Investment Professionals, Inc. Continues Expansion of Fixed Income Division

Reflects IPI's Steady Growth Nationwide and Commitment to Services for Bank Partners

PR Newswire

SAN ANTONIO, Feb. 24

SAN ANTONIO, Feb. 24 /PRNewswire/ — Leading bank broker-dealer Investment Professionals, Inc. (IPI) today announced the promotion of Randolph Harger to Senior Vice President of Fixed Income Institutional Sales and the hiring of Kenneth Muniz as Vice President of Fixed Income Institutional Sales and Brian McNeely as a fixed income trader.

According to John Sacchetti, IPI Fixed Income Director, "These appointments reflect the IPI's significant growth in the bank investment program sector over the past two years and the expansion of our capabilities in retail private asset management and institutional trading." In addition, the growth in the Fixed Income Division reinforces a key strategy underlying IPI's success in the bank investment program segment: close collaboration between the bank and IPI to harvest revenue opportunities for our bank partners throughout the relationship. The fixed income credentials of the IPI team, proximity to the IPI financial advisor and inherent cost efficiencies compel bank treasury departments to explore the benefits of working with IPI in several areas.

Since 1979 Mr. Harger has specialized in institutional fixed income trading for bank, thrift and credit union clients. Prior to his career in fixed income, Mr. Harger was a practicing attorney in the State of Louisiana. He served as General Counsel to the Governor's Commission on Law Enforcement and Administration of Criminal Justice and Assistant Attorney General and Legislative Liaison for Criminal Matters under two Attorneys General. Mr. Harger holds a B.S. in Corporate Finance and Economics and a J.D. of Laws from Louisiana State University.

Ken Muniz has over 19 years' experience in the financial services industry. Prior to joining IPI, he was Executive Vice President at Entrust Wealth Solutions, LLC; Vice President of Fixed Income at TD Ameritrade; Vice President, Investments at Advisors Asset Management, Inc.; Director of Fixed Income at USAA Investment Management; and a Senior Financial Consultant in Merrill Lynch's Private Client Group. Mr. Muniz studied finance and management at the University of Texas at San Antonio.

According to IPI President and Founder Scott Barnes, "Our Fixed Income group produced stellar results in the fourth quarter of 2009 for the firm, our financial consultants, clients and financial partners. I am confident that with John Sacchetti at the helm our growing team will continue this type of performance in 2010."

Mr. Sacchetti stated, "I look forward to helping IPI stay at the forefront of its industry with competitive fixed income pricing and best-of-breed instruments for client portfolios. Our firm's unique value proposition – an advanced fixed income trading platform, unparalleled training and 360° dedicated operations support – positions us for success in 2010 and beyond."

About Investment Professionals, Inc.

Founded in 1992, IPI is a private, Texas-based investment and insurance brokerage and asset management firm with $4.2 billion under management and 45,000 clients nationwide. IPI is a leading provider of on-site bank investment programs and currently partners with more than 125 financial institutions with assets in the range of $35 million to over $7 billion. The firm's retail branches are in San Antonio and Houston, Texas, in The Woodlands and Clear Lake.

IPI recently moved up to 3rd place in its category of $35-$99 million in revenue on the San Antonio Business Journal's 2009 Fast Track list of fastest-growing companies.(1) The list ranked companies by compounded average growth in revenue in the 2006-2008 period. Notwithstanding the challenging market of 2008, IPI maintained a solid 19% average revenue growth from 2006-2008. In the 12-year period from 1996-2007, IPI earned an average return on equity of 31%.

In seven American Brokerage Consultants' Studies of Bank Brokerage and Retail Investment Services over 12 years from 1997-2009, bank executives nationwide cast over 2,200 votes overwhelmingly in favor of IPI. In 2008 IPI was voted the Most Highly Rated Bank Brokerage Firm for an unprecedented fourth time.(2) In addition to being one of the fastest-growing companies in San Antonio, IPI has been named one of the Best Companies to Work for in Texas for three years in a row.(3) IPI is a registered broker-dealer, registered investment advisor and member of FINRA and SIPC.

