EX-99.2 3 a2013-12x31_ael8kexhibit992.htm FINANCIAL SUPPLEMENT 2013-12-31_AEL 8K Exhibit 99.2

Exhibit 99.2



AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement

December 31, 2013


A.
Financial Highlights
 
 
 
 
 
Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
B.
Product Summary
 
 
 
 
 
 
 
 
 
C.
Investment Summary
 
 
 
 
 
 
 
 
 
 
D.
 
 
 
E.





AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
 
December 31, 2013
 
December 31, 2012
 
(Unaudited)
 
 
Assets
 
 
 
Investments:
 
 
 
Fixed maturity securities:
 
 
 
Available for sale, at fair value
$
26,610,447

 
$
24,172,136

Held for investment, at amortized cost
76,255

 
76,088

Equity securities, available for sale, at fair value
7,778

 
53,422

Mortgage loans on real estate
2,581,082

 
2,623,940

Derivative instruments
856,050

 
415,258

Other investments
215,042

 
196,366

Total investments
30,346,654

 
27,537,210

 
 
 
 
Cash and cash equivalents
897,529

 
1,268,545

Coinsurance deposits
2,999,618

 
2,910,701

Accrued investment income
301,641

 
261,833

Deferred policy acquisition costs
2,426,652

 
1,709,799

Deferred sales inducements
1,875,880

 
1,292,341

Deferred income taxes
301,856

 
—

Other assets
471,669

 
153,049

Total assets
$
39,621,499

 
$
35,133,478

 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
Liabilities:
 
 
 
Policy benefit reserves
$
35,789,655

 
$
31,773,988

Other policy funds and contract claims
418,033

 
455,752

Notes payable
549,958

 
309,869

Subordinated debentures
246,050

 
245,869

Deferred income taxes
—

 
49,303

Income taxes payable
10,153

 
4,756

Other liabilities
1,222,963

 
573,704

Total liabilities
38,236,812

 
33,413,241

 
 
 
 
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
$
39,621,499

 
$
35,133,478




Page 1


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
 
Three Months Ended
December 31,
 
Year Ended
December 31,
 
2013
 
2012
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
Premiums and other considerations (a)
$
10,838

 
$
15,890

 
$
45,347

 
$
76,675

Annuity product charges
32,148

 
23,830

 
103,591

 
89,006

Net investment income
363,947

 
321,160

 
1,383,927

 
1,286,923

Change in fair value of derivatives
444,985

 
(48,266
)
 
1,076,015

 
221,138

Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses
16,364

 
1,471

 
40,561

 
(6,454
)
OTTI losses on investments:
 
 
 
 
 
 
 
Total OTTI losses
—

 
(3,255
)
 
(4,964
)
 
(5,411
)
Portion of OTTI losses recognized from other comprehensive income
—

 
(6,132
)
 
(1,270
)
 
(9,521
)
Net OTTI losses recognized in operations
—

 
(9,387
)
 
(6,234
)
 
(14,932
)
Loss on extinguishment of debt
(30,988
)
 
—

 
(32,515
)
 
—

Total revenues
837,294

 
304,698

 
2,610,692

 
1,652,356

 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
Insurance policy benefits and change in future policy benefits (a)
13,279

 
17,658

 
53,071

 
81,481

Interest sensitive and index product benefits (a)
390,956

 
287,094

 
1,272,867

 
808,479

Amortization of deferred sales inducements
69,121

 
36,798

 
253,113

 
87,157

Change in fair value of embedded derivatives
142,881

 
(179,379
)
 
133,968

 
286,899

Interest expense on notes payable
11,885

 
7,271

 
38,870

 
28,479

Interest expense on subordinated debentures
3,027

 
3,074

 
12,088

 
13,458

Amortization of deferred policy acquisition costs
99,934

 
59,833

 
365,468

 
164,919

Other operating costs and expenses
26,886

 
18,710

 
91,915

 
95,495

Total benefits and expenses
757,969

 
251,059

 
2,221,360

 
1,566,367

Income before income taxes
79,325

 
53,639

 
389,332

 
85,989

Income tax expense
28,367

 
17,242

 
136,049

 
28,191

Net income
$
50,958

 
$
36,397

 
$
253,283

 
$
57,798

 
 
 
 
 
 
 
 
Earnings per common share
$
0.73

 
$
0.58

 
$
3.86

 
$
0.94

Earnings per common share - assuming dilution
$
0.64

 
$
0.55

 
$
3.38

 
$
0.89

Weighted average common shares outstanding (in thousands):
 
 
 
 
 
 
 
Earnings per common share
69,416

 
62,856

 
65,544

 
61,259

Earnings per common share - assuming dilution
79,041

 
65,897

 
75,041

 
65,676

(a)
During the fourth quarter of 2013, the Company made an immaterial correction in the presentation of premiums, insurance policy benefits and change in future policy benefits and interest sensitive and index product benefits related to life contingent immediate annuities. We have revised the 2012 consolidated statements of operations above to be consistent with the 2013 presentation. These changes had no impact on the Company's consolidated balance sheets, net income or stockholders' equity.



