AMERICAN EQUITY INVESTMENT LIFE HOLDING CO - FORM 8-K - EX-99.2 - FINANCIAL SUPPLEMENT - February 17, 2021

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Exhibit 99.2



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement

December 31, 2020

A.Financial Highlights
Non-GAAP Financial Measures
B.Product Summary
C.Investment Summary
D.
E.




AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2020December 31, 2019
Assets
Investments:
Fixed maturity securities, available for sale, at fair value$47,538,893 $51,580,490 
Mortgage loans on real estate4,165,489 3,448,793 
Derivative instruments1,310,954 1,355,989 
Other investments590,078 492,301 
Total investments53,605,414 56,877,573 
Cash and cash equivalents9,095,522 2,293,392 
Coinsurance deposits4,844,927 5,115,013 
Accrued investment income398,082 472,826 
Deferred policy acquisition costs2,045,812 2,923,454 
Deferred sales inducements1,328,857 1,966,723 
Income taxes recoverable862 — 
Other assets70,198 47,571 
Total assets$71,389,674 $69,696,552 
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves$61,768,246 $61,893,945 
Other policy funds and contract claims240,904 256,105 
Notes payable495,668 495,116 
Subordinated debentures78,112 157,265 
Deferred income taxes564,003 177,897 
Income taxes payable— 429 
Other liabilities1,668,025 2,145,676 
Total liabilities64,814,958 65,126,433 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 — 
Common stock95,721 91,107 
Additional paid-in capital1,681,127 1,212,311 
Accumulated other comprehensive income2,429,285 1,497,921 
Retained earnings2,368,555 1,768,764 
Total stockholders' equity6,574,716 4,570,119 
Total liabilities and stockholders' equity$71,389,674 $69,696,552 


Page 1


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended 
 December 31,		Year Ended 
 December 31,
2020201920202019
Revenues:
Premiums and other considerations$10,279 $8,846 $39,382 $23,534 
Annuity product charges65,963 62,722 251,227 240,035 
Net investment income521,725 588,217 2,182,078 2,307,635 
Change in fair value of derivatives443,867 466,434 34,666 906,906 
Net realized gains (losses) on investments(12,135)7,029 (80,680)6,962 
Other than temporary impairment (OTTI) losses on investments:
Total OTTI losses— (17,412)— (18,511)
Portion of OTTI losses recognized from other comprehensive income— — — (215)
Net OTTI losses recognized in operations— (17,412)— (18,726)
Loss on extinguishment of debt— (2,001)(2,024)(2,001)
Total revenues1,029,699 1,113,835 2,424,649 3,464,345 
Benefits and expenses:
Insurance policy benefits and change in future policy benefits13,066 11,553 49,742 35,418 
Interest sensitive and index product benefits325,912 399,514 1,543,270 1,287,576 
Amortization of deferred sales inducements22,768 91,260 438,164 88,585 
Change in fair value of embedded derivatives568,836 147,879 (1,286,787)1,454,042 
Interest expense on notes payable6,391 6,384 25,552 25,525 
Interest expense on subordinated debentures1,325 3,651 5,557 15,764 
Amortization of deferred policy acquisition costs26,145 133,573 649,554 87,717 
Other operating costs and expenses55,321 39,194 183,636 154,153 
Total benefits and expenses1,019,764 833,008 1,608,688 3,148,780 
Income before income taxes9,935 280,827 815,961 315,565 
Income tax expense1,193 60,677 144,501 69,475 
Net income8,742 220,150 671,460 246,090 
Less: Preferred stock dividends15,004 — 33,515 — 
Net income (loss) available to common stockholders$(6,262)$220,150 $637,945 $246,090 
Earnings (loss) per common share$(0.07)$2.41 $6.93 $2.70 
Earnings (loss) per common share - assuming dilution$(0.07)$2.40 $6.90 $2.68 
Weighted average common shares outstanding (in thousands):
Earnings (loss) per common share92,904 91,314 92,055 91,139 
