A.M. Best Affirms Credit Ratings of American Equity Investment Life Insurance Company and Its Subsidiaries
The ratings reflect AEL’s balance sheet strength, which
AEL has adequate risk-adjusted capital supported by a high quality of capital as AEL has limited use of surplus notes, no other debt at the operating entity and an appropriate use of reinsurance. Despite the decline in direct written premiums, AEL maintains a leadership position in the fixed-index annuity (FIA) market. Management has shown effective strategies in managing its spreads and hedging its equity risk exposure, which has led to strong operating trends on both a GAAP and statutory basis, with current and historical statutory returns above the life and annuity industry average.
An offsetting rating factors is AEL’s significant concentration in FIAs with living benefits, with continued regulatory scrutiny despite resolution from the
The following Long-Term IRs have been affirmed:
— “bbb-”
The following indicative Long-Term IRs under the shelf registration have been affirmed:
— “bbb-” on senior unsecured debt
— “bb+” on subordinated debt
— “bb” on preferred stock
— “bb” on trust preferred securities
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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