GALVESTON, TX — American National Insurance Company (Nasdaq: ANAT) announced higher second quarter 2017 net income of $35.9 million or $1.33 per diluted share, a 10.2% increase over the same period 2016 net income of $32.6 million or $1.21 per diluted share. Book value per diluted share increased to $177.67 at June 30, 2017 from $172.51 at December 31, 2016.
Second quarter after-tax operating income was $21.2 million or $0.79 per diluted share compared to the same period 2016 operating income of $28.8 million or $1.07 per diluted share. Included in operating income for the second quarter of 2017 was an after-tax pension settlement expense of $4.7 million relating to the completion of a one-time retirement benefit withdrawal window for the frozen defined benefit pension plans. Life earnings were impacted by increased claims, which are consistent with normal statistical fluctuations. Property and casualty results reflected the increased occurrence of industry-wide catastrophe events, notably severe wind and hail.
After-tax operating income excludes realized investment earnings, which is comprised of realized investment gains, equity in earnings of unconsolidated affiliates and income (loss) from non-controlling interests. Realized investment earnings for second quarter 2017 were higher than the prior year at $14.7 million or $0.54 per diluted share compared to $3.8 million or $0.14 per diluted share for the same period in 2016.
Net income for the six months ended June 30, 2017 was $75.8 million, an increase of 22% from the same period of 2016, primarily due to higher total investment return. Life insurance in force continued to grow, increasing by $3.5 billion, to reach $99.1 billion as of June 30, 2017. Stockholders’ equity totaled $4.8 billion at June 30, 2017, a 3.0% increase from December 31, 2016.
