American Equity net income falls in Q3
American Equity Investment Life Holding Co., a leading fixed indexed annuity issuer based in West Des Moines, reported third quarter net income of $37.4 million, or 41 cents per share, compared to net income of $169.3 million, or $1.85 per diluted common share, for third quarter 2018. Non-GAAP operating income for the third quarter was $233.4 million, compared to non-GAAP operating income a year ago of $171.1 million. Third quarter 2019 net income was negatively affected by $36 million due to revisions to assumptions used to determine deferred policy acquisition costs, deferred sales inducements, the liability for future benefits to be paid for lifetime income benefit riders and the valuation of embedded derivatives. The year-ago third quarter had also benefited from $76 million in favorable revisions to income assumptions. Third quarter gross and net sales were $1.3 billion and $1.2 billion, respectively, representing increases of 25% and 31% from third quarter 2018 sales. On a sequential basis, gross and net sales decreased 13% and 15%, respectively.