American Equity Investment Life Holding Co (AEL) 2022 Q4 法說會逐字稿

Welcome to American Equity Investment Life Holding Company's Fourth Quarter 2020 Conference Call. At this time, for opening remarks and introductions, I would now like to turn the call over to Julie Heidemann, Coordinator of Investor Relations.

歡迎來到美國股權投資人壽控股公司 2020 年第四季度電話會議。現在，關於開場白和介紹，我現在想把電話轉給投資者關係協調員 Julie Heidemann。

Good morning, and welcome to American Equity Investment Life Holding Company's conference call to discuss fourth quarter 2022 earnings. Our earnings release and financial supplement can be found on our website at www.american-equity.com. Non-GAAP financial measures discussed on today's call and reconciliations of non-GAAP financial measures to the most comparable GAAP measures can be found in those documents or elsewhere on our Investor Relations portion of our website. Presenting on today's call are Anant Bhalla, Chief Executive Officer; and Axel Andre, Chief Financial Officer. Some of our comments will contain forward-looking statements which refer or relate to future results, many of which we have identified in our earnings release. Our actual results could significantly differ due to many risks, including the risk factors in our SEC filings. An audio replay will be made available on our website shortly after today's call. It is now my pleasure to introduce Anant Bhalla.

早上好，歡迎來到 American Equity Investment Life Holding Company 的電話會議，討論 2022 年第四季度的收益。我們的收益發布和財務補充可以在我們的網站 www.american-equity.com 上找到。在今天的電話會議上討論的非 GAAP 財務措施以及非 GAAP 財務措施與最可比的 GAAP 措施的對賬可以在這些文件或我們網站的投資者關係部分的其他地方找到。出席今天電話會議的有首席執行官 Anant Bhalla；和首席財務官 Axel Andre。我們的一些評論將包含前瞻性陳述，這些陳述涉及或涉及未來結果，其中許多我們已經在我們的收益發布中確定。由於許多風險，包括我們提交給美國證券交易委員會的文件中的風險因素，我們的實際結果可能會有很大差異。在今天的電話會議結束後不久，我們的網站上將提供音頻重播。現在我很高興介紹 Anant Bhalla。

Thank you, Julie. Good morning, and thank you all for your interest in American Equity. In the fourth quarter of 2022, caps a successful year for the ongoing advancement of our AEL 2.0 strategy as we continually execute against the 4 key pillars. In Investment Management, we originated $5 billion of privately sourced assets at an expected return greater than 6% and expanded our primary focus from residential real estate in 2021 to a more diversified portfolio in 2022, covering a variety of sectors, including infrastructure, middle market credit and commercial real estate equity. Across sectors, we are being disciplined and deliberate, focusing on underlying assets with a resilient cash flow profile where the majority of the return is largely delivered by the underlying operating performance and where there is an advantage for an insurance balance sheet to own the assets.

謝謝你，朱莉。早上好，感謝大家對美國股票的興趣。在 2022 年第四季度，隨著我們不斷執行 4 個關鍵支柱，我們為持續推進 AEL 2.0 戰略取得成功的一年畫上了句號。在投資管理方面，我們發起了 50 億美元的私人來源資產，預期回報率超過 6%，並將我們的主要重點從 2021 年的住宅房地產擴展到 2022 年的更多元化的投資組合，涵蓋多個領域，包括基礎設施、中間市場信貸和商業房地產股權。在各個行業，我們都在自律和慎重，專注於具有彈性現金流狀況的基礎資產，其中大部分回報主要由基礎運營績效提供，並且保險資產負債表具有擁有資產的優勢。

With fixed income spreads widening throughout most of the year, we seized this additional optionality to increase exposure in our core fixed income bucket while being more selective in our private asset strategies. In go-to-market, we substantially revamped our pricing procedures, affording us optionality to reprice products quickly as markets change. To put this in perspective, we have historically repriced new products once or twice per year. Thanks to the changes we made to improve these processes, we successfully delivered in excess of 50 product and rate changes in 2022. Our pricing has become more nimble targeted and responsive to market changes, which is important to generate growing sales while maintaining attractive double-digit IRRs on total sales volume. We also refreshed our distribution incentive and loyalty programs and continue to assess ways to further differentiate our service offerings to producers, building on our #1 ranking for customer satisfaction for annuity providers by J.D. Power and Associates.

隨著固定收益利差在一年中的大部分時間擴大，我們抓住了這一額外的選擇權來增加我們核心固定收益類別的敞口，同時在我們的私人資產策略中更具選擇性。在上市過程中，我們大幅改進了定價程序，使我們能夠根據市場變化快速對產品重新定價。從這個角度來看，我們歷來每年對新產品重新定價一次或兩次。由於我們為改進這些流程所做的更改，我們在 2022 年成功地進行了超過 50 次產品和費率更改。我們的定價變得更加靈活，並且能夠更好地響應市場變化，這對於產生增長的銷售額同時保持有吸引力的雙倍價格非常重要。總銷量的數字內部收益率。我們還更新了我們的分銷激勵和忠誠度計劃，並繼續評估進一步差異化我們向生產商提供的服務的方法，建立在 J.D. Power and Associates 對年金提供商的客戶滿意度排名第一的基礎上。

In this area, we will be revamping our new business processes and technology to improve efficiency as we grow. In our capital and reinsurance pillar, we achieved $9.6 billion of fee-generating reinsured balances and generated over $50 million in revenues in 2022. This included new business needed during the year of $1.3 billion to Brookfield and $3.8 billion of in-force to 26 north effective October 3. Additionally, the new reinsurance agreement with 263 resulted in a capital release of $260 million to fund the growth in excess capital that supports the continued migration to privately sourced assets and capital return to shareholders. As a result of these transactions, we are -- as a lot of this transaction, we also reduced the sensitivity of our GAAP financial results to equity index credits. We are also pleased to announce that we started flow reinsurance on traditional fixed rate annuities with 263 effective February 8.

在這一領域，我們將改進我們的新業務流程和技術，以隨著我們的發展提高效率。在我們的資本和再保險支柱中，我們實現了 96 億美元的收費再保險餘額，並在 2022 年創造了超過 5000 萬美元的收入。這包括 Brookfield 在這一年需要的 13 億美元新業務和 26 north 38 億美元的有效業務10 月 3 日生效。此外，與 263 簽訂的新再保險協議釋放了 2.6 億美元的資本，為過剩資本的增長提供資金，支持繼續轉向私人來源的資產和向股東返還資本。由於這些交易，我們 - 與很多交易一樣，我們也降低了我們的 GAAP 財務結果對股票指數信用的敏感性。我們也很高興地宣布，從 2 月 8 日起，我們開始為 263 的傳統固定利率年金提供流量再保險。

During the year, we repurchased 14.8 million shares, more than offsetting the dilution for the follow-on offering to Brookfield and returned an additional $307 million to shareholders. Combined with dividends paid in the fourth quarters of 2021 and 2022, we have returned $369 million of capital to shareholders in the last 5 quarters. In 2023, we intend to return at least $380 million to shareholders, comprising of the $130 million remaining from our planned return in 2022, and at least $250 million for 2023. This is well within our remaining authorization of $569 million and a testament to the Board and management's belief in our long-term potential to generate sustainable and growing value for shareholders. While it's not front and center, we continue to invest in enhancing our fourth pillar, the foundational capabilities to support a higher trajectory of growth and widening of our liability aperture while maintaining expense discipline.

年內，我們回購了 1,480 萬股股票，不僅抵消了對 Brookfield 後續發行的稀釋影響，還向股東額外返還了 3.07 億美元。加上 2021 年第四季度和 2022 年第四季度支付的股息，我們在過去 5 個季度向股東返還了 3.69 億美元的資本。 2023 年，我們打算向股東返還至少 3.8 億美元，其中包括 2022 年計劃回報剩餘的 1.3 億美元，以及 2023 年至少 2.5 億美元。這完全在我們剩餘的 5.69 億美元授權範圍內，並證明了董事會和管理層相信我們具有為股東創造可持續和不斷增長的價值的長期潛力。雖然它不是前沿和中心，但我們繼續投資於加強我們的第四個支柱，即支持更高增長軌跡和擴大我們負債範圍的基礎能力，同時保持費用紀律。

We have implemented new investment accounting and investment management systems and are implementing a new general ledger system. Turning to the fourth quarter. In the investment area, we saw many unique opportunities in private assets during the fourth quarter as markets continue to reprice across most sectors. In the quarter, we put $1.4 billion to work in private assets. Total private assets at the end of the year were almost $11 billion, bringing our allocation to 22% of the investment portfolio at year-end. Of this amount, approximately $7 billion or close to 2/3 is in real estate loans, comprising of $2.9 billion of residential loans $3.4 billion of commercial mortgage loans and $0.6 billion of agricultural loans. Beyond mortgage loans, the private asset portfolio consists of middle market private credit of $1.2 billion or 2% of the portfolio. Middle market credit consists primarily of senior secured loans to small and medium-sized companies with strong lender protections.