Earnings (loss) per common share - assuming dilution93,352 91,883 92,392 91,782 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019
Revenues:
Traditional life insurance premiums$701 $708 $722 $823 $762 
Life contingent immediate annuity considerations9,578 9,699 10,310 6,841 8,084 
Surrender charges17,009 16,447 19,390 19,705 15,092 
Lifetime income benefit rider fees48,954 45,830 44,048 39,844 47,630 
Net investment income521,725 543,331 543,704 573,318 588,217 
Change in fair value of derivatives443,867 205,011 327,662 (941,874)466,434 
Net realized gains (losses) on investments
(12,135)(22,321)(25,888)(20,336)7,029 
Net OTTI losses recognized in operations— — — — (17,412)
Loss on extinguishment of debt— — — (2,024)(2,001)
Total revenues1,029,699 798,705 919,948 (323,703)1,113,835 
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits
1,091 655 702 621 835 
Life contingent immediate annuity benefits and change in future policy benefits
11,975 12,618 12,629 9,451 10,718 
Interest sensitive and index product benefits (a)325,912 576,147 240,992 400,219 399,514 
Amortization of deferred sales inducements (b)(d)22,768 416,983 (75,178)73,591 91,260 
Change in fair value of embedded derivatives (c)(d)568,836 (1,732,497)1,126,935 (1,250,061)147,879 
Interest expense on notes payable6,391 6,388 6,388 6,385 6,384 
Interest expense on subordinated debentures1,325 1,323 1,321 1,588 3,651 
Amortization of deferred policy acquisition costs (b)(d)26,145 622,596 (119,889)120,702 133,573 
Other operating costs and expenses55,321 42,738 41,951 43,626 39,194 
Total benefits and expenses1,019,764 (53,049)1,235,851 (593,878)833,008 
Income (loss) before income taxes9,935 851,754 (315,903)270,175 280,827 
Income tax expense (benefit) (e)1,193 184,554 (68,474)27,228 60,677 
Net income (loss) (a)(b)(c)(d)(e)8,742 667,200 (247,429)242,947 220,150 
Less: Preferred stock dividends15,004 5,950 5,950 6,611 — 
Net income (loss) available to common stockholders (a)(b)(c)(d)(e)$(6,262)$661,250 $(253,379)$236,336 $220,150 
Earnings (loss) per common share$(0.07)$7.20 $(2.76)$2.58 $2.41 
Earnings (loss) per common share - assuming dilution (a)(b)(c)(d)(e)$(0.07)$7.17 $(2.76)$2.57 $2.40 
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share92,904 91,861 91,803 91,644 91,314 
Earnings (loss) per common share - assuming dilution93,352 92,163 92,027 92,021 91,883 
(a)Q3 2020 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $285.8 million and decreased both net income and net income available to common stockholders by $224.4 million and decreased earnings per common share - assuming dilution by $2.44 per share.
(b)Q3 2020 includes expense from the revision of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $391.4 million and $589.2 million, respectively, and decreased both net income and net income available to common stockholders by $769.8 million and decreased earnings per common share - assuming dilution by $8.35 per share.
(c)Q3 2020 includes a benefit from the revision 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 $2,111.1 million and increased both net income and net income available to common stockholders by $1,657.2 million and increased earnings per common share - assuming dilution by $17.98 per share.
(d)Q2 2020 includes a benefit from the revision 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 $230.1 million, increased amortization of deferred sales inducements and deferred policy acquisition costs by $36.7 million and $57.6 million, respectively, and decreased both net loss and net loss available to common stockholders by $106.5 million and reduced loss per common share - assuming dilution by $1.16 per share.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands, except per share data)

