AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - Recast for Long-Duration Targeted Improvements (a)

December 31, 2022
A. Financial Highlights
Condensed Consolidated Balance Sheets
1
Consolidated Statements of Operations
2
Quarterly Summary - Most Recent 8 Quarters
3
Non-GAAP Financial Measures
Reconciliation from Net Income Available to Common Stockholders to Non-GAAP Operating Income (Loss) Available to Common Stockholders
6
Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders
7
Quarterly Summary - Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss) Available to Common Stockholders
8
Quarterly Summary - Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders
10
Capitalization/Book Value per Common Share
11
Spread Results
13
Investment Yields
13
B. Product Summary
Summary of Cost of Money for Deferred Annuities
14
Annuity Account Balance Rollforward
14
MRB Liability
15
Account Values Subject to Recurring Fees Under Reinsurance Agreements
15
Annuity Deposits by Product Type
16
Surrender Charge Protection and Account Values by Product Type
16
Annuity Liability Characteristics
17
C. Investment Summary
Summary of Invested Assets
18
Credit Quality of Fixed Maturity Securities
18
Watch List Securities
19
Fixed Maturity Securities by Sector
20
Mortgage Loans on Real Estate
21
D.
Shareholder Information
23
E.
Research Analyst Coverage
24

(a)Effective January 1, 2023, American Equity Investment Life Holding Company (the "Company") adopted Accounting Standards Update 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). The Company applied this guidance as of the transition date of January 1, 2021, and retrospectively adjusted prior period amounts for years 2021 and 2022 to reflect the new guidance. This December 31, 2022 financial supplement recasts balances, to the extent impacted by LDTI, from the original December 31, 2022 financial supplement published by the Company on February 16, 2023.


Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2022 December 31, 2021
Assets
Investments:
Fixed maturity securities, available for sale, at fair value $ 39,804,617 $ 51,305,943
Mortgage loans on real estate 6,949,027 5,687,998
Real estate investments 1,056,063 337,939
Limited partnerships and limited liability companies 1,266,779 520,120
Derivative instruments 431,727 1,277,480
Other investments 1,817,085 1,247,024
Total investments 51,325,298 60,376,504
Cash and cash equivalents 1,919,669 4,508,982
Coinsurance deposits 13,254,956 8,988,891
Accrued investment income 497,851 445,097
Deferred policy acquisition costs 2,773,643 3,062,204
Deferred sales inducements 2,045,683 2,119,962
Deferred income taxes 438,434 -
Income taxes recoverable 55,498 166,586
Other assets 872,567 875,396
Total assets $ 73,183,599 $ 80,543,622
Liabilities and Stockholders' Equity
Liabilities:
Policy benefit reserves $ 58,781,836 $ 62,614,822
Market risk benefits 2,455,492 3,162,162
Other policy funds and contract claims 512,790 226,844
Notes and loan payable 792,073 496,250
Subordinated debentures 78,753 78,421
Deferred income taxes - 914,417
Funds withheld for reinsurance liabilities 6,577,426 3,124,740
Other liabilities 1,614,479 2,187,249
Total liabilities 70,812,849 72,804,905
Stockholders' equity:
Preferred stock, Series A 16 16
Preferred stock, Series B 12 12
Common stock 84,810 92,514
Additional paid-in capital 1,325,316 1,614,374
Accumulated other comprehensive income (loss) (3,746,230) 3,192,547
Retained earnings 4,685,593 2,839,254
Total stockholders' equity attributable to American Equity Investment Life Holding Company 2,349,517 7,738,717
Noncontrolling interests 21,233 -
Total stockholders' equity 2,370,750 7,738,717
Total liabilities and stockholders' equity $ 73,183,599 $ 80,543,622
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
December 31, 		Year Ended
December 31,
2022 2021 2022 2021
Revenues:
Premiums and other considerations $ 2,991 $ 14,553 $ 19,739 $ 58,202
Annuity product charges 61,666 60,310 230,354 242,631
Net investment income 537,995 514,599 2,307,463 2,037,475
Change in fair value of derivatives 22,243 522,251 (1,138,128) 1,348,735
Net realized gains (losses) on investments 14,411 (10,478) (47,848) (13,242)
Other revenue 13,032 8,263 42,245 16,160
Total revenues 652,338 1,109,498 1,413,825 3,689,961
Benefits and expenses:
Insurance policy benefits and change in future policy benefits 5,948 17,331 33,220 73,896
Interest sensitive and index product benefits 57,626 508,014 554,871 2,231,567
Market risk benefits (gains) losses 33,490 100,939 3,684 268,973
Amortization of deferred sales inducements 45,966 44,821 181,970 191,884
Change in fair value of embedded derivatives 342,409 186,802 (2,352,598) (358,302)
Interest expense on notes and loan payable 10,228 6,259 32,098 25,581
Interest expense on subordinated debentures 1,335 1,330 5,331 5,324
Amortization of deferred policy acquisition costs 66,831 71,609 284,011 306,370
Other operating costs and expenses 62,389 65,812 239,526 241,882
Total benefits and expenses 626,222 1,002,917 (1,017,887) 2,987,175
Income before income taxes 26,116 106,581 2,431,712 702,786
Income tax expense (benefit) (6,817) 19,615 511,135 149,763
Net income 32,933 86,966 1,920,577 553,023
Less: Net income available to noncontrolling interests 361 - 358 -
Net income available to American Equity Investment Life Holding Company stockholders 32,572 86,966 1,920,219 553,023
Less: Preferred stock dividends 10,919 10,919 43,675 43,675
Net income available to American Equity Investment Life Holding Company common stockholders $ 21,653 $ 76,047 $ 1,876,544 $ 509,348
Earnings per common share $ 0.25 $ 0.82 $ 20.72 $ 5.43
Earnings per common share - assuming dilution $ 0.25 $ 0.81 $ 20.50 $ 5.39
Weighted average common shares outstanding (in thousands):
Earnings per common share 85,274 92,479 90,558 93,860
Earnings per common share - assuming dilution 86,402 93,378 91,538 94,491