我們實施了新的投資會計和投資管理系統，並正在實施新的總賬系統。轉到第四季度。在投資領域，隨著大多數行業的市場繼續重新定價，我們在第四季度看到了私人資產的許多獨特機會。本季度，我們將 14 億美元用於私人資產。年底私人資產總額接近 110 億美元，使我們的配置佔年底投資組合的 22%。其中，大約 70 億美元或接近 2/3 是房地產貸款，包括 29 億美元的住宅貸款、34 億美元的商業抵押貸款和 6 億美元的農業貸款。除抵押貸款外，私人資產組合還包括 12 億美元或占投資組合 2% 的中間市場私人信貸。中間市場信貸主要包括向具有強大貸方保護的中小型公司提供的高級擔保貸款。

This portfolio is well diversified across borrower end markets is mostly floating in nature and offers better structure than high-yield public credit markets. Majority of this portfolio is managed by Adam Street Partners, and some more details on this were presented at our Investor Symposium in December. Additionally, outside of credit, the single largest sector in our private asset portfolio is our approximate $1 billion portfolio of single-family residential rental homes. We've been a big believer in this asset class. And over the past 2 years, have built a portfolio of homes that is geographically diversified in locations, seeing both strong growth in population and associated wage income growth. We look to benefit from both long-term appreciation of housing stock and rental growth. The macro dynamics for rental housing are strong and partnering with the nation's leading platforms operated by our asset management partner, Pretium is a compelling differentiator for AEF.

該投資組合在藉款人終端市場中非常多樣化，大部分本質上是浮動的，並且提供比高收益公共信貸市場更好的結構。該投資組合的大部分由 Adam Street Partners 管理，有關這方面的更多詳細信息已在我們 12 月的投資者研討會上介紹。此外，在信貸之外，我們私人資產組合中最大的單一部門是我們約 10 億美元的單戶住宅出租房屋組合。我們一直堅信這一資產類別。在過去的 2 年裡，已經建立了一個地理位置多樣化的住宅組合，看到了人口的強勁增長和相關的工資收入增長。我們希望從住房存量的長期升值和租金增長中受益。出租房屋的宏觀動態強勁，與我們的資產管理合作夥伴運營的全國領先平台合作，Pretium 是 AEF 的一個引人注目的差異化因素。

Finally, our private assets portfolio comprises of a 1% allocation each to infrastructure debt and specialty credit and a smaller allocation to commercial real estate equity, which, along with infrastructure equity should grow over time. We have negligible exposure to traditional private equity and no exposure to hedge funds. During the quarter, we put over $800 million to work in the real estate sector, primarily residential nonqualified mortgages, residential transitional loans and single-family real estate at an average expected return of over 6.4%. We remain bullish on rental housing as demand continues to significantly outpace supply. Residential real estate loans remain attractive and with underwriting standards tightening still produced expected returns north of 6%. In addition, we see attractive risk-adjusted yields in directly originated middle market credit as well as in directly sourced opportunistic specialty credit and real assets.

最後，我們的私人資產組合包括對基礎設施債務和專業信貸各佔 1% 的配置，以及對商業房地產股權的較小配置，這與基礎設施股權應該會隨著時間的推移而增長。我們對傳統私募股權的敞口微乎其微，對對沖基金也沒有敞口。本季度，我們在房地產領域投入了超過 8 億美元，主要是住宅不合格抵押貸款、住宅過渡貸款和單戶住宅房地產，平均預期回報率超過 6.4%。由於需求繼續大大超過供應，我們仍然看好出租房屋。住宅房地產貸款仍然具有吸引力，並且隨著承銷標準的收緊，預期回報率仍高於 6%。此外，我們看到直接來源的中間市場信貸以及直接來源的機會主義專業信貸和實物資產的風險調整後收益率具有吸引力。

One of the real estate investments made in the quarter was our first equity investment in the ultra luxury hospitality sector, partnering with a world-class hotel owner and operator. This is part of the hospitality sector that is proving to be more resilient through economic cycles, though it is still a newer and growing segment within the United States. Earlier this week, American Equity Life Insurance Company co-invested alongside and eSquare capital fund in the Whistler pipeline. The Whistler pipeline is the leading U.S. core energy infrastructure system, connecting the Permian Basin growing natural gas supply to LNG, Mexico and Gulf Coast demand. Whistler will have direct connections into LNG facilities in the Corpus Christi area. Nearly all current capacity is contracted under long-term fixed fee minimum volume commitments, primarily with investment-grade counterparties.

本季度的一項房地產投資是我們與世界級酒店所有者和運營商合作，對超豪華酒店行業的第一筆股權投資。這是酒店業的一部分，事實證明它在經濟周期中更具彈性，儘管它在美國仍然是一個較新且不斷增長的細分市場。本週早些時候，American Equity Life Insurance Company 與 eSquare 資本基金共同投資了 Whistler 管道。惠斯勒管道是美國領先的核心能源基礎設施系統，將二疊紀盆地不斷增長的天然氣供應與液化天然氣、墨西哥和墨西哥灣沿岸的需求連接起來。惠斯勒將直接連接到科珀斯克里斯蒂地區的液化天然氣設施。幾乎所有當前產能都是根據長期固定費用最低交易量承諾簽訂的，主要是與投資級交易對手簽訂的。

We see increasing long-term demand for natural gas across the U.S. Gulf Coast due to the growth in LNG liquification capacity being constructed in the region as well as growing demand from Mexico. I share this detail because it is an example of an asset that offers the rare combination of strong free cash flow, high-quality contracts and operating rights on highly strategic natural gas infrastructure. The management team of the asset who retain a significant portion of equity in the business has established a reputation for growing contracted cash flows through developing and operating greenfield projects and have identified several initiatives to further grow this platform. We are also strategic and purposeful in seizing the opportunities arising from broader public market dislocation. For example, during the fourth quarter, we added over $1 billion of high-quality almost entirely AAA and AA rated structured securities with expected returns above 6%.

由於該地區正在建設的液化天然氣液化能力的增長以及墨西哥需求的增長，我們看到整個美國墨西哥灣沿岸地區對天然氣的長期需求不斷增加。我分享這個細節是因為它是一個資產的例子，它提供了強大的自由現金流、高質量的合同和高度戰略性的天然氣基礎設施的經營權的罕見組合。該資產的管理團隊保留了大部分業務股權，通過開發和運營綠地項目建立了增加合同現金流量的聲譽，並確定了進一步發展該平台的多項舉措。我們也有策略和有目的性地抓住更廣泛的公共市場錯位帶來的機會。例如，在第四季度，我們增加了超過 10 億美元的高質量幾乎完全是 AAA 和 AA 評級的結構化證券，預期回報率超過 6%。

All of this points to the value we have delivered through our investment management area, where we are balanced from a risk return point of view between public markets and private assets. In the go-to-market area, we saw a fourth quarter increase in sales of fixed index annuities of 7% compared to the third quarter. We saw very strong sales gains at Eagle Life in both accumulation and income products, which would be expected given the rapid response nature of the bank and broker-dealer channels to pricing changes. At American Equity Life, we continue to see growing momentum for sales of income machines, which were up 8% from the third quarter and increased 29% from the comparable period a year ago. Accumulation product sales in the independent agent channel saw declines due to relative attractiveness of more commoditized S&P cap rates.

