American Equity Reports Fourth Quarter and Fiscal Year 2010 Results
February 23, 2011 5:15 PM
American Equity Investment Life Holding Company (NYSE: AEL), a leading underwriter of index and fixed rate annuities, today reported operating income1 for the year 2010 of $108.9 million, or $1.70 per diluted common share, an increase of 7% over 2009 operating income of $101.8 million or $1.75 per diluted common share. 2010 fourth quarter operating income was $26.4 million, or $0.41 per diluted common share, a decrease of 8% compared to 2009 fourth quarter operating income of $28.7 million or $0.48 per diluted common share.
Performance highlights for the fourth quarter and year of 2010 include:
* 2010 annuity sales of $4.7 billion ($4.2 billion net of coinsurance), and fourth quarter sales of $1.6 billion ($1.5 billion net of coinsurance) representing year over year growth of 27% and 73% for the year and quarter, respectively
* 2010 investment earnings of $1 billion and fourth quarter investment earnings of $278 million, representing year over year growth of 11% and 14% for the year and quarter, respectively
* 2010 investment spread margin over the cost of money on annuity deposits of 3.15% and fourth quarter spread of 3.14% compared to 2009 full year and fourth quarter spread of 3.04%
* A risk-based capital (“RBC”) ratio of 350% at December 31, 2010, compared to 337% at December 31, 2009
* Book value per outstanding common share of $16.07 at December 31, 2010, including Accumulated Other Comprehensive Income
