American National Announces Fourth Quarter and Full Year 2020 Results

GALVESTON, Texas, March 01, 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 fourth quarter of 2020 of $306.4 million or $11.40 per diluted share, compared to $171.1 million or $6.37 per diluted share for the same period in 2019. The increase in net income for the fourth quarter of 2020 was primarily attributable to an increase of $77.0 million or $2.86 per diluted share in after-tax net gains on equity securities, an increase of $20.2 million or $0.75 per diluted share in after-tax net realized investment earnings, and an increase of $20.4 million or $0.75 per diluted share in after-tax earnings from our property and casualty business.
After-tax net gains on equity securities increased due to more favorable equity market conditions to $188.0 million or $6.99 per diluted share in the fourth quarter of 2020 compared to $111.0 million or $4.13 per diluted share for the same period in 2019. In addition, after-tax net realized investment earnings for the fourth quarter of 2020 were $25.7 million or $0.96 per diluted share, compared to $5.5 million or $0.21 per diluted share during the same period in 2019.Net income for the twelve months ended December 31, 2020 was $467.5 million or $17.39 per diluted share, down from net income of $620.4 million or $23.07 per diluted share for the same period in 2019. The reduction in net income was primarily related to a $116.7 million or $4.34 per diluted share reduction in after-tax net realized investment gains and a $52.3 million or $1.94 per diluted share reduction in after-tax net gains on equity securities.After-tax net realized investment losses increased during 2020 due to an expense of $82.8 million or $3.08 per diluted share for changes in estimated credit losses. The expense related to estimated credit losses primarily relates to certain of our mortgage loans which were negatively impacted by the economic downturn related to COVID-19 and is in accordance with our adoption of accounting guidance⁽²⁾ which impacted 2020 but was not applicable in 2019. In addition, after-tax net realized investment gains were reduced due to fewer sales and lower gains on sales of real estate development entities in 2020 compared to 2019. The reduction in the net gain on equity securities was primarily driven by the first quarter downturn in financial markets resulting from the impacts of COVID-19.After-tax adjusted net operating income for the fourth quarter of 2020 was $92.7 million or $3.45 per diluted share compared to $54.6 million or $2.03 per diluted share for the same period in 2019. The increase was mostly driven by an improvement in our property and casualty segment operating earnings.After-tax adjusted net operating income for the twelve months ended December 31, 2020 was $208.0 million or $7.74 per diluted share compared to $191.9 million or $7.14 per diluted share for the same period in 2019. Increased earnings from our property and casualty business were partially offset by reductions in investment income and lower earnings from our life business due to unfavorable mortality experience.For the twelve months ended December 31, 2020, total life insurance in force increased by $10.1 billion to $128.2 billion, and book value per share increased $17.46 to $240.20.A reconciliation of adjusted net operating income, a non-GAAP measure, to GAAP net income is included in the following table.
American National is a family of companies that has, on a consolidated GAAP basis, $29.5 billion in assets, $23.0 billion in liabilities and $6.5 billion in stockholders’ equity. American National Insurance Company, founded in 1905 and headquartered in Galveston, Texas, and other American National subsidiaries offer a broad portfolio of products and services, which include life insurance, annuities, property and casualty insurance, health insurance, credit insurance, and pension products. The American National companies operate in all 50 states. In addition to American National Insurance Company, major subsidiaries include American National Life Insurance Company of Texas, American National Life Insurance Company of New York, American National Property and Casualty Company, Garden State Life Insurance Company, Standard Life and Accident Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company.American National Insurance Company has been assigned an ‘A’ rating by A.M. Best Company and an ‘Excellent’ 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.Contact: Timothy A. Walsh (409) 766-6553