AMERICAN EQUITY INVESTMENT LIFE HOLDING CO - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY 8-K - AMERICAN EQUITY INVESTMENT LIFE HOLDING CO	ael8k03312011.htm
EX-99.1 - EXHIBIT 99.1 - AMERICAN EQUITY INVESTMENT LIFE HOLDING CO	ael03312011exhibit991.htm

Exhibit 99.2

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement

March 31, 2011



A.	Financial Highlights
	Condensed Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Operating Income
	Three Months Ended March 31, 2011	3
	Quarterly Summary - Most Recent 5 Quarters	4
	Capitalization/Book Value per Share	5

B.	Product Summary
	Annuity Deposits by Product Type	6
	Surrender Charge Protection and Account Values by Product Type	6
	Annuity Liability Characteristics	7
	Spread Results	9

C.	Investment Summary
	Summary of Invested Assets	9
	Credit Quality of Fixed Maturity Securities	10
	Watch List Securities	10
	Summary of Residential Mortgage Backed Securities	11
	Mortgage Loans by Region and Property Type	12

D.	Shareholder Information	13

E.	Research Analyst Coverage	14

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

Financial Supplement-March 31, 2011

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)



	March 31, 2011			December 31, 2010
Assets
Investments:
Fixed maturity securities:
Available for sale, at fair value	$	15,745,405		$	15,830,663
Held for investment, at amortized cost	1,593,459			822,200
Equity securities, available for sale, at fair value	69,644			65,961
Mortgage loans on real estate	2,730,841			2,598,641
Derivative instruments	622,106			479,786
Other investments	23,357			19,680
Total investments	20,784,812			19,816,931

Cash and cash equivalents	746,737			597,766
Coinsurance deposits	2,657,102			2,613,191
Accrued investment income	197,648			167,645
Deferred policy acquisition costs	1,827,090			1,747,760
Deferred sales inducements	1,313,986			1,227,328
Deferred income taxes	192,518			143,253
Income taxes recoverable	—			6,134
Other assets	114,983			106,755
Total assets	$	27,834,876		$	26,426,763

Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves	$	24,983,321		$	23,655,807
Other policy funds and contract claims	268,676			222,860
Notes payable	334,000			330,835
Subordinated debentures	268,473			268,435
Income taxes payable	50,447			—
Other liabilities	968,782			1,010,779
Total liabilities	26,873,699			25,488,716

Stockholders' equity:
Common stock	57,688			56,968
Additional pain-in capital	459,498			454,454
Unallocated common stock held by ESOP	(4,551		)	(4,815		)
Accumulated other comprehensive income	67,579			81,820
Retained earnings	380,963			349,620
Total stockholders' equity	961,177			938,047
Total liabilities and stockholders' equity	$	27,834,876		$	26,426,763

Page 1

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(Unaudited)



	Three Months Ended March 31,
	2011			2010
Revenues:
Traditional life and accident and health insurance premiums	$	2,916		$	3,287
Annuity product charges	16,962			15,518
Net investment income	292,128			242,910
Change in fair value of derivatives	148,653			82,015
Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses	(1,193		)	9,903
OTTI losses on investments:
Total OTTI losses	(5,100		)	(12,584		)
Portion of OTTI losses recognized in (from) other comprehensive income	(1,471		)	9,361
Net OTTI losses recognized in operations	(6,571		)	(3,223		)
Total revenues	452,895			350,410

Benefits and expenses:
Insurance policy benefits and change in future policy benefits	1,895			2,332
Interest sensitive and index product benefits (b)	159,665			196,869
Amortization of deferred sales inducements	30,692			13,089
Change in fair value of embedded derivatives	128,303			63,875
Interest expense on notes payable	7,907			4,651
Interest expense on subordinated debentures	3,466			3,685
Interest expense on amounts due under repurchase agreements	4			—
Amortization of deferred policy acquisition costs	55,223			27,268
Other operating costs and expenses	17,474			15,985
Total benefits and expenses	404,629			327,754
Income before income taxes	48,266			22,656
Income tax expense	16,923			7,771
Net income (b)	$	31,343		$	14,885

