EQUITY INVESTMENT LIFE INSURANCE COMPANY

SUMMARY OF OPERATIONS

		1	2	3
		Current Year	Prior Year	Prior Year Ended
		To Date	To Date	December 31
1.	Premiums and annuity considerations for life and accident and health contracts	957,518,514	4,050,146,901	(4,146,608,491)
2.	Considerations for supplementary contracts with life contingencies	2,554,007	3,605,046	8,352,499
3.	Net investment income	1,125,290,130	1,745,085,662	3,456,916,347
4.	Amortization of Interest Maintenance Reserve (IMR)	(1,046,418)	(3,294,720)	(5,703,840)

5. Separate Accounts net gain from operations excluding unrealized gains or losses

6.	Commissions and expense allowances on reinsurance ceded	110,694,691	14,026,130	1,903,134,746
7.	Reserve adjustments on reinsurance ceded	(16,879,103)	(438,801,016)	2,378,342,405

8. Miscellaneous Income:

8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts

	8.2	Charges and fees for deposit-type contracts
	8.3	Aggregate write-ins for miscellaneous income	1,140	10,397	14,677
9.	Totals (Lines 1 to 8.3)	2,178,132,961	5,370,778,399	3,594,448,343
10.	Death benefits	1,483,633	1,445,021	2,620,872
11.	Matured endowments (excluding guaranteed annual pure endowments)
12.	Annuity benefits	615,792,136	647,188,436	1,278,789,702
13.	Disability benefits and benefits under accident and health contracts	42,769	47,839	75,751

14. Coupons, guaranteed annual pure endowments and similar benefits

15.	Surrender benefits and withdrawals for life contracts	1,044,186,544	1,440,769,897	2,774,917,661
16.	Group conversions
17.	Interest and adjustments on contract or deposit-type contract funds	3,647,908	4,814,170	9,290,256
18.	Payments on supplementary contracts with life contingencies	8,310,484	12,004,932	18,623,168
19.	Increase in aggregate reserves for life and accident and health contracts	(1,325,600)
2,995,028,897	(2,075,972,574)
20.	Totals (Lines 10 to 19)	1,672,137,874	5,101,299,191	2,008,344,836

21. Commissions on premiums, annuity considerations, and deposit-type contract funds (direct

	business only)	135,889,015	141,767,372	291,226,295
22.	Commissions and expense allowances on reinsurance assumed	2,660,686	64,946,241	76,234,515
23.	General insurance expenses and fraternal expenses	68,774,692	76,512,872	162,516,398
24.	Insurance taxes, licenses and fees, excluding federal income taxes	10,541,622	9,028,106	17,244,710
25.	Increase in loading on deferred and uncollected premiums	(15,414)	(17,815)	(7,815)
26.	Net transfers to or (from) Separate Accounts net of reinsurance
27.	Aggregate write-ins for deductions	135,461,538	25,042,930	1,673,579,858
28.	Totals (Lines 20 to 27)	2,025,450,013	5,418,578,896	4,229,138,796
29.	Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus
	Line 28)	152,682,948	(47,800,497)	(634,690,453)
30.	Dividends to policyholders and refunds to members
31.	Net gain from operations after dividends to policyholders, refunds to members and before federal
	income taxes (Line 29 minus Line 30)	152,682,948	(47,800,497)	(634,690,453)
32.	Federal and foreign income taxes incurred (excluding tax on capital gains)	45,641,899	28,623,102	210,936,509

33. Net gain from operations after dividends to policyholders, refunds to members and federal income

	taxes and before realized capital gains or (losses) (Line 31 minus Line 32)		107,041,049	(76,423,599)	(845,626,962)
34.	Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital
	gains tax of $	(3,506,078) (excluding taxes of $	(7,097,901)
	transferred to the IMR)			(26,802,210)	(10,720,267)	(18,190,857)
35.	Net income (Line 33 plus Line 34)		80,238,839	(87,143,867)	(863,817,819)
		CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year		4,078,531,864	3,728,731,986	3,728,731,985
37.	Net income (Line 35)			80,238,839	(87,143,867)	(863,817,819)
38.	Change in net unrealized capital gains (losses) less capital gains tax of $	3,302,633	12,424,191	58,392,331	75,178,332
39.	Change in net unrealized foreign exchange capital gain (loss)
40.	Change in net deferred income tax		21,198,265	40,760,993	48,016,145
41.	Change in nonadmitted assets		(39,914,219)	(1,376,623)	(145,640,799)
42.	Change in liability for reinsurance in unauthorized and certified companies		(29,396,119)
43.	Change in reserve on account of change in valuation basis, (increase) or decrease
44.	Change in asset valuation reserve		(62,517,123)	(41,645,446)	(105,774,790)
45.	Change in treasury stock

1. Surplus (contributed to) withdrawn from Separate Accounts during period
2. Other changes in surplus in Separate Accounts Statement
3. Change in surplus notes

