American Equity Investment Life Holding Company
) reported its fourth-quarter 2013 operating net income of 50
cents per share, in line with the Zacks Consensus Estimate.
However, the number increased 6.4% year over year, driven by
improvement in the top line.
Including net realized investment gains of 8 cents per share;
changes in fair value of derivatives and embedded derivatives
(index annuities) of 30 cents per share; changes in fair value of
derivatives and embedded derivatives (debt) of 5 cents a share;
litigation reserve of 3 cents a share and extinguishment of debt
of 26 cents per share, American Equity reported net income of 64
cents per share, up 16.4% year over year.
During the fourth-quarter, American Equity's revenues totaled
$837.3 million, skyrocketing from $304.7 million reported in the
prior-year quarter. The hike was primarily fueled by higher net
investment income, net realized investment gains and favorable
changes in fair value derivatives.
American Equity's annuity sales amounted to $1.09 billion, up
2.2% from the prior-year quarter.
Investment spread of American Equity increased 14 basis points
(bps) year over year to 2.7%.
Total benefits and expenses of the company shot up to nearly $758
million, from $251.1 million reported in the year-ago quarter.
The increase was attributable to favorable change in fair value
of embedded derivatives, higher amortization of deferred policy
acquisition costs and also interest sensitive and index product
American Equity reported net operating earnings of $2.18 per
share for full-year 2013, increasing almost 29% from the 2012
number. Growth was supported by increasing demand for the
company's guaranteed retirement savings and income products.
American Equity reported 2013 net income of $3.38 per share
surging from 89 cents a share.
Total revenue jumped 58% year over year to $2.61 billion during
Total invested assets of American Equity as of Dec 31, 2013 were
$30.3 billion, up from $27.5 billion as of 2012-end.
As of 2013-end, estimated risk-based capital (RBC) ratio exceeded
the target at 344% compared to 332% at 2012-end.
As of Dec 31, 2013, American Equity's book value per share was at
$18.75, inched down 0.3% from 2012-end.
During 2013, American Equity paid an annual cash dividend of 18
cents a share, up 20% from the 2012 annual dividend of 15 cents.
The company has been paying annual dividend for the last 15
consecutive years. Additionally, 2013 marked the 10th consecutive
annual dividend hike by the company.
Performances of Other Life Insurers
Protective Life Corp.
) reported fourth-quarter 2013 net operating earnings of $1.43
per share, 31 cents ahead of the Zacks Consensus Estimate.
Earnings also surged 46% year over year.
Lincoln National Corp.
) reported fourth-quarter 2013 operating earnings of $1.40 per
share. The results noticeably outpaced the Zacks Consensus
Estimate of $1.28 and breezed past the prior-year quarter figure
of $1.10 per share.
Genworth Financial Inc.
) reported fourth-quarter 2013 net operating income of 38 cents
per share. The results were nearly 27% higher than the Zacks
Consensus Estimate and 15% above the year-ago level.
American Equity presently carries a Zacks Rank #3 (Hold).
AMER EQUITY INV (AEL): Free Stock Analysis
GENWORTH FINL (GNW): Free Stock Analysis
LINCOLN NATL-IN (LNC): Free Stock Analysis
PROTECTIVE LIFE (PL): Free Stock Analysis
To read this article on Zacks.com click here.