Earnings per common share (b)	$	0.53		$	0.26
Earnings per common share - assuming dilution (a) (b)	$	0.48		$	0.25
Weighted average common shares outstanding (in thousands):
Earnings per common share	59,182			58,225
Earnings per common share - assuming dilution	65,711			61,138


(a)	The numerator for earnings per common share - assuming dilution is equal to net income plus the after tax cost of interest on convertible subordinated debentures issued to a subsidiary trust. The after tax cost of such interest was $258 and $259 for the three months ended March 31, 2011 and 2010, respectively.


(b)	Three months ended March 31, 2011 includes an adjustment to single premium immediate annuity reserves which reduced interest sensitive and index product benefits by $4.2 million and increased net income, earnings per common share and earnings per common share - assuming dilution by $2.7 million, $0.05 per share and $0.04 per share, respectively.

Operating Income

Three months ended March 31, 2011 (Unaudited)



				Adjustments
	As Reported			Realized Losses		Derivatives and Other Index Annuity			Operating Income (a)
	(Dollars in thousands, except per share data)
Revenues:
Traditional life and accident and health insurance premiums	$	2,916		$	—	$	—		$	2,916
Annuity product charges	16,962			—		—			16,962
Net investment income	292,128			—		—			292,128
Change in fair value of derivatives	148,653			—		(133,920		)	14,733
Net realized losses on investments, excluding other than temporary impairment ("OTTI") losses	(1,193		)	1,193		—			—
Net OTTI losses recognized in operations	(6,571		)	6,571		—			—
Total revenues	452,895			7,764		(133,920		)	326,739

Benefits and expenses:
Insurance policy benefits and change in future policy benefits	1,895			—		—			1,895
Interest sensitive and index product benefits (b)	159,665			—		—			159,665
Amortization of deferred sales inducements	30,692			1,636		(2,056		)	30,272
Change in fair value of embedded derivatives	128,303			—		(123,034		)	5,269
Interest expense on notes payable	7,907			—		—			7,907
Interest expense on subordinated debentures	3,466			—		—			3,466
Interest expense on amounts due under repurchase agreements	4			—		—			4
Amortization of deferred policy acquisition costs	55,223			2,289		(3,753		)	53,759
Other operating costs and expenses	17,474			—		—			17,474
Total benefits and expenses	404,629			3,925		(128,843		)	279,711
Income before income taxes	48,266			3,839		(5,077		)	47,028
Income tax expense	16,923			1,367		(1,836		)	16,454
Net income (b)	$	31,343		$	2,472	$	(3,241	)	$	30,574

Earnings per common share (b)	$	0.53							$	0.52
Earnings per common share - assuming dilution (b)	$	0.48							$	0.47

(a)

In addition to net income, we have consistently utilized operating income, operating income per common share 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 net realized gains and losses on investments including net OTTI losses recognized in operations and fair value changes in derivatives and embedded derivatives. Because these items fluctuate from quarter to quarter in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. 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.

(b)

Three months ended March 31, 2011 includes an adjustment to single premium immediate annuity reserves which reduced interest sensitive and index product benefits by $4.2 million and increased net income and operating income by $2.7 million, increased earnings per common share and operating income per common share by $0.05 per share and increased earnings per common share - assuming dilution and operating income per common share - assuming dilution by $0.04 per share.



