AMERICAN EQUITY INVE

AEL
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American Equity Investment Life : 10.18.20 Investor Presentation

10/18/2020 | 05:15pm

Strategic Partnership with Brookfield

Accelerating AEL 2.0 Value Creation Strategy

October 18, 2020

Forward-Looking Statements

This presentation and any oral related statements made by our representatives may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may relate to strategic alternatives, future operations, strategies, plans, partnerships, investments, share buybacks, financial results or other developments, and are subject to assumptions, risks and uncertainties. Statements such as "guidance", "expect", "strong", "anticipate", "believe", "intend", "goal", "objective", "target", "potential", "will", "may", "would", "should", "can", "deliver", "accelerate", "enable", "estimate", "projects", "outlook", "opportunity", "position" or similar words, as well as specific projections of future events or results qualify as forward-looking statements. Forward-looking statements, by their nature, are subject to a variety of inherent risks and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by American Equity Investment Life Holding Company ("AEL") and include the possibility that the proposed transaction may not be completed. Factors that may cause our actual decisions or results to differ materially from those contemplated by these forward-looking statements can be found in AEL's Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statement was made and AEL undertakes no obligation to update such forward-looking statements. There can be no assurance that other factors not currently disclosed or anticipated by AEL will not materially adversely affect our results of operations or plans. Investors are cautioned not to place undue reliance on any forward-looking statements made by us or on our behalf.

2

Benefits of Strategic Partnership

1 Release over $300Mn of capital from AEL's in-force through $5bn in-force reinsurance transaction

Start to generate stable, recurring "fee-like" income and grow it with follow-on new business

2 reinsurance transactions

3 Establishesalignment Brookfield as a long-term shareholder at a floor price of $37 per share with strong

4 Positions AEL for growth and accelerates conversion into an "ROA" business model

3

Brookfield Partnership: Compelling Terms

Initial investment of 9.9% at $37 per share

Equity Investment

Subsequent 10% investment at greater of adjusted book value1 or $37 per share

Initial $5 billion of reserves

Reinsurance

Arrangement

Follow-on $5 billion of future flow business2

Establishes long-term, committed shareholder at a compelling floor price of $37 per share Transitions AEL from a traditional "ROE" insurer into a capital-light, "ROA" business model

1 Excluding AOCI and the net impact of fair value accounting for derivatives and embedded derivatives.

4

2

Certain reinsurance terms referenced in this presentation remain subject to finalization.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

American Equity Investment Life Holding Company published this content on 18 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2020 20:14:03 UTC

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