(e)Q1 2020 includes a tax benefit related to the provision of the Coronavirus Aid, Relief, and Economic Security Act, (“the CARES ACT”)  which was signed into legislation on March 27, 2020 and allows net operating losses for 2018 through 2020 to be carried back to previous tax years in which a 35% statutory tax rate was in effect. The impact reduced income tax expense and increased both net income and net income available to common stockholders by $30.8 million and increased earnings per common share - assuming dilution by $0.33 per share.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
In addition to net income (loss) available to common stockholders, we have consistently utilized non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Non-GAAP operating income available to common stockholders equals net income (loss) available to common stockholders adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income available to common stockholders eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income available to common stockholders together with net income (loss) available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders
Three Months Ended 
 December 31,		Year Ended 
 December 31,
2020201920202019
Net income (loss) available to common stockholders$(6,262)$220,150 $637,945 $246,090 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses9,369 7,606 59,355 7,361 
Change in fair value of derivatives and embedded derivatives - fixed index annuities90,616 (127,777)(783,157)373,221 
Change in fair value of derivatives - interest rate caps and swap— (167)(848)1,247 
Income taxes(21,996)26,023 155,808 (79,736)
Non-GAAP operating income available to common stockholders$71,727 $125,835 $69,103 $548,183 
Per common share - assuming dilution:
Net income (loss) available to common stockholders$(0.07)$2.40 $6.90 $2.68 
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized gains/losses on financial assets, including credit losses0.10 0.08 0.64 0.08 
Change in fair value of derivatives and embedded derivatives - fixed index annuities0.97 (1.39)(8.47)4.07 
Change in fair value of derivatives - interest rate caps and swap— — (0.01)0.01 
Income taxes(0.23)0.28 1.69 (0.87)
Non-GAAP operating income available to common stockholders$0.77 $1.37 $0.75 $5.97 
(a)Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) where applicable.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income Available to Common Stockholders
Three Months Ended 
 December 31,		Year Ended 
 December 31,
2020201920202019
Net realized gains/losses on financial assets, including credit losses:
Net realized gains/losses on financial assets, including credit losses$11,374 $10,383 $79,330 $11,764 
Amortization of DAC and DSI(2,005)(2,777)(19,975)(4,403)
Income taxes(2,024)(1,643)(12,821)875 
$7,345 $5,963 $46,534 $8,236 
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities$152,386 $(222,927)$(1,279,644)$368,650 
Interest rate caps and swap— (167)(848)1,247 
Amortization of DAC and DSI(61,770)95,150 496,487 4,571 
Income taxes(19,972)27,666 168,629 (80,611)
$70,644 $(100,278)$(615,376)$293,857 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
Quarterly Summary - Most Recent 5 Quarters
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss) Available to Common Stockholders
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019
Net income (loss) available to common stockholders$(6,262)$661,250 $(253,379)$236,336 $220,150 
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses9,369 15,145 18,492 16,349 7,606 
Change in fair value of derivatives and embedded derivatives -
fixed index annuities
90,616 (1,176,909)423,590 (120,454)(127,777)
Change in fair value of derivatives - interest rate caps and swap— — — (848)(167)
Income taxes(21,996)250,701 (95,599)22,702 26,023 
Non-GAAP operating income (loss) available to common stockholders (b)(c)(d)$71,727 $(249,813)$93,104 $154,085 $125,835 
Per common share - assuming dilution:
Net income (loss) available to common stockholders$(0.07)$7.17 $(2.76)$2.57 $2.40 
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders:
Anti-dilutive effect of net loss— — 0.01 — — 
Anti-dilutive effect of operating loss— 0.01 — — — 
Net realized gains/losses on financial assets, including credit losses0.10 0.16 0.20 0.17 0.08 
Change in fair value of derivatives and embedded derivatives - fixed index annuities
0.97 (12.77)4.60 (1.31)(1.39)
Change in fair value of derivatives - interest rate caps and swap— — — (0.01)— 
Income taxes(0.23)2.71 (1.04)0.25 0.28 
Non-GAAP operating income (loss) available to common stockholders (b)(c)(d)$0.77 $(2.72)$1.01 $1.67 $1.37 
(a)Adjustments to net income (loss) available to common stockholders to arrive at non-GAAP operating income (loss) available to common stockholders are presented net of related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs where applicable.
(b)Q3 2020 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index products by $285.8 million and increased non-GAAP operating loss available to common stockholders and non-GAAP operating loss available to common stockholders per common share - assuming dilution by $224.4 million and $2.44 per share, respectively.
(c)Q3 2020 includes expense from the revision of assumptions which increased amortization of deferred sales inducements and deferred policy acquisition costs by $57.5 million and $91.0 million, respectively, and increased non-GAAP operating loss available to common stockholders and non-GAAP operating loss available to common stockholders per common share - assuming dilution by $116.5 million and $1.26 per share, respectively.
(d)Q1 2020 includes a tax benefit related to the provision of the CARES ACT which was signed into legislation on March 27, 2020 and allows net operating losses for 2018 through 2020 to be carried back to previous tax years in which a 35% statutory tax rate was in effect. The impact reduced income tax expense and increased non-GAAP operating income available to common stockholders and non-GAAP operating income available to common stockholders per common share - assuming dilution by $30.8 million and $0.33 per share, respectively.
Page 7


