In my opinion, just looking at one quarterly report doesn't give the full picture of the company. According to my analysis AEL is a fundamentally good company. By considering their past history their figures are as follows
For the last five years
Return on Equity: 18.0%
Payout Ratio: 49.7%
Sustainable Growth 9.0%
Average P/E Ratio: 12.8
Annually Compounded Rates of Growth (5 year EPS): 18.6%
Based on sustainable growth rate of 9% AEL projected price for this year is around 30. For the next 5 to 10 years it will be around 60 to 100.
Based on AEL's Historical Earnings Growth Rate the projected price or this year is around 40. For the next 5 to 10 years it will be around 140 to 170.
The above figures do not include future subdivision, rights issue, etc....It is only based on the past figures from their annual report. Remember.... this analysis is to give you an idea of the performance of the company and the projected prices are subject to external influences.
Can any of the experts endorse my analysis