49. Cumulative effect of changes in accounting principles

50. Capital changes:

1. Paid in
2. Transferred from surplus (Stock Dividend)
3. Transferred to surplus

51. Surplus adjustment:

1. Paid in
2. Transferred to capital (Stock Dividend)
3. Transferred from capital

	51.4 Change in surplus as a result of reinsurance		(3,980,910)	(69,756,874)
52.	Dividends to stockholders			(250,000,000)
53.	Aggregate write-ins for gains and losses in surplus	(52,093,894)	7,717,746	1,661,595,684
54.	Net change in capital and surplus for the year (Lines 37 through 53)	(70,060,060)	(27,275,775)	349,799,879
55.	Capital and surplus, as of statement date (Lines 36 + 54)	4,008,471,804	3,701,456,211	4,078,531,864
	DETAILS OF WRITE-INS
08.301. MISCELLANEOUS INCOME	1,140
10,397	14,677
08.302.
08.303.
08.398. Summary of remaining write-ins for Line 8.3 from overflow page
08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)	1,140	10,397	14,677
2701.	INCOME ON FUNDS HELD UNDER REINSURANCE TREATIES WITH UNAUTHORIZED REINSURERS	97,716,936	21,298,910	35,797,192
2702.	DEFERRAL OF REINSURANCE GAIN AND TRANSFER OF IMR ON BROOKFIELD	19,084,613		302,494,190
2703.	DEFERRAL OF REINSURANCE GAIN AND TRANSFER OF IMR ON AEL RE VERMONT	15,501,537		1,283,828,456
2798.	Summary of remaining write-ins for Line 27 from overflow page	3,158,452	3,744,020	51,460,020
2799.	Totals (Lines 2701 through 2703 plus 2798)(Line 27 above)	135,461,538	25,042,930	1,673,579,858
5301.	AEL RE VERMONT REINSURANCE TRANSACTION	(41,147,447)		1,260,109,269
5302.	BROOKFIELD REINSURANCE TRANSACTION	(10,833,214)		335,770,038
5303.	AEL RE BERMUDA REINSURANCE TRANSACTION	(3,114,914)		51,350,000
5398.	Summary of remaining write-ins for Line 53 from overflow page	3,001,681	7,717,746	14,366,377
5399.	Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)	(52,093,894)	7,717,746	1,661,595,684

4

STATEMENT AS OF JUNE 30, 2022 OF THE AMERICAN EQUITY INVESTMENT LIFE INSURANCE COMPANY

CASH FLOW

			1	2	3
			Current Year	Prior Year	Prior Year Ended
			To Date	To Date	December 31
	Cash from Operations
1.	Premiums collected net of reinsurance		960,089,839	3,191,861,006	(4,101,108,990)
2.	Net investment income		1,426,909,115	2,048,445,079	4,011,105,445
3.	Miscellaneous income		24,407,448	10,055,618	20,475,854
4.	Total (Lines 1 to 3)		2,411,406,403	5,250,361,703	(69,527,691)
5.	Benefit and loss related payments		1,668,152,738	2,066,770,575	4,040,269,904
6.	Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts
7.	Commissions, expenses paid and aggregate write-ins for deductions		236,491,678	298,136,360	537,095,355
8.	Dividends paid to policyholders
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital
	gains (losses)		(16,877,198)	70,500,000	132,666,792
10.	Total (Lines 5 through 9)		1,887,767,219	2,435,406,935	4,710,032,051
11.	Net cash from operations (Line 4 minus Line 10)		523,639,184	2,814,954,768	(4,779,559,743)

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

12.1	Bonds	4,360,920,341	3,035,241,439	6,087,533,444
12.2	Stocks	353,359,533	10,740,443	361,509,421
12.3	Mortgage loans	1,078,514,007	285,028,771	887,409,497
12.4	Real estate
12.5	Other invested assets	829,267,089	105,761,580	181,329,592
12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	(350,533)		(152,057)
12.7	Miscellaneous proceeds
12.8 Total investment proceeds (Lines 12.1 to 12.7)	6,621,710,437	3,436,772,233	7,517,629,897
13. Cost of investments acquired (long-term only):
13.1	Bonds	5,644,635,924	2,704,269,092	9,885,872,847
13.2	Stocks	46,564,207	355,586,722	550,862,753
13.3	Mortgage loans	1,675,519,680	410,645,511	2,598,899,151
13.4	Real estate
13.5	Other invested assets	689,398,983	149,017,858	499,912,948
13.6	Miscellaneous applications	359,721,145	334,697,608	698,478,376
13.7	Total investments acquired (Lines 13.1 to 13.6)	8,415,839,939	3,954,216,791	14,234,026,075
14. Net increase (or decrease) in contract loans and premium notes	(31,374)	(69,047)	(76,970)
15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)	(1,794,098,128)	(517,375,511)	(6,716,319,207)

Cash from Financing and Miscellaneous Sources

1. Cash provided (applied):
2. 1. Surplus notes, capital notes
   2. Capital and paid in surplus, less treasury stock
   3. Borrowed funds
   4. Net deposits on deposit-type contracts and other insurance liabilities
   5. Dividends to stockholders
   6. Other cash provided (applied)
3. Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5 plus Line 16.6)

292,980,066	(10,701,883)	(20,600,796)
		250,000,000
(1,278,470,141)	612,987,005	8,280,955,841
(985,490,075)	602,285,121	8,010,355,045

	RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18.	Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)	(2,255,949,019)	2,899,864,378	(3,485,523,905)
19.	Cash, cash equivalents and short-term investments:
	19.1 Beginning of year	3,818,265,839	7,303,789,741	7,303,789,741
	19.2 End of period (Line 18 plus Line 19.1)	1,562,316,820	10,203,654,119	3,818,265,836

Note: Supplemental disclosures of cash flow information for non-cash transactions:

20.0001.	MORTGAGE REFINANCES		11,978,381	15,001,030
20.0002.	STOCK BASED COMPENSATION	3,001,681	7,717,746	14,366,377
20.0003.	INVESTMENT FROM SCHEDULE D PT 1 MOVED TO SCHEDULE D PT2 SEC2		2,068,015	2,068,015
20.0004.	UNREALIZED VALUATION INC/(DEC) OF CASH EQUIVALENTS AND SHORT TERM INVESTMENTS	3,150		(3,150)
20.0005.	STOCK DIVIDEND			(80,000,000)
20.0006.	BROOKFIELD CEDING COMMISSION			(127,741,837)

5