AMERICAN EQUITY INVESTMENT LIFE HOLDING CO - FORM 8-K - EX-99.2 - FINANCIAL SUPPLEMENT - May 5, 2021

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Exhibit 99.2



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement

March 31, 2021

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




AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2021December 31, 2020 (a)
Assets
Investments:
Fixed maturity securities, available for sale, at fair value$45,690,341 $47,538,893 
Mortgage loans on real estate4,290,602 4,165,489 
Derivative instruments1,509,892 1,310,954 
Other investments908,437 590,078 
Total investments52,399,272 53,605,414 
Cash and cash equivalents11,087,125 9,095,522 
Coinsurance deposits4,646,406 4,844,927 
Accrued investment income410,112 398,082 
Deferred policy acquisition costs2,470,851 2,225,199 
Deferred sales inducements1,587,653 1,448,375 
Income taxes recoverable— 862 
Other assets76,247 70,198 
Total assets$72,677,666 $71,688,579 
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves$63,519,546 $62,352,882 
Other policy funds and contract claims234,468 240,904 
Notes payable495,811 495,668 
Subordinated debentures78,187 78,112 
Deferred income taxes376,895 504,000 
Income taxes payable19,599 — 
Other liabilities2,024,400 1,668,025 
Total liabilities66,748,906 65,339,591 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 12 
Common stock95,483 95,721 
Additional paid-in capital1,687,669 1,681,127 
Accumulated other comprehensive income1,505,260 2,203,557 
Retained earnings2,640,320 2,368,555 
Total stockholders' equity5,928,760 6,348,988 
Total liabilities and stockholders' equity$72,677,666 $71,688,579 
(a)The December 31, 2020 balance sheet includes reclassifications from previously reported amounts for the correction of an immaterial error in the calculation of the impact of unrealized gains and losses on lifetime income benefit reserves which was determined in the first quarter of 2021. This is reflected in deferred policy acquisition costs, deferred sales inducements, policy benefit reserves, deferred income taxes and accumulated other comprehensive income


Page 1


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended 
 March 31,
20212020
Revenues:
Premiums and other considerations$13,213 $7,664 
Annuity product charges60,082 59,549 
Net investment income497,190 573,318 
Change in fair value of derivatives396,305 (941,874)
Net realized losses on investments(4,583)(20,336)
Loss on extinguishment of debt— (2,024)
Total revenues962,207 (323,703)
Benefits and expenses:
Insurance policy benefits and change in future policy benefits16,424 10,072 
Interest sensitive and index product benefits476,595 400,219 
Amortization of deferred sales inducements122,975 73,591 
Change in fair value of embedded derivatives(282,413)(1,250,061)
Interest expense on notes payable6,393 6,385 
Interest expense on subordinated debentures1,326 1,588 
Amortization of deferred policy acquisition costs203,823 120,702 
Other operating costs and expenses55,865 43,626 
Total benefits and expenses600,988 (593,878)
Income before income taxes361,219 270,175 
Income tax expense78,535 27,228 
Net income282,684 242,947 
Less: Preferred stock dividends10,919 6,611 
Net income available to common stockholders$271,765 $236,336 
Earnings per common share$2.84 $2.58 
Earnings per common share - assuming dilution$2.82 $2.57 
Weighted average common shares outstanding (in thousands):
Earnings per common share95,735 91,644 
Earnings per common share - assuming dilution96,216 92,021 