(1) San Antonio Business Journal, 7/17/09

(2) 1997 through 2008 national "Studies of Bank Brokerage and Retail Investment Services" conducted by American Brokerage Consultants (ABC), St. Petersburg, FL., and Bank Investment Consultant Magazine (BIC), New York, NY. In the most recent 2008 national study, a total of 2,024 banks offering retail investment programs were surveyed. A total of 14.6% of the banks who were surveyed responded to the 2008 survey. Individual banks were asked to rank their specific investment program in the ABC survey; responder results were aggregated and compared against the results of all brokers dealers in the survey. Past ranking performance may not be indicative of future ranking performance. IPI has been honored with the #1 ranking in three out of the most recent four surveys conducted by ABC.

(3) Texas Monthly Magazine, 2009, 2008, 2007

NO BANK GUARANTEE | NOT FDIC INSURED | MAY LOSE VALUE Securities and Advisory Services offered through Investment Professionals, Inc., a Registered Broker/Dealer and Registered Investment Advisor. Member FINRA and SIPC.

Media Contact: John Evans (210) 582-2799

SOURCE Investment Professionals, Inc.

Contact

John Evans of Investment Professionals, Inc., +1-210-582-2799

American Equity Investment Life Holding Company (NYSE: AEL), a leading underwriter of index and fixed rate annuities, today reported 2009 fourth quarter operating income1 of $28.7 million, or $0.48 per diluted common share, an 86% increase over adjusted2 fourth quarter 2008 operating income of $15.4 million or $0.28 per diluted common share. Operating income for the year 2009 was a record $101.8 million, or $1.75 per diluted common share, an increase of 40% over adjusted 2008 operating income of $72.5 million or $1.30 per diluted common share. Performance results for the fourth quarter and year of 2009 include:

Record annuity sales of $3.7 billion ($2.9 billion net of coinsurance) for the year 2009, and $900.0 million ($665.3 million net of coinsurance) for the fourth quarter of 2009

Record investment earnings of $932.2 million for the year 2009 and $243.2 million for the fourth quarter of 2009

Record investment spread on annuity liabilities of 3.04% for the year of 2009

A risk-based capital (”RBC”) ratio of 337% at December 31, 2009 as calculated under the National Association of Insurance Commissioners (”NAIC”) rules

Book value per outstanding common share of $13.08 including Accumulated Other Comprehensive Loss

Net income for the fourth quarter of 2009 was $36.0 million compared to an adjusted net loss of $24.0 million for the same period in 2008. Net income for the year ended December 31, 2009 was $68.5 million compared to adjusted net income of $15.9 million for 2008. The net loss for the fourth quarter of 2008 as well as net income for the year of 2008 was impacted by the recognition of $97.9 million of pretax losses ($36.9 million after offsets for income taxes and adjustments to the amortization of deferred acquisition costs and deferred sales inducements) arising from “other than temporary impairments” under applicable accounting rules.

FAVORABLE SALES CLIMATE

Sales conditions for index annuities were very favorable throughout 2009, due to equity market declines and low interest rates on competing products such as bank certificates of deposit. Index annuities provide guaranteed principal, minimum interest and account value, as well as guaranteed retirement income for life. In addition, several of American Equity’s key competitors in the index annuity market reduced the amount of new sales they were willing to receive. As a result, American Equity was able to capitalize on the opportunity to grow sales to unprecedented levels and increase market share. Commented David J. Noble, Executive Chairman: “For the fourth quarter and full year of 2009, American Equity sold 12% of all fixed index annuities, ranking third in size of market share. While several competitors are expected to resume accepting a higher level of sales, favorable sales conditions have continued into the first quarter of 2010. We are optimistic that 2010 will be another strong year for American Equity.”

EMPHASIS ON ASSET QUALITY

The company’s investing activities in 2009 reached an all time high with approximately $6.7 billion invested in new fixed income securities with an average yield of 6.35% and $249 million in commercial mortgage loans with an average yield of 6.91%. Sources of cash for new investments included primarily proceeds from bonds sold or called for redemption ($4.8 billion) as well as net proceeds from annuity sales (approximately $2.9 billion). During the fourth quarter of 2009, American Equity’s average yield on total invested assets was 6.23%, and new investments were made in $636.5 million of fixed income securities with an aggregate yield of 6.25%, and $99.8 million in commercial mortgage loans with an aggregate yield of 6.90%.

