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AEL American Equity Investment Life Holding

American Equity Investment Life Insurance Company® is a full-service underwriter of fixed annuity products, with a primary emphasis on the sale of index annuities. Headquartered in West Des Moines, Iowa, American Equity Investment Life Insurance Company is committed to providing products with integrity, as well as superior service to the agents it partners with and their policyholders.

Company profile

Ticker
AEL, AEL-PA, AEL-PB
Exchange
CEO
Anant Bhalla
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
IRS number
421447959

AEL stock data

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Calendar

10 May 21
2 Aug 21
31 Dec 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
22 Jun 21 John M Matovina Common Stock Sell Dispose S No No 32.2607 4,200 135.49K 137,124
10 Jun 21 Gerlach James M Common Stock Grant Aquire A No No 0 3,021 0 232,688
10 Jun 21 Chapman Joyce Ann Common Stock Grant Aquire A No No 0 3,021 0 41,135
10 Jun 21 Matula Alan David Common Stock Grant Aquire A No No 0 3,021 0 29,241
10 Jun 21 Cushing Brenda J Common Stock Grant Aquire A No No 0 3,021 0 16,021

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

93.5% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 228 244 -6.6%
Opened positions 28 69 -59.4%
Closed positions 44 35 +25.7%
Increased positions 73 57 +28.1%
Reduced positions 94 87 +8.0%
13F shares
Current Prev Q Change
Total value 2.81B 2.46B +14.2%
Total shares 89.2M 89.05M +0.2%
Total puts 14.9K 41.63K -64.2%
Total calls 51.1K 185.9K -72.5%
Total put/call ratio 0.3 0.2 +30.2%
Largest owners
Shares Value Change
BLK Blackrock 13.76M $433.9M +1.8%
Vanguard 10.63M $335.14M +3.0%
BAM Brookfield Asset Management 9.11M $287.11M 0.0%
Dimensional Fund Advisors 7.02M $221.35M -3.1%
MCQEF Macquarie 4.83M $152.17M -3.8%
STT State Street 3.26M $102.71M +2.0%
River Road Asset Management 3.14M $98.96M +37.2%
Clearbridge Advisors 2.72M $85.89M -0.4%
PZN Pzena Investment Management 2.26M $71.21M +52.5%
GS Goldman Sachs 1.76M $55.53M +18.2%
Largest transactions
Shares Bought/sold Change
Kohlberg Kravis Roberts & Co. 0 -2.75M EXIT
Lakewood Capital Management 1.58M +1.58M NEW
Norges Bank 0 -1.43M EXIT
Rubric Capital Management 1M +1M NEW
Paulson & Co. 0 -1M EXIT
River Road Asset Management 3.14M +850.94K +37.2%
PZN Pzena Investment Management 2.26M +777.24K +52.5%
Kennedy Capital Management 662.36K +662.36K NEW
NTRS Northern Trust 1.6M -601.97K -27.3%
Lord, Abbett & Co. 467.6K +467.6K NEW

Financial report summary

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Risks
  • Our business, financial condition, results of operations and cash flows depend on the accuracy of management assumptions and estimates. Significant deviations between estimated and actual results could lead to significant gains or losses and significant volatility in our net income.
  • Fluctuations in interest rates could adversely affect our business, financial condition, results of operations and cash flows.
  • Our investments are subject to market, credit, liquidity and concentration risks, which could adversely affect our business, financial condition, results of operations, and cash flows.
  • Defaults on mortgage loans and volatility in performance may adversely affect our business, financial condition, results of operations and cash flows.
  • Volatility in the equity market and/or interest rates could increase the cost of options purchased to fund annual index credits and adversely impact our business, financial condition, results of operations and cash flows.
  • We are subject to the credit risk of our counterparties, including companies with whom we have reinsurance agreements or have purchased call options.
  • We utilize and rely on third parties to perform various services for the Company. Failure of these third parties to meet our service level objectives or abide by regulatory requirements could adversely affect our business, financial condition, results of operations and cash flows.
  • We face competition from companies that have greater financial resources, broader arrays of products and higher ratings, which may limit our ability to retain existing customers, attract new customers and could adversely affect our financial condition, results of operations and cash flows.
  • If we are unable to attract and retain independent marketing organizations, independent agents, broker/dealers, banks and registered investment advisors, sales of our products may be adversely affected.
  • Our operations support complex transactions and are highly dependent on the proper functioning of information technology and communication systems. Any failure or security breach of our information technology or communications systems could adversely affect our reputation, business, financial condition, results of operations and cash flows.
  • A downgrade in our credit or financial strength ratings may increase our cost of capital, reduce new sales, adversely affect relationships with distributors and increase policy surrenders and withdrawals.
  • We may require additional capital to support our business and sustain future growth which may not be available when needed or may be available only on unfavorable terms.
  • Conditions in the U.S. and global capital markets and economies could deteriorate in the near future and adversely affect our business, financial condition, results of operations and cash flows.
  • Major public health issues, specifically the COVID-19 pandemic, and the resulting economic uncertainty, may adversely impact our business, financial condition and results of operations.
  • Failure to authorize and pay dividends on our preferred stock could adversely impact our business and our ability to pay dividends on our common stock. Dividends on the Series A and B Preferred Stock are not cumulative and are not mandatory.
  • We are a holding company with limited operations of our own. As a consequence, our ability to pay dividends on our common and preferred stock will depend on the ability of our subsidiaries to pay dividends and other permissible payments to us, which may be restricted by law.
  • Our business model relies on executing reinsurance and investment management agreements with affiliated and non-affiliated entities, some or all of which may require regulatory approval. Failure to receive regulatory approval, failure to receive regulatory approval in a timely manner or being unable to successfully execute our business strategies could adversely affect our business, financial condition, results of operations and cash flows and the value of our common and preferred stock.
  • We face risks relating to litigation and regulatory examination, including the costs of such litigation or examination, management distraction and the potential for damage awards, fines, penalties or other required remediation, which may adversely affect our business, financial condition, results of operations and cash flows.
  • Changes in laws and regulations applicable to our business may adversely affect our business, financial condition, results of operations and cash flows.
  • Changes in federal income taxation laws, including any reduction in individual income tax rates, may adversely affect our business, financial condition, results of operations and cash flows.
  • Changes in corporate tax rates and laws may adversely affect our business, financial condition, results of operations and cash flows.
Management Discussion
  • Annuity deposits before coinsurance ceded decreased 26% during 2020 compared to 2019. Annuity deposits after coinsurance ceded decreased 22% during 2020 compared to 2019. The decrease in sales in 2020 compared to 2019 was primarily due to the impact of the COVID-19 pandemic, including limitations on face to face meetings and increased social distancing requirements, as well as competitive pressures within each of our distribution channels. We continue to face a challenging environment for sales of fixed index annuities due to a highly competitive market.
  • We coinsure 80% of the annuity deposits received from certain multi-year rate guaranteed annuities and 20% of certain fixed index annuities sold by Eagle Life through broker/dealers and banks. The decrease in coinsurance ceded premiums in 2020 was attributable to a decrease in certain multi-year rate guaranteed annuities and fixed index annuities sold by Eagle Life during 2020 compared to 2019.
  • Net income available to common stockholders increased 173% to $671.5 million in 2020 and decreased 46% to $246.1 million in 2019 from $458.0 million in 2018. The increase in net income available to common stockholders for the year ended December 31, 2020 was primarily a result of the impact of assumption updates made during 2020 compared to the impact of assumption updates made during 2019.
Content analysis
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Positive
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H.S. junior Avg
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