Page 2


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Quarterly Summary - Most Recent 5 Quarters (Unaudited)
 
Q4 2013
 
Q3 2013
 
Q2 2013
 
Q1 2013
 
Q4 2012
 
(Dollars in thousands, except per share data)
Revenues:
 
 
 
 
 
 
 
 
 
Traditional life insurance premiums
$
2,452

 
$
2,493

 
$
2,913

 
$
2,698

 
$
3,107

Life contingent immediate annuity considerations
8,386

 
7,381

 
8,638

 
10,386

 
12,783

Surrender charges (a)
15,239

 
11,160

 
11,292

 
11,502

 
10,153

Lifetime income benefit rider fees
16,909

 
15,291

 
12,219

 
9,979

 
13,677

Net investment income
363,947

 
354,147

 
336,143

 
329,690

 
321,160

Change in fair value of derivatives
444,985

 
193,028

 
64,040

 
373,962

 
(48,266
)
Net realized gains (losses) on investments, excluding OTTI
16,364

 
(2,077
)
 
15,689

 
10,585

 
1,471

Net OTTI losses recognized in operations
—

 
(222
)
 
(2,775
)
 
(3,237
)
 
(9,387
)
Loss on extinguishment of debt
(30,988
)
 
(938
)
 
(589
)
 
—

 
—

Total revenues
837,294

 
580,263

 
447,570

 
745,565

 
304,698

 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
Traditional life insurance policy benefits and change in future policy benefits
1,452

 
1,647

 
2,106

 
1,735

 
1,843

Life contingent immediate annuity benefits and change in future policy benefits
11,827

 
9,617

 
11,662

 
13,025

 
15,815

Interest sensitive and index product benefits (b)
390,956

 
325,740

 
333,001

 
223,170

 
287,094

Amortization of deferred sales inducements (c)
69,121

 
34,625

 
120,536

 
28,831

 
36,798

Change in fair value of embedded derivatives
142,881

 
36,224

 
(408,409
)
 
363,272

 
(179,379
)
Interest expense on notes payable
11,885

 
12,957

 
6,780

 
7,248

 
7,271

Interest expense on subordinated debentures
3,027

 
3,034

 
3,018

 
3,009

 
3,074

Amortization of deferred policy acquisition costs (c)
99,934

 
50,034

 
169,270

 
46,230

 
59,833

Other operating costs and expenses (d) (e)
26,886

 
20,658

 
24,851

 
19,520

 
18,710

Total benefits and expenses
757,969

 
494,536

 
262,815

 
706,040

 
251,059

Income before income taxes
79,325

 
85,727

 
184,755

 
39,525

 
53,639

Income tax expense
28,367

 
29,546

 
64,642

 
13,494

 
17,242

Net income (a) (b) (c) (d) (e)
$
50,958

 
$
56,181

 
$
120,113

 
$
26,031

 
$
36,397

 
 
 
 
 
 
 
 
 
 
Earnings per common share
$
0.73

 
$
0.86

 
$
1.87

 
$
0.41

 
$
0.58

Earnings per common share - assuming dilution (a) (b) (c) (d) (e)
$
0.64

 
$
0.75

 
$
1.71

 
$
0.38

 
$
0.55

Weighted average common shares outstanding (in thousands):
 
 
 
 
 
 
 
 
 
Earnings per common share
69,416

 
65,129

 
64,254

 
63,314

 
62,856

Earnings per common share - assuming dilution
79,041

 
74,560

 
70,382

 
68,706

 
65,897

(a)
Q4 2013 includes a benefit of $4.7 million from surrender charges deducted from California policyholders surrendering their policies as a condition of receiving certain benefits in a national class action lawsuit settlement, which after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, increased net income and earnings per common share - assuming dilution by $1.9 million and $0.02 per share, respectively.
(b)
Q3 2013 includes a benefit from the revision of assumptions used in determining reserves held for living income benefit riders consistent with unlocking for deferred policy acquisition costs and deferred sales inducements. The impact decreased interest sensitive and index product benefits by $1.8 million and increased net income and earnings per common share - assuming dilution by $1.1 million and $0.01 per share, respectively.
(c)
Q3 2013 includes benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $11.1 million and $18.5 million, respectively, and increased net income and earnings per common share- assuming dilution by $19.1 million and $0.26 per share, respectively.
(d)
Q4 2013 includes expense of $4.2 million from recognizing an increase in an estimated class action litigation reserve based upon developments in the claim process for settlement of the class action litigation and third party costs incurred during the quarter associated with administration of the settlement, which after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, decreased net income and earnings per common share - assuming dilution by $1.9 million and $0.02 per share, respectively.

Page 3


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

(e)
Q2 2013 includes expense of $8.5 million related to assessments received and future estimates of assessments from state guaranty fund associations related to the insolvency of Executive Life Insurance Company of New York, which after income taxes decreased net income and earnings per common share - assuming dilution by $5.5 million and $0.08 per share, respectively.
Q2 2013 includes a benefit of $3.2 million related to the final settlement of a litigation liability established in 2010, which after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes increased net income and earnings per common share - assuming dilution by $2.0 million and $0.03 per share, respectively.
NON-GAAP FINANCIAL MEASURES
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 net realized gains and losses on investments including net OTTI losses recognized in operations, fair value changes in derivatives and embedded derivatives, loss on extinguishment of debt and changes in litigation reserves. 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.
Reconciliation from Net Income to Operating Income (Unaudited)
 
Three Months Ended
December 31,
 
Year Ended
December 31,
 
2013
 
2012
 
2013
 
2012
 
(Dollars in thousands, except per share data)
Net income
$
50,958

 
$
36,397

 
$
253,283

 
$
57,798

Adjustments to arrive at operating income:
 
 
 
 
 
 
 
Net realized investment (gains) losses, including OTTI (a)
(6,214
)
 
2,825

 
(11,702
)
 
8,648

Change in fair value of derivatives and embedded derivatives - index annuities (a)
(23,419
)
 