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 5 Quarters
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Revenues:
Traditional life insurance premiums$706 $701 $708 $722 $823 
Life contingent immediate annuity considerations12,507 9,578 9,699 10,310 6,841 
Surrender charges19,481 17,009 16,447 19,390 19,705 
Lifetime income benefit rider fees40,601 48,954 45,830 44,048 39,844 
Net investment income497,190 521,725 543,331 543,704 573,318 
Change in fair value of derivatives396,305 443,867 205,011 327,662 (941,874)
Net realized losses on investments(4,583)(12,135)(22,321)(25,888)(20,336)
Loss on extinguishment of debt— — — — (2,024)
Total revenues962,207 1,029,699 798,705 919,948 (323,703)
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits
1,049 1,091 655 702 621 
Life contingent immediate annuity benefits and change in future policy benefits
15,375 11,975 12,618 12,629 9,451 
Interest sensitive and index product benefits (a)476,595 325,912 576,147 240,992 400,219 
Amortization of deferred sales inducements (b)(d)122,975 22,768 416,983 (75,178)73,591 
Change in fair value of embedded derivatives (c)(d)(282,413)568,836 (1,732,497)1,126,935 (1,250,061)
Interest expense on notes payable6,393 6,391 6,388 6,388 6,385 
Interest expense on subordinated debentures1,326 1,325 1,323 1,321 1,588 
Amortization of deferred policy acquisition costs (b)(d)203,823 26,145 622,596 (119,889)120,702 
Other operating costs and expenses55,865 55,321 42,738 41,951 43,626 
Total benefits and expenses600,988 1,019,764 (53,049)1,235,851 (593,878)
Income (loss) before income taxes361,219 9,935 851,754 (315,903)270,175 
Income tax expense (benefit) (e)78,535 1,193 184,554 (68,474)27,228 
Net income (loss) (a)(b)(c)(d)(e)282,684 8,742 667,200 (247,429)242,947 
Less: Preferred stock dividends10,919 15,004 5,950 5,950 6,611 
Net income (loss) available to common stockholders (a)(b)(c)(d)(e)$271,765 $(6,262)$661,250 $(253,379)$236,336 
Earnings (loss) per common share$2.84 $(0.07)$7.20 $(2.76)$2.58 
Earnings (loss) per common share - assuming dilution (a)(b)(c)(d)(e)$2.82 $(0.07)$7.17 $(2.76)$2.57 
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share95,735 92,904 91,861 91,803 91,644 
Earnings (loss) per common share - assuming dilution96,216 93,352 92,163 92,027 92,021 
(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 - March 31, 2021
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, (“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 - March 31, 2021
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
In addition to net income 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 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 available to common stockholders provides information that may enhance an investor’s understanding of our underlying results and profitability.
Reconciliation from Net Income Available to Common Stockholders to Non-GAAP Operating Income Available to Common Stockholders and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Three Months Ended 
 March 31,
20212020
Net income available to common stockholders$271,765 $236,336 
Adjustments to arrive at non-GAAP operating income available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses3,516 16,349 
Change in fair value of derivatives and embedded derivatives - fixed index annuities(297,634)(120,454)
Change in fair value of derivatives - interest rate caps and swap— (848)
Income taxes63,794 22,702 
Non-GAAP operating income available to common stockholders41,441 154,085 
Impact of notable items (b)— (30,778)
Non-GAAP operating income available to common stockholders, excluding notable items$41,441 $123,307 
Per common share - assuming dilution:
Net income available to common stockholders$2.82 $2.57 
Adjustments to arrive at non-GAAP operating income available to common stockholders:
Net realized gains/losses on financial assets, including credit losses0.04 0.17 
Change in fair value of derivatives and embedded derivatives - fixed index annuities(3.09)(1.31)
Change in fair value of derivatives - interest rate caps and swap— (0.01)
Income taxes0.66 0.25 
Non-GAAP operating income available to common stockholders0.43 1.67 
Impact of notable items— (0.33)
Non-GAAP operating income available to common stockholders, excluding notable items$0.43 $1.34 

Notable Items
Three Months Ended 
 March 31,
20212020
Notable items impacting Non-GAAP operating income available to common stockholders:
Tax benefit related to the CARES Act$— $(30,778)
Total notable items (b)$— $(30,778)
(a)Adjustments to net income 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.
(b)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items include the impact from actuarial assumption updates, certain initial uncapitalized costs to establish the AEL 2.0 strategy, and initial non-deferred impacts related to reinsurance transactions. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
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 
 March 31,
20212020
Net realized gains/losses on financial assets, including credit losses:
Net realized gains/losses on financial assets, including credit losses$4,727 $21,657 
Amortization of DAC and DSI(1,211)(5,308)
Income taxes(756)(3,531)
$2,760 $12,818 
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities$(493,799)$(209,891)
Interest rate caps and swap— (848)
Amortization of DAC and DSI196,165 89,437 
Income taxes64,550 26,233 
$(233,084)$(95,069)

