This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Affirms Ratings Of American Equity Investment Life Holding Company And Its Subsidiaries

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of “a-” of American Equity Investment Life Insurance Company (American Equity Life) and its subsidiaries, American Equity Investment Life Insurance Company of New York (New York, NY) and Eagle Life Insurance Company (Eagle Life).

Concurrently, A.M. Best has affirmed the ICR of “bbb-” and all debt ratings of American Equity Life’s parent, American Equity Investment Life Holding Company (AEL) [NYSE: AEL], as well as the indicative ratings under the shelf registration of American Equity Capital Trust V and VI. The outlook for all ratings is stable. All companies are domiciled in Des Moines, IA, unless otherwise specified. (See below for a detailed list of all debt ratings.)

The ratings recognize American Equity’s leading role in the fixed indexed annuity marketplace, strong risk-adjusted capitalization, continued positive trends of statutory and GAAP operating earnings and strong surrender protection charges to mitigate potential disintermediation risk. In addition, A.M. Best views the financial leverage and interest coverage ratios of AEL within the guidelines for its current ratings.

American Equity Life continues to benefit from strong growth in its core fixed-indexed annuity business and diverse distribution relationships. On a risk-adjusted basis, the company’s capitalization trends have strengthened over the past five years despite its accelerated new business growth and high demand on its capital resources. Its enterprise risk management and asset liability matching strategies remain supportive of the ratings.

Partially offsetting these positive rating factors are American Equity Life’s mono-line business profile with significant product concentration risk from fixed indexed annuities, its relatively high level of acquisition costs, relatively high exposure to residential mortgage-backed securities (RMBS) and commercial mortgages, exposure to the risk of narrowing spreads in the current low interest rate environment and the entrance of new competitors into the fixed indexed annuity marketplace, which could pressure profit margins and growth opportunities.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs