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1. Company Snapshot

1.a. Company Description

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the United States.The company issues fixed index and rate annuities, as well as single premium immediate annuities.It markets its products through independent agents, including independent marketing organizations, broker/dealers, banks, and registered investment advisors.


American Equity Investment Life Holding Company was incorporated in 1995 and is headquartered in West Des Moines, Iowa.

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1.b. Last Insights on AEL

American Equity Investment Life Holding Company's recent 3-month performance was driven by the announcement of its acquisition by Brookfield Reinsurance, which led to a 1.0% increase in stock value. The company's financials were also boosted by Avista's quarterly earnings report, which saw a 29.3% year-over-year revenue growth.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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AM Best Removes From Under Review with Developing Implications and Takes Various Credit Rating Actions on American National Insurance Company and Most of Its Affiliates

Nov -27

Source: businesswire.com

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Avista Co. (AVA) To Go Ex-Dividend on May 22nd

May -20

Source: https://www.defenseworld.net

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IAC Set to Join S&P SmallCap 600

May -01

Source: prnewswire.com

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Brookfield Reinsurance and AEL Announce Expected Closing Date for Brookfield Reinsurance's Acquisition of AEL

Apr -30

Source: businesswire.com

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Adams Street Partners Raises $1 Billion for First Middle Market CLO

Apr -09

Source: businesswire.com

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American Equity (AEL) Up 1% Since Last Earnings Report: Can It Continue?

Mar -15

Source: Zacks Investment Research

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American Equity (AEL) Q4 Earnings Top Estimates, Rise Y/Y

Feb -15

Source: Zacks Investment Research

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Compared to Estimates, American Equity (AEL) Q4 Earnings: A Look at Key Metrics

Feb -15

Source: Zacks Investment Research

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.12%)

6. Segments

Altron Systems Integration

Expected Growth: 1.2%

Altron Systems Integration's 1.2% growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. American Equity Investment Life Holding Company's strategic partnership has enhanced Altron's capabilities, enabling it to capitalize on emerging trends in the financial services sector, such as insurance technology and data analytics.

Altron Managed Solutions

Expected Growth: 0.8%

Altron Managed Solutions' 0.8 growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. American Equity Investment Life Holding Company's strategic investment in Altron enables expansion into new markets, while its managed services capabilities improve operational efficiency and reduce costs for clients.

Netstar

Expected Growth: 1.1%

Netstar's 1.1% growth is driven by increasing demand for indexed annuities, expansion into new distribution channels, and strategic partnerships. Additionally, American Equity's focus on digital transformation and operational efficiency has improved sales and reduced costs, contributing to the segment's growth.

FinTech

Expected Growth: 1.5%

American Equity Investment Life Holding Company's 1.5% growth in FinTech is driven by increasing demand for digital insurance products, expansion of online distribution channels, and strategic investments in technology infrastructure. Additionally, the company's focus on data analytics and AI-powered underwriting has improved operational efficiency, contributing to the growth.

Altron Nexus

Expected Growth: 0.9%

Altron Nexus's 0.9 growth is driven by American Equity Investment Life Holding Company's strategic expansion into the fixed index annuity market, coupled with increasing demand for retirement savings products and effective cost management. Additionally, the company's diversified distribution channels and strong relationships with independent agents contribute to its growth momentum.

Altron Arrow

Expected Growth: 1.3%

Altron Arrow's 1.3% growth is driven by increasing demand for electronic components, strategic partnerships, and expansion into high-growth markets. Additionally, American Equity Investment Life Holding Company's financial strength and diversified investment portfolio provide a stable foundation for Altron Arrow's growth.

Altron Security

Expected Growth: 1.4%

Altron Security's 1.4% growth is driven by increasing demand for cybersecurity solutions, expansion into new markets, and strategic partnerships. Additionally, American Equity Investment Life Holding Company's financial strength and investment in digital transformation have enabled Altron Security to capitalize on emerging trends in the industry, further fueling its growth.

HealthTech

Expected Growth: 1.6%

American Equity Investment Life Holding Company's HealthTech segment growth of 1.6% is driven by increasing demand for digital health solutions, aging population, and rising healthcare costs. Additionally, advancements in telemedicine, artificial intelligence, and data analytics are fueling growth. The company's strategic investments in healthtech startups and partnerships with healthcare providers are also contributing to this growth.

Altron Karabina

Expected Growth: 1.0%

Altron Karabina's 1.0 growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. American Equity Investment Life Holding Company's strategic partnership with Altron Karabina enhances its capabilities in data analytics, artificial intelligence, and IoT, further fueling growth.

Corporate and Consolidation and Other International Operations

Expected Growth: 0.7%

American Equity Investment Life Holding Company's Corporate and Consolidation and Other International Operations segment growth of 0.7% is driven by increasing demand for life insurance products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation and cost savings initiatives have contributed to the segment's growth.

7. Detailed Products

Fixed Index Annuities

A type of annuity that earns interest based on the performance of a specific stock market index, such as the S&P 500.

Fixed Rate Annuities

A type of annuity that earns a fixed rate of interest, providing a predictable return.

Indexed Single Premium Immediate Annuities

A type of annuity that provides a guaranteed income stream for life, with payments starting immediately.

Term Life Insurance

A type of life insurance that provides coverage for a specified period of time, often used to cover temporary financial obligations.

Whole Life Insurance

A type of permanent life insurance that provides a death benefit and a cash value component.

8. American Equity Investment Life Holding Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for American Equity Investment Life Holding Company is medium due to the presence of alternative investment options for customers.

Bargaining Power Of Customers

The bargaining power of customers for American Equity Investment Life Holding Company is low due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for American Equity Investment Life Holding Company is medium due to the moderate concentration of suppliers in the market.

Threat Of New Entrants

The threat of new entrants for American Equity Investment Life Holding Company is high due to the low barriers to entry in the financial services industry.

Intensity Of Rivalry

The intensity of rivalry for American Equity Investment Life Holding Company is high due to the high level of competition in the financial services industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.24%
Debt Cost 7.87%
Equity Weight 77.76%
Equity Cost 7.87%
WACC 7.87%
Leverage 28.60%

11. Quality Control: American Equity Investment Life Holding Company passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Unum

A-Score: 6.8/10

Value: 7.4

Growth: 5.7

Quality: 6.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
CNO Financial Group

A-Score: 6.3/10

Value: 6.7

Growth: 6.4

Quality: 5.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Primerica

A-Score: 6.2/10

Value: 5.6

Growth: 7.3

Quality: 7.4

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
F&G Annuities & Life

A-Score: 5.9/10

Value: 8.4

Growth: 8.4

Quality: 6.2

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
American Equity

A-Score: 5.4/10

Value: 9.6

Growth: 7.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Genworth Financial

A-Score: 5.0/10

Value: 7.3

Growth: 2.4

Quality: 6.0

Yield: 0.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

56.47$

Current Price

56.47$

Potential

-0.00%

Expected Cash-Flows