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019
Net realized (gains) losses on investments$12,135 $22,321 $25,888 $20,336 $(7,029)
Net OTTI losses recognized in operations— — — — 17,412 
Change in fair value of derivatives(416,450)(203,088)(413,489)1,039,322 (370,973)
Increase (decrease) in total revenues(404,315)(180,767)(387,601)1,059,658 (360,590)
Amortization of deferred sales inducements22,785 (303,710)115,511 (29,683)(37,374)
Change in fair value of embedded derivatives(568,836)1,732,497 (1,126,935)1,250,061 (147,879)
Interest sensitive and index product benefits (a)761 1,298 612 (1,321)— 
Amortization of deferred policy acquisition costs40,990 (449,088)181,129 (54,446)(54,999)
Increase (decrease) in total benefits and expenses(504,300)980,997 (829,683)1,164,611 (240,252)
Increase in income (loss) before income taxes99,985 (1,161,764)442,082 (104,953)(120,338)
Increase (decrease) in income tax expense (benefit)21,996 (250,701)95,599 (22,702)(26,023)
Increase (decrease) in net income (loss) available to common stockholders$77,989 $(911,063)$346,483 $(82,251)$(94,315)
(a)Interest sensitive and index product benefits adjustment reflects the change in the allowance for credit losses on our reinsurance recoverable/coinsurance deposits under a revised impairment model for financial assets measured at amortized cost which we were required to adopt on January 1, 2020. The change in this allowance is reflected in the net realized gains/losses of financial assets, including credit losses line in the other Non-GAAP financial measures tables in this financial supplement.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share
Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019
Capitalization:
Notes payable$500,000 $500,000 $500,000 $500,000 $500,000 
Subordinated debentures payable to subsidiary trusts78,112 78,037 77,964 77,893 159,272 
Total debt
578,112 578,037 577,964 577,893 659,272 
Total stockholders’ equity6,574,716 6,118,734 5,062,059 3,522,757 4,570,119 
Total capitalization7,152,828 6,696,771 5,640,023 4,100,650 5,229,391 
Accumulated other comprehensive income (AOCI)(2,429,285)(2,112,111)(1,719,839)(219,974)(1,497,921)
Total capitalization excluding AOCI (a)
$4,723,543 $4,584,660 $3,920,184 $3,880,676 $3,731,470 
Total stockholders’ equity$6,574,716 $6,118,734 $5,062,059 $3,522,757 $4,570,119 
Equity available to preferred stockholders (b)(700,000)(700,000)(700,000)(400,000)(400,000)
Total common stockholders' equity (c)
5,874,716 5,418,734 4,362,059 3,122,757 4,170,119 
Accumulated other comprehensive income(2,429,285)(2,112,111)(1,719,839)(219,974)(1,497,921)
Total common stockholders’ equity excluding AOCI (c)
3,445,431 3,306,623 2,642,220 2,902,783 2,672,198 
Net impact of fair value accounting for derivatives and embedded derivatives
(166,453)(237,099)685,839 353,853 448,924 
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (c)
$3,278,978 $3,069,524 $3,328,059 $3,256,636 $3,121,122 
Common shares outstanding95,720,622 91,931,837 91,595,066 91,497,841 91,107,555 
Book Value per Common Share: (d)
Book value per common share$61.37 $58.94 $47.62 $34.13 $45.77 
Book value per common share excluding AOCI (c)$35.99 $35.97 $28.85 $31.73 $29.33 
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (c)
$34.26 $33.39 $36.33 $35.59 $34.26 
Debt-to-Capital Ratios: (e)
Senior debt / Total capitalization10.6 %10.9 %12.8 %12.9 %13.4 %
Total debt / Total capitalization12.2 %12.6 %14.7 %14.9 %17.7 %
(a)Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.
(b)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(c)Total common stockholders' equity, total common stockholders' equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives, non-GAAP financial measures, exclude equity available to preferred stockholders. Total common stockholders’ equity and book value per common share excluding AOCI, non-GAAP financial measures, are based on common stockholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale securities, we believe these non-GAAP financial measures provide useful supplemental information. Total common stockholders' equity and book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives. Since the net impact of fair value accounting for our derivatives and embedded derivatives fluctuates from quarter to quarter and the most significant impacts relate to fair value accounting for our fixed index annuity business and are not economic in nature but rather impact the timing of reported results, we believe these non-GAAP financial measures provide useful supplemental information.
(d)Book value per common share including and excluding AOCI and book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives are calculated as total common stockholders’ equity, total common stockholders’ equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives divided by the total number of shares of common stock outstanding.
(e)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
Page 9