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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)
Quarterly Summary - Most Recent 8 Quarters
Q4 2022 Q3 2022 Q2 2022 Q1 2022
Revenues:
Traditional life insurance premiums $ 626 $ 634 $ 691 $ 675
Life contingent immediate annuity considerations 2,365 2,205 3,140 9,403
Surrender charges 22,030 19,783 15,345 15,541
Lifetime income benefit rider fees 39,636 41,036 40,169 36,814
Net investment income 537,995 609,737 592,308 567,423
Change in fair value of derivatives 22,243 (176,671) (506,181) (477,519)
Net realized gains (losses) on investments 14,411 (15,860) (33,272) (13,127)
Other revenue (a) 13,032 10,988 9,408 8,817
Total revenues 652,338 491,852 121,608 148,027
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits (b) 944 118 495 1,491
Life contingent immediate annuity benefits and change in future policy benefits (c) 5,004 6,541 6,503 12,124
Interest sensitive and index product benefits 57,626 68,982 140,346 287,917
Market risk benefits (gains) losses (d) 33,490 77,579 (299,278) 191,893
Amortization of deferred sales inducements 45,966 46,223 44,696 45,085
Change in fair value of embedded derivatives (e) 342,409 (415,374) (885,984) (1,393,649)
Interest expense on notes payable 10,228 8,984 6,461 6,425
Interest expense on subordinated debentures 1,335 1,333 1,346 1,317
Amortization of deferred policy acquisition costs 66,831 71,726 72,485 72,969
Other operating costs and expenses 62,389 59,470 59,872 57,795
Total benefits and expenses 626,222 (74,418) (853,058) (716,633)
Income before income taxes 26,116 566,270 974,666 864,660
Income tax expense (benefit) (6,817) 121,380 211,377 185,195
Net income (b)(c)(d)(e) 32,933 444,890 763,289 679,465
Less: Net income (loss) available to noncontrolling interests 361 1 (4) -
Net income available to American Equity Investment Life Holding Company stockholders (b)(c)(d)(e) 32,572 444,889 763,293 679,465
Less: Preferred stock dividends 10,919 10,918 10,919 10,919
Net income available to American Equity Investment Life Holding Company common stockholders (b)(c)(d)(e) $ 21,653 $ 433,971 $ 752,374 $ 668,546
Earnings per common share $ 0.25 $ 4.95 $ 8.13 $ 6.90
Earnings per common share - assuming dilution (b)(c)(d)(e) $ 0.25 $ 4.90 $ 8.06 $ 6.83
Weighted average common shares outstanding (thousands):
Earnings per common share 85,274 87,707 92,544 96,866
Earnings per common share - assuming dilution 86,402 88,581 93,375 97,953
(a)Other revenue consists of reinsurance related fee revenue including asset liability management fees and amortization of the deferred gain associated with the cost of reinsurance.
(b)Q3 2022 includes benefit from the update of assumptions used in determining the deferred profit liability. The impact decreased traditional life insurance policy benefits and change in future policy benefits by $0.5 million and increased both net income and net income available to common stockholders by $0.4 million and did not impact earnings per common share - assuming dilution.
(c)Q3 2022 includes expense from the update of assumptions used in determining the liability for future policyholder benefits. The impact increased life contingent immediate annuity benefits and change in future policy benefits by $1.3 million and decreased both net income and net income available to common stockholders by $1.0 million and decreased earnings per common share - assuming dilution by $0.01 per share.
(d)Q3 2022 includes expense from the update of assumptions used in determining the reserves held for market risk benefits. The impact increased market risk benefits (gains) losses by $229.4 million and decreased both net income and net income available to common stockholders by $181.3 million and decreased earnings per common share - assuming dilution by $2.05 per share.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)
(e)Q3 2022 includes a benefit from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact decreased change in fair value of embedded derivatives by $94.8 million and increased both net income and net income available to common stockholders by $74.4 million and increased earnings per common share - assuming dilution by $0.84 per share.
Quarterly Summary - Most Recent 8 Quarters, continued
Q4 2021 Q3 2021 Q2 2021 Q1 2021
Revenues:
Traditional life insurance premiums $ 677 $ 697 $ 708 $ 706
Life contingent immediate annuity considerations 13,876 15,144 13,887 12,507
Surrender charges 13,638 16,481 18,057 19,481
Lifetime income benefit rider fees 46,672 41,999 45,702 40,601
Net investment income 514,599 526,366 499,320 497,190
Change in fair value of derivatives 522,251 (70,701) 500,880 396,305
Net realized gains (losses) on investments (10,478) 4,933 (3,114) (4,583)
Other revenue (a) 8,263 7,897 - -
Total revenues 1,109,498 542,816 1,075,440 962,207
Benefits and expenses:
Traditional life insurance policy benefits and change in future policy benefits (b) 60 (3,971) 443 949
Life contingent immediate annuity benefits and change in future policy benefits (c) 17,271 26,622 16,656 15,866
Interest sensitive and index product benefits 508,014 540,883 778,810 403,860
Market risk benefits (gains) losses (d) 100,939 310,544 252,412 (394,922)
Amortization of deferred sales inducements 44,821 45,219 50,719 51,125
Change in fair value of embedded derivatives (e) 186,802 (536,404) 273,713 (282,413)
Interest expense on notes payable 6,259 6,535 6,394 6,393
Interest expense on subordinated debentures 1,330 1,342 1,326 1,326
Amortization of deferred policy acquisition costs 71,609 71,201 82,017 81,543
Other operating costs and expenses 65,812 56,020 64,590 55,460
Total benefits and expenses 1,002,917 517,991 1,527,080 (60,813)
Income (loss) before income taxes 106,581 24,825 (451,640) 1,023,020
Income tax expense (benefit) 19,615 8,421 (95,787) 217,514
Net income (loss) (b)(c)(d)(e) 86,966 16,404 (355,853) 805,506
Less: Net income (loss) available to noncontrolling interests - - - -
Net income (loss) available to American Equity Investment Life Holding Company stockholders (b)(c)(d)(e) 86,966 16,404 (355,853) 805,506
Less: Preferred stock dividends 10,919 10,918 10,919 10,919
Net income (loss) available to American Equity Investment Life Holding Company common stockholders (b)(c)(d)(e) $ 76,047 $ 5,486 $ (366,772) $ 794,587
Earnings (loss) per common share $ 0.82 $ 0.06 $ (3.87) $ 8.30
Earnings (loss) per common share - assuming dilution (b)(c)(d)(e) $ 0.81 $ 0.06 $ (3.87) $ 8.26
Weighted average common shares outstanding (thousands):
Earnings (loss) per common share 92,479 92,478 94,801 95,735
Earnings (loss) per common share - assuming dilution 93,378 93,044 95,379 96,216
(a)Other revenue consists of reinsurance related fee revenue including asset liability management fees and amortization of the deferred gain associated with the cost of reinsurance.
(b)Q3 2021 includes benefit from the update of assumptions used in determining the deferred profit liability. The impact decreased traditional life insurance policy benefits and change in future policy benefits by $4.8 million and increased both net income and net income available to common stockholders by $3.8 million and increased earnings per common share - assuming dilution by $0.04 per share.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)
(c)Q3 2021 includes expense from the update of assumptions used in determining the liability for future policyholder benefits. The impact increased life contingent immediate annuity benefits and change in future policy benefits by $7.9 million and decreased both net income and net income available to common stockholders by $6.2 million and decreased earnings per common share - assuming dilution by $0.07 per share
(d)Q4 2021 includes expense from the update of assumptions used in determining the reserves held for market risk benefits. The impact increased market risk benefits (gains) losses by $13.0 million and decreased both net income and net income available to common stockholders by $10.3 million and decreased earnings per common share - assuming dilution by $0.11 per share.
Q3 2021 includes expense from the update of assumptions used in determining the reserves held for market risk benefits. The impact increased market risk benefits (gains) losses by $385.8 million and decreased both net income and net income available to common stockholders by $304.8 million and decreased earnings per common share - assuming dilution by $3.27 per share.
(e)Q4 2021 includes expense from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact increased change in fair value of embedded derivatives by $3.5 million and decreased both net income and net income available to common stockholders by $2.7 million and decreased earnings per common share - assuming dilution by $0.03 per share.
Q3 2021 includes a benefit from the update of assumptions used in determining the embedded derivative component of our fixed index annuity policy benefit reserves. The impact decreased change in fair value of embedded derivatives by $125.8 million and increased both net income and net income available to common stockholders by $98.7 million and increased earnings per common share - assuming dilution by $1.06 per share.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
In addition to net income available to common stockholders, we have consistently utilized non-GAAP operating income (loss) available to common stockholders and non-GAAP operating income (loss) available to common stockholders per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Non-GAAP operating income (loss) available to common stockholders equals net income available to common stockholders adjusted to eliminate the impact of items that fluctuate from quarter to quarter in a manner unrelated to core operations, and we believe measures excluding their impact are useful in analyzing operating trends. The most significant adjustments to arrive at non-GAAP operating income (loss) available to common stockholders eliminate the impact of fair value accounting for our fixed index annuity business. These adjustments are not economic in nature but rather impact the timing of reported results. We believe the combined presentation and evaluation of non-GAAP operating income (loss) available to common stockholders together with net income available to common stockholders provides information that may enhance an investor's understanding of our underlying results and profitability.
Reconciliation from Net Income Available to Common Stockholders to Non-GAAP Operating Income (Loss) Available to Common Stockholders
Three Months Ended
December 31, 		Year Ended
December 31,
2022 2021 2022 2021
Net income available to American Equity Investment Life Holding Company common stockholders $ 21,653 $ 76,047 $ 1,876,544 $ 509,348
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders:
Net realized (gains) losses on financial assets, including credit losses (19,460) 10,045 48,264 13,618
Change in fair value of derivatives and embedded derivatives 169,767 (29,158) (1,549,205) (316,765)
Capital markets impact on the change in fair value of market risk benefits 2,309 22,119 (393,617) (371,935)
Net investment income 1,476 - 1,476 -
Other revenue 5,969 - 5,969 -
Income taxes (39,998) (4,539) 401,838 143,806
Non-GAAP operating income (loss) available to common stockholders $ 141,716 $ 74,514 $ 391,269 $ (21,928)
Impact of excluding notable items (a) $ - $ 10,265 $ 181,890 $ 317,425
Per common share - assuming dilution:
Net income available to American Equity Investment Life Holding Company common stockholders $ 0.25 $ 0.81 $ 20.50 $ 5.39
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders:
Anti-dilutive impact for losses (b) - - - 0.01
Net realized (gains) losses on financial assets, including credit losses (0.23) 0.11 0.53 0.14
Change in fair value of derivatives and embedded derivatives 1.96 (0.31) (16.92) (3.35)
Capital markets impact on the change in fair value of market risk benefits 0.03 0.24 (4.30) (3.94)
Net investment income 0.02 - 0.01 -
Other revenue 0.07 - 0.06 -
Income taxes (0.46) (0.05) 4.39 1.52
Non-GAAP operating income (loss) available to common stockholders $ 1.64 $ 0.80 $ 4.27 $ (0.23)
Impact of excluding notable items (a) $ - $ 0.11 $ 1.99 $ 3.36
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)

