American National Announces Second Quarter 2021 Results
02 Août 2021 - 8:55PM
American National Group, Inc. (NASDAQ: ANAT) and subsidiaries
(collectively, the “Company”) announced net income for the second
quarter of 2021 of $228.0 million or $8.48 per diluted share,
compared to net income of $210.5 million or $7.83 per diluted share
for the same period in 2020.
Net income for the second quarter of 2021 increased
$17.5 million primarily due to:
- improved earnings in our property and casualty segment and
annuity segment;
- an increase in net realized investment earnings; and
- a decline in net gains on equity securities.
Adjusted net operating income for the second
quarter of 2021 was $50.4 million or $1.87 per diluted share
compared to $17.0 million or $0.63 per diluted share for the same
period in 2020. This increase reflects improved earnings in our
property and casualty segment from our agricultural and homeowner's
products. Additionally, earnings from our annuity segment increased
from our equity indexed annuity products.
Net realized investment earnings for the second
quarter of 2021 were $42.7 million or $1.59 per diluted share,
compared to net realized investment losses of $42.6 million or
$1.58 per diluted share for the same period in 2020. The increase
in net realized investment earnings was primarily attributable to a
reduction in our estimated credit loss due to improved market
conditions related to our commercial mortgage loans during the
second quarter of 2021.
Net gains on equity securities decreased to $134.9
million or $5.02 per diluted share in the second quarter of 2021,
compared to $236.1 million or $8.78 per diluted share for the same
period in 2020 as the financial markets were rebounding from the
pandemic onset in the first quarter of 2020.
Net income for the six months ended June 30, 2021
increased $408.0 million primarily due to:
- improved earnings in our property and casualty segment and
annuity segment;
- an increase in net realized investment earnings; and
- an increase in net gains on equity securities.
Adjusted net operating income for the six months
ended June 30, 2021 was $127.7 million or $4.75 per diluted share,
compared to $85.9 million or $3.19 per diluted share for the same
period in 2020. The increase in adjusted net operating income
reflects the aforementioned improvement in earnings from our
annuity and property and casualty segments, partially offset by
higher mortality claims in our life segment.
Net realized investment earnings for the first half
of 2021 were $59.7 million or $2.22 per diluted share, compared to
net realized investment losses of $69.1 million or $2.57 per
diluted share for the same period in 2020. The increase in net
realized investment earnings is primarily driven by the favorable
change in estimated credit loss in 2021.
Net gains on equity securities were $210.7 million
or $7.84 per diluted share, compared to net losses on equity
securities of $26.7 million or $0.99 per diluted share for the same
period in 2020. The after-tax net losses on equity securities in
the six months ended June 30, 2020 was driven by the negative
impact on financial markets associated with the COVID-19
pandemic.
For the six months ended June 30, 2021, total life
insurance in force increased by $5.0 billion to $133.2 billion, and
book value per share increased $11.32 to $251.52.
A reconciliation of GAAP net income to adjusted net
operating income, a non-GAAP measure, is shown in the table
below:
American National Consolidated Financial
Highlights |
(Preliminary & Unaudited in millions, except per share
data) |
|
|
|
|
|
|
|
|
|
Quarters Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income (loss) (GAAP basis) |
$ |
228.0 |
|
|
$ |
210.5 |
|
|
$ |
398.1 |
|
|
$ |
(9.9 |
) |
Adjustments to eliminate the
impact of: |
|
|
|
|
|
|
|
Unrealized gains (losses) on equity securities |
$ |
136.2 |
|
|
$ |
236.1 |
|
|
$ |
212.6 |
|
|
$ |
(27.5 |
) |
Net gains (losses) on equity securities sold |
(1.3 |
) |
|
— |
|
|
(1.9 |
) |
|
0.8 |
|
Net gains (losses) on equity securities |
$ |
134.9 |
|
|
$ |
236.1 |
|
|
$ |
210.7 |
|
|
$ |
(26.7 |
) |
|
|
|
|
|
|
|
|
Adjustments to eliminate the
impact of: |
|
|
|
|
|
|
|
Net realized investment gains |
$ |
8.4 |
|
|
$ |
3.1 |
|
|
$ |
23.5 |
|
|
$ |
6.4 |
|
Change in estimated credit loss |
15.8 |
|
|
(41.2 |
) |
|
12.3 |
|
|
(79.4 |
) |
Equity in earnings (losses) of unconsolidated real estate joint
ventures and other investments |
18.6 |
|
|
(4.3 |
) |
|
24.1 |
|
|
4.0 |
|
Net income attributable to noncontrolling interest |
0.1 |
|
|
0.2 |
|
|
0.2 |
|
|
0.1 |
|
Net realized investment earnings (losses) |
$ |
42.7 |
|
|
$ |
(42.6 |
) |
|
$ |
59.7 |
|
|
$ |
(69.1 |
) |
|
|
|
|
|
|
|
|
Adjusted net operating
income(1) (non-GAAP
basis)* |
$ |
50.4 |
|
|
$ |
17.0 |
|
|
$ |
127.7 |
|
|
$ |
85.9 |
|
|
|
|
|
|
|
|
|
Per diluted share |
|
|
|
|
|
|
|
Net income (loss) (GAAP
basis) |
$ |
8.48 |
|
|
$ |
7.83 |
|
|
$ |
14.81 |
|
|
$ |
(0.37 |
) |
Net gains (losses) on equity securities |
5.02 |
|
|
8.78 |
|
|
7.84 |
|
|
(0.99 |
) |
Net realized investment earnings (losses) |
1.59 |
|
|
(1.58 |
) |
|
2.22 |
|
|
(2.57 |
) |
Adjusted net operating
income(1) (non-GAAP
basis)* |
$ |
1.87 |
|
|
$ |
0.63 |
|
|
$ |
4.75 |
|
|
$ |
3.19 |
|
|
|
|
|
|
|
|
|
Weighted average number of
diluted shares upon which computations are based |
26,884,722 |
|
|
26,887,129 |
|
|
26,884,794 |
|
|
26,889,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
June 30, 2021 |
December 31, 2020 |
|
|
|
|
Book value per diluted
share |
$ |
251.52 |
|
|
$ |
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 (losses). 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, $30.4 billion in
assets, $23.6 billion in liabilities and $6.8 billion in
stockholders’ equity as of June 30, 2021. 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 ‘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.
Contact: Brody J. Merrill (409) 766-6826
American National (NASDAQ:ANAT)
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