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

Spread Results
Year Ended 
 December 31,
20202019Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019
4.12%4.52%Average yield on invested assets3.88%4.10%4.12%4.36%4.52%
1.69%1.84%Aggregate cost of money1.63%1.66%1.73%1.72%1.75%
2.43%2.68%Aggregate investment spread2.25%2.44%2.39%2.64%2.77%
Impact of:
0.08%0.06%
Investment yield - additional prepayment income
0.11%0.10%0.03%0.06%0.12%
0.02%0.03%Cost of money effect of over (under) hedging0.01%0.03%(0.01)%0.05%0.05%
$53,096,408$51,072,498Weighted average investments$53,836,378$53,024,798$52,901,215$52,623,239$52,141,459
Weighted average investments include fixed maturity securities at amortized cost and mortgage loans on real estate and other investments at carrying values as reflected in the consolidated balance sheets. The numerator for average yield on invested assets includes net investment income and the tax effect of investment income that is exempt from income taxes.
Summary of Cost of Money for Deferred Annuities
Year Ended 
 December 31,
20202019Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019
Included in interest sensitive and index product benefits:
$747,489 $587,818 Index credits$195,927 $174,747 $97,875 $278,940 $277,798 
192,468 196,907 Interest credited49,551 47,376 46,594 48,947 49,482 
Included in change in fair value of derivatives:
(758,604)(605,005)
Proceeds received at option expiration
(197,921)(178,405)(97,015)(285,263)(284,624)
716,857 781,841 Pro rata amortization of option cost170,505 176,481 182,841 187,030 188,984 
$898,210 $961,561 Cost of money for deferred annuities$218,062 $220,199 $230,295 $229,654 $231,640 
$53,269,994 $52,278,357 
Weighted average liability balance outstanding
$53,531,441 $53,059,376 $53,214,255 $53,274,905 $53,092,419 
Annuity Account Balance Rollforward
Year Ended 
 December 31,
20202019Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019
$53,233,898 $51,053,450 Account balances at beginning of period$53,006,150 $53,112,600 $53,315,909 $53,233,898 $52,950,937 
3,613,269 4,661,171 Net deposits1,830,816 557,675 543,026 681,752 838,761 
93,610 177,942 Premium bonuses25,143 21,205 22,710 24,552 36,983 
939,957 784,725 Fixed interest credited and index credits245,478 222,123 144,469 327,887 327,280 
(72,551)(71,565)Surrender charges(17,009)(16,447)(19,390)(19,705)(15,092)
(178,676)(168,470)Lifetime income benefit rider fees(48,954)(45,830)(44,048)(39,844)(47,630)
(3,572,782)(3,203,355)Surrenders, withdrawals, deaths, etc.(984,899)(845,176)(850,076)(892,631)(857,341)
$54,056,725 $53,233,898 Account balances at end of period$54,056,725 $53,006,150 $53,112,600 $53,315,909 $53,233,898 
Page 10


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

Annuity Deposits by Product Type
Year Ended 
 December 31,
20202019Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019
American Equity Life:
$1,992,059 $4,058,638 Fixed index annuities$500,495 $432,602 $472,899 $586,063 $765,180 
8,128 11,245 Annual reset fixed rate annuities1,664 1,817 2,316 2,331 1,843 
395,982 1,613 Multi-year fixed rate annuities394,999 531 83 369 306 
33,461 12,002 Single premium immediate annuities7,774 10,205 10,084 5,398 4,873 
2,429,630 4,083,498 904,932 445,155 485,382 594,161 772,202 
Eagle Life:
345,519 646,903 Fixed index annuities106,170 60,476 72,371 106,502 67,784 
97 199 Annual reset fixed rate annuities— 39 17 41 6 
907,151 232,613 Multi-year fixed rate annuities833,765 68,206 1,031 4,149 81,041 
1,252,767 879,715 939,935 128,721 73,419 110,692 148,831 
Consolidated:
2,337,578 4,705,541 Fixed index annuities606,665 493,078 545,270 692,565 832,964 
8,225 11,444 Annual reset fixed rate annuities1,664 1,856 2,333 2,372 1,849 
1,303,133 234,226 Multi-year fixed rate annuities1,228,764 68,737 1,114 4,518 81,347 
33,461 12,002 Single premium immediate annuities7,774 10,205 10,084 5,398 4,873 
3,682,397 4,963,213 Total before coinsurance ceded1,844,867 573,876 558,801 704,853 921,033 
35,667 290,040 Coinsurance ceded6,277 5,996 5,691 17,703 77,399 
$3,646,730 $4,673,173 Net after coinsurance ceded$1,838,590 $567,880 $553,110 $687,150 $843,634 
Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of Coinsurance) Account Values at December 31, 2020:
Surrender ChargeNet Account Value
Product TypeAvg.
Years
At Issue		Avg.
Years
Remaining		Avg.
%
Remaining		Dollars in Thousands%
Fixed Index Annuities12.86.310.1%$50,805,202 94.0 %
Annual Reset Fixed Rate Annuities9.22.85.3%1,392,825 2.6 %
Multi-Year Fixed Rate Annuities4.42.87.6%1,858,698 3.4 %
Total12.46.19.9%$54,056,725 100.0 %