Notable Items
Three Months Ended
December 31, 		Year Ended
December 31,
2022 2021 2022 2021
Notable items impacting non-GAAP operating income (loss) available to common stockholders:
Impact of actuarial assumption updates $ - $ 10,265 $ 181,890 $ 317,425
Total notable items (a) $ - $ 10,265 $ 181,890 $ 317,425
(a)Notable items reflect the after-tax increase (decrease) to non-GAAP operating income (loss) available to common stockholders for certain items that do not reflect the company's expected ongoing operations. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results.
For the years ended December 31, 2022 and 2021, non-GAAP operating income available to common stockholders would increase $181.9 million and $317.4 million, respectively, if we were to exclude the impact of notable items. For the three months ended December 31, 2021, non-GAAP operating income available to common stockholders would increase $10.3 million if we were to exclude the impact of notable items.
(b)For periods with a loss, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect.
NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders
Three Months Ended
December 31, 		Year Ended
December 31,
2022 2021 2022 2021
Net realized (gains) losses on financial assets, including credit losses:
Net realized (gains) losses on financial assets, including credit losses $ (19,460) $ 10,045 $ 48,264 $ 13,618
Income taxes 4,183 (2,160) (10,377) (2,928)
$ (15,277) $ 7,885 $ 37,887 $ 10,690
Change in fair value of derivatives and embedded derivatives:
Fixed index annuities $ 89,662 $ (26,796) $ (1,129,326) $ (314,403)
Reinsurance contracts 78,594 (2,362) (439,502) (2,362)
Interest rate swaps 1,511 - 19,623 -
Income taxes (42,083) 2,376 329,188 66,768
$ 127,684 $ (26,782) $ (1,220,017) $ (249,997)
Capital markets impact on the fair value of market risk benefits:
Capital markets impact on the change in fair value of market risk benefits $ (16,236) $ 14,143 $ (449,887) $ (405,610)
Amortization of capital markets impact on the fair value of market risk benefits 18,545 7,976 56,270 33,675
Income taxes (498) (4,755) 84,627 79,966
$ 1,811 $ 17,364 $ (308,990) $ (291,969)
Net investment income:
Income associated with assets transferred under reinsurance treaty $ 1,476 $ - $ 1,476 $ -
Income taxes (317) - (317) -
$ 1,159 $ - $ 1,159 $ -
Other revenue:
Amortization of deferred fees associated with reinsurance treaties $ 5,969 $ - $ 5,969 $ -
Income taxes (1,283) - (1,283) -
$ 4,686 $ - $ 4,686 $ -

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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)

NON-GAAP FINANCIAL MEASURES
Quarterly Summary - Most Recent 8 Quarters
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss) Available to Common Stockholders
Q4 2022 Q3 2022 Q2 2022 Q1 2022
Net income (loss) available to American Equity Investment Life Holding Company common stockholders $ 21,653 $ 433,971 $ 752,374 $ 668,546
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders:
Net realized (gains) losses on financial assets, including credit losses (19,460) 16,945 37,054 13,725
Change in fair value of derivatives and embedded derivatives 169,767 (400,952) (470,813) (847,207)
Capital markets impact on the change in fair value of market risk benefits 2,309 (179,509) (335,330) 118,913
Net investment income 1,476 - - -
Other revenue 5,969 - - -
Income taxes (39,998) 120,802 167,944 153,090
Non-GAAP operating income (loss) available to common stockholders $ 141,716 $ (8,743) $ 151,229 $ 107,067
Impact of excluding notable items (a) $ - $ 181,890 $ - $ -
Per common share - assuming dilution:
Net income (loss) available to American Equity Investment Life Holding Company common stockholders $ 0.25 $ 4.90 $ 8.06 $ 6.83
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders:
Anti-dilutive impact for losses (b) - - - -
Net realized (gains) losses on financial assets, including credit losses (0.23) 0.19 0.39 0.14
Change in fair value of derivatives and embedded derivatives 1.96 (4.52) (5.04) (8.65)
Capital markets impact on the change in fair value of market risk benefits 0.03 (2.03) (3.59) 1.21
Net investment income 0.02 - - -
Other revenue 0.07 - - -
Income taxes (0.46) 1.36 1.80 1.56
Non-GAAP operating income (loss) available to common stockholders $ 1.64 $ (0.10) $ 1.62 $ 1.09
Impact of excluding notable items (a) $ - $ 2.05 $ - $ -
Notable Items
Q4 2022 Q3 2022 Q2 2022 Q1 2022
Notable items impacting non-GAAP operating income (loss) available to common stockholders:
Impact of actuarial assumption updates $ - $ 181,890 $ - $ -
Total notable items (a) $ - $ 181,890 $ - $ -
(a)Notable items reflect the after-tax increase (decrease) to non-GAAP operating income (loss) available to common stockholders for certain items that do not reflect the company's expected ongoing operations. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results. For the three months ended September 30, 2022, non-GAAP operating income available to common stockholders would increase $181.9 million if we were to exclude the impact of notable items.
(b)For periods with a loss, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect.
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)