所有這些都表明我們通過投資管理領域實現了價值，從風險回報的角度來看，我們在公開市場和私人資產之間取得了平衡。在進入市場方面，我們看到第四季度固定指數年金的銷售額比第三季度增長了 7%。我們看到 Eagle Life 在積累和收益產品方面都取得了非常強勁的銷售收益，鑑於銀行和經紀自營商渠道對價格變化的快速反應性質，這是意料之中的。在 American Equity Life，我們繼續看到收入機器的銷售增長勢頭，比第三季度增長 8%，比去年同期增長 29%。由於更具商品化的標準普爾資本化率的相對吸引力，獨立代理渠道的累積產品銷售額有所下降。

With our latest pricing refresh effective November 30, we are well positioned competitively and enter 2023 with strong momentum. Through February 15, we have sold approximately $460 million of fixed index annuities and over $160 million of traditional fixed rate annuities for total annuity sales of approximately $620 million. We are very well positioned to continue to seize opportunities and be competitive in the marketplace and are confident in and energized about our plan to deliver superior value in the long term. Now I'll turn the call over to Axel to go over earnings results. Axel...

隨著我們最新的定價更新於 11 月 30 日生效，我們在競爭中處於有利地位，並以強勁的勢頭進入 2023 年。截至 2 月 15 日，我們已售出約 4.6 億美元的固定指數年金和超過 1.6 億美元的傳統固定利率年金，年金總銷售額約為 6.2 億美元。我們完全有能力繼續抓住機遇並在市場上具有競爭力，並且對我們長期提供卓越價值的計劃充滿信心並充滿活力。現在我會把電話轉給 Axel 來檢查收益結果。阿克塞爾...

Thank you, Anant. Let me extend my appreciation to all of you attending this call. For the fourth quarter of 2022, we reported non-GAAP operating income of $67.9 million or $0.79 per diluted common share compared to non-GAAP operating income of $75.8 million or $0.81 per diluted common share for the fourth quarter of 2021. Excluding notable items, operating income for the fourth quarter of 2021 was $97.1 million or $1.04 per diluted common share. There were no notable items in the fourth quarter of 2022. The quarter included $21 million of revenues from reinsurance agreements, up from $11 million in the third quarter of 2022. You notice that we changed the presentation in our financial supplement to show account values rather than cash spend values as we had previously done. As cash surrender value is no longer a common metric for the calculation of fees on all account value ceded. Going forward, the change in account value line will include new business ceded offset by decrements in certain business ceded.

謝謝你，阿南特。讓我向所有參加這次電話會議的人表示感謝。 2022 年第四季度，我們報告的非 GAAP 營業收入為 6790 萬美元或每股稀釋普通股 0.79 美元，而 2021 年第四季度的非 GAAP 營業收入為 7580 萬美元或每股稀釋普通股 0.81 美元。不包括值得注意的項目， 2021 年第四季度的營業收入為 9710 萬美元或每股攤薄普通股 1.04 美元。 2022 年第四季度沒有值得注意的項目。該季度包括 2100 萬美元的再保險協議收入，高於 2022 年第三季度的 1100 萬美元。您注意到我們更改了財務補充中的列報方式以顯示賬戶價值而不是而不是我們之前所做的現金支出價值。由於退保現金價值不再是計算所有退保賬戶價值費用的通用指標。展望未來，賬戶價值線的變化將包括分出的新業務被分出的某些業務的減少所抵消。

Average yield on invested assets was 4.3% in the fourth quarter of 2022 compared to 4.48% in the third quarter. The sequential decrease was primarily attributable to returns on partnerships and other mark-to-market assets which returned 9 basis points less than expected returns in the fourth quarter compared to 22 basis points over expected returns in the third quarter, partly offset by a 15 basis point benefit on the portfolio from the increase in short-term rates on our floating rate assets. The average adjusted yield, excluding nontrendable prepayments was 4.29% in the fourth quarter of 2022 compared to 4.45% in the third quarter of 2022. While partnerships and other aftermarket assets, which are reported primarily on a 1-quarter lag basis had a positive contribution to investment income well within the expected range of variance, the contribution was $11 million or 9 basis points of yield less than the assumed rate of returns used in our investment process for the fourth quarter of 2022.

2022 年第四季度投資資產的平均收益率為 4.3%，而第三季度為 4.48%。環比下降主要是由於合夥企業和其他按市值計價資產的回報率在第四季度比預期回報率低 9 個基點，而在第三季度比預期回報率高 22 個基點，部分被 15 個基點所抵消我們的浮動利率資產的短期利率上升使投資組合受益。 2022 年第四季度的平均調整收益率（不包括不可動搖的預付款）為 4.29%，而 2022 年第三季度為 4.45%。而主要按一季度滯後基礎報告的合作夥伴關係和其他售後市場資產做出了積極貢獻對於完全在預期差異範圍內的投資收益，貢獻為 1100 萬美元或 9 個基點的收益率，比我們 2022 年第四季度投資過程中使用的假設回報率低。

As broader context, the contribution of partnerships and mark-to-market assets to net investment income for 2022 was $200 million, which is $87 million or 16 basis points more than the assumed rate of return in our investment process. In-force reinsurance reduced investments by $3.8 billion and reported net investment income by $45 million for the fourth quarter in 2022. We invested $2.5 billion at a yield of 6.81% included -- including $1.4 billion of privately sourced assets at an expected return of 7.2% in the fourth quarter. Our allocation to privately sourced assets was 22% of invested assets as of quarter end compared to 18.4% of 18.4% as of September 30. Since quarter end, we have continued to put money to work in privately sourced asset sectors where we have conviction as well as in core sectors where we have seen attractive opportunities to support our strategic initiatives.

在更廣泛的背景下，合夥企業和按市值計價的資產對 2022 年淨投資收入的貢獻為 2 億美元，比我們投資過程中假設的回報率高出 8700 萬美元或 16 個基點。有效的再保險減少了 38 億美元的投資，並報告了 2022 年第四季度的淨投資收入 4500 萬美元。我們投資了 25 億美元，收益率為 6.81%，其中包括 14 億美元的私人來源資產，預期回報率為 7.2 % 在第四季度。截至本季度末，我們對私人來源資產的配置佔投資資產的 22%，而截至 9 月 30 日，這一比例為 18.4% 和 18.4%。自本季度末以來，我們繼續將資金投入我們堅信的私人來源資產領域以及我們看到有吸引力的機會支持我們的戰略舉措的核心部門。

As of December 31, the point-in-time yield on our investment portfolio was 4.44% compared to 4.22% as of September 30, reflecting the benefit from the increase in floating rate indices, an increase in yield on our public asset portfolio, reflecting portfolio management trades and a further increase in our allocation to privately sourced assets. For the first quarter of 2023, we expect an additional benefit of roughly 7 basis points in yield, reflecting the increase in short-term rates on our $6 billion of floating rate assets. The aggregate cost of money for annuity liabilities was 1.76% in the fourth quarter, up from 1.75% in the third quarter. The cost of money in both quarter reflected near zero hedge gains. The increase in the cost of money primarily reflects the higher cost of options purchased in the fourth quarter of 2022 compared to the runoff of the lower cost options purchased in the third quarter of 2021 and higher renewal rates on annual resets, traditional fixed noises, offset in part by the slightly higher cost of money on account value seeded to 263.

截至 12 月 31 日，我們投資組合的時點收益率為 4.44%，而截至 9 月 30 日為 4.22%，這反映了浮動利率指數上升、我們公共資產組合收益率上升的好處，反映了投資組合管理交易以及我們對私人來源資產的配置進一步增加。對於 2023 年第一季度，我們預計收益率將增加約 7 個基點，這反映了我們 60 億美元浮動利率資產的短期利率上升。第四季度年金負債的總資金成本為 1.76%，高於第三季度的 1.75%。兩個季度的資金成本反映了幾乎為零的對沖收益。資金成本的增加主要反映了與 2021 年第三季度購買的成本較低的期權相比，2022 年第四季度購買的期權成本更高，以及年度重置、傳統固定噪音、抵消的續訂率更高部分原因是播種到 263 的賬戶價值的資金成本略高。

Cost of options in the fourth quarter of 2022 averaged 1.61% compared to 1.58% in the third quarter. Investment spread in the fourth quarter was 2.54% compared to 2.73% in the prior quarter. Excluding prepayment income and hedging gains, adjusted spread was 2.53% compared to 2.70% in the third quarter, reflecting the sequentially lower returns on partnerships and late-to-market assets and a slight increase in customer. Deferred acquisition costs and deferred sales inducement amortization totaled $139 million in the fourth quarter compared to $145 million in the third quarter, excluding the effect of actual assumption changes. Fourth quarter amortization was $8 million greater than modeled expectation post the in-force reinsurance transaction, primarily due to lower than modeled index credits and higher surrenders than expected, offset in part by lower than modeled option budget and crediting rates.