American Equity has consistently maintained a strategy of emphasizing credit quality and attempting to minimize default risk in its invested assets. Accordingly, all fixed income security investments purchased in 2009 were investment grade when purchased. During 2009, a portion of the company’s residential mortgaged-backed securities (”RMBS”) were downgraded by credit rating agencies causing the company’s exposure to below investment grade assets to increase above historical levels. However, during the fourth quarter of 2009 the NAIC authorized a re-rating process to better align NAIC designations with the severity of expected losses in RMBS. As a result, a significant portion of American Equity’s RMBS were restored to a higher NAIC designation, with 94.8% now rated investment grade (NAIC designation 1 or 2). The re-rating process also reduced the regulatory capital required to be held for those RMBS restored to higher NAIC designations which benefited the company’s RBC ratio.

American Equity’s commercial mortgage loans had an aggregate value of $2.4 billion at December 31, 2009, which represented 16% of total invested assets and included 1,011 individual loans with average loan size of $2.4 million. During 2009, impairment losses were recognized on five commercial mortgage loans and totaled $6.5 million or 0.3% of the year end loan values. No losses or impairments were recognized on commercial mortgage loans in the fourth quarter of 2009. The company’s aggregate loan to value ratio was 56% at December 31, 2009 based upon appraised value at origination and 58% of loans include full or partial recourse to the borrower.

BALANCE SHEET STRENGTH

American Equity implemented several strategies in 2009 to support its regulatory capital during this period of dynamic growth, including:

The restructuring of sales agent commission payments, the company’s largest expense after interest to policyholders, to defer 25% of such payments over a two-year period after sale.

Utilization of the undrawn balance of $75 million under the company’s bank line of credit for contribution to the capital of its primary operating subsidiary.

Expansion of an existing reinsurance treaty to reduce required regulatory reserves for that portion of penalty-free withdrawals which typically are not utilized by policyholders.

Implementation of a coinsurance arrangement with Athene Life Re, a newly formed Bermuda reinsurer, to cede liabilities exceeding American Equity’s 2009 growth targets.

Initiation of a $50 million “at-the-market” offering of American Equity common stock to provide enhanced financial flexibility for supporting regulatory capital and/or debt reduction.

Completion of a $52.2 million issuance of 5.25% Contingent Convertible Senior Notes due 2029 (”5.25% Notes due 2029″) to provide additional liquidity for supporting regulatory capital and/or debt reduction.

In addition, during the last two years American Equity has taken several steps to address indebtedness which will become payable in the fourth quarter of 2011, including its 5.25% Contingent Convertible Senior Notes due 2024 (”5.25% Notes due 2024″) and indebtedness under its bank line of credit. Such steps in 2009 included:

The exchange of $37.2 million in principal amount of its 5.25% Notes due 2024 for 5 million shares of common stock.

The exchange of $63.6 million in principal amount of its 5.25% Notes due 2024 for the same amount of 5.25% Notes due 2029.

The company will continue to address opportunistically the remainder of the debt coming due or expected to be put in the fourth quarter of 2011. Leverage and coverage ratios remain well within acceptable ranges for the company’s present ratings from credit rating agencies.

