We Are American Equity

Transcription

1 We Are American Equity Investment Life Insurance Company The one who works for you!

2 Who We Are We are one of the top index annuity providers in the market with a steadfast commitment to superior customer service, product integrity and sound, safe planning. Founder, David Noble, started American Equity at a time when most of his peers were retiring. With more than 50 years in the insurance industry, Mr. Noble set out to create a company centered on three essential components: People. Service. Future. We are focused on these core aspects of our industry and they have led us to unparalleled success in unprecedented time. Since our founding, American Equity has earned accolades for second-to-none service, while recording exponential annual growth. We are a leader in the industry with statutory assets of $48 Billion*, a field of more than 23,000 agents and over 567,000 active contract owners. Headquartered in West Des Moines, Iowa, we employ a dedicated staff of more than 500 associates. All of this makes up the continuum of service that has made American Equity a marketplace leader. We are one of the few American-owned and operated insurance companies in the industry. We appreciate that a vital component of our success is our role as a good steward of American values and American-earned monies. This is a charge we do not take lightly, and because of that our profits remain on our soil in the thousands of communities we service. We are American Equity the one who works for you! 1

3 Our Promise When you purchase one of our innovative insurance products, you are buying a promise a promise that American Equity will be there when you need us. We have been fulfilling that promise since we were founded. - David Noble Founder American Equity was founded on these basic principles of excellence: Quality Financial Performance High Level of Service Superior to our Competitors Above Average Value to our Contract Holders Recognize and Develop Market Opportunities We have been on the New York Stock Exchange since December of Through the years, we ve experienced steady growth and have celebrated years of record-breaking achievement. David Noble, Founder 2

4 Financial Performance Year (Dollars in thousands, except per share data) Total assets $56,053,472 $49,029,392 $43,989,734 $39,621,499 $35,133,478 $30,874,719 $26,426,763 Total stockholders equity $2,291,595 $1,944,535 $2,139,876 $1,384,687 $1,720,237 $1,408,679 $938,047 Net income $83,243 $219,830 $126,023 $253,283 $57,798 $86,248 $42,933 Operating income (a) $122,344 $195,820 $190,646 $163,420 $110,187 $133,653 $108,947 Per Share Data Book value per share $26.04 $23.83 $27.93 $19.40 $27.46 $23.82 $16.07 TOTAL ANNUITY DEPOSITS CREDIT QUALITY OF FIXED MATURITY SECURITIES TOTAL ASSETS NAIC % NAIC % NAIC 3 2.8% NAIC 4 0.3% NAIC 5 0.1% NAIC 6 % Billions of Dollars Billions of Dollars 3 (a) In addition to net income, we have consistently utilized operating income and operating income per common share assuming dilution, non-gaap financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Operating income equals net income 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 operating income eliminate the impact of 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 the combined presentation and evaluation of operating income together with net income provides information that may enhance an investor s understanding of our underlying results and profitability. Financial Information shown is that of American Equity Investment Life Holding Company. American Equity Investment Life Insurance Company is a wholly-owned subsidiary of American Equity Investment Life Holding Company. Nothing shown is intended to imply that American Equity Investment Life Holding Company is responsible for the claims or benefits paying ability of American Equity Investment Life Insurance Company. Financial information shown is on a GAAP basis.

5 American Equity Timeline After retiring for three days, David Noble opens American Equity s doors with: Three employees $11 million in assets License to sell life insurance and annuities in one state (Iowa) From there, American Equity embarks on a journey of rapid growth: Acquires 100% of Century Life Insurance Company which adds 23 additional state licenses Now licensed in all 50 states, plus DC, American Equity s growth continues. Launches Gold Eagle Program to top producing agents Leadership transition: David Noble becomes Executive Chairman, Wendy Waugaman named CEO and Ron Grensteiner elevated to President of American Equity Life Closing one Door; Opening Another Sound Leadership through Turbulent Times Despite terrorism and a financial crisis, American Equity builds on its success and takes the company public. Initial public stock offering and listed on the New York Stock Exchange (AEL) in December 2003 AEL added to the Russell 3000 Index Receives A- (Excellent) rating from A.M. Best Company** First company to offer a fixed indexed annuity (FIA) with indexing linked to the Dow Jones Industrial Average 18,000 agents under contract in 39 states plus DC Annuity Sales of $1.4 Billion Assets grow to more than $1.5 Billion Ranked #1 Overall in Service by Advantage Group Independent Agent Survey Achieves #3 in FIA market share position Assets grow to more than $8 Billion Spreading Coast to Coast while Rising to New Heights American Equity builds on its success through change and adversity. Weathers financial crisis that afflicts many other insurers and financial institutions U.S. Court of Appeals vacates Rule 151A; Dodd-Frank legislation exempts FIAs from SEC regulation John Matovina named CEO Leads industry opposition to SEC Rule 151A which would have expanded SEC oversight to FIAs Relocates to current larger facility Annuity Sales of $13 Billion Assets grow to more than $16 Billion Adapting to Change and Reacting to Adversity Eagle Life Insurance Company diversifies distribution into broker-dealer and bank channels AEL added to S&P Smallcap 600 Index Bonus Gold becomes top selling FIA product of all time + Annuity Sales of $22 Billion; #3 in FIA market share + Assets grow to more than $36 Billion (Statutory) 2015-Present Celebrating Milestones and Continuing to Grow American Equity records record growth and celebrates success. Commemorates 20th Anniversary Grows to over 500 employees Hosts 100th Client Appreciation Event Listed in Top 100 Workplaces in Iowa Des Moines Register 2011, 2012, 2013, 2014, 2015, 2016 Assets grow to $48 Billion (Statutory)* 4

