American Equity reports 19 percent bump in profits
May 6, 2011 by Adam Belz
Comments Categories: Des Moines Business and Economy, Finance & Insurance
American Equity Investment Life Holding Co. reported profits of $30.6 million for the first quarter, a 19 percent increase over the same period in 2010.
The company, which is headquartered in West Des Moines and employs about 400 people in the metro area, said Wednesday after the market closed that sales of annuities were up 58 percent year-over-year, from $847 million to $1.3 billion. That was a record for any first quarter in the company’s history.
Company leaders said index annuities have become the dominant product in the fixed annuity market. They’re bullish about that market, as more people near retirement looking for the security of the guaranteed account values offered by fixed annuities.
“New entrants into our market will need to run hard to match our product expertise, service culture and strong commitment to distribution,” David J. Noble, the company’s founder, chairman and highest-paid executive, said in a statement.
Stock in the company fell 13 cents Wednesday, trading at $12.70 per share at market’s close.