American Equity Investment Life Holding Company is one of the largest independent fixed indexed annuity providers in the United States. Founded in 1995, they’ve grown to over $70 billion in assets by focusing almost exclusively on FIAs — specifically products with income riders designed for retirement income planning.
American Equity’s strength is their deep expertise in fixed indexed annuities and income riders. If you’re shopping for an FIA with a guaranteed lifetime withdrawal benefit, American Equity should be on your comparison list.
Key Takeaways
- AM Best A- (Excellent) — meets our minimum A-rated threshold
- One of the largest FIA specialists in the U.S. with $70B+ in assets
- Known for income-focused FIAs with competitive GLWB riders
- Products sold through independent agents — broad distribution
- Acquired by Brookfield Asset Management in 2024, adding significant capital backing
American Equity Annuity Products
IncomeShield 10 — American Equity’s flagship income FIA. 10-year surrender period. S&P 500 and other index options. The IncomeShield Income Benefit provides a guaranteed 8% simple interest rollup on the benefit base for up to 10 years. Lifetime withdrawal rates of 4.5%–7.0% depending on age at income start.
Best for: Pre-retirees (ages 55–65) who want to maximize future guaranteed income over a 7–10 year deferral period.
AssetShield 7 — 7-year FIA focused on accumulation rather than income. Multiple index strategies, no income rider (keeping costs low). Competitive caps for index-linked growth.
Best for: Accumulation buyers who want FIA growth potential without the cost of an income rider.
American Equity Income Choice — Simplified FIA product with a straightforward index strategy and income rider. Designed for buyers who want guaranteed future income without complex product features.
Financial Strength Ratings
| Agency | Rating |
|---|---|
| AM Best | A- (Excellent) |
| S&P Global | BBB+ (Good) |
Note: S&P’s BBB+ rating is below our typical A-rated threshold. AM Best remains the primary rating for insurance-specific financial strength assessment. Buyers should weigh this alongside the AM Best A- rating and the recent Brookfield backing.
American Equity Pros and Cons
| Pros | Cons |
|---|---|
| FIA specialist — deep expertise in income products | AM Best A- — meets threshold but not A+ or A++ |
| Competitive GLWB income riders for retirement planning | S&P rating (BBB+) below investment-grade threshold for some buyers |
| $70B+ in assets — significant scale | 10-year surrender period on income products |
| Brookfield backing adds capital strength | FIA products require careful income rider comparison |
| Wide independent broker distribution | No MYGA product — FIA specialist only |
Frequently Asked Questions
Is American Equity a good annuity company?
American Equity is a strong FIA specialist with $70B+ in assets and AM Best A- rating. Their income rider products are particularly competitive. Buyers who want MYGAs should look elsewhere — American Equity focuses on FIAs. The AM Best A- meets our minimum threshold, though buyers should note the S&P BBB+ rating.
Who owns American Equity now?
Brookfield Asset Management completed its acquisition of American Equity Investment Life in 2024. Brookfield manages over $1 trillion in assets globally. This acquisition provides significant additional capital backing for American Equity’s insurance obligations.
What is American Equity’s best income annuity product?
The IncomeShield 10 is American Equity’s flagship income product. Its 8% simple interest rollup on the benefit base over 10 years — combined with competitive lifetime withdrawal rates — makes it one of the more competitive income FIAs on the market. Compare it against similar products from Athene, Midland National, and North American before purchasing.
American Equity: Company History
American Equity Investment Life Holding Company was founded in 1995 in West Des Moines, Iowa, specifically to focus on the fixed indexed annuity (FIA) market. Unlike most of its competitors, which sell a broad range of insurance products, American Equity has always been an FIA specialist. This focus has allowed the company to develop particularly competitive income rider products and to grow rapidly as the FIA market expanded over the past two decades.
In 2024, Brookfield Asset Management completed its acquisition of American Equity, taking the company private. Brookfield manages over $1 trillion in assets globally and is one of the largest alternative asset managers in the world. The Brookfield acquisition provided American Equity with substantial additional capital backing and integration into Brookfield broader insurance platform. Today American Equity manages over $70 billion in assets and is one of the top FIA issuers in the United States by premium volume.
One rating note that matters for buyers: American Equity carries an AM Best A- (Excellent) rating, but an S&P BBB+ rating that sits below what some buyers consider investment grade. AM Best specializes in insurance company ratings and is the primary rating used in the annuity industry. S&P rates insurance companies more conservatively. Most independent brokers consider the AM Best A- sufficient for recommending American Equity products, but high-net-worth or ultra-conservative buyers may prefer carriers with stronger dual ratings.
