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Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Schedule II - Condensed Financial Information of Registrant
December 31,
20212020
Assets
Cash and cash equivalents$362,245 $486,670 
Equity securities of subsidiary trusts2,353 2,343 
Receivable from subsidiaries2,783 2,418 
Notes receivable from subsidiaries165,000 — 
Federal income tax recoverable, including amount from subsidiaries217,174 — 
Other assets20,134 3,078 
769,689 494,509 
Investment in and advances to subsidiaries6,387,912 6,448,924 
Total assets$7,157,601 $6,943,433 
Liabilities and Stockholders' Equity
Liabilities:
Notes payable$496,250 $495,668 
Subordinated debentures payable to subsidiary trusts78,421 78,112 
Deferred income taxes223,304 590 
Federal income tax payable— 5,395 
Other liabilities36,499 14,680 
Total liabilities834,474 594,445 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 12 
Common stock92,514 95,721 
Additional paid-in capital1,614,374 1,681,127 
Accumulated other comprehensive income1,848,789 2,203,557 
Retained earnings2,767,422 2,368,555 
Total stockholders' equity6,323,127 6,348,988 
Total liabilities and stockholders' equity$7,157,601 $6,943,433 

See accompanying note to condensed financial statements.
See accompanying Report of Independent Registered Public Accounting Firm.
Year Ended December 31,
202120202019
Revenues:
Net investment income$114 $1,115 $1,755 
Dividends from subsidiary trusts159 167 469 
Dividends from subsidiaries250,000 — — 
Investment advisory fees126,643 114,228 107,945 
Surplus note interest from subsidiary4,080 4,080 4,080 
Change in fair value of derivatives— 62 (1,650)
Loss on extinguishment of debt— (2,024)(2,001)
Other revenue8,511 346 — 
Total revenues389,507 117,974 110,598 
Expenses:
Interest expense on notes payable25,581 25,552 25,525 
Interest expense on subordinated debentures issued to subsidiary trusts5,324 5,557 15,764 
Other operating costs and expenses72,435 46,686 28,357 
Total expenses103,340 77,795 69,646 
Income before income taxes and equity in undistributed income of subsidiaries286,167 40,179 40,952 
Income tax expense11,565 13,142 11,586 
Income before equity in undistributed income of subsidiaries274,602 27,037 29,366 
Equity in undistributed income of subsidiaries199,390 644,423 216,724 
Net income473,992 671,460 246,090 
Less: Preferred stock dividends43,675 33,515 — 
Net income available to common stockholders$430,317 $637,945 $246,090 

See accompanying note to condensed financial statements.
See accompanying Report of Independent Registered Public Accounting Firm.
Year Ended December 31,
202120202019
Operating activities
Net income$473,992 $671,460 $246,090 
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for depreciation and amortization1,232 1,138 1,136 
Accrual of discount on equity security(10)(3)(8)
Equity in undistributed income of subsidiaries(199,390)(644,423)(216,724)
Non cash dividend from subsidiaries(80,000)— — 
Change in fair value of derivatives— (62)945 
Loss on extinguishment of debt— 2,024 2,001 
Accrual of discount on debenture issued to subsidiary trust309 289 270 
Share-based compensation10,235 3,303 2,923 
Deferred income taxes222,714 6,408 2,087 
Changes in operating assets and liabilities:
Receivable from subsidiaries(365)(1,208)(40)
Federal income tax recoverable/payable(222,569)(3,879)382 
Other assets(5,054)(320)(1,229)
Other liabilities21,819 7,617 (1,846)
Net cash provided by operating activities222,913 42,344 35,987 
Investing activities
Notes receivable from subsidiaries$(165,000)$— $— 
Repayment of equity securities— 2,445 2,660 
Contribution to subsidiaries— (210,000)(50,000)
Purchases of property, plant and equipment(12,642)(48)(117)
Net cash used in investing activities(177,642)(207,603)(47,457)
Financing activities
Repayment of subordinated debentures$— $(81,450)$(88,160)
Proceeds from issuance of common stock4,844 338,061 1,691 
Acquisition of treasury stock(99,415)(165,094)— 
Proceeds from issuance of preferred stock, net— 290,260 388,893 
Dividends paid on common stock(31,450)(28,859)(27,304)
Dividends paid on preferred stock(43,675)(33,515)— 
Net cash provided by (used in) financing activities(169,696)319,403 275,120 
Increase (decrease) in cash and cash equivalents(124,425)154,144 263,650 
Cash and cash equivalents at beginning of year486,670 332,526 68,876 
Cash and cash equivalents at end of year$362,245 $486,670 $332,526 
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 debentures5,000 6,181 16,891 
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 11- Notes Payable and Amounts Due Under Repurchase Agreements and Note 12 - 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.