XML 51 R28.htm IDEA: XBRL DOCUMENT v3.24.0.1
Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule II - Condensed Financial Information of Registrant
December 31,
20232022
Assets
Cash and cash equivalents$557,731 $531,347 
Equity securities of subsidiary trusts2,373 2,360 
Receivable from subsidiaries2,092 8,868 
Notes receivable from subsidiaries— 85,654 
Federal income tax recoverable, including amount from subsidiaries135,238 267,076 
Other assets47,585 33,990 
745,019 929,295 
Investment in and advances to subsidiaries3,558,395 2,617,873 
Total assets$4,303,414 $3,547,168 
Liabilities and Stockholders' Equity
Liabilities:
Notes and loan payable$785,443 $792,073 
Subordinated debentures payable to subsidiary trusts79,107 78,753 
Deferred income taxes323,855 268,639 
Intercompany payable
26,384 522 
Other liabilities65,365 57,664 
Total liabilities1,280,154 1,197,651 
Stockholders' equity:
Preferred stock, Series A16 16 
Preferred stock, Series B12 12 
Common stock79,338 84,810 
Additional paid-in capital1,071,103 1,325,316 
Accumulated other comprehensive loss
(2,979,657)(3,746,230)
Retained earnings4,852,448 4,685,593 
Total stockholders' equity attributable to American Equity Investment Life Holding Company3,023,260 2,349,517 
Total liabilities and stockholders' equity$4,303,414 $3,547,168 

See accompanying note to condensed financial statements.
See accompanying Report of Independent Registered Public Accounting Firm.
Year Ended December 31,
202320222021
Revenues:
Net investment income$24,469 $6,733 $114 
Dividends from subsidiary trusts165 155 159 
Dividends from subsidiaries— 325,000 250,000 
Investment advisory fees93,005 110,094 126,643 
Surplus note interest from subsidiary4,274 4,080 4,080 
Other revenue31,049 19,153 8,511 
Total revenues152,962 465,215 389,507 
Expenses:
Interest expense on notes and loan payable45,890 32,098 25,581 
Interest expense on subordinated debentures issued to subsidiary trusts5,355 5,331 5,324 
Other operating costs and expenses133,831 114,792 72,435 
Total expenses185,076 152,221 103,340 
Income (loss) before income taxes and equity in undistributed income of subsidiaries
(32,114)312,994 286,167 
Income tax expense (benefit)(112,986)(1,067)11,565 
Income before equity in undistributed income of subsidiaries80,872 314,061 274,602 
Equity in undistributed income of subsidiaries129,658 1,606,158 278,421 
Net income available to American Equity Investment Life Holding Company stockholders210,530 1,920,219 553,023 
Less: Preferred stock dividends43,675 43,675 43,675 
Net income available to American Equity Investment Life Holding Company common stockholders$166,855 $1,876,544 $509,348 

See accompanying note to condensed financial statements.
See accompanying Report of Independent Registered Public Accounting Firm.
Year Ended December 31,
202320222021
Operating activities
Net income available to American Equity Investment Life Holding Company stockholders$210,530 $1,920,219 $553,023 
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for depreciation and amortization2,655 4,925 1,232 
Accrual of discount on equity security(13)(7)(10)
Equity in undistributed income of subsidiaries(129,658)(1,606,158)(278,421)
Non cash dividend from subsidiaries— — (80,000)
Accrual of discount on debenture issued to subsidiary trust354 332 309 
Share-based compensation6,425 6,023 10,235 
Deferred income taxes55,216 45,335 222,714 
Changes in operating assets and liabilities:
Receivable from subsidiaries6,776 (6,085)(365)
Federal income tax recoverable/payable131,838 (49,902)(222,569)
Other assets(7,978)(16,363)(5,054)
Other liabilities and intercompany payable
33,563 21,687 21,819 
Net cash provided by operating activities309,708 320,006 222,913 
Investing activities
Change in notes receivable from subsidiaries85,654 79,346 (165,000)
Contribution to subsidiaries(21,420)(137,002)— 
Purchases of property, plant and equipment(7,402)(1,432)(12,642)
Net cash provided by (used in) investing activities
56,832 (59,088)(177,642)
Financing activities
Financing fees incurred and deferred— (1,235)— 
Repayment of loan payable(7,500)(3,750)— 
Proceeds from issuance of loan payable— 300,000 — 
Proceeds from issuance of common stock20,420 253,978 4,844 
Acquisition of treasury stock(309,401)(566,567)(99,415)
Dividends paid on common stock— (30,567)(31,450)
Dividends paid on preferred stock(43,675)(43,675)(43,675)
Net cash used in financing activities
(340,156)(91,816)(169,696)
Increase (decrease) in cash and cash equivalents26,384 169,102 (124,425)
Cash and cash equivalents at beginning of year531,347 362,245 486,670 
Cash and cash equivalents at end of year$557,731 $531,347 $362,245 
Supplemental disclosures of cash flow information
Cash paid during the year for:
Interest on notes and loan payable$45,020 $31,288 $25,000 
Interest on subordinated debentures5,000 5,000 5,000 
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 and Loan Payable 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.