AM Best Assigns Issue Credit Rating to American Equity Investment Life Holding Company’s New Preferred Stock

AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of bb to the $400 million 5.95%, perpetual, non-cumulative preferred stock recently issued by American Equity Investment Life Holding Company [NYSE: AEL] (AEL) (West Des Moines, IA). The outlook assigned to this Credit Rating (rating) is stable.

AEL intends to use the proceeds to repurchase subordinate debt along with general corporate purposes. AM Best notes that financial leverage and interest coverage metrics will experience modest declines but will remain within AM Best methodology guidelines.

The outlooks remain unchanged, with Long-Term Issuer Credit Ratings of a- for American Equity Investment Life Insurance Company and its subsidiaries.

This press release relates to Credit Ratings that have been published on AM Bests 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 AM Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.

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Erik Miller, CFA

Associate Director

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Rosemarie Mirabella


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Christopher Sharkey

Manager, Public Relations

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Jim Peavy

Director, Public Relations

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