NYSE:AEL

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American Equity Investment Life Holding

Executive Summary

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States.


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has American Equity Investment Life Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AEL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

AEL

2.5%

US Insurance

2.5%

US Market


1 Year Return

9.8%

AEL

-12.6%

US Insurance

16.3%

US Market

Return vs Industry: AEL exceeded the US Insurance industry which returned -14.7% over the past year.

Return vs Market: AEL underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

AELIndustryMarket
7 Day-1.8%2.5%2.5%
30 Day7.8%9.7%5.6%
90 Day15.4%14.9%16.4%
1 Year10.9%9.8%-10.3%-12.6%18.8%16.3%
3 Year-7.5%-9.9%5.9%-2.0%45.1%35.7%
5 Year-6.7%-11.0%35.2%18.2%75.8%56.8%

Price Volatility Vs. Market

How volatile is American Equity Investment Life Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Equity Investment Life Holding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AEL ($24.99) is trading below our estimate of fair value ($72.17)

Significantly Below Fair Value: AEL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AEL is good value based on its PE Ratio (9.5x) compared to the US Insurance industry average (14.5x).

PE vs Market: AEL is good value based on its PE Ratio (9.5x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: AEL is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: AEL is good value based on its PB Ratio (0.5x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is American Equity Investment Life Holding forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEL's forecast earnings growth (11.7% per year) is above the savings rate (2.2%).

Earnings vs Market: AEL's earnings (11.7% per year) are forecast to grow slower than the US market (22.9% per year).

High Growth Earnings: AEL's earnings are forecast to grow, but not significantly.

Revenue vs Market: AEL's revenue (2.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AEL's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEL's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has American Equity Investment Life Holding performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEL has high quality earnings.

Growing Profit Margin: AEL's current net profit margins (10.2%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: AEL's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: AEL's earnings growth over the past year (14.3%) is below its 5-year average (16.7% per year).

Earnings vs Industry: AEL earnings growth over the past year (14.3%) exceeded the Insurance industry -4%.


Return on Equity

High ROE: AEL's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is American Equity Investment Life Holding's financial position?


Financial Position Analysis

Short Term Liabilities: AEL's short term assets ($3.6B) exceed its short term liabilities ($244.2M).

Long Term Liabilities: AEL's short term assets ($3.6B) do not cover its long term liabilities ($63.3B).


Debt to Equity History and Analysis

Debt Level: AEL's debt to equity ratio (11.2%) is considered satisfactory.

Reducing Debt: AEL's debt to equity ratio has reduced from 35.1% to 11.2% over the past 5 years.

Debt Coverage: AEL's debt is well covered by operating cash flow (189.4%).

Interest Coverage: AEL's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet


Next Steps

Dividend

What is American Equity Investment Life Holding current dividend yield, its reliability and sustainability?

1.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEL's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: AEL's dividend (1.2%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

Stable Dividend: AEL's dividends per share have been stable in the past 10 years.

Growing Dividend: AEL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.4%), AEL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEL's dividends in 3 years are forecast to be thoroughly covered by earnings (7.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Anant Bhalla (42 yo)

0.42

Tenure

Mr. Anant Bhalla is President and Director at American Equity Investment Life Holding Company since January 27, 2020 and serves as its Chief Executive Officer since March 1, 2020. Mr. Bhalla has been a par ...


Leadership Team

NamePositionTenureCompensationOwnership
Ted Johnson
CFO & Treasurer8.17yrsUS$1.99m0.12%
$ 2.8m
Jeffrey Lorenzen
Executive VP & Chief Investment Officer11.58yrsUS$1.76m0.070%
$ 1.6m
Renee Montz
Executive VP4.33yrsUS$1.64m0.045%
$ 1.0m
Ronald Grensteiner
Executive VP & President of American Equity Investment Life Insurance Companyno dataUS$2.02m0.15%
$ 3.5m
Anant Bhalla
President0.42yrno data0.055%
$ 1.3m
Scott Samuelson
VP & Chief Accounting Officer3.17yrsno data0.035%
$ 799.8k
Steven Schwartz
Vice President of Investor Relations4.58yrsno datano data
Jennifer Bryant
Executive VP & Chief HR Officer3.83yrsno data0.012%
$ 284.5k
Harley Whitfield
Senior Vice President of Resolutionsno datano datano data
Julie LaFollette
Director of Investor Relationsno datano datano data
Sasha Kamper
Private Placement Originatorno datano datano data

4.3yrs

Average Tenure

48yo

Average Age

Experienced Management: AEL's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anant Bhalla
President0.42yrno data0.055%
$ 1.3m
William Kunkel
Independent Director4.17yrsUS$191.34k0.061%
$ 1.4m
Joyce Chapman
Independent Director12yrsUS$197.84k0.032%
$ 728.5k
Brenda Cushing
Independent Director3.42yrsUS$199.34k0.014%
$ 324.8k
David Mulcahy
Independent Director9.58yrsUS$1.02m0.12%
$ 2.7m
James Gerlach
Independent Director24.58yrsUS$188.34k0.25%
$ 5.7m
John Matovina
Non-Executive Chairman3.33yrsUS$4.46m0.29%
$ 6.6m
A. Strickland
Independent Director24.58yrsUS$197.84k0.30%
$ 6.9m
Robert Howe
Lead Independent Director11yrsUS$217.84k0.061%
$ 1.4m
Michelle Keeley
Independent Director0.17yrno data0.0046%
$ 105.0k
Alan Matula
Independent Director4.67yrsUS$190.34k0.029%
$ 655.3k
Gerard Neugent
Independent Director10yrsUS$186.34k0.087%
$ 2.0m

7.1yrs

Average Tenure

66.5yo

Average Age

Experienced Board: AEL's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Equity Investment Life Holding Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Equity Investment Life Holding Company
  • Ticker: AEL
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$2.287b
  • Shares outstanding: 91.53m
  • Website: https://www.american-equity.com

Number of Employees


Location

  • American Equity Investment Life Holding Company
  • 6000 Westown Parkway
  • West Des Moines
  • Iowa
  • 50266
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AELNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2003
AEL.PRANYSE (New York Stock Exchange)5.95 DP 1/1000 AUSUSDNov 2019

Biography

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States. The company issues fixed index and rate annuities; and single ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 23:48
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.