The counterparty credit rating on American Equity Investment Life Holding Co. (NYSE:AEL) reflects the company's strong operating company growth supported by the parent's substantial capital markets access and continued, aggressive asset/liability management (ALM). The ALM profile is a concern in a rising interest rate environment if policyholder withdrawals exceed expectations and if surrender charge protection provides an insufficient cushion. The company maintains an entrepreneurial focus, resulting in a low operating cost structure under a growing, seasoned management team. The company places tremendous emphasis on its relationships and service to its distributors while maintaining controls to ensure appropriate market conduct. AEL's operating unit'sùAmerican Equity Investment Life Insurance Co. (American Equity)ù2005 operating performance was in line with expectations with pretax GAAP operating