Change in fair value of derivatives:
Proceeds received at expiration	$	88,026		$	—		$	88,026
Cost of money for fixed index annuities	(77,989		)	—			(77,989		)
Change in the difference between fair value and remaining option cost at beginning and end of period	138,616			(133,920		)	4,696
	$	148,653		$	(133,920	)	$	14,733

Index credits included in interest credited to account balances	87,394						87,394

Operating Income/Net Income

Quarterly Summary - Most Recent 5 Quarters (Unaudited)



	Q1 2011			Q4 2010			Q3 2010			Q2 2010			Q1 2010
	(Dollars in thousands, except per share data)
Revenues:
Traditional life and accident and health insurance premiums	$	2,916		$	2,871		$	3,181		$	2,643		$	3,287
Annuity product charges	16,962			16,402			18,538			18,617			15,518
Net investment income	292,128			277,876			260,475			254,845			242,910
Change in fair value of derivatives	14,733			29,401			17,095			91,306			66,771
Total revenues	326,739			326,550			299,289			367,411			328,486

Benefits and expenses:
Insurance policy benefits and change in future policy benefits	1,895			1,622			2,128			2,169			2,332
Interest sensitive and index product benefits (b)	159,665			148,320			155,667			224,331			195,284
Amortization of deferred sales inducements	30,272			27,719			24,942			24,503			22,774
Change in fair value of embedded derivatives	5,269			28,112			1,483			—			—
Interest expense on notes payable	7,907			7,861			4,940			4,673			4,651
Interest expense on subordinated debentures	3,466			3,700			3,805			3,716			3,685
Interest expense on amounts due under repurchase agreements	4			—			—			—			—
Amortization of deferred policy acquisition costs	53,759			50,788			47,754			46,417			44,175
Other operating costs and expenses	17,474			17,715			16,213			16,702			15,985
Total benefits and expenses	279,711			285,837			256,932			322,511			288,886
Operating income before income taxes	47,028			40,713			42,357			44,900			39,600
Income tax expense	16,454			14,319			14,795			15,692			13,817
Operating income (a) (b)	30,574			26,394			27,562			29,208			25,783
Net realized gains (losses) and net OTTI losses on investments, net of offsets	(2,472		)	(4,687		)	1,950			(11		)	2,369
Lawsuit settlement	—			(27,297		)	—			—			—
Convertible debt retirement, net of income taxes	—			—			—			(171		)	—
Net effect of derivatives and other index annuity, net of offsets	3,241			14,628			(8,998		)	(30,530		)	(13,267		)
Net income (loss) (b)	$	31,343		$	9,038		$	20,514		$	(1,504	)	$	14,885

Operating income per common share (a) (b)	$	0.52		$	0.45		$	0.47		$	0.50		$	0.44
Operating income per common share - assuming dilution (a) (b)	$	0.47		$	0.41		$	0.45		$	0.48		$	0.43
Earnings (loss) per common share (b)	$	0.53		$	0.15		$	0.35		$	(0.03	)	$	0.26
Earnings (loss) per common share - assuming dilution (b)	$	0.48		$	0.14		$	0.33		$	(0.03	)	$	0.25

Weighted average common shares outstanding (in thousands):
Earnings per common share	59,182			58,757			58,564			58,427			58,225
Earnings per common share - assuming dilution	65,711			65,054			62,498			61,592			61,138

(a)

In addition to net income (loss), we have consistently utilized operating income, operating income per common share 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 (loss) adjusted to eliminate the impact of net realized gains and losses on investments including net OTTI losses recognized in operations, loss on extinguishment of debt, the settlement of a class action lawsuit and fair value changes in derivatives and embedded derivatives. Because these items fluctuate from quarter to quarter in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income (loss), provides information that may enhance an investor’s understanding of our underlying results and profitability.

(b)

Three months ended March 31, 2011 includes an adjustment to single premium immediate annuity reserves which reduced interest sensitive and index product benefits by $4.2 million and increased operating income and net income by $2.7 million, increased operating income per common share and earnings per common share by $0.05 per share and increased operating income per common share - assuming dilution and earnings per common share - assuming dilution by $0.04 per share.

