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Guarantees: Death, Taxes Lifetime Income. Wade Eldridge Marketing Director American Equity Investment Life Insurance. Wade Eldridge. Marketing Director- Northwest Region American Equity Investment Life Insurance. Thank you!. AMERICAN EQUITY EVOLUTION. - PowerPoint PPT Presentation
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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