Page 11


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
Surrender Charge Percentages:Fixed
Annuities
Account Value		Fixed Index
Annuities
Account Value
No surrender charge$821,579 $3,002,716 
0.0% < 2.0%16,419 262,384 
2.0% < 3.0%37,922 1,951,839 
3.0% < 4.0%87,012 2,409,112 
4.0% < 5.0%46,626 1,931,519 
5.0% < 6.0%267,881 2,978,897 
6.0% < 7.0%37,229 1,993,112 
7.0% < 8.0%79,400 4,564,942 
8.0% < 9.0%63,272 3,637,588 
9.0% < 10.0%1,343,422 3,585,668 
10.0% or greater450,761 24,487,425 
$3,251,523 $50,805,202 
Surrender Charge Expiration By Year:Fixed and
Fixed Index
Annuities
Account Value		Weighted
Average
Surrender
Charge
Out of Surrender Charge$3,824,295 0.00 %
20211,167,342 2.86 %
20221,646,140 3.66 %
20234,955,486 5.46 %
20244,920,382 5.78 %
20256,321,794 7.71 %
20265,118,551 9.36 %
20274,406,156 11.06 %
20284,639,590 11.92 %
20295,939,907 13.38 %
20303,891,867 15.18 %
20312,903,255 17.41 %
20321,986,854 18.06 %
20331,146,341 18.48 %
2034722,614 18.96 %
2035316,128 19.50 %
2036150,023 20.00 %
$54,056,725 9.89 %
Page 12


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
Credited Rate vs. Ultimate Minimum Guaranteed Rate Differential:Fixed
Annuities
Account Value		Fixed Index
Annuities
Account Value
No differential$951,418 $1,242,188 
› 0.0% - 0.25%47,881 143,281 
› 0.25% - 0.5%233,363 9,812 
› 0.5% - 1.0%18,125 3,101 
› 1.0% - 1.5%11,319 — 
1.00% ultimate guarantee - 2.11% wtd avg interest rate (a)1,728,028 964,626 
1.50% ultimate guarantee - 1.08% wtd avg interest rate (a)139,686 3,207,602 
1.75% ultimate guarantee - 1.71% wtd avg interest rate (a)49,070 529,851 
2.00% ultimate guarantee - 1.85% wtd avg interest rate (a)72,633 — 
2.25% ultimate guarantee - 1.65% wtd avg interest rate (a)— 697,144 
3.00% ultimate guarantee - 1.95% wtd avg interest rate (a)— 1,395,218 
Allocated to index strategies (see tables that follow)— 42,612,379 
$3,251,523 $50,805,202 
(a)The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy ranges from 0.5% - 1.75%. The ultimate guaranteed rate is applied on less than 100% of the premium.
If all crediting rates were reduced to minimum guaranteed rates (subject to limitations imposed by ultimate minimum guaranteed rates where applicable) the weighted average crediting rate as of December 31, 2020 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.11%.
Page 13


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
FIXED INDEX ANNUITIES ACCOUNT VALUE - INDEX STRATEGIES
Annual Monthly Average and Point-to-Point with Caps
Minimum Guaranteed Cap
1%3%4%7%8% +
Current Cap
At minimum$1,315 $103,707 $5,129,029 $61,044 $137,218 
1.75% - 3%8,908,370 — — — — 
3% - 4%302,595 2,276 — — — 
4% - 5%1,375,290 210,414 1,051,623 — — 
5% - 6%587,639 178,878 27,849 — — 
6% - 7%51 — 444 — — 
>= 7%10,024 7,089 889 5,042 — 
Annual Monthly Average and Point-to-Point with Participation Rates
Minimum Guaranteed Participation Rate
10%20% - 25%35%50% +
Current Participation Rate
At minimum$139,182 $399,855 $84,457 $93,141 
< 20%1,110,572 — — — 
20% - 40%2,581,224 193,097 2,266 — 
40% - 60%2,730,773 67,801 50,850 — 
60% - 100%750,082 — — — 
> 100%565,364 — — — 
S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum$1,996,943 
1.10% - 1.30%6,442,128 
1.40% - 1.60%1,875,157 
1.70% - 2.00%273,379 
>= 2.10%7,930 
Volatility Control Index
Current Asset Fee
At Maximum$— 
0.75% - 1.75%362,570 
2.25% - 2.75%194,300 
3.00% - 3.50%1,172,780 
3.75% - 5.25%3,341,369 
If all caps and participation rates were reduced to minimum caps and participation rates and current asset fees were increased to their maximums, the cost of options would decrease by 0.76% based upon prices of options for the week ended January 1, 2021.
Page 14