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
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 and Non-GAAP Operating Income Available to Common Stockholders, Excluding Notable Items
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Net income (loss) available to common stockholders$271,765 $(6,262)$661,250 $(253,379)$236,336 
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders: (a)
Net realized gains/losses on financial assets, including credit losses3,516 9,369 15,145 18,492 16,349 
Change in fair value of derivatives and embedded derivatives -
fixed index annuities
(297,634)90,616 (1,176,909)423,590 (120,454)
Change in fair value of derivatives - interest rate caps and swap— — — — (848)
Income taxes63,794 (21,996)250,701 (95,599)22,702 
Non-GAAP operating income (loss) available to common stockholders41,441 71,727 (249,813)93,104 154,085 
Impact of notable items (b)— — 340,895 — (30,778)
Non-GAAP operating income available to common stockholders, excluding notable items (c)(d)(e)$41,441 $71,727 $91,082 $93,104 $123,307 
Per common share - assuming dilution:
Net income (loss) available to common stockholders$2.82 $(0.07)$7.17 $(2.76)$2.57 
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 losses0.04 0.10 0.16 0.20 0.17 
Change in fair value of derivatives and embedded derivatives - fixed index annuities
(3.09)0.97 (12.77)4.60 (1.31)
Change in fair value of derivatives - interest rate caps and swap— — — — (0.01)
Income taxes0.66 (0.23)2.71 (1.04)0.25 
Non-GAAP operating income (loss) available to common stockholders0.43 0.77 (2.72)1.01 1.67 
Impact of notable items— — 3.70 — (0.33)
Non-GAAP operating income available to common stockholders, excluding notable items (c)(d)(e)$0.43 $0.77 $0.98 $1.01 $1.34 
Notable Items
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Notable items impacting Non-GAAP operating income (loss) available to common stockholders:
Impact of actuarial assumption updates (c)(d)$— $— $340,895 $— $— 
Tax benefit related to the CARES Act (e)— — — — (30,778)
Total notable items (b)$— $— $340,895 $— $(30,778)
(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 (DSI) and deferred policy acquisition costs (DAC) where applicable.
(b)Notable items reflect the after-tax impact to non-GAAP operating income available to common stockholders for certain items that do not reflect the company's expected ongoing operations. Notable items include the impact from actuarial assumption updates, certain initial uncapitalized costs to establish the AEL 2.0 strategy, and initial non-deferred impacts related to reinsurance transactions. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.
(c)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.
(d)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.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands, except per share data)

(e)Q1 2020 includes a tax benefit related to the provision of 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 8