Quarterly Summary - Most Recent 8 Quarters, continued
Reconciliation from Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss) Available to Common Stockholders
Q4 2021 Q3 2021 Q2 2021 Q1 2021
Net income (loss) available to American Equity Investment Life Holding Company common stockholders $ 76,047 $ 5,486 $ (366,772) $ 794,587
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders:
Net realized (gains) losses on financial assets, including credit losses 10,045 (4,016) 2,862 4,727
Change in fair value of derivatives and embedded derivatives (29,158) (125,076) 331,269 (493,800)
Capital markets impact on the change in fair value of market risk benefits 22,119 (138,995) 206,951 (462,010)
Net investment income - - - -
Other revenue - - - -
Income taxes (4,539) 61,496 (114,858) 201,707
Non-GAAP operating income (loss) available to common stockholders $ 74,514 $ (201,105) $ 59,452 $ 45,211
Impact of excluding notable items (a) $ 10,265 $ 307,159 $ - $ -
Per common share - assuming dilution:
Net income (loss) available to American Equity Investment Life Holding Company common stockholders $ 0.81 $ 0.06 $ (3.87) $ 8.26
Adjustments to arrive at non-GAAP operating income (loss) available to common stockholders:
Anti-dilutive impact for losses (b) - 0.01 0.02 -
Net realized (gains) losses on financial assets, including credit losses 0.11 (0.05) 0.03 0.05
Change in fair value of derivatives and embedded derivatives (0.31) (1.35) 3.47 (5.13)
Capital markets impact on the change in fair value of market risk benefits 0.24 (1.50) 2.17 (4.80)
Net investment income - - - -
Other revenue - - - -
Income taxes (0.05) 0.66 (1.20) 2.09
Non-GAAP operating income (loss) available to common stockholders $ 0.80 $ (2.17) $ 0.62 $ 0.47
Impact of excluding notable items (a) $ 0.11 $ 3.30 $ - $ -
Notable Items
Q4 2021 Q3 2021 Q2 2021 Q1 2021
Notable items impacting non-GAAP operating income (loss) available to common stockholders:
Impact of actuarial assumption updates $ 10,265 $ 307,159 $ - $ -
Total notable items (a) $ 10,265 $ 307,159 $ - $ -
(a)Notable items reflect the after-tax increase (decrease) to non-GAAP operating income (loss) available to common stockholders for certain items that do not reflect the company's expected ongoing operations. The presentation of notable items is intended to help investors better understand our results and to evaluate and forecast those results. For the three months ended December 31 and September 30, 2021, respectively, non-GAAP operating income available to common stockholders would increase $10.3 million and $307.2 million if we were to exclude the impact of notable items.
(b)For periods with a loss, dilutive shares were not included in the calculation as inclusion of such shares would have an anti-dilutive effect.
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

NON-GAAP FINANCIAL MEASURES
Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders
Q4 2022 Q3 2022 Q2 2022 Q1 2022
Net realized (gains) losses on investments $ (14,411) $ 15,860 $ 33,272 $ 13,127
Net investment income 1,476 - - -
Other revenue 5,969 - - -
Change in fair value of derivatives (172,643) 14,423 415,171 546,442
Increase (decrease) in total revenues (179,609) 30,283 448,443 559,569
Change in fair value of embedded derivatives (342,409) 415,374 885,984 1,393,649
Market risk benefits (gains) losses (2,309) 179,509 335,330 (118,913)
Interest sensitive and index product benefits (a) 5,048 (1,084) (3,782) (598)
Increase (decrease) in total benefits and expenses (339,670) 593,799 1,217,532 1,274,138
Increase (decrease) in income (loss) before income taxes 160,061 (563,516) (769,089) (714,569)
Increase (decrease) in income tax expense benefit 39,998 (120,802) (167,944) (153,090)
Increase (decrease) in net income (loss) available to common stockholders $ 120,063 $ (442,714) $ (601,145) $ (561,479)
(a)Interest sensitive and index product benefits adjustment reflects the change in the allowance for credit losses on our reinsurance recoverable/coinsurance deposits. The change in this allowance is reflected in the net realized (gains) losses of financial assets, including credit losses line in the other Non-GAAP financial measures tables in this financial supplement.
Summary of Adjustments to Arrive at Non-GAAP Operating Income (Loss) Available to Common Stockholders, continued
Q4 2021 Q3 2021 Q2 2021 Q1 2021
Net realized (gains) losses on investments $ 10,478 $ (4,933) $ 3,114 $ 4,583
Net investment income - - - -
Other revenue - - - -
Change in fair value of derivatives (215,962) 411,329 57,556 (211,387)
Increase (decrease) in total revenues (205,484) 406,396 60,670 (206,804)
Change in fair value of embedded derivatives (186,802) 536,404 (273,713) 282,413
Market risk benefits (gains) losses (22,119) 138,995 (206,951) 462,010
Interest sensitive and index product benefits (a) 431 (916) 252 (144)
Increase (decrease) in total benefits and expenses (208,490) 674,483 (480,412) 744,279
Increase (decrease) in income (loss) before income taxes 3,006 (268,087) 541,082 (951,083)
Increase (decrease) in income tax expense benefit 4,539 (61,496) 114,858 (201,707)
Increase (decrease) in net income (loss) available to common stockholders $ (1,533) $ (206,591) $ 426,224 $ (749,376)
(a)Interest sensitive and index product benefits adjustment reflects the change in the allowance for credit losses on our reinsurance recoverable/coinsurance deposits. The change in this allowance is reflected in the net realized (gains) losses of financial assets, including credit losses line in the other Non-GAAP financial measures tables in this financial supplement.
Page 10

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share
Q4 2022 Q3 2022 Q2 2022 Q1 2022
Capitalization:
Notes and loan payable $ 800,000 $ 800,000 $ 500,000 $ 500,000
Subordinated debentures payable to subsidiary trusts 78,753 78,668 78,584 78,502
Total debt
878,753 878,668 578,584 578,502
Total stockholders' equity attributable to American Equity Investment Life Holding Company 2,349,517 2,157,667 3,625,377 5,718,944
Total capitalization 3,228,270 3,036,335 4,203,961 6,297,446
Accumulated other comprehensive (income) loss (AOCI) 3,746,230 3,984,496 2,231,594 (426,490)
Total capitalization excluding AOCI (a)
$ 6,974,500 $ 7,020,831 $ 6,435,555 $ 5,870,956
Total stockholders' equity attributable to American Equity Investment Life Holding Company $ 2,349,517 $ 2,157,667 $ 3,625,377 $ 5,718,944
Equity available to preferred stockholders (b) (700,000) (700,000) (700,000) (700,000)
Total common stockholders' equity (c)
1,649,517 1,457,667 2,925,377 5,018,944
Accumulated other comprehensive (income) loss 3,746,230 3,984,496 2,231,594 (426,490)
Total common stockholders' equity excluding AOCI (c)
5,395,747 5,442,163 5,156,971 4,592,454
Net impact of fair value accounting for derivatives and embedded derivatives (1,652,169) (1,721,324) (1,418,244) (1,051,245)
Net capital markets impact on the fair value of market risk benefits (600,958) (602,772) (461,856) (198,622)
Total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities (c)
$ 3,142,620 $ 3,118,067 $ 3,276,871 $ 3,342,587
Common shares outstanding 84,810,255 85,966,505 90,168,512 95,019,904
Book Value per Common Share: (d)
Book value per common share $ 19.45 $ 16.96 $ 32.44 $ 52.82
Book value per common share excluding AOCI (c) $ 63.62 $ 63.31 $ 57.19 $ 48.33
Book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities (c) $ 37.05 $ 36.27 $ 36.34 $ 35.18
Debt-to-Capital Ratios: (e)
Senior debt / Total capitalization 11.5 % 11.4 % 7.8 % 8.5 %
Total debt / Total capitalization 12.6 % 12.5 % 9.0 % 9.9 %
(a)Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.
(b)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(c)Total common stockholders' equity, total common stockholders' equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities, non-GAAP financial measures, exclude equity available to preferred stockholders. Total common stockholders' equity and book value per common share excluding AOCI, non-GAAP financial measures, are based on common stockholders' equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale securities, we believe these non-GAAP financial measures provide useful supplemental information. Total common stockholders' equity and book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities. Since the net impact of fair value accounting for our fixed index annuity business is not economic in nature but rather impact the timing of reported results, we believe these non-GAAP financial measures provide useful supplemental information.
(d)Book value per common share including and excluding AOCI and book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities are calculated as total common stockholders' equity, total common stockholders' equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities divided by the total number of shares of common stock outstanding.
(e)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except share and per share data)

