U.S. markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.33%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.07%)
     
  • USD/JPY

    135.2100
    +0.2770 (+0.21%)
     
  • BTC-USD

    21,415.80
    -57.12 (-0.27%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

American Equity (AEL) Q3 Earnings & Revenues Beat Estimates

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

American Equity Investment Life Holding Company AEL reported third-quarter 2021 adjusted net earnings of $1.46 per share, which beat the Zacks Consensus Estimate by 89.6%. The bottom line increased 47.5% on a year-over-year basis.

Net income was $1.53 per share, down 78.7% from the year-ago quarter.

The company witnessed an increase in sales and higher premiums, partially offset by weak net investment income and higher expenses during the quarter.

American Equity Investment Life Holding Company Price, Consensus and EPS Surprise

American Equity Investment Life Holding Company Price, Consensus and EPS Surprise
American Equity Investment Life Holding Company Price, Consensus and EPS Surprise

American Equity Investment Life Holding Company price-consensus-eps-surprise-chart | American Equity Investment Life Holding Company Quote

Operational Update

Operating total revenues were $526 million, down 3.1% year over year. The top line beat the Zacks Consensus Estimate by 4.6%.

Premiums and other considerations increased 52.2% year over year to $15.8 million. Annuity product charges decreased 6.1% year over year to $58.5 million. Net investment income declined about 3.1% to $526.4 million, all on a year-over-year basis.

Gross sales of $1.3 billion increased more than two-fold year over year. Sequentially, Annuity sales increased 11%, driven by sales of fixed index annuities at American Equity Life, which increased 4%, while Eagle Life sales of fixed index annuities rose 2%.

Total expenses were $345 million against benefits of $53 million in the year-ago quarter.

The investment spread was 2.4%, down from 2.44% in the year-ago quarter.
Policyholder funds under management of $52.9 billion at quarter-end were up 1.1% from second-quarter end.

Financial Update

Cash and cash equivalents were $12.7 billion as of Sep 30, 2021, up 39.5% from the 2020-end level. Total investments were about $52.3 billion, down 2.4% from the 2020-end level.

Notes payable totaled $496.1 million, up 0.08% from the 2020-end level.
Book value per common share excluding AOCI was $40.19, up 11.7% from 2020 end.

Total debt/total capitalization was 11.6% at third-quarter end, improving 60 basis points from the level at 2020 end.

Operating return on equity excluding average AOCI was 8.2%.

Zacks Rank

American Equity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Life Insurers

Of the insurance industry players that have reported third-quarter results so far, Brighthouse Financial Inc. BHF and Athene Holding Ltd. ATH beat the respective Zacks Consensus Estimate for earnings, while Reinsurance Group of America, Incorporated RGA missed the same.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report

Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report

Athene Holding Ltd. (ATH) : Free Stock Analysis Report

Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research