AMERICAN EQUITY INVESTMENT LIFE INSURANCE COMPANY DOES NOT INFORM CLIENTS OF POSITIVE MARKET VALUE ADJUSTMENTS WHICH BENEFIT CLIENT ON THIER ANNUAL STATEMENTS WEST DES MOINES, Iowa

IF AMERICAN EQUITY IS NOT ATTEMPTING TO MISLEAD POLICYHOLDERS, THEN WHY NOT LIST THE MVA AS A SEPARATE ITEM? IT APPEARS AS IF AEL IS TRYING TO MISLEAD POLICYHOLDERS AS TO THE TRUE MAKE-UP OF ANY DIFFERENCES BETWEEN THE ACCUMULATED VALUE AND THE SURRENDER VALUE. THE CLIENT SHOULD BE ADVISED AT LEAST ANNUALLY OF ANY POSITIVE OR NEGATIVE EFFECT THE MVA HAS ON THEIR WITHDRAWAL OF FUNDS. WHY IS AEL NOT INTERESTED IN FULL DISCLOSURE TO THEIR POLICYHOLDERS?

First of all, American Equity has very few products with Market Value Adjustments (MVA). None of our currently marketed Fixed Indexed Annuities carry a MVA.

For the few products we have with a MVA, it is true the dollar amount of the MVA is not reported on the annual statement as a seperate item. The contract Surrender Value, which includes the MVA (positive or negative) is cleary displayed on the annual statement.

This report seems to insinuate that American Equity is trying to hide the MVA if it is positive to the client. That is completely false.