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Net realized losses on investments$4,583 $12,135 $22,321 $25,888 $20,336 
Change in fair value of derivatives(211,387)(416,450)(203,088)(413,489)1,039,322 
Increase (decrease) in total revenues(206,804)(404,315)(180,767)(387,601)1,059,658 
Amortization of deferred sales inducements(69,788)22,785 (303,710)115,511 (29,683)
Change in fair value of embedded derivatives282,413 (568,836)1,732,497 (1,126,935)1,250,061 
Interest sensitive and index product benefits (a)(145)761 1,298 612 (1,321)
Amortization of deferred policy acquisition costs(125,166)40,990 (449,088)181,129 (54,446)
Increase (decrease) in total benefits and expenses87,314 (504,300)980,997 (829,683)1,164,611 
Increase in income (loss) before income taxes(294,118)99,985 (1,161,764)442,082 (104,953)
Increase (decrease) in income tax expense (benefit)(63,794)21,996 (250,701)95,599 (22,702)
Increase (decrease) in net income (loss) available to common stockholders$(230,324)$77,989 $(911,063)$346,483 $(82,251)
(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 - March 31, 2021
Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Capitalization:
Notes payable$500,000 $500,000 $500,000 $500,000 $500,000 
Subordinated debentures payable to subsidiary trusts78,187 78,112 78,037 77,964 77,893 
Total debt
578,187 578,112 578,037 577,964 577,893 
Total stockholders’ equity (a)
5,928,760 6,348,988 5,918,216 4,919,689 3,499,592 
Total capitalization (a)
6,506,947 6,927,100 6,496,253 5,497,653 4,077,485 
Accumulated other comprehensive income (AOCI) (a)(1,505,260)(2,203,557)(1,911,593)(1,577,499)(196,809)
Total capitalization excluding AOCI (b)
$5,001,687 $4,723,543 $4,584,660 $3,920,154 $3,880,676 
Total stockholders’ equity (a)
$5,928,760 $6,348,988 $5,918,216 $4,919,689 $3,499,592 
Equity available to preferred stockholders (c)(700,000)(700,000)(700,000)(700,000)(400,000)
Total common stockholders' equity (a)(d)
5,228,760 5,648,988 5,218,216 4,219,689 3,099,592 
Accumulated other comprehensive income (a)(1,505,260)(2,203,557)(1,911,593)(1,577,499)(196,809)
Total common stockholders’ equity excluding AOCI (d)
3,723,500 3,445,431 3,306,623 2,642,190 2,902,783 
Net impact of fair value accounting for derivatives and embedded derivatives
(399,538)(166,453)(237,099)685,839 353,853 
Total common stockholders’ equity excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (d)
$3,323,962 $3,278,978 $3,069,524 $3,328,029 $3,256,636 
Common shares outstanding95,482,733 95,720,622 91,931,837 91,595,066 91,497,841 
Book Value per Common Share: (e)
Book value per common share (a)$54.76 $59.02 $56.76 $46.07 $33.88 
Book value per common share excluding AOCI (d)$39.00 $35.99 $35.97 $28.85 $31.73 
Book value per common share excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives (d)$34.81 $34.26 $33.39 $36.33 $35.59 
Debt-to-Capital Ratios: (f)
Senior debt / Total capitalization10.0 %10.6 %10.9 %12.8 %12.9 %
Total debt / Total capitalization11.6 %12.2 %12.6 %14.7 %14.9 %
(a)Q1 2020 through Q4 2020 include the impact of a correction of an immaterial error in the calculation of the impact of unrealized gains and losses on lifetime income benefit reserves which was determined in Q1 2021. This had the impact of reducing AOCI as of December 31, 2020 by $225.7 million and decreased book value per common share by $2.35 compared to amounts previously reported.
(b)Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.
(c)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(d)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.
(e)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.
(f)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

Spread Results
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Average yield on invested assets3.58%3.88%4.10%4.12%4.36%
Aggregate cost of money1.58%1.63%1.66%1.73%1.72%
Aggregate investment spread2.00%2.25%2.44%2.39%2.64%
Impact of:
Investment yield - additional prepayment income
0.11%0.11%0.10%0.03%0.06%
Cost of money effect of over (under) hedging0.02%0.01%0.03%(0.01)%0.05%
Weighted average investments$55,712,648$53,836,378$53,024,798$52,901,215$52,623,239
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
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Included in interest sensitive and index product benefits:
Index credits$345,737 $195,927 $174,747 $97,875 $278,940 
Interest credited56,477 49,551 47,376 46,594 48,947 
Included in change in fair value of derivatives:
Proceeds received at option expiration
(349,119)(197,921)(178,405)(97,015)(285,263)
Pro rata amortization of option cost164,230 170,505 176,481 182,841 187,030 
Cost of money for deferred annuities$217,325 $218,062 $220,199 $230,295 $229,654 
Weighted average liability balance outstanding
$54,935,106 $53,531,441 $53,059,376 $53,214,255 $53,274,905 
Annuity Account Balance Rollforward
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Account balances at beginning of period$54,056,725 $53,006,150 $53,112,600 $53,315,909 $53,233,898 
Net deposits2,417,729 1,830,816 557,675 543,026 681,752 
Premium bonuses24,850 25,143 21,205 22,710 24,552 
Fixed interest credited and index credits402,214 245,478 222,123 144,469 327,887 
Surrender charges(19,481)(17,009)(16,447)(19,390)(19,705)
Lifetime income benefit rider fees(40,601)(48,954)(45,830)(44,048)(39,844)
Surrenders, withdrawals, deaths, etc.(1,027,956)(984,899)(845,176)(850,076)(892,631)
Account balances at end of period$55,813,480 $54,056,725 $53,006,150 $53,112,600 $53,315,909 
Page 11


