American Equity Investments
- Thread starter sandil
- Start date
yes.
Why them?
Their stock dropped 20pct today. Not sure why but maybe this has something to do with it;
American Equity Investment Life Holding Co. announced it’s exposure to troubled financial companies in a filing Friday with the Securities and Exchange Commission.
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The West Des Moines annuity and insurance products provider said it has $41.7 million in Fannie Mae and Freddie Mac preferred stock, which currently trade at 5 to 12 percent of its value.
American Equity will take charges in the third quarter on Lehman Brother’s preferred stock, which filed for bankruptcy Sept. 15; Washington Mutual Bank senior unsecured debt securities after the bank was sold to JP Morgan Thursday; and securities in AIG, which was taken over by the government Sept. 17.
The total amortized cost of these investments represents 0.5 percent the company’s invested assets as of June 30, the company said.
Why them?
Their stock dropped 20pct today. Not sure why but maybe this has something to do with it;
American Equity Investment Life Holding Co. announced it’s exposure to troubled financial companies in a filing Friday with the Securities and Exchange Commission.
OAS_AD('ArticleFlex_1');
The West Des Moines annuity and insurance products provider said it has $41.7 million in Fannie Mae and Freddie Mac preferred stock, which currently trade at 5 to 12 percent of its value.
American Equity will take charges in the third quarter on Lehman Brother’s preferred stock, which filed for bankruptcy Sept. 15; Washington Mutual Bank senior unsecured debt securities after the bank was sold to JP Morgan Thursday; and securities in AIG, which was taken over by the government Sept. 17.
The total amortized cost of these investments represents 0.5 percent the company’s invested assets as of June 30, the company said.
- 958
Excellent, patch. Enough said.
- 2,908
Right, but what was said. That American Equities stock has dropped along with most other stocks and that they took a half of a per cent hit on Lehman Brothers investments which seems to me like they maintained their distance from that stuff quite nicely.
We have to be careful that when someone asks about the long term safety of a company that we don't start sending out generalities about their stock price which may or may not have anything to do with their debt and liability to asset ratio and how well insured and re-insured they may be. The person asked whether the carrier was safe long term based on financials, presumably, and not whether the stock price may have fallen back because of general conditions in the economy or the unlikelihood that it will meet analysts projections.
As an FMO you may have an interest in promoting other carriers.
Winter
- 958
Good and fair point, Winter. True that we can’t make generalities, so we do have to consider general economic conditions and other factors, including prevailing interest rate levels, stock and credit market performance (among other things) that can affect the ability of any insurance company to sell their products, including the ability to access capital resources and the costs associated, the fair value of its investments and the lapse rate – all must be considered.
So, this is a good one to watch, to see if general market conditions, etc. or something else is weighing on the stock’s value.
Thanks
So, this is a good one to watch, to see if general market conditions, etc. or something else is weighing on the stock’s value.
Thanks
- Thread starter
- #6
Saw you on forum Here's what you have to work with
Fred age 59 1/2 Sandi wife 56 1/2
have 381000 for an immediate annuity 10 years
while we are taking from that we deposit 800,000 in and ? EIA? or? you tell me for 10 yrs then start drawing from there for the remainer of our lives. Have 9 annuities 7 of 9 out of surrender. Not worried about last two. These will be 1035 Lots of luck to you to pull rabbit out of your hat. Thanks in advance
Sandi Latey
- 958
Saw you on forum Here's what you have to work with
Fred age 59 1/2 Sandi wife 56 1/2
have 381000 for an immediate annuity 10 years
while we are taking from that we deposit 800,000 in and ? EIA? or? you tell me for 10 yrs then start drawing from there for the remainer of our lives. Have 9 annuities 7 of 9 out of surrender. Not worried about last two. These will be 1035 Lots of luck to you to pull rabbit out of your hat. Thanks in advance
Sandi Latey
Hi Sandi. Could you please email me and also provide me with your phone number in the email:
[email protected]
I need more info. Thank you,
Mark
Saw you on forum Here's what you have to work with
Fred age 59 1/2 Sandi wife 56 1/2
have 381000 for an immediate annuity 10 years
while we are taking from that we deposit 800,000 in and ? EIA? or? you tell me for 10 yrs then start drawing from there for the remainer of our lives. Have 9 annuities 7 of 9 out of surrender. Not worried about last two. These will be 1035 Lots of luck to you to pull rabbit out of your hat. Thanks in advance
Sandi Latey
Very easy, but opinions may vary. Shop the 10 year immediate annuity for the best payout and put the rest in a 10 year FIA that pays a 10% bonus and put them in the fixed side of it for at least the first year. At the end of the contract they can annuitize or shop for a better deal with another immediate annuity. I like North American Ten or Midland's MNL Ten. For a split commission I will fly or drive and help you with the paperwork and the pitch.
- 958
I can vouch for Patch. Very ethical and excellent agent.
Thank you for the compliment.
My offer to help was tongue in cheek, but yes, for that size of an annuity I will go anywhere in the US for a split, as would any of you here that know the business.
I think the original poster already has enough of a handle on the business to meet the needs of the client. Fishing for ideas and confirmation is a great idea, and marketing groups on the annuity side of the business are great resources. They see all of these situations on a regular basis and can give you options that will meet the clients needs.
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