6 People Centered We are a company built on relationships. At American Equity, we recognize that without people, we simply wouldn t have the success we celebrate today. We have a deep-rooted commitment for excellence, and follow a golden rule approach by treating others the way we want to be treated. This includes: A promise of superior customer service Our conservative investment approach Establishing and maintaining long-term relationships Putting your individual needs first Ensuring the safety of your money 5

7 Service Committed American Equity is a company built on quality relationships and the character of our people. We have a long-standing tradition of providing service that is second to none in our industry. It is the people who make a company. We knew that too often in this industry, individuals are left to deal with faceless institutions and automated phones. Each person at American Equity is dedicated to establishing and maintaining meaningful relationships with agents and contract owners across the country. We aim for excellence in every interaction we have. All of our employees are integral components in delivering the heart of our mission Superior Service. Our Commitment Contracts issued in hours (when received in good order) Phone calls are answered promptly by an American Equity professional Our product brochures and forms are easy to understand We go the extra mile to earn your business and loyalty 6

8 Future Focused We help our contract owners protect and preserve their assets for a financially sound future. Our annuities can help individuals preserve their retirement dollars and provide a secure, predictable income that they cannot outlive. We like to call this Sleep Insurance. This can be a considerable benefit with today s longer life expectancies and the rise of costs throughout retirement. American Equity is committed to providing a variety of tax-deferred retirement products. Our products are safe, simple and competitive. Most importantly, we do not believe in the one-size-fits-all theory. We understand that people need options when choosing their strategy for savings and retirement. 7

9 Leadership Team David Noble had a vision: Create a company focused on great service and sound retirement products. He assembled a highly talented management team that shared his passion for fixed annuities, and American Equity was born. Today, American Equity is one of the most successful American-owned and operated providers in the industry. The Company is led by an executive team with a combined industry experience of more than 150 years. Left to Right John Matovina - Chief Executive Officer & President of the Holding Company, Ron Grensteiner - President Renee Montz - Executive Vice President & General Counsel, Jeff Lorenzen - Executive Vice President and Chief Investment Officer, Ted Johnson - Chief Financial Officer & Treasurer, Bruce Cheek - Executive Vice President & Chief Operating Officer 8

10 American Equity Community Because of our commitment to service, quality and integrity, American Equity is a beacon for some of the industry s most talented professionals. Through the years, our company has gained wide recognition for our growth and work environment. We were named the 91 st fastest growing company in the world by Fortune magazine, 2015, and have been consistently listed as a Top 150 Workplace in Iowa by the Des Moines Register. Committed to Giving Back American Equity s core values align with serving and contributing to the communities where we live and work. We are committed to giving back and take great pride in serving others in our community. Our employees have a long-standing tradition as active members of the community. We work to strengthen the community through financial support and volunteered time at a wide range of educational, health, social service, cultural, civic and environmental organizations. Our philanthropic efforts are more significant than money and more important than the time we donate. Our contributions are investments in the future of many lives and communities. 9 American Heart Association American Lung Association Blank Children s Hospital Blank Park Zoo Boy Scouts of America Boys and Girls Clubs of Central Iowa ChildServe Des Moines Art Center Des Moines Community Playhouse Des Moines Metro Opera Des Moines Symphony Employee and Family Resources Girl Scouts of America Greater Des Moines Partnership Goodwill of Central Iowa Habitat for Humanity Hawthorn Hill Iowa Homeless Youth Centers Iowa Women s Leadership Council (IWLC) JDRF Komen Race for the Cure Make-A-Wish Foundation Meals from the Heartland On With Life Foundation Orchard Place The Principal Charity Classic Toys for Tots United Way of Central Iowa Variety The Children s Charity YMCA of Greater Des Moines Youth Emergency Shelter & Services (Y.E.S.S.)

11 CONTACT INFORMATION Company Hours & Main Numbers Normal Business Hours: Monday-Thursday: 8:00 a.m. 4:45 p.m. (CT) Friday: 8:00 a.m. 1:00 p.m. (CT) Main Phone Number: (fax) Website life.american-equity.com Addresses Mailing Address: P.O. Box 71216, Des Moines, Iowa Street Address: 6000 Westown Parkway, West Des Moines, Iowa Stock Listing New York Stock Exchange ticker symbol: AEL * Liabilities as of 12/31/2016 are $45 Billion ** A.M. Best has assigned American Equity an A- (Excellent) rating, reflecting their current opinion of American Equity s financial strength and its ability to meet its ongoing contractual obligations relative to the norms of the life/health insurance industry. A.M. Best utilizes 15 rating categories ranging from A++ to F. An A- rating from A.M. Best is its fourth highest rating. For the latest rating, access Rating effective 8/2/2006, affirmed 4/14/ If you cannot access this article online, you may call to request a copy. American Equity Investment Life Insurance Company does not offer legal, investment, or tax advice. Please consult a qualified professional. Guarantees are based on the financial strength and claims paying ability of American Equity and are not guaranteed by any bank or insured by the FDIC. 10

12 The one who works for you! life.american-equity.com Call us at Westown Pkwy, West Des Moines, IA American Equity. All Rights Reserved.