(8,286
)
 
(98,704
)
 
31,246

Change in fair value of derivatives and embedded derivatives - debt (a)
(4,290
)
 
(31
)
 
(1,192
)
 
2,915

Litigation reserve (a)
1,988

 
—

 
19

 
9,580

Extinguishment of debt (a)
20,823

 
—

 
21,716

 
—

Operating income (a non-GAAP financial measure)
$
39,846

 
$
30,905

 
$
163,420

 
$
110,187

 
 
 
 
 
 
 
 
Per common share - assuming dilution:
 
 
 
 
 
 
 
Net income
$
0.64

 
$
0.55

 
$
3.38

 
$
0.89

Adjustments to arrive at operating income:
 
 
 
 
 
 
 
Net realized investment (gains) losses, including OTTI
(0.08
)
 
0.04

 
(0.16
)
 
0.13

Change in fair value of derivatives and embedded derivatives - index annuities
(0.30
)
 
(0.12
)
 
(1.31
)
 
0.48

Change in fair value of derivatives and embedded derivatives - debt
(0.05
)
 
—

 
(0.02
)
 
0.04

Litigation reserve
0.03

 
—

 
—

 
0.15

Extinguishment of debt
0.26

 
—

 
0.29

 
—

Operating income (a non-GAAP financial measure)
$
0.50

 
$
0.47

 
$
2.18

 
$
1.69

(a)
Adjustments to net income to arrive at operating income are presented net of income taxes and where applicable, are net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC).

Page 4


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Operating Income (Unaudited)
 
Three Months Ended
December 31,
 
Year Ended
December 31,
 
2013
 
2012
 
2013
 
2012
 
(Dollars in thousands)
Net realized investment gains and losses, including OTTI:
 
 
 
 
 
 
 
Net realized (gains) losses on investments, including OTTI
$
(16,364
)
 
$
7,916

 
$
(34,327
)
 
$
21,386

Amortization of DAC and DSI
6,716

 
(3,561
)
 
16,157

 
(7,989
)
Income taxes
3,434

 
(1,530
)
 
6,468

 
(4,749
)
 
$
(6,214
)
 
$
2,825

 
$
(11,702
)
 
$
8,648

Change in fair value of derivatives and embedded derivatives:
 
 
 
 
 
 
 
Index annuities
$
(96,795
)
 
$
(26,288
)
 
$
(397,722
)
 
$
146,711

2015 notes, note hedge and warrants
(5,654
)
 
—

 
5,791

 
—

Interest rate caps and swap
(1,681
)
 
(54
)
 
(7,829
)
 
4,984

Amortization of DAC and DSI
60,432

 
13,447

 
244,455

 
(98,306
)
Income taxes
15,989

 
4,578

 
55,409

 
(19,228
)
 
$
(27,709
)
 
$
(8,317
)
 
$
(99,896
)
 
$
34,161

Litigation reserve:
 
 
 
 
 
 
 
Change in litigation reserve recorded in other operating costs
$
4,248

 
$
—

 
$
1,036

 
$
17,532

Amortization of DAC and DSI
(1,162
)
 
—

 
(1,006
)
 
(2,656
)
Income taxes
(1,098
)
 
—

 
(11
)
 
(5,296
)
 
$
1,988

 
$
—

 
$
19

 
$
9,580

Extinguishment of debt:
 
 
 
 
 
 
 
Loss on extinguishment of debt
$
30,988

 
$
—

 
$
32,515

 
$
—

Income taxes
(10,165
)
 
—

 
(10,799
)
 
—

 
$
20,823

 
$
—

 
$
21,716

 
$
—



Page 5


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

NON-GAAP FINANCIAL MEASURES
Quarterly Summary - Most Recent 5 Quarters (Unaudited)
Reconciliation from Net Income to Operating Income
 
Q4 2013
 
Q3 2013
 
Q2 2013
 
Q1 2013
 
Q4 2012
 
(Dollars in thousands, except per share data)
Net income
$
50,958

 
$
56,181

 
$
120,113

 
$
26,031

 
$
36,397

Adjustments to arrive at operating income:
 
 
 
 
 
 
 
 
 
Net realized investment (gains) losses, including OTTI (a)
(6,214
)
 
890

 
(3,574
)
 
(2,804
)
 
2,825

Change in fair value of derivatives and embedded derivatives -
index annuities (a)
(23,419
)
 
(4,907
)
 
(81,351
)
 
10,973

 
(8,286
)
Change in fair value of derivatives and embedded derivatives -
debt (a)
(4,290
)
 
7,136

 
(3,302
)
 
(736
)
 
(31
)
Litigation reserve (a)
1,988

 
—

 
(1,969
)
 
—

 
—

Extinguishment of debt (a)
20,823

 
548

 
345

 
—

 
—

Operating income (a non-GAAP financial measure) (b) (c) (d) (e)
$
39,846

 
$
59,848

 
$
30,262

 
$
33,464

 
$
30,905

 
 
 
 
 
 
 
 
 
 
