American National Announces First Quarter 2021 Results
American National Group, Inc. (NASDAQ: ANAT) reported a net income of $170.2 million ($6.33 per diluted share) for Q1 2021, a significant recovery from a net loss of $220.4 million ($8.20 loss per diluted share) in Q1 2020. This shift is mainly due to a substantial increase in the value of its equity securities, which led to after-tax gains of $75.8 million. Additionally, adjusted net operating income rose to $77.3 million ($2.87 per diluted share) from $68.8 million ($2.56 per diluted share) in the previous year, despite higher mortality and increased claims in certain segments.
- Net income rose to $170.2 million in Q1 2021 from a loss of $220.4 million in Q1 2020.
- Equity securities generated after-tax gains of $75.8 million compared to a loss of $262.7 million in Q1 2020.
- Adjusted net operating income increased to $77.3 million from $68.8 million year-over-year.
- Total life insurance in force grew by $2.2 billion to $130.4 billion.
- Book value per share increased by $1.73 to $241.93.
- Higher mortality rates in the life segment affecting profitability.
- Increased catastrophe claims in the property and casualty segment.
GALVESTON, Tx., May 03, 2021 (GLOBE NEWSWIRE) -- American National Group, Inc. (NASDAQ: ANAT) (formerly American National Insurance Company)(1) and subsidiaries (collectively, the “Company”) announced net income for the first quarter of 2021 of
In addition, net income for the first quarter of 2021 included after-tax net realized investment earnings of
After-tax adjusted net operating income for the first quarter of 2021 was
For the first quarter of 2021, total life insurance in force increased by
| (1) | Effective July 1, 2020, American National Group, Inc. was established as the parent company of American National Insurance Company under a stockholder-approved holding company reorganization. As a result of the reorganization, American National Group, Inc. replaced American National Insurance Company as the publicly held corporation. |
A reconciliation of adjusted net operating income, a non-GAAP measure, to GAAP net income is included in the following table.
| American National Consolidated Financial Highlights | ||||||||||
| (Preliminary & Unaudited in millions, except per share data) | ||||||||||
| Quarters Ended March 31, | ||||||||||
| 2021 | 2020 | |||||||||
| Net income (loss) (GAAP basis) | $ | 170.2 | $ | (220.4 | ) | |||||
| Adjustments to eliminate the impact of: | ||||||||||
| Unrealized gains (losses) on equity securities | $ | 76.4 | $ | (263.5 | ) | |||||
| Net gains (losses) on equity securities sold | (0.6 | ) | 0.8 | |||||||
| Net gains (losses) on equity securities | $ | 75.8 | $ | (262.7 | ) | |||||
| Adjustments to eliminate the impact of: | ||||||||||
| Net realized investment gains | $ | 15.2 | $ | 3.2 | ||||||
| Change in estimated credit loss | (3.5 | ) | (38.2 | ) | ||||||
| Equity in earnings of unconsolidated real estate joint ventures and other investments | 5.5 | 8.3 | ||||||||
| Net income (loss) attributable to noncontrolling interest | 0.1 | (0.2 | ) | |||||||
| Net realized investment earnings (losses) | $ | 17.1 | $ | (26.5 | ) | |||||
| Adjusted net operating income(1) (non-GAAP basis)* | $ | 77.3 | $ | 68.8 | ||||||
| Per diluted share | ||||||||||
| Net income (loss) (GAAP basis) | $ | 6.33 | $ | (8.20 | ) | |||||
| Net gains (losses) on equity securities | 2.82 | (9.77 | ) | |||||||
| Net realized investment earnings (losses) | 0.64 | (0.99 | ) | |||||||
| Adjusted net operating income(1) (non-GAAP basis)* | $ | 2.87 | $ | 2.56 | ||||||
| Weighted average number of diluted shares upon which computations are based | 26,884,899 | 26,891,675 | ||||||||
| As of | ||||||||||
| March 31, 2021 | December 31, 2020 | |||||||||
| Book value per diluted share | $ | 241.93 | $ | 240.20 | ||||||
| * | This measure is non-GAAP because it is not based on accounting principles generally accepted in the United States. This non-GAAP measure is used by the Company to enhance comparability between periods and to eliminate the impact of certain items listed in footnote 1 below, which can fluctuate in a manner unrelated to core operations due to factors such as market volatility, interest rate changes and credit risk. In the opinion of the Company’s management, inclusion of this non-GAAP measure is meaningful to provide an understanding of the significant factors that comprise the Company’s periodic results of operations. | |
| (1) | Adjusted net operating income excludes the after-tax impact of net gains (losses), both realized and unrealized, on equity securities and net realized investment earnings. Net realized investment earnings (losses) are comprised of realized investment gains on assets (excluding equity securities), changes in estimated credit loss, and earnings (losses) from our equity in earnings of unconsolidated real estate joint ventures and other investments and non-controlling interests. |
American National Group, Inc. is a family of companies that has, on a consolidated GAAP basis,
American National Insurance Company has been assigned an ‘A’ rating by A.M. Best Company and an ‘A’ rating by Standard & Poor’s, both of which are nationally recognized rating agencies, and is licensed to conduct the business of insurance in all states except New York.
For more information, including company news and investor relations information, visit the Company’s web site at www.AmericanNational.com.
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