2022 年第四季度的期權成本平均為 1.61%，而第三季度為 1.58%。第四季度的投資利差為 2.54%，而上一季度為 2.73%。不包括預付款收入和對沖收益，調整後利差為 2.53%，而第三季度為 2.70%，反映出合夥企業和後期上市資產的回報率環比下降以及客戶略有增加。第四季度遞延收購成本和遞延銷售誘導攤銷總額為 1.39 億美元，而第三季度為 1.45 億美元，不包括實際假設變化的影響。第四季度攤銷比有效再保險交易後的模型預期多 800 萬美元，這主要是由於低於模型指數信用和高於預期的退保，部分被低於模型期權預算和貸記利率所抵消。

The change in the liability for guaranteed lifetime income benefit payments decreased $5 million this quarter compared to the third quarter, excluding the effect of actual assumption changes. The fourth quarter increase in the liability for guaranteed lifetime income payments were $37 million more than modeled post the in-force reinsurance transaction. due primarily to the near 0 level of index credits, which increased the reserve by $18 million. Lower than model's cost of money and other experience true-ups each added $8 million to expense above expectations. For the first quarter, we would expect amortization of the deferred acquisition costs and sales inducement assets under FAS 97 of $126 million and an increase in the SOP 03-1 reserves for guaranteed lifetime income benefit payments of $60 million on current in-force before adjusting for actual experience.

與第三季度相比，本季度保證終身收入福利付款的負債變化減少了 500 萬美元，不包括實際假設變化的影響。第四季度保證終身收入支付的負債增加了 3700 萬美元，比有效再保險交易後的模型多出 3700 萬美元。主要是由於指數信用水平接近 0，這使準備金增加了 1800 萬美元。低於模型的資金成本和其他經驗調整各增加了 800 萬美元，超出預期。對於第一季度，我們預計 FAS 97 下遞延收購成本和銷售誘導資產的攤銷為 1.26 億美元，SOP 03-1 準備金增加 6000 萬美元，用於在調整前生效的當前生效為實際體驗。

As a reminder, the lack of index credits could add up to an additional $10 million to that amortization and another $20 million to the SOP business. Outflows in the quarter totaled $1.2 billion, up from $1.1 billion in the third quarter, driven by increased surrenders. What we have only limited information on how such disbursements are used, we have seen an increase in Section 1035 exchanges to other carriers of in-force pots, mostly out of and near the end of surrender charge periods. Other operating costs and expenses were $62 million in the fourth quarter, up to $2.5 million from the third quarter, bringing the full year right in line with expectations. For 2023, we expect other operating costs and expenses to be in the $250 million range for the full year. At December 31, cash and equivalents at the holding company were $531 million, reflecting a $325 million dividend from American Equity Life to the holding company.

提醒一下，缺乏指數信用可能會使該攤銷額外增加 1000 萬美元，並為 SOP 業務額外增加 2000 萬美元。在退保增加的推動下，本季度資金流出總額為 12 億美元，高於第三季度的 11 億美元。關於如何使用此類支出，我們只有有限的信息，我們已經看到第 1035 節與其他承運人交換有效罐的情況有所增加，大部分是在投降收費期結束時或接近尾聲時。第四季度其他運營成本和支出為 6200 萬美元，比第三季度增加了 250 萬美元，全年符合預期。對於 2023 年，我們預計全年其他運營成本和費用將在 2.5 億美元左右。截至 12 月 31 日，控股公司的現金和等價物為 5.31 億美元，反映了 American Equity Life 向控股公司派發的 3.25 億美元股息。

As of year-end, the estimated risk-based capital ratio for American Equity Life was 413% compared to 400% at the end of 2021. Our internal estimates show that we have excess capital at year-end relative to rating agency models of approximately $650 million. Book value ex AOCI at year-end 2022 was $54.52 per share on a pre LDTI basis. Consistent with our prior messaging on the impact of LDTI, we would estimate book value ex AOCI at year-end 2022 to be north of $60 per share on a post LDTI basis. We will report our first quarter results in early May on a post LDTI basis, and expect to publish a restated financial supplement prior to the call, presenting our results on a post LDTI basis. Directionally, we expect our run rate operating income to be favorably impacted by the change to LDTI, primarily reflecting lower reserve accretion for living benefits or lifetime income benefits under the market risk benefit framework then under the SOP3-1 framework as well as more predictable pattern of back amortization going forward due to it becoming not sensitive to actual to expected variance in investment spread under the new LDTI framework. With that, thank you for your attention, and I'll turn it over to the operator to begin Q&A.

截至年底，American Equity Life 的估計風險資本比率為 413%，而 2021 年底為 400%。我們的內部估計顯示，相對於評級機構模型，我們在年底的資本過剩約為6.5億美元。按 LDTI 計算，2022 年底除 AOCI 外的賬面價值為每股 54.52 美元。與我們之前關於 LDTI 影響的消息一致，我們估計 2022 年底除 AOCI 外的帳面價值在 LDTI 後的基礎上將超過每股 60 美元。我們將在 5 月初以 LDTI 後的基礎報告我們的第一季度業績，並期望在電話會議之前發布重述的財務補充，以 LDTI 後的基礎呈現我們的結果。在方向上，我們預計我們的運行率營業收入將受到 LDTI 變化的有利影響，主要反映在市場風險收益框架下比在 SOP3-1 框架下以及更可預測的模式下生活福利或終身收入福利的準備金增加較低由於在新的 LDTI 框架下，它對投資利差的實際與預期差異變得不敏感，因此未來的回攤攤銷。至此，感謝您的關注，我將把它交給接線員開始問答。

And, thank you. And as a reminder, to ask a question please press star 11 on your telephone and wait for your name to be announced. And as a telephone and wait for your name to be announced.To withdraw yiur question please press star 11 again. We ask that you limit yourself to one question and one follow-up. If you have any additional questions, please jump back in the queue. And we'll moment for our first question. And our first question comes from Dan Bergman from Jefferies. Your line is now open

還有，謝謝。提醒一下，如需提問，請按電話上的星號 11 並等待播報您的姓名。並作為電話，等待您的名字被宣布。要撤回您的問題，請再次按星號 11。我們要求您將自己限制在一個問題和一項跟進中。如果您有任何其他問題，請跳回到隊列中。我們將回答第一個問題。我們的第一個問題來自 Jefferies 的 Dan Bergman。您的線路現已開通

Thanks, good morning. I guess first, I just wanted to see if there was any update you can give around the outlook for fixed index annuity sales in 2023. I think in the past, you used an assumption of about $4 billion for the 2023 sales. And if I heard the numbers in the prepared remarks correctly, it sounded like the first 6 weeks production would imply a run rate near that $4 billion level, but given that would be a big step up from the $3.2 billion you did this past year, I just wanted to get a sense of if you thought that $4 billion range is achievable for '23 or just how you're thinking about it? Thanks.

謝謝，早上好。我想首先，我只是想看看您是否可以就 2023 年固定指數年金銷售前景提供任何更新。我想過去，您使用了 2023 年銷售額約為 40 億美元的假設。如果我沒有聽錯準備好的評論中的數字，聽起來前 6 週的生產將意味著接近 40 億美元的運行率，但考慮到這將比你去年的 32 億美元有了很大的進步，我只是想了解一下您是否認為 23 年可以實現 40 億美元的範圍，或者您是如何考慮的？謝謝。

I think you're thinking about the right way, Dan. We've had a strong start to the year, and we feel good about what we said earlier.

我認為你正在考慮正確的方法，丹。今年開局良好，我們對之前所說的感到滿意。

Got it. That's helpful. And then it looked like surrenders and withdrawals saw another sequential increase, I think, to about $1.2 billion to $1.3 billion versus the closer to $1 billion quarterly range that have been traveling in earlier in the year, even though, I guess, the in-force book was down somewhat due to the reinsurance. I just wanted to see if you can give an update on what you're seeing seeing there and whether those higher withdrawals have been concentrated in any particular product types or vintages? And if it is just driven by the higher interest rate environment, should we expect this higher level of surrenders to remain in place for the foreseeable future?