Operating income per common share - assuming dilution (b) (c) (d) (e)
$
0.50

 
$
0.80

 
$
0.43

 
$
0.49

 
$
0.47

(a)
Adjustments to net income to arrive at operating income are presented net of income taxes and where applicable, are net of related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs.
(b)
Q4 2013 includes a benefit of $4.7 million from surrender charges deducted from California policyholders surrendering their policies as a condition of receiving certain benefits in a national class action lawsuit settlement, which after related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs and income taxes, increased operating income and operating income per common share - assuming dilution by $2.0 million and $0.02 per share, respectively.
(c)
Q3 2013 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $12.6 million and $20.4 million, respectively, and increased operating income and operating income per common share- assuming dilution by $21.3 million and $0.29 per share, respectively.
(d)
Q3 2013 includes a benefit from the revision of assumptions used in determining reserves held for living income benefit riders consistent with unlocking for deferred policy acquisition costs and deferred sales inducements. The impact decreased interest sensitive and index product benefits by $1.8 million and increased operating income and operating income per common share - assuming dilution by $1.1 million and $0.01 per share, respectively.
(e)
Q2 2013 includes expense of $8.5 million related to assessments received and future estimates of assessments from state guaranty fund associations related to the insolvency of Executive Life Insurance Company of New York, which after income taxes decreased operating income and operating income per common share - assuming dilution by $5.5 million and $0.08 per share, respectively.




Page 6


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Operating Income (Unaudited)
 
Q4 2013
 
Q3 2013
 
Q2 2013
 
Q1 2013
 
Q4 2012
 
(Dollars in thousands)
Net realized (gains) losses on investments
$
(16,364
)
 
$
2,077

 
$
(15,689
)
 
$
(10,585
)
 
$
(1,471
)
Net OTTI losses recognized in operations
—

 
222

 
2,775

 
3,237

 
9,387

Change in fair value of derivatives
(209,083
)
 
25,448

 
91,374

 
(299,494
)
 
156,123

Loss on extinguishment of debt
30,988

 
938

 
589

 
—

 
—

Increase (decrease) in total revenues
(194,459
)
 
28,685

 
79,049

 
(306,842
)
 
164,039

 
 
 
 
 
 
 
 
 
 
Amortization of deferred sales inducements
(27,797
)
 
(6,765
)
 
(82,583
)
 
7,447

 
(3,140
)
Change in fair value of embedded derivatives
(104,953
)
 
39,526

 
408,606

 
(335,174
)
 
182,465

Amortization of deferred policy acquisition costs
(38,189
)
 
(9,849
)
 
(111,570
)
 
9,700

 
(6,746
)
Other operating costs and expenses
(4,248
)
 
—

 
3,212

 
—

 
—

Increase (decrease) in total benefits and expenses
(175,187
)
 
22,912

 
217,665

 
(318,027
)
 
172,579

Increase (decrease) in income before income taxes
(19,272
)
 
5,773

 
(138,616
)
 
11,185

 
(8,540
)
Increase (decrease) in income tax expense
(8,160
)
 
2,106

 
(48,765
)
 
3,752

 
(3,048
)
Increase (decrease) in net income
$
(11,112
)
 
$
3,667

 
$
(89,851
)
 
$
7,433

 
$
(5,492
)

Page 7


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Capitalization/Book Value per Share
 
December 31, 2013
 
December 31, 2012
 
(Dollars in thousands, except per share data)
Capitalization:
 
 
 
Notes payable
$
549,958

 
$
309,869

Subordinated debentures payable to subsidiary trusts
246,050

 
245,869

   Total debt
796,008

 
555,738

Total stockholders’ equity
1,384,687

 
1,720,237

Total capitalization
2,180,695

 
2,275,975

Accumulated other comprehensive income (AOCI)
(46,196
)
 
(686,807
)
Total capitalization excluding AOCI (a)
$
2,134,499

 
$
1,589,168

 
 
 
 
Total stockholders’ equity
$
1,384,687

 
$
1,720,237

Accumulated other comprehensive income
(46,196
)
 
(686,807
)
Total stockholders’ equity excluding AOCI (a)
$
1,338,491

 
$
1,033,430

 
 
 
 
Common shares outstanding (b)
71,369,474

 
62,653,134

 
 
 
 
Book Value per Share: (c)
 
 
 
Book value per share including AOCI
$
19.40

 
$
27.46

Book value per share excluding AOCI (a)
$
18.75

 
$
16.49

 
 
 
 
Debt-to-Capital Ratios: (d)
 
 
 
Senior debt / Total capitalization
25.8
%
 
19.5
%
Adjusted debt / Total capitalization
25.8
%
 
20.0
%
(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: 2013 - 892,688 shares; 2012 - 1,142,332 shares and excludes unallocated shares held by the ESOP: 2013 - 58,618 shares; 2012 - 239,799 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 excluding AOCI.

Page 8


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Spread Results
 
Three Months Ended
December 31,
 
Year Ended
December 31,
 
2013
 
2012
 
2013
 
2012
Average yield on invested assets
4.97%
 
5.03%
 
4.98%
 
5.28%
Aggregate cost of money
2.24%
 
2.44%
 
2.26%
 
2.58%
Aggregate investment spread
2.73%
 
2.59%
 
2.72%
 
2.70%
 
 
 
 
 
 
 
 
Impact of:
 
 
 
 
 
 
 
Investment yield - additional prepayment income
0.05%
 
0.11%
 
0.06%
 
0.06%
Cost of money effect of (under) over hedging
(0.03)%
 
0.03%
 
0.02%
 
0.01%
 
 
 
 
 
 
 
 
Weighted average investments (in thousands)
$29,296,113
 
$25,597,127
 
$27,825,907
 
$24,421,549
Weighted average investments include fixed maturity securities at amortized cost and equity securities at cost. The numerator for average yield on invested assets includes net investment income and the tax effect of investment income that is exempt from income taxes.
Summary of Cost of Money for Deferred Annuities
 