Capitalization/Book Value per Common Share, continued
Q4 2021 Q3 2021 Q2 2021 Q1 2021
Capitalization:
Notes and loan payable $ 500,000 $ 500,000 $ 500,000 $ 500,000
Subordinated debentures payable to subsidiary trusts 78,421 78,342 78,264 78,187
Total debt
578,421 578,342 578,264 578,187
Total stockholders' equity attributable to American Equity Investment Life Holding Company 7,738,717 7,799,987 8,075,883 7,623,297
Total capitalization 8,317,138 8,378,329 8,654,147 8,201,484
Accumulated other comprehensive (income) loss (AOCI) (3,192,547) (3,303,752) (3,589,584) (2,684,172)
Total capitalization excluding AOCI (a)
$ 5,124,591 $ 5,074,577 $ 5,064,563 $ 5,517,312
Total stockholders' equity attributable to American Equity Investment Life Holding Company $ 7,738,717 $ 7,799,987 $ 8,075,883 $ 7,623,297
Equity available to preferred stockholders (b) (700,000) (700,000) (700,000) (700,000)
Total common stockholders' equity (c)
7,038,717 7,099,987 7,375,883 6,923,297
Accumulated other comprehensive (income) loss (3,192,547) (3,303,752) (3,589,584) (2,684,172)
Total common stockholders' equity excluding AOCI (c)
3,846,170 3,796,235 3,786,299 4,239,125
Net impact of fair value accounting for derivatives and embedded derivatives (383,284) (358,862) (332,010) (593,531)
Net capital markets impact on the fair value of market risk benefits (291,696) (309,332) (200,221) (362,677)
Total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities (c)
$ 3,171,190 $ 3,128,041 $ 3,254,068 $ 3,282,917
Common shares outstanding 92,513,517 92,513,517 92,553,825 95,482,733
Book Value per Common Share: (d)
Book value per common share $ 76.08 $ 76.75 $ 79.69 $ 72.51
Book value per common share excluding AOCI (c) $ 41.57 $ 41.03 $ 40.91 $ 44.40
Book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities (c) $ 34.28 $ 33.81 $ 35.16 $ 34.38
Debt-to-Capital Ratios: (e)
Senior debt / Total capitalization 9.8 % 9.9 % 9.9 % 9.1 %
Total debt / Total capitalization 11.3 % 11.4 % 11.4 % 10.5 %
(a)Total capitalization excluding AOCI, a non-GAAP financial measure, is based on stockholders' equity excluding the effect of AOCI.
(b)Equity available to preferred stockholders is equal to the redemption value of outstanding preferred stock plus share dividends declared but not yet issued.
(c)Total common stockholders' equity, total common stockholders' equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities, non-GAAP financial measures, exclude equity available to preferred stockholders. Total common stockholders' equity and book value per common share excluding AOCI, non-GAAP financial measures, are based on common stockholders' equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale securities, we believe these non-GAAP financial measures provide useful supplemental information. Total common stockholders' equity and book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities, non-GAAP financial measures, are based on common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities. Since the net impact of fair value accounting for our fixed index annuity business is not economic in nature but rather impact the timing of reported results, we believe these non-GAAP financial measures provide useful supplemental information.
(d)Book value per common share including and excluding AOCI and book value per common share excluding AOCI and the net impact of fair value accounting for fixed index annuities are calculated as total common stockholders' equity, total common stockholders' equity excluding AOCI and total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities divided by the total number of shares of common stock outstanding.
(e)Debt-to-capital ratios are computed using total capitalization excluding AOCI.
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

Spread Results
Year Ended
December 31,
2022 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
4.34% 3.73% Average yield on invested assets 4.30% 4.48% 4.33% 4.15% 3.80%
1.71% 1.55% Aggregate cost of money 1.76% 1.75% 1.69% 1.64% 1.51%
2.63% 2.18% Aggregate investment spread 2.54% 2.73% 2.64% 2.51% 2.29%
Impact of:
0.03% 0.11%
Investment yield - additional prepayment income
0.01% 0.03% 0.05% 0.03% 0.12%
0.01% 0.07% Cost of money effect of over hedging -% -% 0.02% 0.03% 0.14%
$ 53,225,871 $ 54,750,862 Weighted average investments $ 50,040,228 $ 54,378,154 $ 54,768,966 $ 54,728,239 $ 54,407,554
49,811,623 54,617,968 Ending investments 49,811,623 54,056,886 54,699,422 54,838,509 54,617,968
Weighted average investments include fixed maturity securities at amortized cost and mortgage loans on real estate and other investments at carrying values as reflected in the consolidated balance sheets. The numerator for average yield on invested assets includes net investment income and the tax effect of investment income that is exempt from income taxes.
Investment Yields
Year Ended
December 31,
2022 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
Investment income:
$ 2,108,088 $ 1,967,496
Fixed income (a)
$ 511,077 $ 547,326 $ 539,382 $ 510,303 $ 500,577
200,349 73,990 Mark-to-market private asset income (a) 26,816 61,671 53,816 58,046 16,596
$ 2,308,437 $ 2,041,486 Total non-GAAP investment income (b) $ 537,893 $ 608,997 $ 593,198 $ 568,349 $ 517,173
Investment yield:
4.08% 3.62% Fixed income investment yield 4.26% 4.16% 4.04% 3.80% 3.73%
12.95% 16.53% Mark-to-market private asset yield 5.29% 13.89% 15.15% 22.36% 9.60%
4.34% 3.73% Total investment yield 4.30% 4.48% 4.33% 4.15% 3.80%
Weighted average investments:
$ 51,678,469 $ 54,303,353 Fixed income investments $ 48,012,311 $ 52,602,319 $ 53,347,874 $ 53,689,782 $ 53,716,356
1,547,402 447,509 Mark-to-market private assets 2,027,917 1,775,835 1,421,092 1,038,457 691,199
$ 53,225,871 $ 54,750,862 Total weighted average investments $ 50,040,228 $ 54,378,154 $ 54,768,966 $ 54,728,239 $ 54,407,555
(a)Net of investment expenses
(b)Non-GAAP investment income is comprised of GAAP Net Investment Income adjusted to remove income associated with cash held by the Parent Company for corporate activities and to gross up income related to the tax benefit of tax exempt investment income, in addition to the adjustments shown in the reconciliation of Net Income to Non-GAAP Operating Income on page 5. The net impact of the adjustments for income associated with cash held by the Parent Company and tax exempt investment income was $1,578 thousand in Q4 2022, $740 thousand in Q3 2022, $890 thousand in Q2 2022, $926 thousand in Q1 2022, and $2,574 thousand in Q4 2021.
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)