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

Annuity Deposits by Product Type
Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
American Equity Life:
Fixed index annuities$516,995 $500,495 $432,602 $472,899 $586,063 
Annual reset fixed rate annuities2,167 1,664 1,817 2,316 2,331 
Multi-year fixed rate annuities787,192 394,999 531 83 369 
Single premium immediate annuities13,959 7,774 10,205 10,084 5,398 
1,320,313 904,932 445,155 485,382 594,161 
Eagle Life:
Fixed index annuities148,836 106,170 60,476 72,371 106,502 
Annual reset fixed rate annuities162 — 39 17 41 
Multi-year fixed rate annuities965,425 833,765 68,206 1,031 4,149 
1,114,423 939,935 128,721 73,419 110,692 
Consolidated:
Fixed index annuities665,831 606,665 493,078 545,270 692,565 
Annual reset fixed rate annuities2,329 1,664 1,856 2,333 2,372 
Multi-year fixed rate annuities1,752,617 1,228,764 68,737 1,114 4,518 
Single premium immediate annuities13,959 7,774 10,205 10,084 5,398 
Total before coinsurance ceded2,434,736 1,844,867 573,876 558,801 704,853 
Coinsurance ceded3,048 6,277 5,996 5,691 17,703 
Net after coinsurance ceded$2,431,688 $1,838,590 $567,880 $553,110 $687,150 
Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of Coinsurance) Account Values at March 31, 2021:
Surrender ChargeNet Account Value
Product TypeAvg.
Years
At Issue		Avg.
Years
Remaining		Avg.
%
Remaining		Dollars in Thousands%
Fixed Index Annuities12.76.19.8%$50,806,548 91.0 %
Annual Reset Fixed Rate Annuities8.92.65.0%1,411,594 2.5 %
Multi-Year Fixed Rate Annuities4.03.08.3%3,595,338 6.5 %
Total12.15.89.6%$55,813,480 100.0 %


Page 12


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
Surrender Charge Percentages:Fixed
Annuities
Account Value		Fixed Index
Annuities
Account Value
No surrender charge$863,221 $3,125,254 
0.0% < 2.0%17,708 339,017 
2.0% < 3.0%53,828 2,475,661 
3.0% < 4.0%96,137 2,512,346 
4.0% < 5.0%59,922 2,117,537 
5.0% < 6.0%192,916 2,854,843 
6.0% < 7.0%39,113 2,476,842 
7.0% < 8.0%66,622 4,079,101 
8.0% < 9.0%60,483 3,579,166 
9.0% < 10.0%3,115,181 3,455,370 
10.0% or greater441,801 23,791,411 
$5,006,932 $50,806,548 
Surrender Charge Expiration By Year:Fixed and
Fixed Index
Annuities
Account Value		Weighted
Average
Surrender
Charge
Out of Surrender Charge$3,988,475 0.00 %
2021890,498 2.83 %
20221,612,006 3.38 %
20234,924,795 5.31 %
20246,112,377 6.24 %
20256,248,444 7.18 %
20265,619,291 8.93 %
20274,372,775 10.64 %
20284,629,583 11.62 %
20295,904,946 13.06 %
20303,900,325 14.89 %
20313,284,275 16.75 %
20321,966,654 17.86 %
20331,135,185 18.35 %
2034718,079 18.82 %
2035324,648 19.33 %
2036151,448 19.86 %
203729,676 20.00 %
$55,813,480 9.63 %
Page 13


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
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$977,823 $1,220,033 
› 0.00% - 0.25%47,107 140,908 
› 0.25% - 0.50%231,342 6,814 
› 0.50% - 1.00%13,685 1,155 
› 1.00% - 1.50%11,117 — 
1.00% ultimate guarantee - 2.16% wtd avg interest rate (a)3,468,309 1,047,938 
1.50% ultimate guarantee - 1.08% wtd avg interest rate (a)137,803 3,160,134 
1.75% ultimate guarantee - 1.72% wtd avg interest rate (a)48,805 528,653 
2.00% ultimate guarantee - 1.85% wtd avg interest rate (a)70,941 — 
2.25% ultimate guarantee - 1.65% wtd avg interest rate (a)— 673,613 
3.00% ultimate guarantee - 1.95% wtd avg interest rate (a)— 1,360,897 
Allocated to index strategies (see tables that follow)— 42,666,403 
$5,006,932 $50,806,548 
(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 March 31, 2021 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.12%.
Page 14