Capitalization/Book Value per Share



	March 31, 2011			December 31, 2010
	(Dollars in thousands, except per share data)
Capitalization:
Notes payable	$	334,000		$	330,835
Subordinated debentures payable to subsidiary trusts	268,473			268,435
Total debt	602,473			599,270
Total stockholders’ equity	961,177			938,047
Total capitalization	1,563,650			1,537,317
Accumulated other comprehensive income loss (AOCI)	(67,579		)	(81,820		)
Total capitalization excluding AOCI (a)	$	1,496,071		$	1,455,497

Total stockholders’ equity	$	961,177		$	938,047
Accumulated other comprehensive income	(67,579		)	(81,820		)
Total stockholders’ equity excluding AOCI (a)	$	893,598		$	856,227

Common shares outstanding (b)	58,791,180			58,377,233

Book Value per Share: (c)
Book value per share including AOCI	$	16.35		$	16.07
Book value per share excluding AOCI (a)	$	15.20		$	14.67

Debt-to-Capital Ratios: (d)
Senior debt / Total capitalization	22.3		%	22.7		%
Adjusted debt / Total capitalization	25.3		%	26.2		%


(a)	Total capitalization, total stockholders’ equity and book value per share excluding AOCI, non-GAAP financial measures, are based on 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 investments, we believe these non-GAAP financial measures provide useful supplemental information.


(b)	Common shares outstanding include shares held by the NMO Deferred Compensation Trust: 2011 - 1,549,803 shares; 2010 - 1,855,835 shares and exclude unallocated shares held by ESOP: 2011 - 447,048 shares; 2010 - 447,048 shares.


(c)	Book value per share including and excluding AOCI is calculated as total stockholders’ equity and total stockholders’ equity excluding AOCI divided by the total number of shares of common stock outstanding.


(d)	Debt-to-capital ratios are computed using total capitalization excluding AOCI. Adjusted debt includes notes payable and the portion of the total subordinated debentures payable to subsidiary trusts outstanding (qualifying trust preferred securities) that exceeds 15% of total capitalization including AOCI.

Annuity Deposits by Product Type



	Three Months Ended March 31,				Year Ended December 31,
Product Type	2011		2010		2010
	(Dollars in thousands)
Fixed Index Annuities:
Index Strategies	$	778,582	$	403,124	$	2,401,891
Fixed Strategy	357,472		337,782		1,551,007
	1,136,054		740,906		3,952,898
Fixed Rate Annuities:
Single-Year Rate Guaranteed	128,743		52,768		331,705
Multi-Year Rate Guaranteed	77,047		53,181		384,116
	205,790		105,949		715,821
Total before coinsurance ceded	1,341,844		846,855		4,668,719
Coinsurance ceded	65,877		189,122		478,962
Net after coinsurance ceded	$	1,275,967	$	657,733	$	4,189,757

Surrender Charge Protection and Account Values by Product Type

Annuity Surrender Charges and Net (of coinsurance) Account Values at March 31, 2011



	Surrender Charge			Net Account Value
Product Type	Avg. Years At Issue	Avg. Years Remaining	Avg. % Remaining	Dollars in Thousands		%

Fixed Index Annuities	14.3	10.9	16.1%	$	19,524,577	91.3	%
Single-Year Fixed Rate Guaranteed Annuities	11.0	4.7	7.6%	1,351,504		6.3	%
Multi-Year Fixed Rate Guaranteed Annuities	6.6	2.2	4.7%	509,816		2.4	%
Total	13.9	10.3	15.3%	$	21,385,897	100.0	%

Annuity Liability Characteristics



	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	(Dollars in thousands)
SURRENDER CHARGE PERCENTAGES (1):
No surrender charge	$	383,465	$	352,552
0.0% < 2.0%	30,258		39,551
2.0% < 3.0%	126,200		116,460
3.0% < 4.0%	35,559		226,384
4.0% < 5.0%	229,046		405,723
5.0% < 6.0%	30,183		297,282
6.0% < 7.0%	95,205		228,760
7.0% < 8.0%	124,080		286,024
8.0% < 9.0%	187,521		261,814
9.0% < 10.0%	200,373		687,659
10.0% or greater	419,430		16,622,368
	$	1,861,320	$	19,524,577