American Equity Product Deep Dive
IncomeShield 10 (Flagship Income FIA)
IncomeShield 10 is American Equity most popular product and the one most buyers are actually researching when they ask about American Equity. It is a 10-year fixed indexed annuity with a strong income rider called the IncomeShield Income Benefit. The income rider provides a guaranteed 8% simple interest rollup on the benefit base for up to 10 years, meaning your guaranteed lifetime income floor grows by 80% of the original premium over the full deferral period (not compounded, but still meaningful).
Lifetime withdrawal rates at activation run 4.5% to 7.0% depending on your age and whether you choose single or joint life coverage. For a 60-year-old depositing $200,000 and deferring 10 years, the guaranteed lifetime income at age 70 is typically $17,000 to $18,000 per year, competitive with Allianz 222 and Athene Ascent Pro.
AssetShield 7 (Accumulation FIA)
AssetShield 7 is the accumulation-focused counterpart to IncomeShield. It has a 7-year surrender period, multiple index crediting strategies, and no income rider (which keeps the cost lower). For buyers who want FIA principal protection and index-linked growth without the guaranteed lifetime income feature, AssetShield 7 is the simpler and cheaper choice.
Without the income rider fee (typically 0.95% to 1.25% annually), the account value grows faster. But without the rider, there is no guaranteed lifetime income floor. AssetShield 7 is best for buyers who want to preserve flexibility to withdraw or pass on the account value rather than commit to lifetime payouts.
Income Choice (Simplified Income FIA)
Income Choice is American Equity mid-tier income FIA, positioned between AssetShield 7 and IncomeShield 10. It offers a simpler income rider structure with fewer moving parts than IncomeShield, designed for buyers who want guaranteed future income but do not need to optimize every rider feature.
How to Buy from American Equity
American Equity annuities are sold through independent insurance brokers and registered investment advisors. The company does not sell direct to consumers.
- Find an independent broker with American Equity appointments. FIA-focused brokerages carry American Equity alongside Allianz, Athene, Midland National, and other top FIA providers.
- Request an illustration for IncomeShield 10 (or your target product) showing projected account value, income benefit base growth, and guaranteed lifetime income at various activation ages.
- Compare directly against Allianz 222, Athene Ascent Pro, and Midland Endeavor Plus. These are the four leading income FIAs on the market. The winner depends on your age, deferral period, and specific contract terms.
- Complete the application and fund via wire transfer, ACH, or IRA/401(k) rollover.
- Use the free-look period to review the full contract, including the fine print on income rider calculations and surrender charges.
Who Should NOT Buy an American Equity Annuity
- MYGA buyers. American Equity does not sell MYGAs. If you want a simple fixed-rate guaranteed annuity, look at North American, Athene, or Global Atlantic instead.
- Buyers who want dual top ratings. American Equity carries AM Best A- but S&P BBB+, below what some conservative buyers require. For stronger dual ratings, consider Nationwide (A+/AA-) or Allianz (A+/AA).
- Buyers who may need liquidity. IncomeShield 10 has a 10-year surrender period with charges starting around 9% in year one. If there is any chance you need the money before year 10, this product is the wrong choice.
- Buyers under 50. The income rider math only works out favorably when you are within 5 to 15 years of activating lifetime income. For savers under 50 with long time horizons, a MYGA ladder or a taxable investment portfolio is almost always better.
American Equity vs. Direct Competitors (Income FIAs)
| Feature | American Equity IncomeShield 10 | Allianz 222 | Athene Ascent Pro |
|---|---|---|---|
| Carrier Rating | A- / BBB+ | A+ / AA | A / A+ |
| Surrender Period | 10 years | 10 years | 10 years |
| Income Base Bonus | None | 22.2% upfront | 20% upfront |
| Income Base Rollup | 8% simple for 10 years | 22% simple for 10 years | 8% compound for 10 years |
| Payout at 70 (single, $200K) | ~$17,500/year | ~$17,500/year | ~$18,000/year |
| Income Rider Fee | ~0.95% to 1.25% | ~1.20% | ~1.05% |
| Best For | FIA specialist + 8% rollup | Headline bonus + A+ carrier | Top payout from A-rated scale |