Three Months Ended
December 31,
 
Year Ended
December 31,
 
2013
 
2012
 
2013
 
2012
 
(Dollars in thousands)
Included in interest sensitive and index product benefits:
 
 
 
 
 
 
 
Index credits
$
298,259

 
$
193,903

 
$
908,717

 
$
447,393

Interest credited
73,613

 
76,809

 
300,039

 
306,981

Included in change in fair value of derivatives:
 
 
 
 
 
 
 
Proceeds received at option expiration
(294,985
)
 
(193,544
)
 
(910,413
)
 
(447,163
)
Pro rata amortization of option cost
97,011

 
88,773

 
368,126

 
361,260

Cost of money for deferred annuities
$
173,898

 
$
165,941

 
$
666,469

 
$
668,471

 
 
 
 
 
 
 
 
Weighted average liability balance outstanding (in thousands)
$
31,045,862

 
$
27,191,019

 
$
29,537,682

 
$
25,955,834

Annuity Account Balance Rollforward
 
Three Months Ended
December 31,
 
Year Ended
December 31,
 
2013
 
2012
 
2013
 
2012
 
(Dollars in thousands)
Account balances at beginning of period
$
30,552,874

 
$
26,712,365

 
$
27,669,672

 
$
24,483,118

Net deposits
1,033,423

 
1,007,974

 
3,977,730

 
3,578,541

Premium and interest bonuses
87,467

 
85,874

 
337,787

 
306,658

Fixed interest credited and index credits
371,872

 
270,712

 
1,208,756

 
754,374

Surrender charges
(15,239
)
 
(10,153
)
 
(49,193
)
 
(45,190
)
Lifetime income benefit rider fees
(16,909
)
 
(13,677
)
 
(54,398
)
 
(43,816
)
Surrenders, withdrawals, deaths, etc.
(477,642
)
 
(383,423
)
 
(1,554,508
)
 
(1,364,013
)
Account balances at end of period
$
31,535,846

 
$
27,669,672

 
$
31,535,846

 
$
27,669,672


Page 9


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Annuity Deposits by Product Type
 
 
Three Months Ended
December 31,
 
Year Ended
December 31,
Product Type
 
2013
 
2012
 
2013
 
2012
 
 
(Dollars in thousands)
Fixed Index Annuities:
 
 
 
 
 
 
 
 
Index Strategies
 
$
770,811

 
$
656,913

 
$
2,861,977

 
$
2,225,902

Fixed Strategy
 
237,503

 
322,735

 
1,020,447

 
1,208,324

 
 
1,008,314

 
979,648

 
3,882,424

 
3,434,226

Fixed Rate Annuities:
 
 
 
 
 
 
 
 
Single-Year Rate Guaranteed
 
15,392

 
20,780

 
71,944

 
98,821

Multi-Year Rate Guaranteed
 
63,150

 
43,294

 
205,978

 
249,228

Single premium immediate annuities
 
6,720

 
24,392

 
52,142

 
164,657

 
 
85,262

 
88,466

 
330,064

 
512,706

Total before coinsurance ceded
 
1,093,576

 
1,068,114

 
4,212,488

 
3,946,932

Coinsurance ceded
 
53,433

 
35,748

 
182,616

 
203,734

Net after coinsurance ceded
 
$
1,040,143

 
$
1,032,366

 
$
4,029,872

 
$
3,743,198

Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of coinsurance) Account Values at December 31, 2013:
 
 
Surrender Charge
 
Net Account Value
Product Type
 
Avg.
Years
At Issue
 
Avg.
Years
Remaining
 
Avg.
%
Remaining
 
Dollars in Thousands
 
%
 
 
 
 
 
 
 
 
 
 
 
Fixed Index Annuities
 
14.1
 
10.0
 
15.7%
 
$
29,521,103

 
93.6
%
Single-Year Fixed Rate Guaranteed Annuities
 
11.1
 
4.4
 
8.0%
 
1,440,076

 
4.6
%
Multi-Year Fixed Rate Guaranteed Annuities (a)
 
6.1
 
1.5
 
4.3%
 
574,667

 
1.8
%
Total
 
13.9
 
9.6
 
15.1%
 
$
31,535,846

 
100.0
%
(a)
59% of Net Account Value is no longer in multi-year guarantee period and can be adjusted annually.


Page 10


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Annuity Liability Characteristics
 
Fixed
Annuities
Account Value
 
Fixed Index
Annuities
Account Value
 
(Dollars in thousands)
SURRENDER CHARGE PERCENTAGES:
 
 
 
No surrender charge
$
664,104

 
$
834,634

0.0% < 2.0%
32,123

 
329,568

2.0% < 3.0%
38,037

 
106,509

3.0% < 4.0%
25,949

 
319,348

4.0% < 5.0%
106,150

 
246,551

5.0% < 6.0%
89,892

 
419,825

6.0% < 7.0%
179,966

 
226,590

7.0% < 8.0%
185,616

 
685,408

8.0% < 9.0%
76,301

 
412,532

9.0% < 10.0%
66,681

 
506,958

10.0% or greater
549,924

 
25,433,180

 
$
2,014,743

 
$
29,521,103

 
Fixed and
Fixed Index
Annuities
Account Value
 
Weighted
Average
Surrender
Charge
 
(Dollars in thousands)
 
 
SURRENDER CHARGE EXPIRATION BY YEAR:
 
 
 