	Fixed and Fixed Index Annuities Account Value		Weighted Average Surrender Charge
	(Dollars in thousands)
SURRENDER CHARGE EXPIRATION BY YEAR:
Out of Surrender Charge	$	736,017	0.00	%
2011	198,163		2.40	%
2012	400,421		3.26	%
2013	566,032		4.34	%
2014	599,692		5.51	%
2015	627,063		7.34	%
2016	820,554		8.57	%
2017	929,040		9.76	%
2018	896,624		11.94	%
2019	633,670		12.53	%
2020	969,231		13.83	%
2021	816,118		14.49	%
2022	1,095,547		17.06	%
2023	3,980,213		19.41	%
2024	4,213,168		19.59	%
2025	1,774,145		19.57	%
2026	1,690,679		19.90	%
2027	435,650		19.99	%
2028	3,870		20.00	%
	$	21,385,897	15.33	%

Annuity Liability Characteristics



	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	(Dollars in thousands)
APPLICABLE GUARANTEE PERIOD:
Annual reset (2)	$	1,641,435	$	19,510,073
Multi-year (3 - 7 years)	219,885		14,504
	$	1,861,320	$	19,524,577

ULTIMATE MINIMUM GUARANTEE RATE:
1.50%	$	18,480	$	603,145
2.00%	362,446		1,197
2.20%	4,359		74,592
2.25%	6,000		5,369,704
2.25% (3)	184,726		952,700
3.00% (4)	1,224,224		1,331,853
3.00% (5)	—		11,000,186
3.50% (6)	—		191,200
4.00%	61,085		—
	$	1,861,320	$	19,524,577

CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL (7):
No differential	$	78,930	$	8,002
› 0.0% - 0.25%	887,180		1,021,466
› 0.25% - 0.5%	128,774		363,737
› 0.5% - 1.0% (8)	311,405		1,114,242
› 1.0% - 1.5% (8)	107,839		66,503
› 1.5% - 2.0%	140,828		2,915
› 2.0% - 2.5%	14,173		—
› 2.5% - 3.0%	74,723		—
1.50% ultimate guarantee - 2.17% wtd avg interest rate (9)	9,707		145,401
2.00% ultimate guarantee - 2.83% wtd avg interest rate (9)	107,762		—
2.25% ultimate guarantee - 2.89% wtd avg interest rate (9)	—		1,550,203
3.00% ultimate guarantee - 3.14% wtd avg interest rate (9)	—		3,125,531
Cumulative floor	—		12,126,577
	$	1,861,321	$	19,524,577

(1) In addition, $950,240 (51.05%) of the Fixed Annuities Account Value have market value adjustment protection.

(2) The contract features for substantially all of the Fixed Index Annuities Account Value provide for the annual reset of contractual features that effect the cost of money. The contract features for less than 0.5% of the Fixed Index Annuities Account Value are reset every two years.

(3) Products have a guarantee of 2.25% for the first 10 years, and 3.00% thereafter.

(4) Products have a guarantee of 3.00% on 100% of the premium.

(5) Products have a guarantee of 3.00% on less than 100% of the premium.

(6) Rates applicable to the minimum guaranteed surrender value are 3.50% for the first 5 years, and 3.00% thereafter (applied to less than 100% of the annuity deposits received). Minimum guaranteed rates for amounts allocated to the fixed rate strategy are 2.25% for the first 10 years, and 3.00% thereafter.

(7) Recent issues may contain bonus interest rates ranging from 1.0% to 3.0%.

(8) $184,726 of Fixed Annuities Account Value have a guarantee of 2.25% for the first 10 years and 3% thereafter. They begin increasing in 2014. $653,935 of Index Annuities Account Value is in fixed rate strategies that have a guarantee of 2.25% for the first 10 years and 3%

thereafter. They begin increasing in 2014.

(9) The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy is 1.0%. The ultimate guaranteed rate is applied on less than 100% of the premium.

