American Equity reports Q3 adjusted EPS $2.45, consensus $1.69

Reports Q3 revenue $266.65M, consensus $595.4M. American Equity’s President and CEO, Anant Bhalla stated: “We have delivered on every aspect of our strategy flywheel, achieving positive net flows and growing our new origination platform to an annualized run-rate of more than $8 billion of FIA sales. Our in-house expertise in asset and market specialist selection positioned us to achieve a 25% allocation to private assets that has delivered 69 basis points of yield enhancement, excluding non-trendable items, on our nearly $50 billion of invested assets while currently holding $6.8 billion, or 13.6% of the investment portfolio, in cash and cash equivalents. We expect this liquidity to be deployed opportunistically after the close of the planned merger transaction with Brookfield Reinsurance (NYSE, TSX: BNRE) to bring the total allocation to private assets within the AEL 2.0 strategy target of 30-40%. Our strong investment spread, in combination with $11.6 billion of reinsured balances that generate capital-light, “fee-like” annualized run-rate earnings north of $100 million, delivers a superior return on equity to traditional spread-based insurers as is evidenced by our trailing twelve-month return on equity, based on non-GAAP operating income available to common stockholders, of 18.6%.”