Out of Surrender Charge
$
1,498,738

 
0.00
%
2014
490,269

 
1.97
%
2015
537,037

 
3.52
%
2016
791,515

 
5.02
%
2017
948,856

 
6.63
%
2018
846,166

 
8.64
%
2019
581,069

 
9.47
%
2020
922,510

 
10.96
%
2021
1,210,825

 
12.70
%
2022
2,062,193

 
14.83
%
2023
5,057,103

 
16.61
%
2024
4,122,670

 
17.91
%
2025
3,181,427

 
18.66
%
2026
2,752,307

 
18.51
%
2027
2,843,178

 
18.99
%
2028
1,751,222

 
19.49
%
2029
1,897,362

 
19.99
%
2030
41,399

 
20.00
%
 
$
31,535,846

 
15.13
%

Page 11


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Annuity Liability Characteristics
 
Fixed
Annuities
Account Value
 
Fixed Index
Annuities
Account Value
 
(Dollars in thousands)
CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL:
 
 
 
No differential
$
754,800

 
$
789,092

› 0.0% - 0.25%
297,286

 
528,572

› 0.25% - 0.5%
153,733

 
35,065

› 0.5% - 1.0% (a)
297,775

 
996,763

› 1.0% - 1.5% (a)
94,617

 
22,163

› 1.5% - 2.0%
100,239

 
1,971

› 2.0% - 2.5%
2,297

 
—

› 2.5% - 3.0%
42,237

 
—

1.00% ultimate guarantee - 2.38% wtd avg interest rate (b)
65,651

 
—

1.50% ultimate guarantee - 1.67% wtd avg interest rate (b)
100,909

 
2,812,727

2.00% ultimate guarantee - 2.62% wtd avg interest rate (b)
105,199

 
—

2.25% ultimate guarantee - 2.65% wtd avg interest rate (b)
—

 
1,436,836

3.00% ultimate guarantee - 2.88% wtd avg interest rate (b)
—

 
2,850,017

Allocated to index strategies (see tables that follow)
—

 
20,047,897

 
$
2,014,743

 
$
29,521,103

(a)
$65,736 of Fixed Annuities Account Value have a guarantee of 2.25% for the first 10 years and 3.00% thereafter. They begin increasing in 2014. $574,029 of Index Annuities Account Value is in fixed rate strategies that have a guarantee of 2.25% for the first 10 years and 3.00% thereafter. They begin increasing in 2014.    
(b)
The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy is 1.00%. The ultimate guaranteed rate is applied on less than 100% of the premium.
If all crediting rates were reduced to minimum guaranteed rates (subject to limitations imposed by ultimate minimum guaranteed rates where applicable) the weighted average crediting rate as of December 31, 2013 for fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.57%.

Page 12


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Annuity Liability Characteristics
FIXED INDEX ANNUITIES ACCOUNT VALUE - INDEX STRATEGIES
    
Annual Monthly Average and Point-to-Point with Caps
 
Minimum Guaranteed Cap
 
1%
 
3%
 
4%
 
7%
 
8% +
Current Cap
(Dollars in thousands)
At minimum
$
691

 
$
11,644

 
$
709,635

 
$
39,676

 
$
268,775

2.5% - 3%
1,066,519

 
—

 
—

 
—

 
—

3% - 4%
2,121,677

 
—

 
—

 
—

 
—

4% - 5%
20,077

 
116,880

 
1,724,589

 
—

 
—

5% - 6%
9,800

 
5,553

 
2,687,985

 
—

 
—

6% - 7%
—

 
—

 
2,758,433

 
—

 
—

>= 7%
—

 
11,493

 
40,483

 
120,560

 
69,732


    
Annual Monthly Average and Point-to-Point with Participation Rates
 
Minimum Guaranteed Participation Rate
 
10%
 
15%
 
25%
 
35%
 
50% +
Current Participation Rate
(Dollars in thousands)
At minimum
$
187

 
$
3,434

 
$
335,219

 
$
173,579

 
$
204,894

< 20%
230,212

 
—

 
—

 
—

 
—

20% - 40%
264,321

 
—

 
468,483

 
—

 
—

40% - 60%
221

 
—

 
165,000

 
128,611

 
1,392

>= 60%
291

 
—

 
—

 
—

 
—


S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1% (Dollars in thousands)
Current Cap
 
At minimum
$
14,836

1.45% - 1.8%
3,034,094

2.0% - 2.3%
2,327,795

>= 2.3%
899,104

If all caps and participation rates were reduced to minimum caps and participation rates, the cost of options would decrease by 0.62% based upon prices of options for the week ended January 14, 2014.


Page 13


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Summary of Invested Assets
 
December 31, 2013
 
December 31, 2012
 
Carrying
Amount
 
Percent
 
Carrying
Amount
 
Percent
 
(Dollars in thousands)
Fixed maturity securities:
 
 
 
 
 
 
 
United States Government full faith and credit
$
42,925

 
0.2
%
 
$
5,154

 
—
%
United States Government sponsored agencies
1,194,289

 
3.9
%
 
1,772,025

 
6.5
%
United States municipalities, states and territories
3,306,743

 
10.9
%
 
3,578,323

 
13.0
%
Foreign government obligations
91,557

 
0.3
%
 
105,259

 
0.4
%
Corporate securities
17,309,292

 
57.1
%
 
14,542,860

 
52.8
%
Residential mortgage backed securities
1,971,960

 
6.5
%
 
2,888,113

 
10.5
%
Commercial mortgage backed securities
1,735,460

 
5.7
%
 
357,982

 
1.3
%
Other asset backed securities
1,034,476

 
3.4
%
 
998,508

 
3.6
%
Total fixed maturity securities
26,686,702

 
88.0
%
 
24,248,224

 
88.1
%
Equity securities
7,778

 
—
%
 
53,422

 
0.2
%
Mortgage loans on real estate
2,581,082

 
8.5
%
 
2,623,940

 
9.5
%
Derivative instruments
856,050

 
2.8
%
 
415,258

 
1.5
%
Other investments
215,042

 
0.7
%
 
196,366

 
0.7
%
 
$
30,346,654

 
100.0
%
 
$
27,537,210

 
100.0
%
Credit Quality of Fixed Maturity Securities - December 31, 2013
NAIC Designation
 