Spread Results



	Three Months Ended March 31,		Year Ended December 31,
	2011	2010	2010
Average yield on invested assets	5.96%	6.13%	6.06%

Cost of money:
Aggregate	2.82%	2.96%	2.91%
Cost of money for fixed index annuities	2.77%	2.91%	2.86%
Average crediting rate for fixed rate annuities:
Annually adjustable	3.19%	3.26%	3.26%
Multi-year rate guaranteed	3.69%	3.78%	3.74%

Investment spread:
Aggregate	3.14%	3.17%	3.15%
Fixed index annuities	3.19%	3.22%	3.20%
Fixed rate annuities:
Annually adjustable	2.77%	2.87%	2.80%
Multi-year rate guaranteed	2.27%	2.35%	2.32%

Summary of Invested Assets



	March 31, 2011				December 31, 2010
	Carrying Amount		Percent		Carrying Amount		Percent
	(Dollars in thousands)
Fixed maturity securities:
United States Government full faith and credit	$	4,335	—	%	$	4,388	—	%
United States Government sponsored agencies	3,907,140		18.8	%	3,750,065		18.9	%
United States municipalities, states and territories	2,489,998		12.0	%	2,367,003		12.0	%
Corporate securities	8,035,009		38.7	%	7,652,850		38.6	%
Residential mortgage backed securities	2,902,382		14.0	%	2,878,557		14.5	%
Total fixed maturity securities	17,338,864		83.5	%	16,652,863		84.0	%
Equity securities	69,644		0.3	%	65,961		0.4	%
Mortgage loans on real estate	2,730,841		13.1	%	2,598,641		13.1	%
Derivative instruments	622,106		3.0	%	479,786		2.4	%
Other investments	23,357		0.1	%	19,680		0.1	%
	$	20,784,812	100.0	%	$	19,816,931	100.0	%

Credit Quality of Fixed Maturity Securities - March 31, 2011



NAIC Designation	Carrying Amount		Percent		Rating Agency Rating	Carrying Amount		Percent
	(Dollars in thousands)					(Dollars in thousands)
1	$	12,925,036	74.6	%	Aaa/Aa/A	$	12,154,165	70.1	%
2	4,100,086		23.6	%	Baa	3,881,390		22.4	%
3	284,427		1.6	%	Ba	281,832		1.6	%
4	18,026		0.1	%	B	64,098		0.4	%
5	6,173		0.1	%	Caa and lower	903,293		5.2	%
6	5,116		—	%	In or near default	54,086		0.3	%
	$	17,338,864	100.0	%		$	17,338,864	100.0	%

Watch List Securities - March 31, 2011



General Description	Amortized Cost		Unrealized Losses			Fair Value		Months Below Amortized Cost
	(Dollars in thousands)
Corporate bonds:
Finance, insurance and real estate companies	$	10,166	$	(694	)	$	9,472	41 - 48
U.S. retail company	10,477		(1,077		)	9,400		70
	$	20,643	$	(1,771	)	$	18,872

Summary of Residential Mortgage Backed Securities



Collateral Type	NAIC Designation	Principal Amount		Amortized Cost		Fair Value
		(Dollars in thousands)
OTTI has not been recognized
Government agency	1	$	510,558	$	450,155	$	463,901
Prime	1	1,489,525		1,411,806		1,469,445
	2	1,437		1,418		1,335
	3	28,104		27,505		24,942
Alt-A	1	45,965		46,347		48,069
	2	5,123		5,214		4,713
		$	2,080,712	$	1,942,445	$	2,012,405
OTTI has been recognized
Prime	1	$	257,187	$	229,819	$	220,220
	2	297,017		274,922		252,962
	3	35,900		34,275		31,117
Alt-A	1	346,133		293,903		279,164
	2	130,335		102,554		89,478
	3	16,541		14,327		14,335
	6	4,521		3,884		2,701
		$	1,087,634	$	953,684	$	889,977
Total by collateral type
Government agency		$	510,558	$	450,155	$	463,901
Prime		2,109,170		1,979,745		2,000,021
Alt-A		548,618		466,229		438,460
		$	3,168,346	$	2,896,129	$	2,902,382
Total by NAIC designation
	1	$	2,649,368	$	2,432,030	$	2,480,799
	2	433,912		384,108		348,488
	3	80,545		76,107		70,394
	6	4,521		3,884		2,701
		$	3,168,346	$	2,896,129	$	2,902,382

