American Equity net income higher on sales of $1 billion
American Equity Investment Life Holding Co. reported third-quarter net income of $169.3 million, or $1.85 per diluted common share, compared with net income of $57 million, or 63 cents per diluted common share, for third quarter 2017. Third quarter 2018 net income was positively affected by $82.8 million for revisions to assumptions used in the determination of deferred policy acquisition costs, deferred sales inducements and the liability for future benefits to be paid for lifetime income benefit riders. Policyholder funds under management at Sept. 30 were $50.6 billion, a $677 million or 1.4 percent increase from June 30. Third quarter sales were $1 billion before coinsurance ceded and $900 million after coinsurance ceded. Gross sales and net sales for the quarter increased 14 percent and 12 percent respectively from third quarter 2017 sales. On a sequential basis, both gross and net sales decreased 13 percent.