American Equity Investment Life Holding Company (NYSE: AEL), a leading underwriter of index and fixed rate annuities, today announced that its Board of Directors has authorized American Equity to repurchase up to 500,000 shares of its common stock during the next twelve months. The share repurchase program is intended to offset dilution that results from the exercise of stock options. The share repurchases will be made from time-to-time at the Company’s discretion in the open market, in privately negotiated transactions or otherwise as permitted by securities laws and other legal requirements. The timing of any such transactions will depend on a variety of factors, including market conditions and share price. The Board of Directors may modify, suspend, extend or terminate the program at any time.
Commenting on the stock repurchase program, John Matovina, Chief Executive Officer and President, said: “The Company intends to use cash proceeds from stock option exercises for the 500,000 share repurchase authorization. With the retirement of all of our convertible notes less than thirteen months away from completion and a positive outlook for future cash flow performance, the Board and management believe it is appropriate at this time to use a modest portion of the holding company’s cash and expected cash flow to partially offset the dilutive effect of shares issued upon exercise of stock options.”
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.
ABOUT AMERICAN EQUITY
American Equity Investment Life
Holding Company, through its wholly-owned operating subsidiaries, is a
full service underwriter of fixed annuity and life insurance products,
with a primary emphasis on the sale of index and fixed rate annuities.
American Equity Investment Life Holding Company, a New York Stock
Exchange Listed company (NYSE: AEL), is headquartered in West Des
Moines, Iowa. For more information, please visit www.american-equity.com.
Contacts:
John M.
Matovina, Chief Executive Officer
515-457-1813, jmatovina@american-equity.com
or
Ted
M. Johnson, Chief Financial Officer
515-457-1980, tjohnson@american-equity.com
or
Debra
J. Richardson, Chief Administrative Officer
515-273-3551, drichardson@american-equity.com
or
Julie
L. LaFollette, Director of Investor Relations
515-273-3602, jlafollette@american-equity.com