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Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Schedule II - Condensed Financial Information of Registrant
December 31,
20202019
Assets
Cash and cash equivalents$486,670 $332,526 
Equity securities of subsidiary trusts2,343 4,785 
Receivable from subsidiaries2,418 1,210 
Deferred income taxes— 5,818 
Other assets3,078 3,067 
494,509 347,406 
Investment in and advances to subsidiaries6,674,652 4,891,431 
Total assets$7,169,161 $5,238,837 
Liabilities and Stockholders' Equity
Liabilities:
Notes payable$495,668 $495,116 
Subordinated debentures payable to subsidiary trusts78,112 157,265 
Deferred income taxes590 — 
Federal income tax payable5,395 9,274 
Other liabilities14,680 7,063 
Total liabilities594,445 668,718 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 — 
Common stock95,721 91,107 
Additional paid-in capital1,681,127 1,212,311 
Accumulated other comprehensive income2,429,285 1,497,921 
Retained earnings2,368,555 1,768,764 
Total stockholders' equity6,574,716 4,570,119 
Total liabilities and stockholders' equity$7,169,161 $5,238,837 

See accompanying note to condensed financial statements.
See accompanying Report of Independent Registered Public Accounting Firm.
Year Ended December 31,
202020192018
Revenues:
Net investment income$1,115 $1,755 $773 
Dividends from subsidiary trusts167 469 461 
Dividends from dissolved subsidiaries— — 10,393 
Investment advisory fees114,228 107,945 92,335 
Surplus note interest from subsidiary4,080 4,080 4,080 
Change in fair value of derivatives62 (1,650)1,051 
Loss on extinguishment of debt(2,024)(2,001)— 
Other346 — — 
Total revenues117,974 110,598 109,093 
Expenses:
Interest expense on notes payable25,552 25,525 25,498 
Interest expense on subordinated debentures issued to subsidiary trusts5,557 15,764 15,491 
Other operating costs and expenses46,686 28,357 18,579 
Total expenses77,795 69,646 59,568 
Income before income taxes and equity in undistributed income of subsidiaries40,179 40,952 49,525 
Income tax expense13,142 11,586 2,603 
Income before equity in undistributed income of subsidiaries27,037 29,366 46,922 
Equity in undistributed income of subsidiaries644,423 216,724 411,094 
Net income671,460 246,090 458,016 
Less: Preferred stock dividends33,515 — — 
Net income available to common stockholders$637,945 $246,090 $458,016 

See accompanying note to condensed financial statements.
See accompanying Report of Independent Registered Public Accounting Firm.
Year Ended December 31,
202020192018
Operating activities
Net income$671,460 $246,090 $458,016 
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for depreciation and amortization1,138 1,136 916 
Accrual of discount on equity security(3)(8)(8)
Equity in undistributed income of subsidiaries(644,423)(216,724)(411,094)
Change in fair value of derivatives(62)945 (1,325)
Loss on extinguishment of debt2,024 2,001 — 
Accrual of discount on debenture issued to subsidiary trust289 270 254 
Share-based compensation3,303 2,923 1,626 
Deferred income taxes6,408 2,087 40 
Changes in operating assets and liabilities:
Receivable from subsidiaries(1,208)(40)(1,004)
Federal income tax recoverable/payable(3,879)382 9,951 
Other assets(320)(1,229)(229)
Other liabilities7,617 (1,846)4,860 
Net cash provided by operating activities42,344 35,987 62,003 
Investing activities
Repayment of equity securities$2,445 $2,660 $— 
Contribution to subsidiaries(210,000)(50,000)— 
Purchases of property, plant and equipment(48)(117)(29)
Net cash used in investing activities(207,603)(47,457)(29)
Financing activities
Repayment of subordinated debentures$(81,450)$(88,160)$— 
Proceeds from issuance of common stock338,061 1,691 9,681 
Acquisition of treasury stock(165,094)— — 
Proceeds from issuance of preferred stock, net290,260 388,893 — 
Dividends paid on common stock(28,859)(27,304)(25,265)
Dividends paid on preferred stock(33,515)— — 
Net cash provided by (used in) financing activities319,403 275,120 (15,584)
Increase in cash and cash equivalents154,144 263,650 46,390 
Cash and cash equivalents at beginning of year332,526 68,876 22,486 
Cash and cash equivalents at end of year$486,670 $332,526 $68,876 
Supplemental disclosures of cash flow information
Cash paid during the year for:
Interest on notes payable$25,000 $25,000 $25,000 
Interest on subordinated debentures6,181 16,891 13,593 
See accompanying note to condensed financial statements.
See accompanying Report of Independent Registered Public Accounting Firm.
1.     Basis of Presentation
The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of American Equity Investment Life Holding Company (Parent Company).
In the Parent Company financial statements, its investment in and advances to subsidiaries are stated at cost plus equity in undistributed income (losses) of subsidiaries since the date of acquisition and net unrealized gains/losses on the subsidiaries' fixed maturity securities classified as "available for sale" and equity securities.
See Note 9 - Notes Payable and Amounts Due Under Repurchase Agreements and Note 10 - Subordinated Debentures to our audited consolidated financial statements in this Form 10-K for a description of the Parent Company's notes payable and subordinated debentures payable to subsidiary trusts.