知道了。這很有幫助。然後它看起來像退保和取款看到了另一個連續增長，我認為，與今年早些時候接近 10 億美元的季度範圍相比，我認為，大約 12 億美元到 13 億美元，儘管我猜，在 -由於再保險，強制賬簿有所下降。我只是想看看你是否可以更新你在那裡看到的情況，以及這些較高的提款是否集中在任何特定的產品類型或年份？如果它只是受更高利率環境的驅動，我們是否應該期望在可預見的未來這種更高水平的退保保持不變？

Yes. Thank you for your question. This is Axel. Yes, so we saw higher surrenders in the fourth quarter, so $1.2 billion above versus the $1.1 million in Q3. We see that those surrenders primarily across vintages that are essentially reaching the end of the surrender charge period or that are either out of surrender or just reaching that end of cementer that period. We expect that with the stabilization of the interest rate environment that the increase in surrenders is probably going to stabilize. But of course, this is one of the behavior that we observed closely. And from a rate setting perspective, we look at that on a regular basis, and we take appropriate action as we see fit.

是的。謝謝你的問題。這是阿克塞爾。是的，所以我們在第四季度看到了更高的退保率，因此比第三季度的 110 萬美元高出 12 億美元。我們看到，這些投降主要發生在基本上達到投降收費期結束或已經投降或剛剛達到該時期水泥結束時的年份。我們預計隨著利率環境的穩定，退保的增長可能會趨於穩定。但是，當然，這是我們密切觀察到的行為之一。從利率設定的角度來看，我們會定期查看，並採取我們認為合適的適當行動。

And the thing I'll add to that, thanks, Axel, is having a big book really helps. We are focused on in-force management to see how they stay around this area. They probably we expect it to stay in this area. But we also have a very liquid asset portfolio. And that's one of the reasons I provide that extra detail on the private assets. Our private assets are very high quality, some short term in nature, very liquidfiable. If you think about $7 billion of those are loans, real estate loans, we have access to liquidity facilities. So we feel very good about the liquidity profile of the portfolio. I want to make sure you all understood that because people don't always understand what private assets are. And we are going to grow our IEOF not have a shrink, which is why our efforts are not just on sales, primarily sales but also in-force actions, as Axel mentioned.

我要補充的是，謝謝，阿克塞爾，有一本大書真的很有幫助。我們專注於有效管理，看看他們如何留在這個區域。他們可能我們希望它留在這個區域。但我們也有一個非常流動的資產組合。這就是我提供有關私有資產的額外詳細信息的原因之一。我們的私人資產質量非常高，有些是短期的，流動性很強。如果你認為其中約有 70 億美元是貸款、房地產貸款，我們可以獲得流動性便利。因此，我們對投資組合的流動性狀況感到非常滿意。我想確保你們都明白這一點，因為人們並不總是了解什麼是私人資產。我們將增加我們的 IEOF，而不是縮小，這就是為什麼我們的努力不僅僅是銷售，主要是銷售，還有有效行動，正如 Axel 提到的那樣。

Got it. That's really helpful.

知道了。這真的很有幫助。

And, thank you. And one moment for our next question. And our next question comes from Ryan Krueger from KBW. Your line is now open.

還有，謝謝。請稍等一下我們的下一個問題。我們的下一個問題來自 KBW 的 Ryan Krueger。您的線路現已開通。

Hi, thanks. Good morning. Looks like you've seen some higher volume from traditional fixed annuities in both the fourth quarter and what you commented on in the early part of the year. Are you -- do you expect Magisto start to be -- I know you're more focused on FIA, but would you anticipate Migas to be a more regular contributor to sales going forward?

你好謝謝。早上好。看起來您在第四季度和您在今年年初發表的評論中都看到傳統固定年金的交易量有所增加。您是否 - 您是否希望 Magisto 開始成為 - 我知道您更專注於 FIA，但您是否希望 Migas 成為未來更經常的銷售貢獻者？

Hi, Ryan, yes, short answer, yes. We really focus on our bread and butter, which is FIA. MIGA is competitively priced to deliver returns. We have the reinsurance arrangement in place now with our reinsurance partner there. And it will be because as we grow Eagle, it becomes reality, especially in the bank channel, and we're making sure we're writing good IRRs in that business.

嗨，瑞安，是的，簡短的回答，是的。我們真正專注於我們的生計，也就是國際汽聯。 MIGA 以具有競爭力的價格提供回報。我們現在已經與我們的再保險合作夥伴進行了再保險安排。這將是因為隨著我們 Eagle 的成長，它成為現實，特別是在銀行渠道，我們確保我們在該業務中寫下良好的內部收益率。

Got it. And then Axel, I believe you gave numbers for expected DAC amortization in liver reserve. I think I missed the numbers. I was hoping you could repeat them. And then related to that, were those under the prior GAAP accounting? Or are those under LDTI?

知道了。然後 Axel，我相信你給出了肝臟儲備中預期 DAC 攤銷的數字。我想我錯過了數字。我希望你能重複一遍。然後與此相關的是，那些是在之前的 GAAP 會計下嗎？或者那些在 LDTI 之下？

Yes, hi Ryan, let me go through the numbers again. They own a pre LDTI basis. The -- I mentioned that that DSI amortization, the -- the model expectations is $126 million, whereas for the SOP 03-1 reserve, the expectation is $60 million for next quarter. And I added as a reminder that both of those expectations include expected index credits, should index credits in fact, be 0 in the first quarter. It would add an additional $10 million to back DSI amortization and another $20 million to SOP reserve accretion.

是的，嗨，瑞安，讓我再看一遍這些數字。他們擁有 LDTI 前基礎。 - 我提到 DSI 攤銷， - 模型預期為 1.26 億美元，而對於 SOP 03-1 儲備，下一季度的預期為 6000 萬美元。我補充說，這兩個預期都包括預期的指數信用，如果指數信用實際上在第一季度為 0。它將額外增加 1000 萬美元用於支持 DSI 攤銷，另外增加 2000 萬美元用於 SOP 儲備增加。

Yes, hi Ryan, let me go through the numbers again. They own a pre LDTI basis. The -- I mentioned that that DSI amortization, the -- the model expectations is $126 million, whereas for the SOP 03-1 reserve, the expectation is $60 million for next quarter. And I added as a reminder that both of those expectations include expected index credits, should index credits in fact, be 0 in the first quarter. It would add an additional $10 million to back DSI amortization and another $20 million to SOP reserve accretion.

是的，嗨，瑞安，讓我再看一遍這些數字。他們擁有 LDTI 前基礎。 - 我提到 DSI 攤銷， - 模型預期為 1.26 億美元，而對於 SOP 03-1 儲備，下一季度的預期為 6000 萬美元。我補充說，這兩個預期都包括預期的指數信用，如果指數信用實際上在第一季度為 0。它將額外增加 1000 萬美元用於支持 DSI 攤銷，另外增加 2000 萬美元用於 SOP 儲備增加。

Will it will -- under LDTI, will there still be that similar type of sensitivity from index credits will that be more limited?

它會——在 LDTI 下，指數信用的類似敏感性是否會更有限？

So I'm going to comment on NDTI really on the next earnings call. But consistent with the rollout of the new framework, we are also adjusting our definition of operating income to reflect what we believe is a long-term underlying core operating earnings of the company. And so in that slide, we aim to adjust for volatility that is expected to be nonrecurring and nondirectional -- and so certainly, some adjustments for the level of -- or the market volatility, equity or interest rate related would be part of that. So again, more to come on that. in the future through our restated financial supplement that will come out ahead of the Q1 earnings call and in the earnings for itself.

因此，我將在下一次財報電話會議上對 NDTI 發表評論。但與新框架的推出一致，我們也在調整我們對營業收入的定義，以反映我們認為公司的長期基礎核心營業收入。因此，在該幻燈片中，我們的目標是調整預期為非經常性和非方向性的波動性——當然，對水平的一些調整——或市場波動性、股票或利率相關將是其中的一部分。再說一遍，還有更多內容。未來通過我們重申的財務補充，該補充將在第一季度財報電話會議之前公佈，並在其自身的收益中公佈。

Okay, great. thank you.

好的，太好了。謝謝。

Thank you. And one moment for our next question. And our next question comes from John Barnidge from Piper Sandler. Your line is now open.

謝謝。請稍等一下我們的下一個問題。我們的下一個問題來自 Piper Sandler 的 John Barnidge。您的線路現已開通。

Thank you very much, and good morning, appreciate the opportunity. My first question, the $250 million operating expense guidance, I know you previously talked about working to complete a sidecar in '23. Did that operating expense guidance include the assumption that, that is completed this year?