EAGLE LIFE INSURANCE COMPANY

American Equity continues to battle the Securities and Exchange Commission in connection with its adoption of Rule 151A, which expands the SEC’s jurisdiction to regulate index annuities and requires securities licensing, in addition to insurance licensing, for sales producers. The future of Rule 151A is uncertain as efforts to overturn the rule through judicial and/or legislative means continue. Should those efforts prove unsuccessful, American Equity has taken numerous steps to prepare to sell registered index annuities as well as to expand its offering of traditional fixed rate annuities. Such steps include the formation in 2008 of Eagle Life Insurance Company (”Eagle Life”) as a wholly-owned subsidiary through which registered products will be sold. To date Eagle Life has received certificates of authority to conduct business in 31 states. In addition, Eagle Life was the first life insurer to file a registration statement for a registered index annuity following the adoption of Rule 151A. The company expects the registration statement will be declared effective by the SEC during the first quarter of 2010, and further expects to be selling registered index annuities through the broker dealer distribution channel long before Rule 151A becomes effective. In a brief filed in the court proceedings challenging Rule 151A, the SEC recently consented to an additional two-year extension on the effectiveness of Rule 151A following the date of any re-issuance of the Rule. Whether or when such re-issuance may occur is not yet known.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future operations, strategies, financial results or other developments, and are subject to assumptions, risks and uncertainties. Statements such as “guidance”, “expect”, “anticipate”, “believe”, “goal”, “objective”, “target”, “may”, “should”, “estimate”, “projects” or similar words as well as specific projections of future results qualify as forward-looking statements. Factors that may cause our actual results to differ materially from those contemplated by these forward looking statements can be found in the company’s Form 10-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statement was made and the company undertakes no obligation to update such forward-looking statements. There can be no assurance that other factors not currently anticipated by the company will not materially and adversely affect our results of operations. Investors are cautioned not to place undue reliance on any forward-looking statements made by us or on our behalf.

CONFERENCE CALL

American Equity will hold a conference call to discuss 2009 earnings on Thursday, February 25, 2010, at 10 a.m. CST. The conference call will be webcast live on the Internet. Investors and interested parties who wish to listen to the call on the Internet may do so at www.american-equity.com. The call may also be accessed by telephone by dialing 1-866-783-2140, passcode 62526907 (international callers, please dial 1-857-350-1599. An audio replay will be available shortly after the call on AEL’s web site and will be available via telephone through March 18, 2010 by calling 1-888-286-8010, passcode 81928221 (international callers will need to dial 1-617-801-6888).

ABOUT AMERICAN EQUITY

American Equity Investment Life Holding Company, through its wholly-owned operating subsidiaries, is a full service underwriter of annuity and life insurance products, with a primary emphasis on the sale of index and fixed rate annuities. The company’s headquarters are located at 6000 Westown Parkway, West Des Moines, Iowa, 50266. The mailing address of the company is: P.O. Box 71216, Des Moines, Iowa 50325.

1 In addition to net income, American Equity has consistently utilized operating income, a non-GAAP financial measure commonly used in the life insurance industry, as an economic measure to evaluate its financial performance. See accompanying tables for reconciliations of net income to operating income and descriptions of reconciling items.

2 All prior period financial statements have been adjusted due to a change in accounting for convertible debt which was effective for financial statements issued for fiscal years beginning after December 15, 2008 and interim periods within those fiscal years. See more complete discussion in the company’s Form 10-Q for the quarterly period ended September 30, 2009.

