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Schedule II - Condensed Financial Information of Registrant (Tables) | 12 Months Ended
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Dec. 31, 2013
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Condensed Balance Sheets | AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY (PARENT COMPANY) Condensed Balance Sheets (Dollars in thousands)
| December 31,
| 2013 |  | 2012
Assets |  |  |
Cash and cash equivalents | $ | 252,541 |  |  | $ | 11,220 |
Equity securities of subsidiary trusts | 7,403 |  |  | 7,398 |
Receivable from subsidiaries | 1,158 |  |  | 535 |
Deferred income taxes | 15,734 |  |  | 2,378 |
Federal income tax recoverable, including amount from subsidiaries | 11,551 |  |  | 11,613 |
Other assets, including 2015 notes hedges | 131,424 |  |  | 55,010 |
| 419,811 |  |  | 88,154 |
Investment in and advances to subsidiaries | 1,889,648 |  |  | 2,235,403 |
Total assets | $ | 2,309,459 |  |  | $ | 2,323,557 |
Liabilities and Stockholders' Equity |  |  |
Liabilities: |  |  |
Notes payable | $ | 549,958 |  |  | $ | 309,869 |
Subordinated debentures payable to subsidiary trusts | 246,050 |  |  | 245,869 |
Other liabilities, including 2015 notes embedded derivative | 128,764 |  |  | 47,582 |
Total liabilities | 924,772 |  |  | 603,320 |
Stockholders' equity: |  |  |
Common stock | 70,535 |  |  | 61,751 |
Additional paid-in capital | 550,400 |  |  | 496,715 |
Unallocated common stock held by ESOP | (631 | ) |  | (2,583 | )
Accumulated other comprehensive income | 46,196 |  |  | 686,807 |
Retained earnings | 718,187 |  |  | 477,547 |
Total stockholders' equity | 1,384,687 |  |  | 1,720,237 |
Total liabilities and stockholders' equity | $ | 2,309,459 |  |  | $ | 2,323,557 |
See accompanying note to condensed financial statements. See accompanying Report of Independent Registered Public Accounting Firm.
Condensed Statements of Operations | AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY (PARENT COMPANY) Condensed Statements of Operations (Dollars in thousands)
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Revenues: |  |  |  |  |
Net investment income | $ | 130 |  |  | $ | 565 |  |  | $ | 298 |
Dividends from subsidiary trusts | 361 |  |  | 403 |  |  | 427 |
Investment advisory fees | 44,469 |  |  | 36,178 |  |  | 29,765 |
Surplus note interest from subsidiary | 4,080 |  |  | 4,080 |  |  | 4,080 |
Realized gain on investments | — |  |  | — |  |  | 18 |
Change in fair value of derivatives | 144,012 |  |  | (7,472 | ) |  | (21,146 | )
Loss on extinguishment of debt | (32,515 | ) |  | — |  |  | — |
Total revenues | 160,537 |  |  | 33,754 |  |  | 13,442 |
Expenses: |  |  |  |  |
Change in fair value of embedded derivatives | 141,974 |  |  | (2,488 | ) |  | (21,002 | )
Interest expense on notes payable | 38,870 |  |  | 28,479 |  |  | 31,633 |
Interest expense on subordinated debentures issued to subsidiary trusts | 12,088 |  |  | 13,458 |  |  | 13,977 |
Other operating costs and expenses | 8,163 |  |  | 8,228 |  |  | 7,307 |
Total expenses | 201,095 |  |  | 47,677 |  |  | 31,915 |
Loss before income taxes and equity in undistributed income of subsidiaries | (40,558 | ) |  | (13,923 | ) |  | (18,473 | )
Income tax benefit | (13,880 | ) |  | (5,944 | ) |  | (7,407 | )
Loss before equity in undistributed income of subsidiaries | (26,678 | ) |  | (7,979 | ) |  | (11,066 | )
Equity in undistributed income of subsidiaries | 279,961 |  |  | 65,777 |  |  | 97,314 |
Net income | $ | 253,283 |  |  | $ | 57,798 |  |  | $ | 86,248 |
See accompanying note to condensed financial statements. See accompanying Report of Independent Registered Public Accounting Firm.
