American Equity Investment Life Holding Co. was assigned a counterparty credit rating and its $150 million senior unsecured note issue was assigned a debt rating on May 24, 2002 based on the adequate financial position, cash flows, and good capital structure of its operating subsidiary, American Equity Investment Life Insurance Co. (AEI). The outlook is stable. The company is expected to produce strong earnings in 2002 as demonstrated by the first quarter 2002 result. As of first quarter of 2002, pretax GAAP earnings totaled about $6.7 million. The ratings on ratings on AEI were affirmed, reflecting the company's strong position in its chosen markets, extremely strong liquidity, extraordinary sales growth dominated by fixed annuities, and a high quality investment portfolio.
