American Equity

Annuities Offered By American Equity

American Equity Investment Life Holding Company or American Equity was incorporated in the state of Iowa on December 15, 1995. The Company is a full service underwriter of fixed annuity and life insurance products through its wholly-owned life insurance subsidiaries, American Equity Investment Life Insurance Company or American Equity Life and American Equity Investment Life Insurance Company of New York.

American Equity formed a new wholly-owned life insurance company, Eagle Life Insurance Company or Eagle Life. The Company's business consists mainly of the sale of index and fixed rate annuities and, accordingly, it has only one business segment. American Equity's business strategy is to focus on its annuity business and earn predictable returns by managing investment spreads and investment risk.

The Company is currently licensed to sell its products in 50 states and the District of Columbia. It mainly markets index and fixed rate annuities and to a lesser extent, life insurance. In connection with its reinsured group life business, the Company also collects renewal premiums on certain accident and health insurance policies.

American Equity's target market includes the group of individual's ages 45-75 who are seeking to accumulate tax-deferred savings. Annuities offer the Company's policyholders a tax-deferred means of accumulating retirement savings, as well as a reliable source of income during the payout period.

The Company's annual reset fixed rate annuities have an annual interest rate that is guaranteed for the first policy year. American Equity's multi-year rate guaranteed annuities are similar to its annual reset products except that the initial crediting rate is guaranteed for up to a five-year period before it might be changed at its discretion. The Company also sells single premium immediate annuities.

American Equity's SPIAs are designed to provide a series of periodic payments for a fixed period of time or for life, according to the policyholder's choice at the time of issue. The amounts, frequency, and length of time of the payments are fixed at the outset of the annuity contract.

The Company's annuity products compete with index, fixed rate and variable annuities sold by other insurance companies and also with mutual fund products, traditional bank investments and other investment and retirement funding alternatives offered by asset managers, banks, and broker-dealers. American Equity is subject to laws and regulations that are administered and enforced by a number of different regulatory authorities.



American Equity Ratings

A.M. Best's rating of "A-" (EXCELLENT)

A.M. Best uses 15 rating categories ranging from A++ to F. Rating effective 08/02/06, affirmed 12/2009. An A- rating from A.M. Best is its fourth highest rating.

Standard and Poor's rating service has recognized American Equity Investment Life Insurance Company with a "BBB+" rating. Standard and Poor's considers "BBB" rated companies as having GOOD financial security characteristics.

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