非常感謝，早上好，感謝這個機會。我的第一個問題是 2.5 億美元的運營費用指導，我知道你之前談到過在 23 年完成一個邊車。該運營費用指南是否包括今年完成的假設？

Yes. Hi John, yes.

是的。嗨，約翰，是的。

Great. And then the move to private assets to 22% from I believe it was 18% last quarter. Do you anticipate hitting that low end of the 30% to 40% target in '23?

偉大的。然後從我認為上個季度的 18% 轉向私人資產到 22%。您是否預計在 23 年達到 30% 至 40% 目標的低端？

I'll let Jim add to... The short answer is no, not in 23, but I'll let Jim add some more color to Jim.

我會讓 Jim 添加到... 簡短的回答是否定的，不在 23，但我會讓 Jim 為 Jim 添加更多顏色。

Yes. This is Jim Hamalainen. I think that number is probably more likely out a little further than 2023. Our goal is to continually source assets through the cycles. And so that will get us -- certainly be closer at the end of the year than we are now, but it probably takes us into a little bit into the next year.

是的。我是吉姆·哈馬萊寧。我認為這個數字可能會比 2023 年更晚一些。我們的目標是通過週期不斷地採購資產。因此，這將使我們 - 在今年年底肯定比現在更接近，但它可能會讓我們進入明年。

Thank you very much

非常感謝

And, thank you. And one moment for our next question. And our next question comes from Eric Bass from Autonomous Research. Your line is now open.

還有，謝謝。請稍等一下我們的下一個問題。我們的下一個問題來自 Autonomous Research 的 Eric Bass。您的線路現已開通。

Hi, thank you. Given the increase in surrenders that you're seeing, how are you thinking about renewal rate increases and whether it makes sense to give us some spread to retain more business? And I guess related to that, how should we think about the cost of money going forward?

嗨，謝謝你。鑑於您所看到的退保增加，您如何考慮續訂率的增加以及是否有必要給我們一些差價以保留更多業務？我想與此相關的是，我們應該如何考慮未來的資金成本？

I can start, and I'll let Axel that in there. The -- we are looking at it. I think LDTI is an interesting consideration for us in that perspective as well as Axalta will talk more about LDTI going forward, but it met that really positive for the FIA business. So if we think of do we redeploy some of those earnings into in-force rate management is the way I'm really thinking about it right now? Because candidly, this is going to be a very, very good year for us from a year-on-year profitability point of view post LDTI. But you also see what bank for buck you get on it. I go back to the liquidity profile of the balance sheet and the private asset strategies are very liquefiable and Jim and team are doing a good job managing that. So even though surrenders are modestly up, you're looking at which blocks you're losing and which blocks you want to keep and things like that, and we feel good about it. So it's a rather long-winded answer but I try to give you in a framework sense. We've got a balance sheet that can handle a little high elevated lapses -- we actually are okay with these lapses and we want to write newer business, so then we can invest it at higher returns versus just give away the profitability.

我可以開始了，我會讓阿克塞爾在那裡。 - 我們正在研究它。我認為從這個角度來看，LDTI 對我們來說是一個有趣的考慮因素，而 Axalta 將更多地討論 LDTI 的發展，但這對 FIA 業務來說確實是積極的。因此，如果我們考慮是否將其中一些收益重新部署到有效利率管理中，這是我現在真正考慮的方式嗎？因為坦率地說，從 LDTI 後的同比盈利能力來看，這對我們來說將是非常非常好的一年。但你也會看到你從中得到了什麼銀行。我回到資產負債表的流動性狀況，私人資產策略非常容易流動，吉姆和團隊在管理方面做得很好。因此，儘管投降率略有上升，但您正在查看您正在失去哪些塊以及您想要保留哪些塊以及類似的東西，我們對此感覺很好。所以這是一個相當冗長的答案，但我試圖在框架意義上給你。我們有一個資產負債表，可以處理稍微高一點的失誤——我們實際上對這些失誤沒問題，我們想寫新的業務，這樣我們就可以以更高的回報率進行投資，而不是僅僅放棄盈利能力。

And maybe I would just add to that, just reminding you, when we talk about our third quarter 2022 assumptions in locking, so the assumptions, the spread assumptions that are embedded in our actual models. We talked about cost of money, the near-term cost of money being around 1.7%, ultimately growing to the long term. So that's 8 years out, long-term cost of money of 2.4%. So our models already kind of anticipate some of that increase. It's really a question of time.

也許我只想補充一點，只是提醒你，當我們談論我們的 2022 年第三季度鎖定假設時，這些假設，即嵌入在我們實際模型中的傳播假設。我們談到了資金成本，近期資金成本約為 1.7%，最終會增長到長期。所以這是 8 年後，長期資金成本為 2.4%。所以我們的模型已經在某種程度上預測了這種增長。這真的是時間問題。

That's helpful. And then switching gears, I was hoping you could comment a little bit on the NAIC's proposed changes to capital charges for CLOs and private credit funds. Maybe if they're adopted, what impact that could have on your portfolio and the capital requirements for your private credit assets?

這很有幫助。然後換檔，我希望你能對 NAIC 對 CLO 和私人信貸基金的資本收費的擬議變更發表一些評論。也許如果它們被採用，會對您的投資組合和您的私人信貸資產的資本要求產生什麼影響？

Great question. As always, you're keenly tuned into what's going on in the market. It's less of an impact for us is a short answer because we didn't back up the truck on CLOs and things like that. We actually agree with the direction of travel with the NAIC there. And frankly, would prefer everyone is super transparent when they source stuff and how it's structured and what they do it. We've been in the middle of the fairway in the way we've approached private assets. That's why I said like $7 billion of that is loans, even our private credit strategies -- so too early to say what their final proposals are, and they'll likely get implemented in '25 from what I'm hearing, not to $425. But we're not the firm that backed up the truck and CLOs and structured credit and got cute about it with respect to all of my competitors who did. So we feel pretty good about it.

很好的問題。與往常一樣，您會敏銳地了解市場上正在發生的事情。這對我們的影響較小是一個簡短的回答，因為我們沒有在 CLO 和類似的東西上支持卡車。我們實際上同意那裡的 NAIC 的行進方向。坦率地說，希望每個人在採購東西時都超級透明，它的結構是怎樣的，他們做了什麼。在我們處理私人資產的方式上，我們一直處於正軌。這就是為什麼我說其中大約 70 億美元是貸款，甚至是我們的私人信貸策略——現在說他們的最終提案是什麼還為時過早，根據我所聽到的，他們可能會在 25 年實施，而不是 425 美元.但我們不是支持卡車和 CLO 以及結構化信貸的公司，也不是我對所有這樣做的競爭對手都很可愛的公司。所以我們對此感覺很好。

Got it, thank you.

收到了。謝謝。

And, thank you. At one moment for our next question . And our next question comes from Wilma Jackson from Raymond James. Your line is now open.

還有，謝謝。一會兒我們的下一個問題。我們的下一個問題來自 Raymond James 的 Wilma Jackson。您的線路現已開通。

Hi, good morning. I guess first, any update on car. I know you mentioned it's kind of in the budget this year, but any updates?

早上好。我想首先是關於汽車的任何更新。我知道你提到過它在今年的預算中，但有任何更新嗎？

Hi Wilma, morning. No new update. I think at the last call, I said we're looking at in the third quarter time frame. Obviously, good progress on it. We're working with a banking partner. We're in the market talking to counterparties. We like the initial response we've got from really pristine counterparties that we brought into this as we have defined them, and we're focused on executing it and moving forward. I am very much focused with the leadership team here on growing our AUM and having the right mix of spread and fee-related earnings. And so that will get executed over the course of the year. And then we want to continue to focus on growing that AU will get executed. And then we're focused on growing sales and growing AUM and growing the mix of earnings.

嗨，威爾瑪，早上好。沒有新的更新。我想在最後一次電話會議上，我說過我們正在考慮第三季度的時間框架。顯然，這方面的進展很好。我們正在與一家銀行合作夥伴合作。我們在市場上與交易對手交談。我們喜歡我們從真正原始的交易對手那裡得到的初步回應，我們按照我們的定義將其納入其中，並且我們專注於執行它並向前邁進。我非常關注這裡的領導團隊，以增加我們的 AUM 並擁有正確的價差和費用相關收入組合。因此，這將在一年中得到執行。然後我們希望繼續專注於 AU 將得到執行的增長。然後我們專注於增加銷售額和增加 AUM 以及增加收入組合。

Got you, thank you. And then maybe a little bit of color on the buyback in 4Q, which seems were a little bit lower.

