Guarantees: Death, Taxes Lifetime Income

Wade EldridgeMarketing Director

American Equity Investment Life Insurance

Wade Eldridge

Marketing Director- Northwest Region

American Equity Investment Life Insurance

AMERICAN EQUITY EVOLUTION

• 0 to $22.1 Billion in Assets (03/31/11)

• 0 to 37,000 Agents (03/31/11)

• 0 to over 375,000 policyholders (03/31/11)

• 1 to 50 States• #3 All Time Indexed Annuity Sales• #1 in Service

*Advantage Compendium

EFFICIENCY

• Top 5 most efficient companies in the Life & Health Insurance Industry as ranked by Revenue Per Employee (RPE):

#1 American Equity $3.02M#2 Phoenix $2.89M

#3 Presidential Life $2.75M

#4 Aflac $2.49M

#5 National Western $1.86M

Source: Comtex News Network 12.29.10

SOLVENCY: AEL vs. Top 25 COMPANIES

Solvency: Assets over Liabilities indicates financial soundness and a company’s ability to meet all obligations as they come due.

$100$101$102$103$104$105$106$107$108$109$110

Source: 2011 Standard Analytical Service, 2011 Independent Comparative Report

Assets for each $100 of Liabilities as of Dec. 31, 2010.

SOLVENCY: AEL vs. PEER COMPANIES

Source: Best’s Insurance Reports – Life Health, US 2011 Edition (2010 Annual Data)

$100

$101

$102

$103

$104

$105

$106

$107

$108

Assets for each $100 of Liabilities as of Dec. 31, 2010.

CAPITAL COMMITMENT

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mill

ions

$194 Million

$247Million

$404 Million

$636Million

$713Million

Total Statutory Capital and Surplus*

$1.0 Billion

$1.0 Billion

$1.0 Billion

*Includes AVR and IMR

$1.3 Billion

$1.5 Billion

GOLD EAGLE MEMBERSHIP

AEL Stock OptionsYOUR PRODUCTION OUR INVESTMENT IN YOU AND YOUR BUSINESS

2011 Paid Production* AEL Stock Options

Beginning with $1,000,000 Base Stock Options

Bonus Stock Options

Total Stock Options

$1,000,000 - $1,999,999 250 – 700 0 250 - 700

$2,000,000 - $2,999,999 750 – 1,200 100 850 – 1,300

$5,000,000 - $5,999,999 2,250 – 2,700 1,500 3,750 – 4,200

$7,500,000 - $7,999,999 3,500 – 3,700 3,200 6,700 – 6,900

$10,000,000 - $10,999,999 4,750 – 5,200 5,000 9,750 – 10,200

*Excludes Guarantee Series (SPDA-MYGA) and Internal Transfers

GOLD EAGLE MEMBERSHIPGold Eagle Money

YOUR PRODUCTION OUR INVESTMENT IN YOU AND YOUR BUSINESS

2011 Paid Production*Beginning with $1,000,000

Basis PointsMultiplier

Available Gold Eagle Money Earned

$1,000,000 - $1,999,999 16 BP $1,600 - $3,200

$2,000,000 - $2,999,999 17 BP $3,400 - $5,100

$3,000,000 - $3,999,999 18 BP $5,400 - $7,200

$4,000,000 - $4,999,999 19 BP $7,600 - $9,500

$5,000,000 - $5,999,999 20 BP $10,000 - $12,000

$6,000,000 - $6,999,999 21 BP $12,600 - $14,700

$7,000,000 - $7,999,999 22 BP $15,400 - $17,600

$8,000,000 - $8,999,999 23 BP $18,400 - $20,700

$9,000,000 - $9,999,999 24 BP $21,600 - $24,000

$10,000,000 + 25 BP $25,000 +

*Excludes Guarantee Series (SPDA-MYGA) and Internal Transfers

GOLD EAGLE MEMBERSHIP

• Member Benefits– Stock Options– Gold Eagle Money– Signature Guarantee Service

• Series 6, 7, 65 or 66

– AEL Fed Ex Rates– Discounted Dell Computers– Online Client Statement Access

Lifetime Income Benefit Rider (LIBR-2010)

Planning Today to Supplement the Future

American Equity Investment Life Insurance CompanyWest Des Moines, Iowa

WE’RE LIVING LONGER

YEAR LIFE EXPECTANCY

1850 39

1900 47

2006 77.9

In 2000, there were 50,000 people age 100+. In year 2010 it is estimated that there will be over 131,000 people 100+

85+ year old population is projected to increase by over 43% by 2010 and 70% by 2020

Source: National Center for Health Statistics and the U.S. Bureau of Census

WE’RE LIVING LONGER

• Today’s 65 year old has the following likelihood of attaining:

Man Woman

Age 85 45.5% 55.8%

Age 95 7.7% 15.6%

Source: SOA-rp 2000 table

How Does the

Lifetime Income Benefit

Rider Work?

LIFETIME INCOME BENEFIT RIDER (LIBR-2010)

MGSV CV IAV IAV

Depends on product

? 5%No Fee

8%0.90% Fee

Greater Of When you are ready to elect income, the Company will look

back and guarantee you earned at least 5% or 8% on your Income Account Value (IAV). If CV is larger, your IAV will step

up to the Contract Value.

CHOOSE ONE

LIFETIME INCOME BENEFIT RIDER (LIBR-2010)

• 5% Roll Up – NO FEE – All issue ages• 8% Roll Up – Fee 90 bps. Available on ages 50+• Elect 5% or 8% at point of Sale• Fee Calculated on Contract Value

• Many Competitors calculate on Income Account Value

• Fee Deducted from Contract Value• Most Competitors deduct from Contract Value

FEES MATTER

$150,000 $200,000 Contract Value

Hypothetical Example:

$1,500 (fee = of $200,000)

Fee 75 bps

American Equity:

$150,000 $200,000Income Account Value

$1,350 (fee = of $150,000)

Fee 90 bps

- $1,500

- $1,350

75bps

Income Account Value

90bps

Contract Value

In the hypothetical example the fee is calculated off of the Income Account Value but applied to the Contract Value. The fee calculated off of the IAV is the same % every year.

Hypothetical Example:

$1,500 Fee

$150,000 100 bps*

American Equity:

$1,350 Fee

$150,000 90 bps

FEES MATTER

=

=

*In the hypothetical example the fee is calculated off of the Income Account Value but applied to the Contract Value. The fee calculated off of the IAV is the same % every year. When the fee is deducted from the Contract Value the % may vary each year.

SALES IDEA – TIC TAC TOE

CD

Safety of Premium

Lower return

MutualFund

Risk of Principal

Higher Rate of Return

INDEXANNUITY