Thanks to an increase in equity indexed annuities sales, American Equity Investment Life Holding Co. had a third quarter increase in their net income. The Associated Press article, “American Equity posts $20.5M in 3Q net income,” is from Bloomberg Business Week. After a net loss last year at this time, American Equity is pleased to report the profitable net income of $20.5 million for the third quarter. Although their 33 cents per share was less than Wall Street anticipated for them, an increase is great especially after last year’s third quarter loss of $3 million and 5 cents per share.
Their operating income fell slightly to $27.6 million, down from $28.2 million from this time last year. That lowered their per share price to 45 cents from 47 cents. Wall Street had anticipated 46 cents per share, so while the actual number was less it wasn’t too far off. Because the market is still volatile and annuity rates are steady compared to lower rates being offered on competing products, American Equity believes that investors are turning more to their safe products. Their quarterly revenue was up 12% at $383.5 million and their net investment income jumped to $260.5 million from $241.5 million. American Equity out of Des Moines, Iowa is pleased with their third quarter numbers.