明白了，謝謝然後第四季度的回購可能有點顏色，似乎有點低。

Yes. Hi Wilma, this is Axel. So in the fourth quarter, we repurchased a little bit to over 1 million shares, close to $40 million. So we set a grid for buyback, we kind of reset the grade every quarter after the earnings call. Of course, we did not anticipate the events of middle of December, which resulted in the stock price and jumping up to $45 and above. So it's just a function of really of how the grid was set ahead of that, that we ended up being out in the market for a portion of the quarter. But as Anant said, we remain buyers of our stock, and we intend to complete the 2022 share buyback program in 2023. So that's the $130 million that remains and at least $250 million for 2020.

是的。嗨，威爾瑪，我是阿克塞爾。所以在第四季度，我們回購了一點點，超過 100 萬股，接近 4000 萬美元。所以我們為回購設置了一個網格，我們在收益電話會議後每季度重置一次等級。當然，我們沒有預料到 12 月中旬的事件，導致股價飆升至 45 美元及以上。因此，這只是網格在此之前的設置方式的一個函數，我們最終在本季度的一部分時間裡退出了市場。但正如 Anant 所說，我們仍然是我們股票的買家，我們打算在 2023 年完成 2022 年的股票回購計劃。所以這是剩下的 1.3 億美元，2020 年至少 2.5 億美元。

Yes. Maybe I'll just add a little -- there's a little noise around our name in the quarter, as you're well aware. So they can fit in the way of us being able to buy stock on a regular basis. We hope to be refresh our buying grids and how those 105 on plans and all those things work well so that we should be back in the market pretty soon here.

是的。也許我會補充一點——在本季度我們的名字周圍有一些噪音，正如你所知道的那樣。因此，它們可以適應我們能夠定期購買股票的方式。我們希望更新我們的購買網格，以及計劃中的 105 個以及所有這些東西如何運作良好，以便我們應該很快回到市場。

Good, thank you.

好的謝謝你。

And thank you and one moment for our next question . And our next question comes from Mark Dwelle from RBC Capital Markets.Your line is now open.

謝謝你，請稍等一下我們的下一個問題。我們的下一個問題來自 RBC Capital Markets 的 Mark Dwelle。您的電話現已開通。

Goodmorning. You mentioned the new flow reinsurance agreement with 26 North effective during February. Could you just comment a little bit more on sort of which assets are being ceded under that? And if you have any kind of general targeted range of how much flow is expected to go across that?

早上好。您提到與 26 North 的新流量再保險協議於 2 月生效。您能否就根據該協議放棄哪些資產發表更多評論？如果您有任何類型的一般目標範圍，預計會有多少流量通過該範圍？

Sure. Yes, it's Philippe. For Flow reinsurance, there are no assets transferred, right? What happens, it's a new business that we issue. So the premium cash basically gets transferred to the reinsurer there. There's no time for HP invested in transfer. So it's really the reinsurers use risk and invest at this pace to back the liabilities to assume.

當然。是的，是菲利普。對於 Flow 再保險，沒有資產轉移，對嗎？會發生什麼，這是我們發行的新業務。因此，保費現金基本上會轉移到那裡的再保險公司。惠普投資的時間沒有轉移。因此，實際上是再保險公司利用風險並以這種速度進行投資來支持承擔的責任。

I missed I meant was premium, not assets.

我錯過了我的意思是溢價，而不是資產。

Right. So we flow with flow reinsurance, it's premium comes in. premium goes back out to the reinsurer just directly. It's really that simple.

正確的。所以我們通過流動再保險流動，它的保費進來了。保費直接回到再保險公司。真的就這麼簡單。

And in terms of your other part of your question, I'll start in. It's $525 million a year. I may have mentioned this in the last call, that's the size of the Migattreaty with them, and that's what we would expect it to be.

就你問題的另一部分而言，我會開始。它是每年 5.25 億美元。我可能在上次通話中提到過這一點，這就是他們與 Migattreaty 的規模，這就是我們所期望的。

Got it. That's what I was really looking for. Okay. The second question that I had is with respect to the various real estate loans and private assets that you have, is there anything that you're doing from kind of a hedging standpoint? And is that a different cost or run rate than like what we're normally used to?

知道了。這就是我真正想要的。好的。我的第二個問題是關於您擁有的各種房地產貸款和私人資產，從對沖的角度來看，您正在做些什麼嗎？這與我們通常習慣的成本或運行率是否不同？

Hi, this is Jim again. In terms of private assets, if your question is, are we putting them on the books and then hedging those assets. So the answer to that is we are not doing that. And so from a private perspective, we're looking for long-term returns on these assets over time, both in terms of loans and in terms of equity investments. So I think that answers what your question was, but let me know if it does.

嗨，我又是吉姆。就私人資產而言，如果你的問題是，我們是否將它們記在賬簿上，然後對沖這些資產。所以答案是我們沒有這樣做。因此，從私人角度來看，我們正在尋找這些資產隨著時間的推移在貸款和股權投資方面的長期回報。所以我認為這可以回答您的問題，但如果可以，請告訴我。

No, it does. It's -- I mean, I'm sure the quality of these are very high and you mentioned the liquidity, but historically, that's always been the case until it isn't, and that's why I was asking the question.

不，確實如此。這是——我的意思是，我確信這些的質量非常高，而且你提到了流動性，但從歷史上看，情況一直如此，直到情況並非如此，這就是我問這個問題的原因。

I see. When we think about liquidity, too, just a little -- stepping back just a bit on Liquidity. Our entire investment plan is focused around the liabilities, the characteristics including projections of liability outflows. That's all built into what we're doing and liquidity is part of the considerations that we make. And so we're very much focused on thinking about liquidity and what our needs could be beyond our expectations even. So we don't put assets on the books assuming that we're going to have to liquefy those assets and draw liquidity. They are -- it is available in some cases, but we certainly don't buy private assets, assuming that that's part of the base case assumption.

我懂了。當我們考慮流動性時，也只是一點點——在流動性上稍微退後一步。我們的整個投資計劃都圍繞著負債，包括負債流出預測在內的特徵。這一切都融入了我們正在做的事情，流動性是我們考慮的一部分。因此，我們非常專注於思考流動性以及我們的需求甚至可能超出我們的預期。因此，假設我們將不得不液化這些資產並吸收流動性，我們不會將資產記在賬簿上。它們是——在某些情況下是可用的，但我們當然不會購買私人資產，假設這是基本情況假設的一部分。

Okay. Thanks for your input. Thanks

好的。感謝您的輸入。謝謝

And, thank you. [Instructions] And if you would like to ask a question that is STAR 11. Again, if you would like to ask a question that is STAR 11. And one moment for our next question. One moment. And our next question comes from Pablo Singzon from JPMorgan. Your line is now open.

還有，謝謝。 [說明] 如果你想問一個 STAR 11 的問題。再一次，如果你想問一個 STAR 11 的問題。請稍等一下我們的下一個問題。一瞬間。我們的下一個問題來自摩根大通的 Pablo Singzon。您的線路現已開通。

Hi, thank you. Axel, just given your comment about interest rates stabilizing, do you think the competitive environment has stabilized as well? Or are insurers trying to pass on higher rates to customers at this point? And I realize it's not a one for one, right? I think in terms of we're making excess spread, but just want to get a sense of how rates are filtering into the competitive environment?

嗨，謝謝你。阿克塞爾，剛才你對利率穩定的評論，你認為競爭環境也已經穩定了嗎？還是保險公司此時正試圖將更高的費率轉嫁給客戶？我意識到這不是一對一的，對吧？我認為我們正在製造超額利差，但只是想了解一下利率是如何滲透到競爭環境中的？

Hi, Pablo. Goodmorning. Thanks for your question. Yes, I think we're starting to see that starting to see some stabilization in the competitive environment as well. Even we saw some competitors take the rates down. So I think, yes, there's stabilization, rationalization. I think as enough mentioned, looking at all fourth quarter sales, looking at the trajectory and the momentum of first quarter to date sales, I think that all points to the -- that points to that essentially stabilization, rationalization of good positioning within that.