Carrying
Amount
 
Percent
 
Rating Agency Rating
 
Carrying
Amount
 
Percent
 
 
(Dollars in thousands)
 
 
 
 
 
(Dollars in thousands)
 
 
1
 
$
16,531,250

 
62.0
%
 
Aaa/Aa/A
 
$
16,122,487

 
60.4
%
2
 
9,598,399

 
36.0
%
 
Baa
 
9,147,584

 
34.3
%
3
 
489,579

 
1.8
%
 
Ba
 
477,477

 
1.8
%
4
 
66,078

 
0.2
%
 
B
 
128,488

 
0.5
%
5
 
—

 
—
%
 
Caa and lower
 
617,900

 
2.3
%
6
 
1,396

 
—
%
 
In or near default
 
192,766

 
0.7
%
 
 
$
26,686,702

 
100.0
%
 
 
 
$
26,686,702

 
100.0
%

Page 14


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Watch List Securities - December 31, 2013
General Description
 
Amortized
Cost
 
Unrealized
Gains (Losses)
 
Fair Value
 
Months Below Amortized Cost
 
 
(Dollars in thousands)
 
 
Corporate bonds:
 
 
 
 
 
 
 
 
Finance
 
$
20,000

 
$
(5,487
)
 
$
14,513

 
28
Industrial
 
49,467

 
(9,150
)
 
40,317

 
14 - 40
Industrial
 
9,349

 
65

 
9,414

 
 
 
 
$
78,816

 
$
(14,572
)
 
$
64,244

 
 
Summary of Residential Mortgage Backed Securities
Collateral Type
 
Principal
Amount
 
Amortized
Cost
 
Fair Value
 
 
(Dollars in thousands)
OTTI has not been recognized
 
 
 
 
 
 
Government agency
 
$
738,681

 
$
677,394

 
$
679,518

Prime
 
536,476

 
508,173

 
542,633

Alt-A
 
30,735

 
31,081

 
30,818

 
 
$
1,305,892

 
$
1,216,648

 
$
1,252,969

OTTI has been recognized
 
 
 
 
 
 
Prime
 
$
464,539

 
$
399,708

 
$
421,810

Alt-A
 
355,715

 
279,557

 
297,181

 
 
$
820,254

 
$
679,265

 
$
718,991

Total by collateral type
 
 
 
 
 
 
Government agency
 
$
738,681

 
$
677,394

 
$
679,518

Prime
 
1,001,015

 
907,881

 
964,443

Alt-A
 
386,450

 
310,638

 
327,999

 
 
$
2,126,146

 
$
1,895,913

 
$
1,971,960

Total by NAIC designation
 
 
 
 
 
 
1
 
$
1,979,769

 
$
1,761,462

 
$
1,834,105

2
 
104,543

 
97,861

 
101,180

3
 
39,274

 
34,825

 
35,299

4
 
—

 
—

 
—

6
 
2,560

 
1,765

 
1,376

 
 
$
2,126,146

 
$
1,895,913

 
$
1,971,960


Page 15


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Fixed Maturity Securities by Sector
 
December 31, 2013
 
December 31, 2012
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
(Dollars in thousands)
Available for sale:
 
 
 
 
 
 
 
United States Government full faith and credit and sponsored agencies
$
1,358,628

 
$
1,237,214

 
$
1,768,379

 
$
1,777,179

United States municipalities, states and territories
3,181,032

 
3,306,743

 
3,116,678

 
3,578,323

Foreign government obligations
86,112

 
91,557

 
86,099

 
105,259

Corporate securities:
 
 
 
 
 
 
 
Consumer discretionary
1,533,993

 
1,532,694

 
1,237,208

 
1,366,504

Consumer staples
1,246,744

 
1,250,351

 
876,654

 
1,003,651

Energy
1,992,411

 
2,011,334

 
1,463,923

 
1,655,363

Financials
3,179,964

 
3,233,930

 
2,476,780

 
2,713,351

Health care
1,458,757

 
1,458,946

 
926,136

 
1,064,097

Industrials
2,045,490

 
2,039,544

 
1,497,435

 
1,672,681

Information technology
1,163,159

 
1,145,674

 
854,347

 
923,263

Materials
1,405,603

 
1,381,880

 
1,076,133

 
1,189,410

Telecommunications
472,250

 
473,517

 
356,486

 
400,995

Utilities
2,643,747

 
2,705,147

 
2,143,026

 
2,453,736

Residential mortgage backed securities:
 
 
 
 
 
 
 
Government agency
677,394

 
679,518

 
1,024,731

 
1,119,249

Prime
907,881

 
964,443

 
1,344,775

 
1,392,741

Alt-A
310,638

 
327,999

 
374,031

 
376,123

Commercial mortgage backed securities:
 
 
 
 
 
 
 
Government agency
302,063

 
288,495

 
35,697

 
37,976

Other
1,519,925

 
1,446,965

 
319,173

 
320,006

Other asset backed securities:
 
