American Equity Investment Life Holding Company
Industry leader in the development and sale of fixed index and fixed rate annuity products.
| Date | Investors | Amount | Round |
|---|---|---|---|
| N/A | €0.0 | round | |
| investor | €0.0 | round | |
| N/A | €0.0 | round | |
* | $4.3b Valuation: $4.3b 2.7x EV/Revenue | Acquisition | |
| Total Funding | 000k | ||
| USD | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|
| Revenues | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 |
| % growth | 85 % | 9 % | (11 %) | (56 %) | 78 % | (1 %) | 3 % |
| EBITDA | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 |
| % EBITDA margin | 199 % | - | - | - | - | - | - |
| Profit | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 |
| % profit margin | 18 % | 12 % | 53 % | 13 % | 22 % | 20 % | 20 % |
| EV | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 |
| EV / revenue | 00.0x | 00.0x | 00.0x | 00.0x | 00.0x | 00.0x | 00.0x |
| EV / EBITDA | 00.0x | 00.0x | 00.0x | 00.0x | 00.0x | 00.0x | 00.0x |
| R&D budget | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 | 0000 |
Source: Company filings or news article, Equity research estimates
Related Content
American Equity Investment Life Holding Company (AEL) operates as a key player in the U.S. retirement savings market, specializing in the development and sale of fixed index and fixed rate annuities. Established in 1995 by David J. Noble, the company has carved out a niche by focusing on products that offer principal protection from market downturns while providing the potential for tax-deferred growth. Noble, a veteran of the insurance industry with decades of experience, founded the company with the vision of providing secure retirement solutions, a mission directly influenced by his extensive background in the sector.
The firm's business model centers on offering annuity products primarily to individuals at or near retirement age. These clients are typically seeking to preserve their capital and generate a reliable income stream for their retirement years. American Equity distributes its products through a network of independent agents, including independent marketing organizations (IMOs), banks, and broker-dealers, rather than a direct-to-consumer approach. This strategy allows for a broad market reach across the United States. Revenue is primarily generated from the investment spread, which is the difference between the income earned on its investment portfolio and the interest credited to its policyholders' accounts, alongside fee income from annuity products.
AEL's core product offerings are fixed index annuities (FIAs). These insurance contracts provide a minimum guaranteed interest rate combined with an interest rate linked to a market index, such as the S&P 500. This structure offers policyholders the opportunity for higher returns than traditional fixed annuities without the downside risk of direct stock market investment. The principal is protected from market losses, which is a significant selling point for its target demographic of conservative, long-term savers. A key milestone for the company was its acquisition by Brookfield Reinsurance in 2024, a move intended to enhance its capital efficiency and growth trajectory within the competitive insurance landscape.
Keywords: fixed index annuities, retirement income, insurance, asset management, annuity provider, financial services, principal protection, investment spread, wealth preservation, Brookfield Reinsurance