嗨，巴勃羅。早上好。謝謝你的問題。是的，我認為我們開始看到競爭環境也開始趨於穩定。甚至我們也看到一些競爭對手降低了價格。所以我認為，是的，有穩定、合理化。我認為正如提到的那樣，看看所有第四季度的銷售情況，看看第一季度迄今為止銷售的軌跡和勢頭，我認為所有這些都表明 - 這表明基本上穩定，其中良好定位的合理化。

Yes, I'll just add to one thing is that look, historically, AEL is led with service and an okay product. What we've sort of done with the product changes we've done because we have the juice, if I may use that expression on the asset side, there's no reason we can't have a top 5 product or a top 3 products in terms of rating features. So it's a combination of service, ease of doing business and compelling, not the hottest but a top 5 product. If we're not top 5, we're not going to sell. That's the market reality, and we're easy to meet up 5G in our investment use.

是的，我只想補充一件事，從歷史上看，AEL 以服務和優質產品為主導。我們所做的產品更改是因為我們擁有果汁，如果我可以在資產方面使用該表達方式，那麼我們沒有理由不能擁有前 5 名產品或前 3 名產品評級特徵條款。因此，它是服務、經商便利性和引人注目的組合，不是最熱門的產品，而是前 5 名的產品。如果我們不是前 5 名，我們就不會出售。這就是市場現實，我們很容易在投資使用中遇到 5G。

Yes. Got it. That makes sense. Thanks. The second question I had was a numbers question. So I'm curious, on average, how much capital do you have to hold against the dollar of private assets? And how does that compare against your public fixed income assets? Just trying to get a sense of the capital consumption against your capital generation, and I think the excess capital you have, which I think was $650 as you mentioned, but any color there?

是的。知道了。這就說得通了。謝謝。我的第二個問題是數字問題。所以我很好奇，平均而言，您需要持有多少資本來兌現私人資產的美元？與您的公共固定收益資產相比如何？只是想了解資本消耗與資本生成的關係，我認為你擁有的過剩資本，正如你提到的那樣，我認為是 650 美元，但有什麼顏色嗎？

Yes, I'll start. It varies, right? I mean not to give you a non-answer, but it varies because if you look at resi loans, it's less than BBB public corporate securities in fixed income, like I think the RBC factors like 0.6 versus NAIC 2 is 1%. If you look at real estate equity, it's obviously 20% capital charge. When the team looks at our capital charge, the most of our thing is we have a significant amount of excess capital, and we're looking at what's the ROE that we're delivering on the private assets? And is it well not of the ROE trajectory of our business and therefore adds value. So in having a portfolio of $11 billion of private assets where loans are a big portion of it and then buying rail assets, which you can finance between loans and equity gives us a capital charge, which even though higher than public fixed income is going to be in that range. Now Axel, Jim add in anything to that. Because I think what Pat was looking for is what number to put in this model, and I don't know if we can give him that. Right.

是的，我會開始。它會有所不同，對嗎？我的意思是不給你一個不回答，但它有所不同，因為如果你看 resi 貸款，它低於固定收益的 BBB 公共公司證券，就像我認為像 0.6 和 NAIC 2 這樣的 RBC 因素是 1%。如果你看一下房地產股權，它顯然是 20% 的資本要求。當團隊查看我們的資本支出時，我們最關心的是我們擁有大量過剩資本，並且我們正在查看我們為私有資產提供的 ROE 是多少？這不是我們業務的 ROE 軌跡，因此增加了價值。因此，擁有 110 億美元的私人資產組合，其中貸款佔很大一部分，然後購買鐵路資產，您可以在貸款和股權之間為其融資，這給我們帶來了資本要求，即使高於公共固定收益，也會在那個範圍內。現在，Axel、Jim 添加了任何內容。因為我認為 Pat 正在尋找的是在這個模型中放入什麼數字，我不知道我們是否可以給他這個數字。正確的。

Yes, exactly. I don't think it's a stretch forward number. But June's point, the way we look at it is in the context of a financial plan and the excess capital that we have and putting that money to work, consuming some of that excess capital over time, ensuring that we are getting the return and we are delivering the returns for shareholders as we do that.

對，就是這樣。我不認為這是一個向前延伸的數字。但 June 的觀點，我們看待它的方式是在財務計劃和我們擁有的過剩資本的背景下，並將這些錢投入使用，隨著時間的推移消耗一些過剩資本，確保我們獲得回報，我們正在為股東提供回報，因為我們這樣做。

This is Jim again. One thing I would add is our investment plan, our long-term projections are based -- are fed into the corporate model to ensure the capital consumption that we have still enables the company to deliver shareholder capital to shareholders. And so it's all integrated, it's all part of our process. So we're thinking about that as we look at -- when we say 30% to 40% private assets, -- we have actually made sure that that's feasible under the construct that we're making investments and allows us to return capital to shareholders as we have indicated in the past.

這又是吉姆。我要補充的一件事是我們的投資計劃，我們的長期預測是基於 - 被輸入公司模型以確保我們仍然擁有的資本消耗使公司能夠向股東提供股東資本。所以這一切都是集成的，都是我們流程的一部分。所以我們在考慮這個問題——當我們說 30% 到 40% 的私人資產時——我們實際上已經確保在我們進行投資的結構下這是可行的，並允許我們將資本返還給正如我們過去所指出的那樣。

A good way to think about that, Pablo, if you want just to add to what the guy said is we've always had this business, it's very much sustainable as we -- also as we position our site cars with 15:1 leverage, which is -- has a mix of 30%, 40% private assets in the Republic. So you can back into the math that way, if you're levered up to 15 to 1. Net on a capital charge basis means you're running the business at like 7% capital. If that helps.

一個很好的思考方式，Pablo，如果你只想補充那個人所說的，我們一直都有這項業務，它非常可持續，因為我們 - 以及我們以 15：1 的槓桿率定位我們的現場汽車，即——在共和國擁有 30%、40% 的私人資產。因此，如果您的槓桿比例高達 15 比 1，您可以以這種方式重新計算。資本費用淨額意味著您以 7% 的資本運營業務。如果這有幫助。

Yes, yes. That's helpful. And then the last one for me. Just any high-level comments you can give on stat earnings for '22 and '23, which as you guys ultimately drive capital generation? And what I'm thinking about here is the drag from low index credits, right, with better spreads and fee income as offsets. I think in the past presentation, you had mentioned the distributable cash flow of about $150 million to $175 million for $22 million. Is that all funded by stat earnings? Or is there some thing down of casual involved there? Thank you.

是的是的。這很有幫助。然後是我的最後一個。您可以就 22 年和 23 年的統計收入發表任何高水平的評論，你們最終會推動資本產生嗎？我在這裡考慮的是低指數信用的拖累，對，更好的利差和費用收入作為抵消。我想在過去的演講中，你提到了 2200 萬美元的可分配現金流量約為 1.5 億至 1.75 億美元。這都是由統計收入資助的嗎？或者那裡有什麼不經意的事情？謝謝。

Yes. Thanks, Pablo for the question. Yes, I would -- exactly, I would refer back to in the investment symposium. We kind of laid that out right essentially, what are the distributable earnings from spread-related business and then adding on top of that, fee-related earnings, which are basically by definition all distributable. The other number that you mentioned there are in line with what we talked about then. I would also point you to kind of the proof is in the pudding. So this year, we took -- I just mentioned we took a $325 million dividend from the operating company to the holding company at the end of the year.

是的。謝謝，巴勃羅的問題。是的，我會——確切地說，我會在投資研討會上提到。我們從本質上講是正確的，與價差相關的業務的可分配收益是多少，然後再加上與費用相關的收益，根據定義，這些收益基本上都是可分配的。你提到的另一個數字與我們當時談到的是一致的。我還想指出布丁中的某種證據。所以今年，我們 - 我剛剛提到我們在年底從運營公司向控股公司支付了 3.25 億美元的股息。

Thank you for your answers.

謝謝您的回答。

And thank you. And I am showing no further questions. I would now like to turn the call back to Julie Heidemann for closing remarks.

謝謝你。我不再提出更多問題。我現在想把電話轉回給 Julie Heidemann，請她作結束語。

Thank you for your interest in American Equity and for participating in today's call. Should you have any follow-up questions, please feel free to contact us.

感謝您對 American Equity 的關注並參與今天的電話會議。如果您有任何後續問題，請隨時與我們聯繫。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。