David Noble spent 10 years working his way to the top of The Statesman Group Inc. He presided over the insurer for another 12 years, selling it to Indianapolis-based insurance giant Conseco for $350 million in 1994 when he was 63 years old.

For most individuals at that age, that kind of success would lead to contented retirement. Indeed, Noble already had the trappings of achievement, owning homes in West Des Moines, Cropwell, Ala. and on Longboat Key, Fla. He owned a private plane and a boat. Some expected him to buy larger versions of each and relax.

That is not Noble, who remained retired for all of three days before he called most of Statesman’s former management team, including John Matovina, Kevin Wingert, James Gerlach, Terry Reimer and Debra Richardson, and told them he was ready to do it all over again. In fact, he sums up his 22-year effort at Statesman as one big practice round, and now says he means business.

“We’re hell-bent to execute our business plan,” said Noble, now 72 years old, whose company, American Equity Investment Life Holding Co., on Dec. 3 became the first Iowa company in more than two years to sell its shares to the public.

One of the lessons Noble has already learned is how to do more with less. The company manages about $6.6 billion in assets with 212 workers and a payroll this year that’s expected to reach $8.5 million. By comparison, Statesman had 350 employees and about $5 billion in assets when it was sold.

Net income at American Equity has grown from $200,000 in 1998 to $14.2 million last year. Revenue has risen from $38 million to $279.7 million during the same time. The company expects to have $3 billion in sales of annuities in 2004 and $4 billion in 2005.

“He [Noble] clearly understand the insurance industry,” said Jim Noyce, chief financial officer at FBL Financial Group Inc., one of American Equity’s largest shareholders. “He is one of the experts nationally with regard to the product lines he sells and he develops great very solid personal relationships, as well as business relationships, with the company’s agents.”

With the initial public offering, American Equity entered the next chapter of its life, selling 18.7 million shares on the New York Stock Exchange and raising a little more than $168 million to fuel further growth.

Though American Equity’s initial offering price of $9 a share on Dec. 3 was less than the $10.50 to $12.50 per share that had been expected, the offering came during a busy window of public offerings. December is shaping up to be the busiest month for initial public offerings in three years, according to the Financial Times. The rising stock market, combined with the success of recent offerings, is giving companies and their investment bankers the confidence to complete the offerings. Last week, American Equity’s shares were trading near $9.10.

The window provided an opportunity for American Equity that has been hard to come by. Two prior plans to raise money, including one effort to sell its shares to the public, fell through. The first was a harrowing experience.

Noble and members of his senior management team were in New York City on Sept. 11, 2001, to hold meetings in preparation for a public offering in October. Some employees were near the World Trade Center, and it took them hours to make their way back to the Midtown hotel where they were staying. None was hurt.

They arranged to purchase vans from upstate New York, left the city the following day and drove back to Des Moines. Any thoughts of a public offering were put on hold, though that decision meant that the company, which was growing quickly, had troubles with its level of capital – an issue that would haunt it months later.

Management adopted a “hunker down” plan, which included cost cuts, a paring of its agent ranks and a reinsurance agreement with FBL Financial Group Inc. to limp along until more money could be raised. To preserve its investments, it moved as much as a quarter of its investable assets to cash.

The move caused net income to dip to $900,000 in 2001 from $4.8 million the prior year. Managers wanted a second attempt to raise money in early 2002, though American Equity’s investment banker at the time was concerned the profit decline wouldn’t translate into a successful sale of debt. Plans were made for an offering in July or August.

They were scuttled when the credit rating agencies, including Standard & Poor’s, reduced ratings on the entire insurance sector, mostly over fears of investment losses stemming from large corporate bankruptcies, including Enron Corp. and UAL Corp. American Equity watched its ratings, critical to a life insurance company, cut to one level below investment grade, on fears that it didn’t have enough capital.

Noble was vindicated by the company’s performance in 2002. Net income rebounded strongly, reaching $14.2 million for 2002. That performance helped inspire confidence for Merrill Lynch to lead the offering in December.

American Equity’s primary income is derived from sales of annuities and other life insurance products. Competitors include Allianz, ING Groep NV and AmerUs Group Co. American Equity was the first to offer annuity products whose returns are indexed to the performance of the Dow Jones Industrial Average, a product that took 18 months to negotiate.

It has since expanded into other indexed annuities, including those linked to the Lehman Brothers U.S. Treasury Index and the Nasdaq-100 Index. The company’s goal is to develop and begin selling new products within three months.

The typical American Equity customer is 67 years old, owns a home and has an average fund value of $46,261. Customers are interested in stability, Noble said, which is why 99 percent of American Equity’s assets are investment-grade. Seventy-two percent of its assets are invested in U.S. agency bonds.

The percent of Americans age 65 and older is expected to be the fastest-growing segment of the population as the Baby Boom generation ages. In 2000, there were 35 million Americans in that age bracket. By 2030, the number is expected to double.

“We’re selling sleep insurance,” Noble was fond of telling potential investors during the series of presentations he made in the weeks leading up to the public offering. “We’ve got a fast-growing market right at our sweet spot,” he said.

Noble has also built a culture that focuses relentlessly on its sales force. An example is the speed at which American Equity pays its agents. Most agents receive commission payments via electronic transfer within 48 hours of a sale.

The fast cash makes agents more likely to push American Equity’s products, and it attracts a larger sales force. Since 1998, the company’s sales force has grown to 42,095 agents from 4,456. The company expects to have 50,000 agents by the end of 2005. To improve relations further, Noble throws annual parties at his Florida home for as many as 70 agents.

“The agents are our customers,” Noble said. “If the commission checks don’t go out, nobody goes home. We’re relationship driven, not transaction driven.”