Mortgage Loans by Region and Property Type



	March 31, 2011					December 31, 2010
	Carrying Amount			Percent		Carrying Amount			Percent
	(Dollars in thousands)
Geographic distribution
East	$	653,566		23.8	%	$	618,250		23.6	%
Middle Atlantic	182,514			6.6	%	172,443			6.6	%
Mountain	409,555			14.9	%	402,965			15.4	%
New England	42,225			1.5	%	42,695			1.6	%
Pacific	282,415			10.3	%	247,254			9.5	%
South Atlantic	505,099			18.4	%	496,606			19.0	%
West North Central	438,083			15.9	%	419,002			16.0	%
West South Central	234,326			8.6	%	215,650			8.3	%
	$	2,747,783		100.0	%	$	2,614,865		100.0	%
Loan loss allowance	(16,942		)			(16,224		)
	2,730,841					2,598,641

Property type distribution
Office	$	739,960		26.9	%	$	683,404		26.1	%
Medical Office	168,376			6.1	%	166,930			6.4	%
Retail	613,582			22.3	%	589,369			22.5	%
Industrial/Warehouse	691,448			25.2	%	666,908			25.6	%
Hotel	150,241			5.5	%	151,516			5.8	%
Apartment	149,019			5.4	%	131,682			5.0	%
Mixed use/other	235,157			8.6	%	225,056			8.6	%
	$	2,747,783		100.0	%	$	2,614,865		100.0	%
Loan loss allowance	(16,942		)			(16,224		)
	2,730,841					2,598,641

Shareholder Information

Corporate Offices:

American Equity Investment Life Holding Company

6000 Westown Parkway

West Des Moines, IA 50266

Inquiries:

D. J. Noble, Executive Chairman

(515) 457-1703, dnoble@american-equity.com

Debra J. Richardson, Executive Vice President and Secretary

(515) 273-3551, drichardson@american-equity.com

John M. Matovina, Vice Chairman, Chief Financial Officer and Treasurer

(515) 457-1813, jmatovina@american-equity.com

Common Stock and Dividend Information:

New York Stock Exchange symbol: “AEL”



	High	Low	Close	Dividend Declared
2011
First Quarter	$13.93	$11.27	$13.12	$0.00

2010
First Quarter	$10.99	$6.65	$10.65	$0.00
Second Quarter	$11.64	$8.53	$10.32	$0.00
Third Quarter	$11.19	$9.19	$10.24	$0.00
Fourth Quarter	$13.01	$10.11	$12.55	$0.10

2009
First Quarter	$7.40	$2.96	$4.16	$0.00
Second Quarter	$8.86	$4.01	$5.58	$0.00
Third Quarter	$8.65	$5.24	$7.02	$0.00
Fourth Quarter	$8.40	$6.10	$7.44	$0.08

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 Julie L. LaFollette, Investor Relations, at (515) 273-3602 or by visiting our web site at www.american-equity.com.

Research Analyst Coverage

Steven Schwartz

Raymond James & Associates, Inc.

(312) 612-7686

steven.schwartz@raymondjames.com

Paul Sarran, Mark Finkelstein

Macquarie (USA) Equities Research

(312) 660-9137 paul.sarran@macquarie.com

(312) 660-9179 mark.finkelstein@macquarie.com

Randy Binner

Friedman, Billings, Ramsey & Co., Inc.

(703) 312-1890

rbinner@fbr.com

Edward Shields

Sandler O’Neill & Partners

(312) 281-3487

eshields@sandleroneill.com

Mark Hughes

SunTrust Robinson Humphrey

(615) 748-5680

mark_hughes@rhco.com

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