American National Announces First Quarter 2022 Results


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GALVESTON, Texas, May 03, 2022 (GLOBE NEWSWIRE) — American National Group, Inc. (NASDAQ:ANAT) and its subsidiaries (collectively, the “Company”) reported first quarter 2022 net income of $108.8 million. or $4.05 per diluted share, compared to net earnings of $170.2 million or $6.33 per diluted share for the same period in 2021. The reduction in net earnings in the first quarter of 2022 is primarily due a decrease of $83.3 million in net equity gains, partially offset by an increase in realized investment income of $20.4 million.

Net equity losses were $7.5 million or $0.28 per diluted share in the first quarter of 2022, compared to a net gain of $75.8 million or $2.82 per diluted share. diluted share for the same period in 2021, primarily due to favorable market conditions for equity securities during the first quarter of 2021. In addition, the Company liquidated substantially all of its investment in equity securities in during the fourth quarter of 2021.

Net realized investment income for the first quarter of 2022 was $37.5 million or $1.39 per diluted share, compared to $17.1 million or $0.64 per diluted share for the same period in 2021. The increase in net realized investment income is attributable to an increase in sales of real estate development properties in the first quarter of 2022.

Adjusted net operating income after tax for the first quarter of 2022 was $79.6 million or $2.97 per diluted share, compared to $77.3 million or $2.87 per diluted share for the same period in 2021. The increase reflects increased earnings from our Corporate and Other segment driven by higher investment income coupled with increased earnings from our Annuities segment partially offset by lower earnings from our life segment due to unfavorable mortality experiences.

For the first quarter of 2022, total life insurance in force increased by $1.4 billion to $138.4 billion and book value per share decreased by $10.60 to s set at $249.56. The decrease in book value per share is mainly due to unrealized losses on available-for-sale bonds due to the increase in interest rates during the quarter.

Update regarding the pending merger with Brookfield Asset Management Reinsurance Partners Ltd.

As previously announced, the Company has entered into a merger agreement with Brookfield Asset Management Reinsurance Partners Ltd. (“Brookfield Reinsurance”) and its wholly owned amalgamated subsidiary on August 6, 2021. Subject to the terms set forth in the merger agreement, upon closing of the transaction, the Company will become a wholly owned subsidiary of Brookfield Reinsurance and each then outstanding common stock of the Company will be converted into the right to receive $190.00 per share in cash, for total merger consideration of approximately $5.1 billion.

The only material condition remaining to the closing of the merger is receipt of required regulatory approval from insurance authorities in Texas, Missouri, New York, Louisiana and California. On September 3, 2021, Brookfield Reinsurance filed the required Forms A with each of these state insurance regulators. These regulators are reviewing filings and the insurance regulatory process is progressing consistent with our previous disclosures, and we continue to expect to complete the merger before the end of the first half of 2022. However, given that insurance regulatory approval by State remains pending, the Company cannot guarantee that the Merger will be completed under the conditions or within the timeframe currently envisaged, if at all.

GAAP Reconciliation of Non-GAAP Measures

A reconciliation of GAAP net income to adjusted net operating income, a non-GAAP measure, is shown in the table below:

US National Consolidated Financial Highlights
(Preliminary and unaudited in millions of US dollars, except per share data)
Quarters ended March 31
2022 2021
Net income (GAAP basis) $ 108.8 $ 170.2
Adjustments to eliminate the impact of:
Net gains (losses) on equity investments $ (7.5 ) $ 75.8
Adjustments to eliminate the impact of:
Net realized investment gains $ 8.1 $ 15.2
Increase in credit loss (9.2 ) (3.5 )
Equity from earnings of unconsolidated real estate joint ventures and other investments 40.0 5.5
Net income attributable to non-controlling interests 1.4 0.1
Net realized investment income $ 37.5 $ 17.1
Adjustments to eliminate the impact of:
One-time Merger Fees $ (0.8 ) $
Net non-recurring charges $ (0.8 ) $
Adjusted net operating income(1)(non-GAAP basis)* $ 79.6 $ 77.3
Per diluted share
Net income (GAAP basis) $ 4.05 $ 6.33
Net gains (losses) on equity securities (0.28 ) 2.82
Net realized investment income 1.39 0.64
Net non-recurring charges (0.03 )
Adjusted net operating income(1)(non-GAAP basis)* $ 2.97 $ 2.87
Weighted average number of diluted shares on which the calculations are based 26,884,741 26,884,899
From
March 31, 2022 December 31, 2021
Book value per diluted share $ 249.56 $ 260.16

* This measure is not in accordance with GAAP as it is not based on United States generally accepted accounting principles. This non-GAAP measure is used by the Company to improve comparability between periods and to eliminate the impact of certain items listed in footnote (1) below, which may fluctuate in an uncertain manner. related to core business due to factors such as market volatility, interest rates, rate changes and credit risk. In the opinion of the Company’s management, the inclusion of this non-GAAP measure is meaningful in providing an understanding of the important factors that make up the Company’s periodic results of operations.

(1) Adjusted net operating income excludes the after-tax impact of net gains (losses) on equity securities, net realized gains (losses) on investments and one-time expenses. Net realized investment income includes realized investment gains on assets (excluding equity securities), increased credit losses, and income from unconsolidated real estate joint ventures and other investments that do not guarantee insurance products and non-controlling interests. One-time charges relate to the impending merger with Brookfield Reinsurance.

American National Group, Inc. is a family of companies that, on a consolidated GAAP basis, has $30.9 billion in assets, $24.2 billion in liabilities and $6.7 billion in equity at March 31, 2022. 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 retirement products. US national corporations operate in all 50 states. Besides 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 Company property and casualty insurance and United Farm Family Insurance Company.

American National Insurance Company has been assigned an “A u” rating by AM Best Company and an “A” rating by S&P Global Ratings(1), both of which are nationally recognized rating agencies, and is licensed to conduct insurance business in all states except New York.

For more information, including company news and investor relations information, visit the company’s website at www.AmericanNational.com.

(1) AM Best placed American National’s issuers’ credit and financial strength ratings on watch with developing implications and S&P Global Ratings placed ratings on CreditWatch with negative implications due to impending merger with Brookfield Reinsurance.

Contact: Brody J. Merrill (409) 766-6826

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Source: American National Group Inc.

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