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

Summary of Invested Assets
December 31, 2020December 31, 2019
Carrying
Amount		PercentCarrying
Amount		Percent
Fixed maturity securities:
United States Government full faith and credit$39,771 0.1 %$161,765 0.3 %
United States Government sponsored agencies1,039,551 1.9 %625,020 1.1 %
United States municipalities, states and territories3,776,131 7.0 %4,527,671 7.9 %
Foreign government obligations202,706 0.4 %205,096 0.3 %
Corporate securities31,156,827 58.1 %32,536,839 57.2 %
Residential mortgage backed securities1,512,831 2.8 %1,575,664 2.8 %
Commercial mortgage backed securities4,261,227 8.0 %5,786,279 10.2 %
Other asset backed securities5,549,849 10.4 %6,162,156 10.8 %
Total fixed maturity securities47,538,893 88.7 %51,580,490 90.6 %
Mortgage loans on real estate4,165,489 7.8 %3,448,793 6.1 %
Derivative instruments1,310,954 2.4 %1,355,989 2.4 %
Other investments590,078 1.1 %492,301 0.9 %
$53,605,414 100.0 %$56,877,573 100.0 %
Credit Quality of Fixed Maturity Securities - December 31, 2020
NAIC DesignationCarrying
Amount		PercentRating Agency RatingCarrying
Amount		Percent
1$26,564,542 55.9 %Aaa/Aa/A$27,883,428 58.7 %
219,377,013 40.8 %Baa18,408,954 38.7 %
31,299,455 2.7 %Ba973,581 2.0 %
4256,651 0.5 %B122,553 0.3 %
516,288 — %Caa61,037 0.1 %
624,944 0.1 %Ca and lower89,340 0.2 %
$47,538,893 100.0 %$47,538,893 100.0 %
Watch List Securities - December 31, 2020
General Description (a)Amortized
Cost		Allowance for Credit LossesAmortized Cost, Net of AllowanceNet Unrealized
Gains (Losses), Net of Allowance		Fair Value
Corporate securities - Public securities$149,419 $(48,197)$101,222 $(3,416)$97,806 
Corporate securities - Private placement securities336,910 (11,996)324,914 1,565 326,479 
Residential mortgage backed securities31,127 (1,734)29,393 (348)29,045 
Commercial mortgage backed securities78,269 — 78,269 (11,254)67,015 
Other asset backed securities69,650 — 69,650 (2,826)66,824 
United States municipalities, states and territories19,427 (2,844)16,583 (951)15,632 
$684,802 $(64,771)$620,031 $(17,230)$602,801 
(a)The watch list consists of all fixed maturity securities we have determined contain elevated credit risk, including those we have taken credit losses on.

Page 15


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector
December 31, 2020December 31, 2019
Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Available for sale:
United States Government full faith and credit and sponsored agencies$1,032,936 $1,079,322 $763,164 $786,785 
United States municipalities, states and territories3,236,767 3,776,131 4,147,343 4,527,671 
Foreign government obligations177,062 202,706 186,993 205,096 
Corporate securities:
Capital goods2,295,927 2,721,465 2,550,750 2,794,986 
Consumer discretionary5,674,845 6,734,249 6,082,974 6,658,120 
Energy2,140,768 2,359,893 2,499,030 2,677,646 
Financials5,971,097 6,877,472 6,737,325 7,323,150 
Government non-guaranteed539,148 632,178 539,639 606,308 
Industrials276,352 319,823 311,269 336,537 
Information technology1,556,654 1,840,942 1,868,131 2,051,175 
Materials1,543,032 1,803,501 1,818,048 1,961,033 
Other315,628 370,204 439,171 469,344 
Telecommunications1,340,484 1,582,329 1,510,836 1,664,350 
Transportation1,362,858 1,511,499 1,486,540 1,603,997 
Utilities3,728,403 4,403,272 3,978,459 4,390,193 
Residential mortgage backed securities:
Government agency549,677 627,201 591,100 646,787 
Prime771,031 788,933 793,357 815,916 
Alt-A79,248 96,697 93,281 112,961 
Commercial mortgage backed securities:
Government agency398,141 447,726 414,626 437,420 
Non-agency3,721,509 3,813,501 5,176,541 5,348,859 
Other asset backed securities:
Auto258,286 266,065 403,860 411,371 
Energy7,301 8,946 7,495 8,603 
Financials4,441 3,911 4,967 5,493 
Industrials60,894 61,147 167,466 171,273 
Collateralized loan obligations4,255,839 4,112,318 4,787,402 4,612,694 
Military housing464,684 538,356 471,621 539,029 
Other541,724 559,106 407,558 413,693 
$42,304,736 $47,538,893 $48,238,946 $51,580,490 

Page 16


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

Mortgage Loans on Real Estate
December 31, 2020December 31, 2019
PrincipalPercentPrincipalPercent
Geographic distribution: commercial mortgage loans
East$699,741 19.5 %$645,991 19.0 %
Middle Atlantic281,971 7.9 %284,597 8.4 %
Mountain391,025 10.9 %389,892 11.4 %
New England24,774 0.7 %9,152 0.3 %
Pacific659,743 18.4 %618,336 18.1 %
South Atlantic832,739 23.3 %751,199 22.0 %
West North Central266,050 7.4 %288,413 8.5 %
West South Central424,111 11.9 %420,031 12.3 %
$3,580,154 100.0 %$3,407,611 100.0 %
Property type distribution: commercial mortgage loans
Office$297,065 8.3 %$250,287 7.3 %
Medical Office20,584 0.6 %29,990 0.9 %
Retail1,187,484 33.2 %1,225,670 36.0 %
Industrial/Warehouse929,325 25.9 %896,558 26.3 %
Apartment939,084 26.2 %858,679 25.2 %
Mixed use/Other206,612 5.8 %146,427 4.3 %
$3,580,154 100.0 %$3,407,611 100.0 %