 
 
 
 
 
 
Consumer discretionary
86,788

 
86,633

 
77,464

 
81,772

Energy
8,268

 
8,922

 
8,304

 
9,152

Financials
709,900

 
688,737

 
659,058

 
677,948

Industrials
215,873

 
225,212

 
154,358

 
166,567

Materials
—

 
—

 
28,813

 
29,150

Telecommunications
14,835

 
16,714

 
14,835

 
17,421

Utilities
6,275

 
8,258

 
14,459

 
16,498

Redeemable preferred stock - financials
1

 
20

 
22,045

 
23,721

 
$
26,527,731

 
$
26,610,447

 
$
21,957,027

 
$
24,172,136

Held for investment:
 
 
 
 
 
 
 
Corporate security - financials
$
76,255

 
$
60,840

 
$
76,088

 
$
61,521



Page 16


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Mortgage Loans on Commercial Real Estate
 
December 31, 2013
 
December 31, 2012
 
Principal
 
Percent
 
Principal
 
Percent
 
(Dollars in thousands)
Geographic distribution
 
 
 
 
 
 
 
East
$
765,717

 
29.4
%
 
$
732,762

 
27.5
%
Middle Atlantic
156,489

 
6.0
%
 
155,094

 
5.8
%
Mountain
356,246

 
13.7
%
 
387,599

 
14.6
%
New England
21,324

 
0.8
%
 
26,385

 
1.0
%
Pacific
317,431

 
12.2
%
 
320,982

 
12.1
%
South Atlantic
483,852

 
18.5
%
 
458,802

 
17.3
%
West North Central
351,794

 
13.5
%
 
370,168

 
13.9
%
West South Central
154,845

 
5.9
%
 
207,091

 
7.8
%
 
$
2,607,698

 
100.0
%
 
$
2,658,883

 
100.0
%
 
 
 
 
 
 
 
 
Property type distribution
 
 
 
 
 
 
 
Office
$
590,414

 
22.6
%
 
$
666,467

 
25.1
%
Medical Office
125,703

 
4.8
%
 
136,764

 
5.1
%
Retail
711,364

 
27.3
%
 
677,951

 
25.5
%
Industrial/Warehouse
673,449

 
25.8
%
 
692,637

 
26.1
%
Hotel
61,574

 
2.4
%
 
94,045

 
3.5
%
Apartment
291,823

 
11.2
%
 
219,335

 
8.2
%
Mixed use/other
153,371

 
5.9
%
 
171,684

 
6.5
%
 
$
2,607,698

 
100.0
%
 
$
2,658,883

 
100.0
%
 
 
 
 
 
 
 
 
 
December 31, 2013
 
December 31, 2012
 
 
 
 
Credit Exposure - By Payment Activity
 
 
 
 
 
 
 
Performing
$
2,593,276

 
$
2,597,440

 
 
 
 
In workout
6,248

 
26,723

 
 
 
 
Delinquent
—

 
—

 
 
 
 
Collateral dependent
8,174

 
34,720

 
 
 
 
 
2,607,698

 
2,658,883

 
 
 
 
Specific Loan Loss Allowance
(16,847
)
 
(23,134
)
 
 
 
 
General Loan Loss Allowance
(9,200
)
 
(11,100
)
 
 
 
 
Deferred prepayment fees
(569
)
 
(709
)
 
 
 
 
 
$
2,581,082

 
$
2,623,940

 
 
 
 


Page 17


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Shareholder Information
Corporate Offices:
American Equity Investment Life Holding Company
6000 Westown Parkway
West Des Moines, IA 50266
Inquiries:
John M. Matovina, Chief Executive Officer and President
(515) 457-1813, jmatovina@american-equity.com
Ted M. Johnson, Chief Financial Officer and Treasurer
(515) 457-1980, tjohnson@american-equity.com
Debra J. Richardson, Executive Vice President and Secretary
(515) 273-3551, drichardson@american-equity.com        
Common Stock and Dividend Information:
New York Stock Exchange symbol: “AEL”
 
High
 
Low
 
Close
 
Dividend Declared
2013
 
 
 
 
 
 
 
First Quarter
$15.03
 
$12.33
 
$14.89
 
$0.00
Second Quarter
$16.60
 
$14.03
 
$15.70
 
$0.00
Third Quarter
$21.42
 
$15.64
 
$21.22
 
$0.00
Fourth Quarter
$26.46
 
$20.01
 
$26.38
 
$0.18
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
First Quarter
$13.09
 
$10.13
 
$12.77
 
$0.00
Second Quarter
$12.95
 
$10.00
 
$11.01
 
$0.00
Third Quarter
$12.41
 
$10.62
 
$11.63
 
$0.00
Fourth Quarter
$12.40
 
$10.56
 
$12.21
 
$0.15
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
First Quarter
$13.93
 
$11.27
 
$13.12
 
$0.00
Second Quarter
$13.53
 
$11.91
 
$12.71
 
$0.00
Third Quarter
$13.22
 
$8.01
 
$8.75
 
$0.00
Fourth Quarter
$11.82
 
$8.05
 
$10.40
 
$0.12
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.



Page 18


AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2013

Research Analyst Coverage
Steven Schwartz
Raymond James & Associates, Inc.
(312) 612-7686
steven.schwartz@raymondjames.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
Daniel Furtado
Jefferies & Company, Inc.
(415) 229-1569
dfurtado@jefferies.com
Mark Finkelstein
Evercore Partners
(312) 445-6440
mark.finkelstein@evercore.com



Page 19