FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2004
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number : 001-31911
American Equity Investment Life Holding Company
(Exact name of registrant as specified in its charter)
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Iowa |
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42-1447959 |
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(State of Incorporation) |
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(I.R.S. Employer Identification No.) |
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5000 Westown Parkway, Suite 440 |
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50266 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code |
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(515) 221-0002 |
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(Telephone) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Name of each exchange on which registered |
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Common Stock, par value $1 |
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New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $1
Indicate by check mark whether the registrant (1) has filed all documents and reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
APPLICABLE TO CORPORATE ISSUERS:
Shares of common stock outstanding at July 29, 2004: 38,257,812
PART I. – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)
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June 30, |
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December 31, |
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Assets |
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Cash and investments: |
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Fixed maturity securities: |
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Available for sale, at market (amortized cost: 2004 – $2,480,196; 2003 – $3,703,756) |
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$ |
2,347,063 |
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$ |
3,618,025 |
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Held for investment, at amortized cost (market: 2004 – $3,492,413; 2003 - $1,717,224) |
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3,686,903 |
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1,827,289 |
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Equity securities, available for sale, at market (cost: 2004 – $26,145; 2003- $21,794) |
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23,783 |
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21,409 |
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Mortgage loans on real estate |
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752,681 |
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608,715 |
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Derivative instruments |
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105,263 |
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119,833 |
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Policy loans |
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341 |
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324 |
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Cash and cash equivalents |
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33,019 |
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32,598 |
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Total cash and investments |
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6,949,053 |
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6,228,193 |
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Coinsurance deposits - related party |
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2,074,418 |
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1,926,603 |
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Premiums due and uncollected |
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1,439 |
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1,213 |
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Accrued investment income |
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38,312 |
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29,386 |
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Receivables from related parties |
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22,879 |
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28,015 |
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Property and equipment |
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3,432 |
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1,574 |
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Deferred policy acquisition costs |
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670,428 |
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608,197 |
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Deferred sales inducements |
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123,010 |
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95,467 |
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Deferred income tax asset |
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72,276 |
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58,833 |
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Federal income taxes recoverable |
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— |
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1,737 |
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Other assets |
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9,565 |
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6,333 |
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Assets held in separate account |
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3,831 |
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3,626 |
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Total assets |
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$ |
9,968,643 |
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$ |
8,989,177 |
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2
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED BALANCE SHEETS (Continued)
(Dollars in thousands, except per share data)
(Unaudited)
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June 30, |
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December 31, |
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Liabilities and Stockholders’ Equity |
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Liabilities: |
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Policy benefit reserves: |
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Traditional life and accident and health insurance products |
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$ |
52,373 |
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$ |
44,497 |
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Annuity and single premium universal life products |
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8,952,884 |
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8,271,377 |
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Other policy funds and contract claims |
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78,156 |
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60,995 |
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Amounts due to related party under General Agency Commission and Servicing Agreement |
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29,922 |
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40,601 |
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Other amounts due to related parties |
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34,673 |
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22,551 |
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Notes payable |
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8,500 |
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31,833 |
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Subordinated debentures |
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142,245 |
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116,425 |
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Amounts due under repurchase agreements |
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343,690 |
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108,790 |
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Federal income taxes payable |
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5,153 |
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— |
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Other liabilities |
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37,461 |
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24,766 |
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Liabilities related to separate account |
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3,831 |
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3,626 |
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Total liabilities |
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9,688,888 |
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8,725,461 |
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Stockholders’ equity: |
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Series Preferred Stock, par value $1 per share, 2,000,000 shares authorized; 1998 Series A Participating Preferred Stock issued and outstanding: 2003 - 625,000 shares |
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— |
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625 |
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Common Stock, par value $1 per share, 75,000,000 shares authorized; issued and outstanding: 2004 – 38,257,812 shares; 2003 – 35,294,035 shares |
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38,258 |
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35,294 |
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Additional paid-in capital |
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214,985 |
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208,436 |
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Accumulated other comprehensive loss |
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(36,406 |
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(22,742 |
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Retained earnings |
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62,918 |
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42,103 |
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Total stockholders’ equity |
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279,755 |
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263,716 |
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Total liabilities and stockholders’ equity |
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$ |
9,968,643 |
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$ |
8,989,177 |
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See accompanying notes.
3
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues: |
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Traditional life and accident and health insurance premiums |
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$ |
3,713 |
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$ |
3,256 |
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$ |
8,099 |
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$ |
6,858 |
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Annuity and single premium universal life product charges |
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5,345 |
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5,494 |
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10,316 |
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11,225 |
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Net investment income |
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106,586 |
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84,235 |
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205,947 |
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174,931 |
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Realized gains on investments |
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10 |
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7,592 |
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389 |
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7,788 |
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Change in fair value of derivatives |
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(4,934 |
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33,053 |
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881 |
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19,091 |
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Total revenues |
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110,720 |
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133,630 |
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225,632 |
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219,893 |
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Benefits and expenses: |
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