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
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$1,282 $103,647 $5,059,257 $59,601 $132,676 
1.75% - 3%9,073,436 — — — — 
3% - 4%316,349 2,092 — — — 
4% - 5%1,605,627 210,515 1,028,667 — — 
5% - 6%622,541 181,589 27,284 — — 
6% - 7%141 — 442 — — 
>= 7%9,825 7,705 867 4,879 — 
Annual Monthly Average and Point-to-Point with Participation Rates
Minimum Guaranteed Participation Rate
10%20% - 25%35%50% +
Current Participation Rate
At minimum$186,688 $412,453 $83,468 $90,519 
< 20%1,322,160 — — — 
20% - 40%3,251,757 206,325 3,465 — 
40% - 60%1,945,548 49,706 47,629 — 
60% - 100%838,650 — — — 
> 100%596,808 — — — 
S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0%
Current Cap
At minimum$1,925,877 
1.10% - 1.30%6,189,740 
1.40% - 1.60%1,884,173 
1.70% - 2.00%265,581 
>= 2.10%9,811 
Volatility Control Index
Current Asset Fee
At Maximum$— 
0.75% - 1.75%342,379 
2.25% - 2.75%179,444 
3.00% - 3.50%1,074,225 
3.75% - 5.25%3,223,841 
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 0.71% based upon prices of options for the week ended April 2, 2021.
Page 15


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

Summary of Invested Assets
March 31, 2021December 31, 2020
Carrying
Amount		PercentCarrying
Amount		Percent
Fixed maturity securities:
United States Government full faith and credit$38,727 0.1 %$39,771 0.1 %
United States Government sponsored agencies1,027,441 1.9 %1,039,551 1.9 %
United States municipalities, states and territories3,655,844 7.0 %3,776,131 7.0 %
Foreign government obligations193,944 0.4 %202,706 0.4 %
Corporate securities29,890,265 57.0 %31,156,827 58.1 %
Residential mortgage backed securities1,346,473 2.6 %1,512,831 2.8 %
Commercial mortgage backed securities4,177,242 8.0 %4,261,227 8.0 %
Other asset backed securities5,360,405 10.2 %5,549,849 10.4 %
Total fixed maturity securities45,690,341 87.2 %47,538,893 88.7 %
Mortgage loans on real estate4,290,602 8.2 %4,165,489 7.8 %
Derivative instruments1,509,892 2.9 %1,310,954 2.4 %
Other investments908,437 1.7 %590,078 1.1 %
$52,399,272 100.0 %$53,605,414 100.0 %
Credit Quality of Fixed Maturity Securities - March 31, 2021
NAIC DesignationCarrying
Amount		PercentRating Agency RatingCarrying
Amount		Percent
1$25,301,796 55.4 %Aaa/Aa/A$26,363,222 57.7 %
218,833,794 41.2 %Baa18,108,379 39.6 %
31,310,371 2.9 %Ba972,986 2.1 %
4189,560 0.4 %B115,164 0.3 %
527,540 0.1 %Caa60,977 0.1 %
627,280 — %Ca and lower69,613 0.2 %
$45,690,341 100.0 %$45,690,341 100.0 %
Watch List Securities - March 31, 2021
General Description (a)Amortized
Cost		Allowance for Credit LossesAmortized Cost, Net of AllowanceNet Unrealized
Losses, Net of Allowance		Fair Value
Corporate securities - Public securities$141,385 $(39,737)$101,648 $(1,816)$99,832 
Corporate securities - Private placement securities205,522 (15,978)189,544 (2,137)187,407 
Residential mortgage backed securities36,729 (1,192)35,537 (1,442)34,095 
Commercial mortgage backed securities69,324 — 69,324 (5,695)63,629 
Other asset backed securities35,000 — 35,000 (484)34,516 
United States municipalities, states and territories19,062 (2,791)16,271 (574)15,697 
$507,022 $(59,698)$447,324 $(12,148)$435,176 
(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 16


