American Equity Investment Life Holding Company (AEL) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $53.94 million, or $ 0.60 a share in the quarter, against a net loss of $44.84 million, or $0.55 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $59.62 million, or $0.66 a share compared with $21 million or $0.25 a share, a year ago. Revenue during the quarter surged 122.05 percent to $927.30 million from $417.60 million in the previous year period. Net premium earned for the quarter increased 28.01 percent or $2.06 million to $9.40 million.
Total expenses increase substantiallyBenefits, losses and expenses for the quarter were at $845.82 million, or 8,996.21 percent of premium earned from $486.71 million or 6,626.37 percent of premium earned in the last year period. Operating income for the quarter was $81.48 million, compared with an operating loss of $69.10 million in the previous year period. Net investment income was at $485.60 million for the quarter, up 7.71 percent or $34.77 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 19.36 percent or $7.07 million to $43.57 million. The company has recorded a gain on investments of $388.73 million in the quarter compared with a loss of $77.07 million for the previous year period.
Commenting on sales, John Matovina, chief executive officer and president, said: "While sales were down substantially on a year-over-year basis, we would note that first quarter 2016 sales benefited from momentum we had coming off of a record second half of 2015 as well as elevated sales of multi-year guaranteed annuities (MYGAs). The relatively smaller declines in net sales compared to gross sales reflects both significantly lower volumes of MYGA products which are substantially coinsured as well as a reduction in the portion of Eagle Lifes fixed indexed annuity (FIA) product sales that are coinsured.
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