Condensed Statements of Cash Flows | AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY (PARENT COMPANY) Condensed Statements of Cash Flows (Dollars in thousands)
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Operating activities |  |  |  |  |
Net income | $ | 253,283 |  |  | $ | 57,798 |  |  | $ | 86,248 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
Change in fair value of 2015 notes embedded conversion derivative | 141,974 |  |  | (2,488 | ) |  | (21,002 | )
Provision for depreciation and amortization | 2,831 |  |  | 2,382 |  |  | 2,395 |
Accrual of discount on equity security | (5 | ) |  | (5 | ) |  | (5 | )
Equity in undistributed income of subsidiaries | (279,961 | ) |  | (65,777 | ) |  | (97,314 | )
Amortization of premium on fixed maturity security | — |  |  | — |  |  | 1,005 |
Accrual of discount on contingent convertible notes | 12,417 |  |  | 12,261 |  |  | 13,024 |
Change in fair value of derivatives | (144,012 | ) |  | 7,472 |  |  | 21,002 |
Realized gain on investments | — |  |  | — |  |  | (18 | )
Loss on extinguishment of debt | 32,515 |  |  | — |  |  | — |
Accrual of discount on debenture issued to subsidiary trust | 181 |  |  | 169 |  |  | 158 |
Share-based compensation | 1,407 |  |  | 1,348 |  |  | 866 |
ESOP compensation | 110 |  |  | 45 |  |  | 45 |
Deferred income tax benefit | (5,202 | ) |  | (2,838 | ) |  | (4,355 | )
Other | (3,608 | ) |  | — |  |  | — |
Changes in operating assets and liabilities: |  |  |  |  |
Receivable from subsidiaries | 995 |  |  | 1,205 |  |  | 1,596 |
Federal income tax recoverable | 62 |  |  | (2,745 | ) |  | 142 |
Other assets | (1,945 | ) |  | (549 | ) |  | 1,702 |
Other liabilities | 20,131 |  |  | (4,528 | ) |  | (1,562 | )
Net cash provided by operating activities | 31,173 |  |  | 3,750 |  |  | 3,927 |
Investing activities |  |  |  |  |
Capital contributions to subsidiaries | — |  |  | — |  |  | (2,450 | )
Purchase of fixed maturity security | — |  |  | — |  |  | (53,610 | )
Sales, maturities or repayments of fixed maturity securities—available for sale | — |  |  | — |  |  | 52,623 |
Net cash used in investing activities | — |  |  | — |  |  | (3,437 | )
See accompanying note to condensed financial statements. See accompanying Report of Independent Registered Public Accounting Firm. Schedule II—Condensed Financial Information of Registrant (Continued) AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY (PARENT COMPANY) Condensed Statements of Cash Flows (Continued) (Dollars in thousands)
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Financing activities |  |  |  |  |
Financing fees incurred and deferred | $ | (11,942 | ) |  | $ | — |  |  | $ | (1,566 | )
Proceeds from notes payable | 415,000 |  |  | — |  |  | — |
Repayments of notes payable | (234,154 | ) |  | — |  |  | (46,251 | )
Net proceeds from settlement of notes hedge and warrants | 22,170 |  |  | — |  |  | — |
Repayment of subordinated debentures | — |  |  | (1,141 | ) |  | — |
Excess tax benefits realized from share-based compensation plans | 159 |  |  | 6 |  |  | 28 |
Proceeds from issuance of common stock | 31,764 |  |  | 5,370 |  |  | 4,686 |
Dividends paid | (12,849 | ) |  | (9,374 | ) |  | (7,102 | )
Net cash provided by (used in) financing activities | 210,148 |  |  | (5,139 | ) |  | (50,205 | )
Increase (decrease) in cash and cash equivalents | 241,321 |  |  | (1,389 | ) |  | (49,715 | )
Cash and cash equivalents at beginning of year | 11,220 |  |  | 12,609 |  |  | 62,324 |
Cash and cash equivalents at end of year | $ | 252,541 |  |  | $ | 11,220 |  |  | $ | 12,609 |
Supplemental disclosures of cash flow information |  |  |  |  |
Cash paid during the year for: |  |  |  |  |
Interest on notes payable | $ | 13,758 |  |  | $ | 14,564 |  |  | $ | 16,917 |
Interest on subordinated debentures | 11,850 |  |  | 13,102 |  |  | 13,703 |
Non-cash financing activity: |  |  |  |  |
Conversion of subordinated debentures | — |  |  | 20,770 |  |  | — |
Common stock issued in extinguishment of debt | 117,463 |  |  | — |  |  | — |
See accompanying note to condensed financial statements. See accompanying Report of Independent Registered Public Accounting Firm.

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