Top-three position in fixed-indexed annuities (FIAs) Limited product diversification tempers overall competitive position Well-established independent distribution network and growing presence in banks and broker-dealer space Possibility of U.S. Dept. of Labor's (DoL) new fiduciary standards pressuring sales Strong capitalization but diminished capital redundancy Surrender charges limit disintermediation risk Diversified investment portfolio despite increase in commercial mortgage-backed securities (CMBS) exposure Adequate enterprise risk management (ERM) Strong liquidity benefits from relatively stable liabilities due to long surrender periods in contracts The ratings on the holding company are three notches lower than the ratings on the operating companies, reflecting the holding company's structural subordination to its regulated insurance subsidiaries. The stable outlook on American Equity Investment Life Holding Co. (AEL) and American Equity