Summary of Cost of Money for Deferred Annuities
Year Ended
December 31,
2022 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
Included in interest sensitive and index product benefits:
$ 305,292 $ 1,977,888 Index credits $ 3,861 $ 4,648 $ 72,398 $ 224,385 $ 442,568
240,889 245,892 Interest credited 56,402 62,383 60,770 61,334 63,974
Included in change in fair value of derivatives:
(312,133) (2,019,477) Proceeds received at option expiration (4,061) (4,865) (75,115) (228,092) (459,982)
647,132 630,015 Pro rata amortization of option cost 154,463 167,197 165,375 160,097 153,399
$ 881,180 $ 834,318 Cost of money for deferred annuities $ 210,665 $ 229,363 $ 223,428 $ 217,724 $ 199,959
$ 51,558,865 $ 53,681,684
Weighted average liability balance outstanding
$ 47,802,219 $ 52,337,208 $ 52,940,739 $ 53,155,293 $ 53,064,893
Annuity Account Balance Rollforward
Year Ended
December 31,
2022 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
$ 53,191,277 $ 54,056,725 Account balances at beginning of period $ 51,913,689 $ 52,762,558 $ 53,119,291 $ 53,191,277 $ 52,938,493
(4,068,761) (4,279,394) Reserves ceded - in-force (3,810,982) (257,779) - - -
49,122,516 49,777,331 Account balance at beginning of period, net of reinsurance ceded 48,102,707 52,504,779 53,119,291 53,191,277 52,938,493
2,347,315 5,485,205 Net deposits 613,084 496,940 562,366 674,925 815,890
107,691 95,160 Premium bonuses 33,617 27,385 23,547 23,142 23,476
546,181 2,223,780 Fixed interest credited and index credits 60,263 67,031 133,168 285,719 506,542
(72,699) (67,657) Surrender charges (22,030) (19,783) (15,345) (15,541) (13,638)
(157,655) (174,974) Lifetime income benefit rider fees (39,636) (41,036) (40,169) (36,814) (46,672)
(4,388,734) (4,147,568) Surrenders, withdrawals, deaths, etc. (1,243,390) (1,121,627) (1,020,300) (1,003,417) (1,032,814)
$ 47,504,615 $ 53,191,277 Account balances at end of period $ 47,504,615 $ 51,913,689 $ 52,762,558 $ 53,119,291 $ 53,191,277
Page 14

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands, except per share data)

MRB Liability
Year Ended
December 31,
2022 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
$ 2,362,947 $ 2,136,146 MRB balance at beginning of period $ 1,762,629 $ 1,721,376 $ 2,075,033 $ 2,362,947 $ 2,288,670
(326,524) (63,215) Reserves ceded - in-force (331,020) 4,496 - - -
7,429 (5,236) Issuances 1,230 1,366 913 3,920 1,290
66,198 40,186 Interest accrual 23,910 20,626 12,424 9,238 11,772
102,665 114,178 Attributed fees collected 25,933 25,484 25,627 25,621 28,213
- - Benefits payments - - - - -
(449,887) (405,610) Effect of changes in interest rates and equity markets (16,236) (197,978) (348,675) 113,002 14,142
278,651 527,984 Effect of changes in assumptions and policyholder behavior (1,371) 228,048 10,971 41,003 46,567
(519,525) 18,514 Effect of changes in instrument specific credit risk 56,879 (40,789) (54,917) (480,698) (27,707)
1,521,954 2,362,947 MRB balance at end of period, net (a) 1,521,954 1,762,629 1,721,376 2,075,033 2,362,947
765,552 371,935 MRB net deferred capital markets impact, end of period 765,552 767,862 588,352 253,022 371,935
$ 2,287,506 $ 2,734,882 Non-GAAP MRB balance, end of period (b) $ 2,287,506 $ 2,530,491 $ 2,309,728 $ 2,328,055 $ 2,734,882
(a)The MRB balance is the MRB liability net of the MRB asset, MRB host, and reinsurance recoverable asset associated with the ceded MRB. The MRB asset, MRB host and reinsurance recoverable asset associated with the ceded MRB are included in Other assets on the Consolidated Balance Sheets.
(b)Non-GAAP MRB balance is comprised of the GAAP MRB balance adjusted for the pre-tax cumulative effect of the deferral of capital markets impact on the fair value of the MRB. See page 11 and page 12 for the non-GAAP definition and reconciliation of total common stockholders' equity to total common stockholders' equity excluding AOCI and the net impact of fair value accounting for fixed index annuities which includes the adjustment for the after-tax cumulative effect of the deferral of capital markets impact on the fair value of MRB.
Account Values Subject to Recurring Fees Under Reinsurance Agreements
Year Ended
December 31,
2022 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
$ 4,660,690 $ - Account value of business ceded subject to fee income at beginning of period $ 5,612,098 $ 5,065,538 $ 4,859,360 $ 4,660,690 $ 4,459,858
4,068,761 4,279,394 In-force account value ceded subject to fee income 3,810,982 257,779 - - -
1,045,600 381,296 Premiums on business ceded subject to fee income 351,971 288,781 206,178 198,670 200,832
(132,715) - Disbursements on business ceded subject to fee income (132,715) - - - -
$ 9,642,336 $ 4,660,690 Account value of business ceded subject to fee income at end of period $ 9,642,336 $ 5,612,098 $ 5,065,538 $ 4,859,360 $ 4,660,690
$ 48,214 $ 16,160 Non-GAAP operating revenue associated with recurring fees (a) $ 19,001 $ 10,988 $ 9,408 $ 8,817 $ 8,263
(a)Non-GAAP operating revenue associated with recurring fees is comprised of GAAP Other Revenue adjusted for the amortization of gains on assets transferred under a reinsurance transaction. See page 5 for the reconciliation of Net Income to Non-GAAP Operating Income and page 6 for the summary of adjustments to arrive at Non-GAAP Operating Income
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

Annuity Deposits by Product Type
Year Ended
December 31,
2022 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
American Equity Life:
$ 2,692,141 $ 2,753,479 Fixed index annuities $ 637,021 $ 627,444 $ 671,696 $ 755,980 $ 806,238
5,329 6,133 Annual reset fixed rate annuities 1,856 1,271 1,140 1,062 848
56,511 855,702 Multi-year fixed rate annuities 49,216 4,465 485 2,345 6,640
18,935 59,816 Single premium immediate annuities 494 1,915 3,073 13,453 14,145
2,772,916 3,675,130 688,587 635,095 676,394 772,840 827,871
Eagle Life:
479,279 697,068 Fixed index annuities 145,772 102,379 104,374 126,754 176,101
380 350 Annual reset fixed rate annuities 230 143 - 7 13
82,581 1,597,292 Multi-year fixed rate annuities 65,434 14,684 123 2,340 40,901
562,240 2,294,710 211,436 117,206 104,497 129,101 217,015
Consolidated:
3,171,420 3,450,547 Fixed index annuities 782,793 729,823 776,070 882,734 982,339
5,709 6,483 Annual reset fixed rate annuities 2,086 1,414 1,140 1,069 861
139,092 2,452,994 Multi-year fixed rate annuities 114,650 19,149 608 4,685 47,541
18,935 59,816 Single premium immediate annuities 494 1,915 3,073 13,453 14,145
3,335,156 5,969,840 Total before coinsurance ceded 900,023 752,301 780,891 901,941 1,044,886
968,906 424,819 Coinsurance ceded 286,445 253,446 215,452 213,563 214,851
$ 2,366,250 $ 5,545,021 Net after coinsurance ceded $ 613,578 $ 498,855 $ 565,439 $ 688,378 $ 830,035
Surrender Charge Protection and Account Values by Product Type
Annuity Surrender Charges and Net (of Coinsurance) Account Values at December 31, 2022:
Surrender Charge Net Account Value
Product Type Avg.
Years
At Issue 		Avg.
Years
Remaining 		Avg.
%
Remaining 		Dollars in Thousands %
Fixed Index Annuities 12.5 5.0 8.1% $ 41,992,352 88.4 %
Annual Reset Fixed Rate Annuities 7.4 1.7 3.4% 1,247,151 2.6 %
Multi-Year Fixed Rate Annuities 3.9 1.7 7.4% 4,265,112 9.0 %
Total 11.6 4.6 7.9% $ 47,504,615 100.0 %
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Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

