American Equity Investment Life Holding Company (AEL, Financial), a leading writer of fixed index annuities, hascontinued to transition to its AEL 2.0 business model. The plan’s main goals are to diversify the company’s assets into a broader array of investments, including private debt through strategic partnerships, and to increase its use of reinsurance to free up capital. We think this is an interesting, but somewhat aggressive plan. Thus far, the results have been impressive, but we continue to monitor the credit quality of their assets as they move toward achieving their target of having 40% of their portfolio invested in private assets, up from 15%.8
From Steven Scruggs (Trades, Portfolio)' FPA Queens Road Small Cap Value Fund fist-quarter 2022 commentary.
Also check out:
