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American Equity Investment Life Holding Co Financial Strength

: 5 (As of Jun. 2022)
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American Equity Investment Life Holding Co has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

American Equity Investment Life Holding Co's Interest Coverage for the quarter that ended in Jun. 2022 was 2.92. American Equity Investment Life Holding Co's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.14. Altman Z-Score does not apply to banks and insurance companies.


American Equity Investment Life Holding Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

American Equity Investment Life Holding Co's Interest Expense for the months ended in Jun. 2022 was $-243 Mil. Its Operating Income for the months ended in Jun. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $575 Mil.

American Equity Investment Life Holding Co's Interest Coverage for the quarter that ended in Jun. 2022 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

American Equity Investment Life Holding Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 575.136) / 4063.984
=0.14

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


American Equity Investment Life Holding Co  (NYSE:AEL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

American Equity Investment Life Holding Co has the Financial Strength Rank of 5.


American Equity Investment Life Holding Co Financial Strength Related Terms

Thank you for viewing the detailed overview of American Equity Investment Life Holding Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


American Equity Investment Life Holding Co Business Description

American Equity Investment Life Holding Co logo
Traded in Other Exchanges
Address
6000 Westown Parkway, West Des Moines, IA, USA, 50266
American Equity Investment Life Holding Co is a financial services company. Its core business is selling fixed-index and fixed-rate annuity products through its subsidiaries, American Equity Investment Life Insurance Company of New York and Eagle Life Insurance Company. The company is licensed to sell its products in 50 states and the District of Columbia. Its targeted clients are individuals aged 45-75 who are interested in accumulating tax-deferred savings or creating guaranteed lifetime income.
Executives
Brookfield Asset Management Reinsurance Partners Ltd. 10 percent owner WELLESLEY HOUSE SOUTH, 2ND FLOOR 90 PITTS BAY ROAD PEMBROKE D0 HM08
Bam Re Partners Trust 10 percent owner 181 BAY STREET, SUITE 300 TORONTO A6 M5J 2T3
North End Re (cayman) Spc 10 percent owner 18 FORUM LANE, 2ND FLOOR CAMANA BAY, GRAND CAYMAN E9 KY-1102
Bam Re Holdings Ltd. 10 percent owner WELLESLEY HOUSE SOUTH, 2ND FLOOR 90 PITTS BAY ROAD PEMBROKE D0 HM08
Lummus Dewayne officer: SVP & Chief Accounting Officer 6000 WESTOWN PARKWAY WEST DES MOINES IA 50266-9024
Andre Axel officer: Chief Financial Officer 6000 WESTOWN PARKWAY WEST DES MOINES IA 50266
Zanghi Phyllis Joy officer: EVP, Chief Legal Officer & Sec 6000 WESTOWN PARKWAY WEST DES MOINES IA 50266
Uzuner Tolga Ibrahim officer: EVP-CIO, Asset Management 6000 WESTOWN PARKWAY WEST DES MOINES IA 50266
Hamalainen James Louis officer: EVP & CCSO, AEILIC 6000 WESTOWN PKWY WEST DES MOINES IA 50266
Shah Sachin director 250 VESEY STREET NEW YORK NY 10281
Healy Douglas Taylor director 86 JORALEMON STREET BROOKLYN NY 11201
Keeley Michelle M. director AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Bhalla Anant director, officer: President 11225 NORTH COMMUNITY HOUSE ROAD CHARLOTTE NC 28277
Bryant Jennifer Lynn officer: SVP & CHRO, AEILIC 136 62ND STREET WEST DES MOINES X1 50266
Cushing Brenda J director 6000 WESTOWN PARKWAY WEST DES MOINES IA 50266
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