Annuity Liability Characteristics
Surrender Charge Percentages: Fixed
Annuities
Account Value 		Fixed Index
Annuities
Account Value
No surrender charge $ 898,320 $ 3,616,403
0.0% < 2.0% 41,672 2,062,990
2.0% < 3.0% 65,004 4,321,344
3.0% < 4.0% 68,626 982,289
4.0% < 5.0% 6,436 2,772,450
5.0% < 6.0% 36,179 2,608,334
6.0% < 7.0% 71,838 2,548,367
7.0% < 8.0% 1,420,984 2,812,800
8.0% < 9.0% 2,547,819 2,219,917
9.0% < 10.0% 112,829 3,337,952
10.0% or greater 242,556 14,709,506
$ 5,512,263 $ 41,992,352
Surrender Charge Expiration By Year: Fixed and
Fixed Index
Annuities
Account Value 		Weighted
Average
Surrender
Charge
Out of Surrender Charge $ 4,514,723 0.00 %
2023 4,336,011 3.03 %
2024 3,919,595 5.38 %
2025 5,453,784 4.44 %
2026 4,892,384 5.96 %
2027 4,283,172 7.81 %
2028 3,714,323 9.00 %
2029 4,143,581 10.42 %
2030 2,775,742 12.89 %
2031 3,900,824 13.80 %
2032 3,060,964 14.38 %
2033 1,068,172 17.39 %
2034 676,085 18.03 %
2035 350,543 18.50 %
2036 196,242 18.99 %
2037 113,435 19.50 %
2038 105,035 20.00 %
$ 47,504,615 7.92 %
If all crediting rates were reduced to minimum guaranteed rates (subject to limitations imposed by ultimate minimum guaranteed rates where applicable) the weighted average crediting rate as of December 31, 2022 for the $11.9 billion of account value of fixed annuities and funds allocated to the fixed rate strategy for fixed index annuities would decrease by 0.21%.
If all caps and participation rates were reduced to minimum caps and participation rates and current asset fees were increased to their maximums on the $35.6 billion of account value allocated to index strategies, the cost of options would decrease by 1.03% based upon prices of options for the week ended January 1, 2023.
Page 17

Table of Contents

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

Summary of Invested Assets
December 31, 2022 December 31, 2021
Carrying
Amount 		Percent Carrying
Amount 		Percent
Fixed maturity securities:
U.S. Government and agencies $ 169,071 0.4 % $ 1,078,746 1.9 %
States, municipalities and territories 3,822,943 8.5 % 3,758,761 6.5 %
Foreign corporate securities and foreign governments 616,938 1.4 % 375,097 0.6 %
Corporate securities 20,201,774 44.8 % 32,631,189 57.0 %
Residential mortgage backed securities 1,366,927 3.0 % 1,125,049 2.0 %
Commercial mortgage backed securities 3,447,075 7.6 % 4,682,900 8.2 %
Other asset backed securities 5,155,254 11.4 % 5,146,567 9.0 %
Total fixed maturity securities 34,779,982 77.1 % 48,798,309 85.2 %
Mortgage loans on real estate 6,778,977 15.0 % 5,650,480 9.9 %
Real estate investments 1,056,063 2.3 % 337,939 0.6 %
Limited partnerships and limited liability companies 1,266,779 2.8 % 520,120 0.9 %
Derivative instruments 431,727 1.0 % 1,277,480 2.2 %
Other investments 829,900 1.8 % 690,344 1.2 %
Total investments, net of modified coinsurance investments 45,143,428 100.0 % 57,274,672 100.0 %
Coinsurance investments (a) 6,181,870 3,101,832
Total investments $ 51,325,298 $ 60,376,504
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
Credit Quality of Fixed Maturity Securities - December 31, 2022
NAIC Designation Amortized
Cost 		Carrying
Amount 		Percent Rating Agency Rating Amortized
Cost 		Carrying
Amount 		Percent
1 $ 24,466,961 $ 21,752,775 62.5 % Aaa/Aa/A $ 24,462,459 $ 21,723,282 62.5 %
2 14,185,506 12,398,001 35.7 % Baa 14,228,490 12,434,302 35.7 %
3 562,190 490,198 1.4 % Ba 554,605 485,166 1.4 %
4 109,409 91,495 0.3 % B 94,185 79,058 0.2 %
5 61,721 36,738 0.1 % Caa 20,020 18,540 0.1 %
6 14,636 10,775 - % Ca and lower 40,664 39,634 0.1 %
39,400,423 34,779,982 100.0 % 39,400,423 34,779,982 100.0 %
Coinsurance investments (a) 5,465,596 5,024,635 Coinsurance investments (a) 5,465,596 5,024,635
$ 44,866,019 $ 39,804,617 $ 44,866,019 $ 39,804,617
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

Watch List Securities - December 31, 2022
General Description (a) Amortized
Cost 		Allowance for Credit Losses Amortized Cost, Net of Allowance Net Unrealized
Losses,
Net of Allowance 		Fair Value
States, municipalities and territories $ 20,657 $ - $ 20,657 $ (3,344) $ 17,313
Corporate securities - Public securities 20,860 - 20,860 (1,050) 19,810
Corporate securities - Private placement securities 10,646 (3,214) 7,432 - 7,432
Residential mortgage backed securities 25,095 (133) 24,962 (2,954) 22,008
Commercial mortgage backed securities 41,899 - 41,899 (2,752) 39,147
Other asset backed securities 2,314 - 2,314 - 2,314
Collateralized loan obligations 103,907 - 103,907 (21,239) 82,668
$ 225,378 $ (3,347) $ 222,031 $ (31,339) $ 190,692
(a)The watch list consists of all fixed maturity securities we have determined contain elevated credit risk, including those on which we have taken credit losses.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

Fixed Maturity Securities by Sector
December 31, 2022 December 31, 2021
Amortized
Cost 		Fair
Value 		Amortized
Cost 		Fair
Value
Available for sale:
U.S. Government and agencies $ 173,638 $ 169,071 $ 1,046,029 $ 1,078,746
States, municipalities and territories 4,356,191 3,822,943 3,325,468 3,758,761
Foreign corporate securities and foreign governments 680,263 616,938 353,198 375,097
Corporate securities:
Capital goods 1,601,113 1,395,595 2,329,169 2,666,627
Consumer discretionary 5,086,479 4,320,219 6,132,199 6,946,585
Energy 1,219,370 1,111,891 1,968,576 2,214,513
Financials 6,467,052 5,634,229 6,998,286 7,714,869
Government non-guaranteed 202,740 179,440 471,015 541,233
Industrials 166,061 138,999 377,631 425,201
Information technology 1,344,461 1,160,067 1,718,596 1,918,197
Materials 1,169,188 1,021,288 1,672,144 1,875,276
Telecommunications 1,306,495 1,090,868 1,569,176 1,756,741
Transportation 1,100,681 975,393 1,312,909 1,454,391
Utilities 3,620,946 3,115,520 4,156,578 4,716,397
Other 58,184 58,265 350,592 401,159
Residential mortgage backed securities:
Government agency 806,999 754,349 455,136 500,698
Prime 387,838 334,613 537,559 544,084
Alt-A 54,910 58,091 59,129 75,361
Non-qualified mortgage 169,847 157,960 - -
Other 62,235 61,914 4,954 4,906
Commercial mortgage backed securities:
Government agency 170,307 157,903 380,339 415,026
Non-agency 3,668,300 3,289,172 4,169,970 4,267,874
Other asset backed securities:
Auto 44,450 41,896 218,106 222,364
Consumer discretionary 122,068 118,843 - -
Financials 283,238 252,493 4,441 4,887
Collateralized loan obligations 4,071,929 3,775,347 3,789,984 3,745,452
Other 1,005,440 966,675 1,088,751 1,173,864
39,400,423 34,779,982 44,489,935 48,798,309
Coinsurance investments (a) 5,465,596 5,024,635 2,509,248 2,507,634
$ 44,866,019 $ 39,804,617 $ 46,999,183 $ 51,305,943
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

