American National Announces Third Quarter Results
October 24 2018 - 2:41PM
American National Insurance Company (Nasdaq: ANAT) announced net
income of $173.4 million or $6.44 per diluted share for the third
quarter of 2018. Net income for the third quarter of 2018 increased
by $105.7 million as compared to the third quarter of 2017 due to
the inclusion of net unrealized gains on equity securities as
required by new accounting guidance (1) effective January 1, 2018.
Excluding the impact of these net unrealized gains to provide
a more consistent basis to compare these results to the prior
period, net income for the third quarter of 2018 was $67.7 million
or $2.52 per diluted share compared to net income of $73.3 million
or $2.72 per diluted share for the third quarter of 2017. Net
income for the third quarter of 2018 included $1.1 million of
realized investment earnings compared to $31.0 million of realized
investment earnings included in net income for the same period in
2017.
Net income for the nine months ended September 30, 2018 was
$276.4 million. Excluding the impact of $115.1 million in net
unrealized gains on equity securities reported in accordance with
the new required accounting guidance (1) previously noted, net
income for the first nine months of 2018 was $161.3 million
compared to $149.1 million for the same period in 2017. Net
income for the nine months ended September 30, 2018 included $20.7
million of realized investment earnings compared to $57.3 million
of realized investment earnings included in net income for the same
period in 2017.
Operating income for the third quarter of 2018 increased to
$66.6 million or $2.48 per diluted share compared to $42.3 million
or $1.57 per diluted share for the same period of 2017.
Operating income increased due to better performance in our
annuity and health segments and from additional investment income
and reduced tax expense from certain actions including a
significant contribution to our pension plan that improved the
performance of our corporate and other segment.
For the nine months ended September 30, 2018, operating income
was $140.6 million compared to $91.8 million for the same period in
2017. The increase in operating income for the first nine
months of 2018 compared to the same period in 2017 is primarily
attributable to improved performance in our corporate and other
segment and our health segment.
Operating income excludes net unrealized gains (losses) on
equity securities and realized investment earnings. Realized
investment earnings are comprised of realized investment gains
(losses), equity in earnings (losses) of unconsolidated affiliates
and income (loss) from non-controlling interests.
Book value per diluted share as of September 30, 2018 was
$199.55, compared to book value per share of $194.61 on December
31, 2017.
(1) Reflects the January 1, 2018 adoption of ASU 2016-01,
Financial Instruments: Recognition and Measurement of Financial
Assets and Financial Liabilities
Additional Highlights Summary:
- Premiums and other policy revenues for the first nine months of
2018 increased 10% or $170.1 million to $1.9 billion compared to
the same period in 2017
- American National’s stockholders’ equity increased to $5.4
billion or 2.4% since December 31, 2017
- Total life insurance in force increased by $5.5 billion to
$108.6 billion since December 31, 2017
American National Insurance
Company
COMPARATIVE OPERATIONAL HIGHLIGHTSCompiled on a GAAP basis
(Preliminary & Unaudited in millions)*
|
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Quarters Ended September 30, |
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Nine Months Ended September
30, |
|
|
2018 |
|
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2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
1,052.2 |
|
$ |
872.8 |
|
$ |
2,807.7 |
|
$ |
2,486.6 |
After-tax earnings: |
|
|
|
|
|
|
|
|
|
|
|
Operating income ** |
$ |
66.6 |
|
$ |
42.3 |
|
$ |
140.6 |
|
$ |
91.8 |
Net realized investment earnings and unrealized gains
(losses) ** |
|
106.8 |
|
|
31.0 |
|
|
135.8 |
|
|
57.3 |
Net income |
$ |
173.4 |
|
$ |
73.3 |
|
$ |
276.4 |
|
$ |
149.1 |
|
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|
|
|
|
|
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Per diluted share earnings: |
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|
|
|
|
|
|
|
|
|
Operating income ** |
$ |
2.48 |
|
$ |
1.57 |
|
$ |
5.22 |
|
$ |
3.41 |
Net realized investment earnings and unrealized gains
(losses) ** |
|
3.96 |
|
|
1.15 |
|
|
5.04 |
|
|
2.12 |
Net income |
$ |
6.44 |
|
$ |
2.72 |
|
$ |
10.26 |
|
$ |
5.53 |
|
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|
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Weighted average number of diluted shares |
|
|
|
|
|
|
|
|
|
|
|
upon which computations are based |
|
26,893,013 |
|
|
26,958,664 |
|
|
26,923,540 |
|
|
26,959,227 |
|
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As of |
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September 30, 2018 |
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December 31, 2017 |
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Book value per diluted share |
|
|
|
$ |
199.55 |
|
$ |
194.61 |
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* Results are preliminary and
unaudited. American National expects to timely file its Form 10-Q
in November.** Operating income excludes net
unrealized gains (losses) on equity securities and realized
investment earnings (losses). Realized investment earnings
are comprised of realized investment gains (losses), equity in
earnings (losses) of unconsolidated affiliates and income (loss)
from non-controlling interests.
American National is a family of companies that has, on a
consolidated GAAP basis, $27.3 billion in assets, $21.9 billion in
liabilities and $5.4 billion in stockholders’ equity. American
National, founded in 1905 and headquartered in Galveston, Texas,
and its subsidiaries offer a broad line of products and services,
which include life insurance, annuities, health insurance, credit
insurance, pension products and property and casualty insurance.
The American National companies operate in all 50 states. Major
insurance 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, the parent 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: Timothy A. Walsh (409) 766-6553
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