American Equity Investment Life Holding Company ( AEL Quick Quote AEL - Free Report) reported second-quarter 2022 adjusted net earnings of 98 cents per share, which beat the Zacks Consensus Estimate by 24%. The bottom line remained unchanged year over year. The quarterly results reflected higher net investment income, offset by lower premiums and annuity product charges. Operational Update
Operating total revenues were $660.8 million, up 14.4% year over year on the back of higher net investment income and other revenues.
Premiums and other considerations decreased 73.7% year over year to $3.8 million. Annuity product charges decreased 12.9% year over year to $55.5 million. Net investment income increased 18.6% on a year-over-year basis to $592.3 million. The upside was due to a higher average yield on investments resulting from strong returns from partnerships and other mark-to-market assets, lower cash balances, and the increase in allocation to higher-yielding privately sourced assets to 16.6% of the investment portfolio. Total benefits were $0.3 billion versus expenses of $1.1 billion in the year-ago quarter due to lower insurance policy benefits and changes in future policy benefits, interest-sensitive and index product benefits and other operating costs and expenses. The investment spread was 2.64%, up from 1.95% in the year-ago quarter. Financial Update
Cash and cash equivalents were $1.3 billion as of Jun 30, 2022, down 71.4% from 2021-end. Total investments were about $54.5 billion, which decreased 9.7% from 2021-end.
Notes payable totaled $ 496.5 million, marginally up 0.06% from 2021-end. Book value per common share excluding AOCI was $50.68, up 24.2% from 2021-end. Total debt/total capitalization was 9.9%, improving 150 basis points from 2021-end. Operating return on equity excluding average AOCI was 11.9%. Zacks Rank
American Equity currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Performance of Other Life Insurers
Of the life insurance industry players that have reported second-quarter results so far,
Brighthouse Financial Inc. ( BHF Quick Quote BHF - Free Report) , Reinsurance Group of America, Incorporated ( RGA Quick Quote RGA - Free Report) and Voya Financial, Inc. ( VOYA Quick Quote VOYA - Free Report) beat the respective Zacks Consensus Estimate for earnings. Brighthouse Financial's second-quarter 2022 adjusted net income of $3.29 per share surpassed the Zacks Consensus Estimate by 16.3%. The bottom line decreased 38.2% year over year. Total operating revenues of $2.1 billion decreased 8.7% year over year due to lower universal life and investment-type product policy fees and net investment income. The top line, however, beat the consensus mark by about 1%. Premiums of $167 million increased 3.1% year over year. Adjusted net investment income was $1.1 billion in the quarter under review, down 12.1% year over year, due to lower alternative investment income, partially offset by asset growth. The investment income yield was 3.92%. Reinsurance Group of America reported second-quarter 2022 adjusted operating earnings of $5.78 per share, which beat the Zacks Consensus Estimate by 112.5%. Moreover, the bottom line increased 44.5% from the year-ago quarter’s figure. Net foreign currency fluctuations had an adverse effect of 16 cents per share on adjusted operating income. Reinsurance Group's operating revenues of $4.1 billion beat the Zacks Consensus Estimate by 3.3%. The top line also improved 2.9% year over year on higher net premiums. Net premiums of $3.2 billion rose 4.3% year over year. Investment income increased 3.6% from the prior-year quarter to $397 million, reflecting a higher average asset balance. The average investment yield remained flat year over year at 4.63%. Voya Financial reported second-quarter 2022 adjusted operating earnings of $1.67 per share, which surpassed the Zacks Consensus Estimate by 20.1%. The bottom line decreased 24.1% year over year. Total revenues amounted to $1.5 billion, which decreased 39.3% year over year. Net investment income declined 11.4% year over year to $581 million. Meanwhile, fee income of $411 million decreased 5.7% year over year. Premiums totaled $595 million, up 15.3% from the year-ago quarter. Total expenses were $1.4 billion, down 7.4% from the year-ago quarter.