Mortgage Loans on Real Estate
December 31, 2022 December 31, 2021
Principal Percent Principal Percent
Property type distribution
Commercial mortgage loans:
Office $ 267,502 4.0 % $ 287,557 5.1 %
Medical Office 10,265 0.1 % 10,827 0.2 %
Retail 878,352 13.0 % 1,016,101 18.0 %
Industrial/Warehouse 853,215 12.6 % 924,779 16.3 %
Apartment 893,910 13.2 % 854,580 15.1 %
Hotel 285,271 4.2 % 283,500 5.0 %
Mixed Use/Other 200,756 3.0 % 217,970 3.9 %
Agricultural mortgage loans 567,630 8.4 % 408,135 7.2 %
Residential mortgage loans 2,807,652 41.5 % 1,652,910 29.2 %
6,764,553 100.0 % 5,656,359 100.0 %
Coinsurance investments (a) 171,633 37,817
$ 6,936,186 $ 5,694,176
Commercial Agricultural
Amortized
Cost 		Average
LTV 		Amortized
Cost 		Average
LTV
As of December 31, 2022:
Debt Service Coverage Ratio:
Greater than or equal to 1.5 $ 2,358,793 53% $ 266,695 45%
Greater than or equal to 1.2 and less than 1.5 505,644 61% 236,589 48%
Greater than or equal to 1.0 and less than 1.2 475,315 50% 15,075 39%
Less than 1.0 44,756 66% 47,604 33%
3,384,508 54% 565,963 45%
Coinsurance investments (a) 170,050 61% - -%
$ 3,554,558 54% $ 565,963 45%
As of December 31, 2021:
Debt Service Coverage Ratio:
Greater than or equal to 1.5 $ 2,491,464 55% $ 180,113 49%
Greater than or equal to 1.2 and less than 1.5 555,055 65% 202,031 48%
Greater than or equal to 1.0 and less than 1.2 466,517 53% 16,304 44%
Less than 1.0 77,948 65% 8,551 59%
3,590,984 56% 406,999 48%
Coinsurance investments (a) 37,518 51% - -%
$ 3,628,502 56% $ 406,999 48%
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)
Unaudited (Dollars in thousands)

December 31, 2022
Commercial Agricultural Residential Total
Credit exposure - by payment activity
Performing $ 3,389,271 $ 564,495 $ 2,773,251 $ 6,727,017
In workout - - - -
Delinquent - 3,135 34,401 37,536
Principal outstanding 3,389,271 567,630 2,807,652 6,764,553
Unamortized discounts and premiums, net - - 55,917 55,917
Deferred fees and costs, net (4,763) (1,667) 1,909 (4,521)
Amortized cost 3,384,508 565,963 2,865,478 6,815,949
Valuation allowance (22,428) (1,021) (13,523) (36,972)
Carrying value 3,362,080 564,942 2,851,955 6,778,977
Coinsurance investments (a) 170,050 - - 170,050
$ 3,532,130 $ 564,942 $ 2,851,955 $ 6,949,027
December 31, 2021
Commercial Agricultural Residential Total
Credit exposure - by payment activity
Performing $ 3,595,314 $ 408,135 $ 1,645,905 $ 5,649,354
In workout - - - -
Delinquent - - 7,005 7,005
Principal outstanding 3,595,314 408,135 1,652,910 5,656,359
Unamortized discounts and premiums, net - - 22,143 22,143
Deferred fees and costs, net (4,330) (1,136) 1,468 (3,998)
Amortized cost 3,590,984 406,999 1,676,521 5,674,504
Valuation allowance (17,926) (519) (5,579) (24,024)
Carrying value 3,573,058 406,480 1,670,942 5,650,480
Coinsurance investments (a) 37,518 - - 37,518
$ 3,610,576 $ 406,480 $ 1,670,942 $ 5,687,998
(a)Investments held by American Equity Life in a segregated account to support liabilities reinsured under both coinsurance with funds withheld and modified coinsurance reinsurance agreements.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)

Shareholder Information
A.M. Best S&P Fitch
Financial Strength Ratings
American Equity Investment Life Insurance Company A- (stable) A- (stable) A- (stable)
American Equity Investment Life Insurance Company of New York A- (stable) A- (stable) A- (stable)
Eagle Life Insurance Company A- (stable) A- (stable) A- (stable)
Credit Ratings
American Equity Investment Life Holding Company bbb- (stable) BBB- BBB
Senior unsecured debt bbb- (stable) BBB- BBB-
Perpetual, non-cumulative preferred stock bb (stable) BB BB
Corporate Offices:
American Equity Investment Life Holding Company
6000 Westown Parkway
West Des Moines, IA 50266
Inquiries:
Steven Schwartz, Vice President-Investor Relations
(515) 273-3763, sschwartz@american-equity.com
Common Stock and Dividend Information:
New York Stock Exchange symbol: "AEL"
High Low Close Dividend Declared
2022
First Quarter $44.49 $35.05 $39.91 $0.00
Second Quarter $42.18 $32.65 $36.57 $0.00
Third Quarter $43.55 $33.22 $37.29 $0.00
Fourth Quarter $46.76 $28.05 $45.62 $0.36
2021
First Quarter $32.54 $26.21 $31.53 $0.00
Second Quarter $33.68 $29.18 $32.32 $0.00
Third Quarter $33.79 $27.12 $29.57 $0.00
Fourth Quarter $39.88 $29.46 $38.92 $0.34
2020
First Quarter $34.16 $9.07 $18.80 $0.00
Second Quarter $27.09 $14.76 $24.71 $0.00
Third Quarter $27.32 $19.06 $21.99 $0.00
Fourth Quarter $34.25 $22.37 $27.66 $0.32
Transfer Agent:
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-0310
Phone: (877) 282-1169
Fax: (781) 575-2723
www.computershare.com
Annual Report and Other Information:
Shareholders may receive when available, without charge, a copy of American Equity's Annual Report, SEC filings and/or press releases by calling Steven Schwartz, Vice President-Investor Relations, at (515) 273-3763 or by visiting our website at www.american-equity.com.
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AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY
Financial Supplement - December 31, 2022 (Recast for LDTI)

Research Analyst Coverage
Erik Bass
Autonomous Research US LP
(646) 561-6248
ebass@autonomous.com
Andrew Kligerman
Credit Suisse Securities
(919) 593-7737
andrew.kligerman@credit-suisse.com
Thomas Gallagher
Evercore ISI
(212) 446-9439
thomas.gallagher@evercoreisi.com
Daniel Bergman
Jefferies
(617) 345-8688
dbergman@jefferies.com
Pablo Singzon II
JP Morgan
(212) 622-2295
pablo.s.singzon@jpmorgan.com
Ryan Krueger
Keefe, Bruyette & Woods
(860) 722-5930
rkrueger@kbw.com

Nigel Dally
Morgan Stanley Research
(212) 761-4132
Nigel.Dally@morganstanley.com
John Barnidge
Piper Sandler & Co.
(312) 281-3412
John.Barnidge@psc.com
Wilma Burdis
Raymond James & Associates, Inc.
(727) 567-9371
wilma.burdis@raymondjames.com
Mark A. Dwelle
RBC Capital Markets, LLC
(804) 782-4008
mark.dwelle@rbccm.com
Mark Hughes
Truist Securities
(615) 748-4422
mark.hughes@research.truist.com

Page 24

Attachments

Disclaimer

American Equity Investment Life Holding Company published this content on 17 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 April 2023 20:43:50 UTC.