American Equity reports net loss in fourth quarter; quarterly sales up 100%
American Equity Investment Life Holding Co. on Wednesday reported a fourth-quarter net loss available to common stockholders of $6.3 million, or 7 cents per diluted common share, compared with net income available to common stockholders of $220.2 million, or $2.40 per diluted common share, for fourth quarter 2019. For the year ended Dec. 31, 2020, net income available to common stockholders was $637.9 million, or $6.90 per diluted common share, compared with $246.1 million, or $2.68 per diluted share, for the previous year. Non-GAAP operating income for fourth quarter 2020 was $71.7 million, compared with $125.8 million for the year-ago quarter. Full-year operating income for 2020 was $69.1 million, down from $548.2 million for full-year 2019, attributable to lower investment spread income and an increase in other operating costs, among other factors. Policyholder funds under management at Dec. 31 were $54.1 billion, a $1.1 billion, or 2%, increase from Sept. 30. Fourth-quarter gross and net sales of annuities were $1,845 million and $1,839 million, respectively, representing increases of 100% and 118% from fourth-quarter 2019 sales. “In the fourth quarter, we reintroduced ourselves to our markets,” CEO Anant Bhalla said in an earnings release.