American Equity Investment Life Holding Company Net Income (Loss)/Operating Income (Unaudited) Three Months Ended Year Ended December 31, December 31, 2009 2008 2009 2008 (As Adjusted) (As Adjusted) (Dollars in thousands, except per share data) Revenues: Traditional life and accident and health insurance premiums $ 3,135 $ 3,093 $ 12,654 $ 12,512 Annuity product charges 15,857 15,400 63,358 52,671 Net investment income 243,244 214,531 932,172 822,077 Change in fair value of derivatives 108,718 (57,578 ) 216,896 (372,009 ) Net realized gains on investments, excluding other than temporary impairment ("OTTI") losses 40,692 2,212 51,279 5,555 OTTI losses on investments: Total OTTI losses (48,747 ) (97,893 ) (220,415 ) (192,648 ) Portion of OTTI losses recognized in other comprehensive income 25,632 - 133,644 - Net OTTI losses recognized in operations (23,115 ) (97,893 ) (86,771 ) (192,648 ) Gain (loss) on extinguishment of debt (3,773 ) 11,102 (675 ) 9,746 Total revenues 384,758 90,867 1,188,913 337,904 Benefits and expenses: Insurance policy benefits and change in future policy benefits 1,979 1,916 8,889 8,972 Interest sensitive and index product benefits 140,855 51,099 347,883 205,131 Amortization of deferred sales inducements 22,185 (3,488 ) 39,999 30,705 Change in fair value of embedded derivatives 114,872 27,216 529,508 (210,753 ) Interest expense on notes payable 3,565 4,646 14,853 19,773 Interest expense on subordinated debentures 3,741 4,896 15,819 19,445 Interest expense on amounts due under repurchase agreements 190 513 534 8,207 Amortization of deferred policy acquisition costs 43,071 8,143 88,009 126,738 Other operating costs and expenses 11,950 14,083 57,255 52,633 Total benefits and expenses 342,408 109,024 1,102,749 260,851 Income (loss) before income taxes 42,350 (18,157 ) 86,164 77,053 Income tax expense (benefit) 6,329 5,892 17,634 61,106 Net income (loss) 36,021 (24,049 ) 68,530 15,947 Net realized gains and net OTTI losses on investments, net of offsets (12,293 ) 43,384 (1,339 ) 92,524 Convertible debt retirement, net of income taxes 2,207 (6,495 ) 687 (5,702 ) Net effect of derivatives and other index annuity, net of offsets 2,779 2,564 33,900 (30,297 ) Operating income (a) $ 28,714 $ 15,404 $ 101,778 $ 72,472 Earnings (loss) per common share $ 0.62 $ (0.46 ) $ 1.22 $ 0.30 Earnings (loss) per common share - assuming dilution $ 0.60 $ (0.43 ) $ 1.18 $ 0.30 Operating income per common share (a) $ 0.49 $ 0.29 $ 1.81 $ 1.35 Operating income per common share - assuming dilution (a) $ 0.48 $ 0.28 $ 1.75 $ 1.30 Weighted average common shares outstanding (in thousands): Earnings (loss) per common share 58,143 52,779 56,138 53,750 Earnings (loss) per common share - assuming dilution 60,946 55,650 58,915 56,622 -------------------------------------------------------------------------------

American Equity Investment Life Holding Company Operating Income Three months ended December 31, 2009 (Unaudited) Adjustments Derivatives Realized and Other Operating As Reported Losses Index Annuity Income (a) (Dollars in thousands, except per share data) Reserves: Traditional life and accident and health insurance premiums $ 3,135 $ - $ - $ 3,135 Annuity product charges 15,857 - - 15,857 Net investment income 243,244 - - 243,244 Change in fair value of derivatives 108,718 - (102,121 ) 6,597 Net realized gains on investments, excluding other than temporary impairment ("OTTI") losses 40,692 (40,692 ) - - Net OTTI losses recognized in operations (23,115 ) 23,115 - - Loss on extinguishment of debt (3,773 ) 3,773 - - Total revenues 384,758 (13,804 ) (102,121 ) 268,833 Benefits and expenses: Insurance policy benefits and change in future policy benefits 1,979 - - 1,979 Interest sensitive and index product benefits 140,855 - (151 ) 140,704 Amortization of deferred sales inducements 22,185 (5,558 ) 4,145 20,772 Change in fair value of embedded derivatives 114,872 - (114,872 ) - Interest expense on notes payable 3,565 - - 3,565 Interest expense on subordinated debentures 3,741 - - 3,741 Interest expense on amounts due under repurchase agreements 190 - - 190 Amortization of deferred policy acquisition costs 43,071 (5,845 ) 4,506 41,732 Other operating costs and expenses 11,950 - - 11,950 Total benefits and expenses 342,408 (11,403 ) (106,372 ) 224,633 Income before income taxes 42,350 (2,401 ) 4,251 44,200 Income tax expense 6,329 7,685 1,472 15,486 Net income $ 36,021 $ (10,086 ) $ 2,779 $ 28,714 Earnings per common share $ 0.62 $ 0.49 Earnings per common share - assuming dilution $ 0.60 $ 0.48 ------------------------------------------------------------------------------- (a) In addition to net income, we have consistently utilized operating income, operating income per common share and operating income per common share - assuming dilution, non-GAAP financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Operating income equals net income (loss) adjusted to eliminate the impact of net realized gains and losses on investments including net OTTI losses recognized in operations and related deferred tax valuation allowance, loss on extinguishment of convertible debt, fair value changes in derivatives and embedded derivatives and the Lehman counterparty default on expired call options. Because these items fluctuate from quarter to quarter in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income (loss), provides information that may enhance an investor's understanding of our underlying results and profitability. -------------------------------------------------------------------------------

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