AMERICAN EQUITY EVOLUTION 0 to $22.1 Billion in Assets (03/31/11) 0 to 37,000 Agents (03/31/11) 0 to over 375,000 policyholders (03/31/11) 1 to 50 States #3 All Time Indexed Annuity Sales #1 in Service *Advantage Compendium
EFFICIENCY Top 5 most efficient companies in the Life & Health Insurance Industry as ranked by Revenue Per Employee (RPE): #1 American Equity $3.02M #2 Phoenix $2.89M #3 Presidential Life $2.75M #4 Aflac $2.49M #5 National Western $1.86M Source: Comtex News Network 12.29.10
SOLVENCY: AEL vs. Top 25 COMPANIES Solvency: Assets over Liabilities indicates financial soundness and a company’s ability to meet all obligations as they come due. Source: 2011 Standard Analytical Service, 2011 Independent Comparative Report Assets for each $100 of Liabilities as of Dec. 31, 2010.
SOLVENCY: AEL vs. PEER COMPANIES Source: Best’s Insurance Reports – Life Health, US 2011 Edition (2010 Annual Data) Assets for each $100 of Liabilities as of Dec. 31, 2010.
CAPITAL COMMITMENT Millions $194 Million $247 Million $404 Million $636 Million $713 Million Total Statutory Capital and Surplus* $1.0 Billion *Includes AVR and IMR $1.3 Billion $1.5 Billion
Lifetime Income Benefit Rider (LIBR-2010) Planning Today to Supplement the Future American Equity Investment Life Insurance Company West Des Moines, Iowa
WE’RE LIVING LONGER YEARLIFE EXPECTANCY 185039 190047 200677.9 In 2000, there were 50,000 people age 100+. In year 2010 it is estimated that there will be over 131,000 people 100+ 85+ year old population is projected to increase by over 43% by 2010 and 70% by 2020 Source: National Center for Health Statistics and the U.S. Bureau of Census
WE’RE LIVING LONGER Today’s 65 year old has the following likelihood of attaining: ManWoman Age 8545.5%55.8% Age 957.7%15.6% Source: SOA-rp 2000 table
How Does the Lifetime Income Benefit Rider Work?
LIFETIME INCOME BENEFIT RIDER (LIBR-2010) MGSVCVIAV Depends on product ?5% No Fee 8% 0.90% Fee Greater Of When you are ready to elect income, the Company will look back and guarantee you earned at least 5% or 8% on your Income Account Value (IAV). If CV is larger, your IAV will step up to the Contract Value. CHOOSE ONE
LIFETIME INCOME BENEFIT RIDER (LIBR-2010) 5% Roll Up – NO FEE – All issue ages 8% Roll Up – Fee 90 bps. Available on ages 50+ Elect 5% or 8% at point of Sale Fee Calculated on Contract Value Many Competitors calculate on Income Account Value Fee Deducted from Contract Value Most Competitors deduct from Contract Value
FEES MATTER $150,000 $200,000 Contract Value Hypothetical Example: $1,500 (fee = of $200,000 ) Fee 75 bps American Equity: $150,000 $200,000 Income Account Value $1,350 (fee = of $150,000 ) Fee 90 bps - $1,500 - $1,350 75bps Income Account Value 90bps Contract Value In the hypothetical example the fee is calculated off of the Income Account Value but applied to the Contract Value. The fee calculated off of the IAV is the same % every year.
Hypothetical Example: $1,500 Fee $150,000100 bps* American Equity: $1,350 Fee $150,000 90 bps FEES MATTER ==== *In the hypothetical example the fee is calculated off of the Income Account Value but applied to the Contract Value. The fee calculated off of the IAV is the same % every year. When the fee is deducted from the Contract Value the % may vary each year.
SALES IDEA – TIC TAC TOE CD Safety of Premium Lower return Mutual Fund Risk of Principal Higher Rate of Return INDEX ANNUITY