UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 2, 2021
_______________________________
American National Group Inc
(Exact name of registrant as specified in its charter)
_______________________________
| Delaware | 001-39369 | 30-1221711 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
One Moody Plaza
Galveston, Texas 77550-7999
(Address of Principal Executive Offices) (Zip Code)
(409) 763-4661
(Registrant's telephone number, including area code)
n/a
(Former name or former address, if changed since last report)
_______________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, Par Value $0.01 | ANAT | NASDAQ |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On August 2, 2021, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
| 99.1 | Press Release dated August 2, 2021 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| American National Group Inc | ||
| Date: August 2, 2021 | By: | /s/ Brody J. Merrill |
| Brody J. Merrill | ||
| Senior Vice President, CFO & Treasurer | ||
EXHIBIT 99.1
American National Announces Second Quarter 2021 Results
GALVESTON, Texas, Aug. 02, 2021 (GLOBE NEWSWIRE) -- 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:
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:
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