DATE: September 6, 2011
TO: All American Equity Agents
The stock, bond, and commodity markets are experiencing a high degree of volatility as the U.S. economy struggles to recover from the recent downturn. Events around the world and unprecedented measures taken by the Federal Reserve Bank have caused high quality bond yields to fall to record lows. Each of us is challenged to manage our business through an investment and economic environment never seen before.
American Equity’s mission is to provide “Sleep Insurance” with the highest potential yield for our policyholders while providing the best service in the industry to our agents. We will continue to do this by maintaining our sound and solid financial strategy. Today’s economic environment dictates that we make adjustments to our current interest crediting rates and participation caps.
Current interest rates and caps will change effective October 1, 2011
We will be adjusting our crediting rates and participation caps effective October 1, 2011. Because of high market volatility, we believe it would be premature to fix new rates 30 days prior to the effective date. However, we do believe it is important for you, our valued agent, and your clients to know that adjustments need to be made to our rates. We will continue to monitor markets and interest rates over the next couple of weeks and inform you of the specific adjustments prior to October 1.
8% IAV accumulation option to end September 30, 2011
The 8% accumulation option on the Lifetime Income Benefit Rider will expire as planned on September 30, 2011. After this date, the 7% accumulation option will be available along with the 5% option.
We pledge to provide the best service in the industry. We believe that informing you of upcoming interest rate and cap adjustments in a manner that allows you an opportunity to communicate with your clients is a demonstration of our pledge. Thank you very much for your business and support of American Equity.
Sincerely,
Ron Grensteiner
President