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector
March 31, 2021December 31, 2020
Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Available for sale:
United States Government full faith and credit and sponsored agencies$1,033,893 $1,066,168 $1,032,936 $1,079,322 
United States municipalities, states and territories3,258,694 3,655,844 3,236,767 3,776,131 
Foreign government obligations177,075 193,944 177,062 202,706 
Corporate securities:
Capital goods2,311,299 2,574,918 2,295,927 2,721,465 
Consumer discretionary5,798,478 6,496,175 5,674,845 6,734,249 
Energy2,055,070 2,209,978 2,140,768 2,359,893 
Financials6,035,023 6,623,469 5,971,097 6,877,472 
Government non-guaranteed553,630 623,122 539,148 632,178 
Industrials302,568 332,364 276,352 319,823 
Information technology1,513,900 1,701,536 1,556,654 1,840,942 
Materials1,572,530 1,752,546 1,543,032 1,803,501 
Other318,002 352,818 315,628 370,204 
Telecommunications1,444,260 1,608,440 1,340,484 1,582,329 
Transportation1,318,958 1,427,863 1,362,858 1,511,499 
Utilities3,752,734 4,187,036 3,728,403 4,403,272 
Residential mortgage backed securities:
Government agency521,139 579,600 549,677 627,201 
Prime667,158 675,162 771,031 788,933 
Alt-A74,716 91,711 79,248 96,697 
Commercial mortgage backed securities:
Government agency395,783 432,183 398,141 447,726 
Non-agency3,624,027 3,745,059 3,721,509 3,813,501 
Other asset backed securities:
Auto280,997 288,595 258,286 266,065 
Energy7,209 8,414 7,301 8,946 
Financials4,441 4,209 4,441 3,911 
Industrials51,074 52,538 60,894 61,147 
Collateralized loan obligations4,024,767 3,931,973 4,255,839 4,112,318 
Military housing462,411 499,718 464,684 538,356 
Other554,623 574,958 541,724 559,106 
$42,114,459 $45,690,341 $42,304,736 $47,538,893 

Page 17


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

Mortgage Loans on Real Estate
March 31, 2021December 31, 2020
PrincipalPercentPrincipalPercent
Geographic distribution: commercial mortgage loans
East$694,952 19.6 %$699,741 19.5 %
Middle Atlantic277,420 7.8 %281,971 7.9 %
Mountain384,719 10.8 %391,025 10.9 %
New England24,624 0.7 %24,774 0.7 %
Pacific672,948 19.0 %659,743 18.4 %
South Atlantic828,593 23.4 %832,739 23.3 %
West North Central257,546 7.3 %266,050 7.4 %
West South Central406,338 11.4 %424,111 11.9 %
$3,547,140 100.0 %$3,580,154 100.0 %
Property type distribution: commercial mortgage loans
Office$294,760 8.3 %$297,065 8.3 %
Medical Office22,072 0.6 %20,584 0.6 %
Retail1,153,141 32.5 %1,187,484 33.2 %
Industrial/Warehouse945,205 26.6 %929,325 25.9 %
Apartment927,945 26.2 %939,084 26.2 %
Mixed use/Other204,017 5.8 %206,612 5.8 %
$3,547,140 100.0 %$3,580,154 100.0 %

Page 18


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021
Unaudited (Dollars in thousands)

March 31, 2021
CommercialAgriculturalResidentialTotal
Credit exposure - by payment activity
Performing$3,547,140 $266,269 $454,134 $4,267,543 
In workout— — — — 
Delinquent— — 42,001 42,001 
Collateral dependent— — — — 
Principal outstanding3,547,140 266,269 496,135 4,309,544 
Unamortized discounts and premiums, net— — 10,146 10,146 
Deferred fees and costs, net(1,213)(684)1,323 (574)
Amortized cost3,545,927 265,585 507,604 4,319,116 
Valuation allowance(26,139)(439)(1,936)(28,514)
Carrying value$3,519,788 $265,146 $505,668 $4,290,602 
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 



Page 19


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021

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
2021
First Quarter$32.54$26.21$31.53$0.00
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
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 20


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - March 31, 2021

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 21

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