Page 17


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020
Unaudited (Dollars in thousands)

December 31, 2020
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,580,154 $245,807 $366,047 $4,192,008 
In workout— — — — 
Delinquent— — 273 273 
Collateral dependent— — — — 
Principal outstanding3,580,154 245,807 366,320 4,192,281 
Unamortized discounts and premiums, net— — 5,212 5,212 
Deferred fees and costs, net(1,266)(634)925 (975)
Amortized cost3,578,888 245,173 372,457 4,196,518 
Valuation allowance(25,529)(2,130)(3,370)(31,029)
Carrying value$3,553,359 $243,043 $369,087 $4,165,489 
December 31, 2019
CommercialAgriculturalTotal
Credit exposure - by payment activity
Performing$3,407,611 $51,303 $3,458,914 
In workout— — — 
Delinquent— — — 
Collateral dependent— — — 
Principal outstanding3,407,611 51,303 3,458,914 
Unamortized discounts and premiums, net— — — 
Deferred fees and costs, net(899)(43)(942)
Amortized cost3,406,712 51,260 3,457,972 
Valuation allowance
Carrying value(8,979)(200)(9,179)
$3,397,733 $51,060 $3,448,793 



Page 18


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020

Shareholder Information
Corporate Offices:
American Equity Investment Life Holding Company
6000 Westown Parkway
West Des Moines, IA 50266
Inquiries:
Steven Schwartz, Vice President-Investor Relations
(515) 273-3763, sschwartz@american-equity.com
Common Stock and Dividend Information:
New York Stock Exchange symbol: “AEL”
HighLowCloseDividend Declared
2020
First Quarter$34.16$9.07$18.80$0.00
Second Quarter$27.09$14.76$24.71$0.00
Third Quarter$27.32$19.06$21.99$0.00
Fourth Quarter$34.25$22.37$27.66$0.32
2019
First Quarter$33.57$26.34$27.02$0.00
Second Quarter$30.91$25.84$27.16$0.00
Third Quarter$27.80$20.16$24.20$0.00
Fourth Quarter$30.96$21.75$29.93$0.30
2018
First Quarter$35.79$28.90$29.36$0.00
Second Quarter$37.16$27.06$36.00$0.00
Third Quarter$38.57$34.51$35.36$0.00
Fourth Quarter$36.39$25.27$27.94$0.28
Transfer Agent:
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-0310
Phone: (877) 282-1169
Fax: (781) 575-2723
www.computershare.com
Annual Report and Other Information:
Shareholders may receive when available, without charge, a copy of American Equity’s Annual Report, SEC filings and/or press releases by calling Steven Schwartz, Vice President-Investor Relations, at (515) 273-3763 or by visiting our website at www.american-equity.com.


Page 19


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2020

Research Analyst Coverage
Erik Bass
Autonomous Research US LP
(646) 561-6248
ebass@autonomous.com
Randy Binner
B. Riley FBR, Inc.
(703) 312-1890
rbinner@fbr.com
Daniel Bergman
Citi Research
(212) 816-2132
daniel.bergman@citi.com
Wilma Burdis
Credit Suisse Securities
Equity Research | Life Insurance
(919) 306-1023
wilma.burdis@credit-suisse.com
Thomas Gallagher
Evercore ISI
(212) 446-9439
thomas.gallagher@evercoreisi.com
Pablo Singzon II
JP Morgan
(212) 622-2295
pablo.s.singzon@jpmorgan.com


Ryan Krueger
Keefe, Bruyette & Woods
(860) 722-5930
rkrueger@kbw.com
Bob Huang
Morgan Stanley Research
(212) 761-6136
Bob.Huang@morganstanley.com
John Barnidge
Piper Sandler & Co.
(312) 281-3412
John.Barnidge@psc.com
C. Gregory Peters
Raymond James & Associates, Inc.
(727) 567-1534
greg.peters@raymondjames.com
Mark A. Dwelle
RBC Capital Markets, LLC
(804) 782-4008
mark.dwelle@rbccm.com
Mark Hughes
Truist Securities
(615) 748-4422
mark.hughes@research.truist.com


Page 20

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