AMERICAN EQUITY INVESTMENT LIFE HOLDING CO
For the period ended Dec 31, 2023. Filed Feb 29, 2024.
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FY2023 · Filed Feb 29, 2024
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Schedule II—Condensed Financial Information of Registrant
Condensed Balance Sheets
| December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| Assets | ||
| Cash and cash equivalents | $557,731 | $531,347 |
| Equity securities of subsidiary trusts | 2,373 | 2,360 |
| Receivable from subsidiaries | 2,092 | 8,868 |
| Notes receivable from subsidiaries | — | 85,654 |
| Federal income tax recoverable, including amount from subsidiaries | 135,238 | 267,076 |
| Other assets | 47,585 | 33,990 |
| 745,019 | 929,295 | |
| Investment in and advances to subsidiaries | 3,558,395 | 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 trusts | 79,107 | 78,753 |
| Deferred income taxes | 323,855 | 268,639 |
| Intercompany payable | 26,384 | 522 |
| Other liabilities | 65,365 | 57,664 |
| Total liabilities | 1,280,154 | 1,197,651 |
| Stockholders' equity: | ||
| Preferred stock, Series A | 16 | 16 |
| Preferred stock, Series B | 12 | 12 |
| Common stock | 79,338 | 84,810 |
| Additional paid-in capital | 1,071,103 | 1,325,316 |
| Accumulated other comprehensive loss | (2,979,657) | (3,746,230) |
| Retained earnings | 4,852,448 | 4,685,593 |
| Total stockholders' equity attributable to American Equity Investment Life Holding Company | 3,023,260 | 2,349,517 |
| Total liabilities and stockholders' equity | $4,303,414 | $3,547,168 |
Condensed Statements of Operations
| Year Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Revenues: | |||
| Net investment income | $24,469 | $6,733 | $114 |
| Dividends from subsidiary trusts | 165 | 155 | 159 |
| Dividends from subsidiaries | — | 325,000 | 250,000 |
| Investment advisory fees | 93,005 | 110,094 | 126,643 |
| Surplus note interest from subsidiary | 4,274 | 4,080 | 4,080 |
| Other revenue | 31,049 | 19,153 | 8,511 |
| Total revenues | 152,962 | 465,215 | 389,507 |
| Expenses: | |||
| Interest expense on notes and loan payable | 45,890 | 32,098 | 25,581 |
| Interest expense on subordinated debentures issued to subsidiary trusts | 5,355 | 5,331 | 5,324 |
| Other operating costs and expenses | 133,831 | 114,792 | 72,435 |
| Total expenses | 185,076 | 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 subsidiaries | 80,872 | 314,061 | 274,602 |
| Equity in undistributed income of subsidiaries | 129,658 | 1,606,158 | 278,421 |
| Net income available to American Equity Investment Life Holding Company stockholders | 210,530 | 1,920,219 | 553,023 |
| Less: Preferred stock dividends | 43,675 | 43,675 | 43,675 |
| Net income available to American Equity Investment Life Holding Company common stockholders | $166,855 | $1,876,544 | $509,348 |
Condensed Statements of Cash Flows
| Year Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| 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 amortization | 2,655 | 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 trust | 354 | 332 | 309 |
| Share-based compensation | 6,425 | 6,023 | 10,235 |
| Deferred income taxes | 55,216 | 45,335 | 222,714 |
| Changes in operating assets and liabilities: | |||
| Receivable from subsidiaries | 6,776 | (6,085) | (365) |
| Federal income tax recoverable/payable | 131,838 | (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 activities | 309,708 | 320,006 | 222,913 |
| Investing activities | |||
| Change in notes receivable from subsidiaries | 85,654 | 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 stock | 20,420 | 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 equivalents | 26,384 | 169,102 | (124,425) |
| Cash and cash equivalents at beginning of year | 531,347 | 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 debentures | 5,000 | 5,000 | 5,000 |
Note to Condensed Financial Statements
December 31, 2023
- 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.
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