GALVESTON, TX - American National Group, Inc. (NASDAQ: ANAT) (formerly American National Insurance Company)(1) and subsidiaries (collectively, the “Company”) announced net income for the second quarter of 2020 of $210.5 million or $7.83 per diluted share, compared to $98.8 million or $3.67 per diluted share for the same period in 2019. The increase in net income for the second quarter of 2020 was primarily attributable to an after-tax net gain on equity securities of $236.1 million or $8.78 per diluted share due to favorable equity market conditions, compared to $53.0 million or $1.97 per diluted share for the same period in 2019.
Net income for the second quarter of 2020 included after-tax net realized investment losses of $49.0 million or $1.82 per diluted share, compared to after-tax net realized investment earnings of $6.4 million or $0.23 per diluted share during the same period in 2019. The after-tax net realized investment loss in the second quarter of 2020 included an expense of $41.2 million or $1.53 per diluted share due to changes in estimated credit losses resulting from our adoption of new accounting guidance, which was effective January 1, 2020 and had no impact on 2019(2). The increase in estimated credit losses was primarily due to the economic disruption relating to the novel coronavirus (COVID-19) and its impact on some of our mortgage loans.
After-tax net loss for the six months ended June 30, 2020 was $9.9 million or $0.37 per diluted share, down from net income of $357.1 million or $13.28 per diluted share for the same period in 2019. The net loss for the six months ended June 30, 2020 included an after-tax net loss on equity securities of $26.7 million or $0.99 per diluted share compared to an after-tax net gain on equity securities of $216.0 million or $8.03 per diluted share for the same period in 2019. The year-to-date loss on equity securities in 2020 was primarily driven by the first quarter downturn in financial markets resulting from the impacts of COVID-19.
In addition, the net loss for the six months ended June 30, 2020 included after-tax net realized investment losses of $71.5 million or $2.66 per diluted share, compared to after-tax net realized investment earnings of $42.0 million or $1.56 per diluted share for the same period in 2019. The after-tax net realized investment loss for the six months ended June 30, 2020 included an expense of $79.4 million or $2.95 per diluted share due to changes in estimated credit losses resulting from our adoption of the aforementioned new accounting guidance(2). In addition, earnings from unconsolidated affiliates decreased from prior year due to reduced sales of real estate development entities and lower valuations of alternative investment entities given current market conditions.
After-tax adjusted net operating income for the second quarter of 2020 was $23.4 million or $0.87 per diluted share compared to $39.4 million or $1.47 per diluted share for the same period in 2019. The decrease in earnings was driven by higher catastrophe losses in our property and casualty homeowners line of business and a reduction in earnings from our life business. During the second quarter of 2020, our life business had unfavorable mortality experience in early duration term policies when compared to the second quarter of 2019. This change in life mortality was not related to COVID-19.
After-tax adjusted net operating income for the six months ended June 30, 2020 was $88.3 million or $3.28 per diluted share compared to $99.1 million or $3.69 per diluted share for the same period in 2019. The decrease in earnings is primarily the result of less investment income in 2020 and an unfavorable change in mark-to-market reserves in our indexed annuity products.
For the six months ended June 30, 2020, total life insurance in force increased by $5.0 billion to $123.1 billion, and book value per share declined slightly to $221.90 primarily due to a $2.66 loss per diluted share resulting from changes in estimated credit losses(2).
In regard to COVID-19, American National continues to be fully operational with the majority of our employees working remotely. We continue to monitor developments related to the COVID-19 pandemic to assess its impact on our business; however, due to the evolving and highly uncertain nature of this event, it currently is not possible to estimate with reasonable confidence the ultimate direct and indirect impact of COVID-19 on our business, results of operations, financial condition, or liquidity. To date, COVID-19 has impacted us most notably with economic uncertainty and volatility in the financial markets in which we invest and with the diminished ability of certain of our clients and borrowers to make timely payments to us. This has resulted in our taking protective measures to mitigate the impact of COVID-19 on performance and increase liquidity should a need arise. Additional discussion and detail about our response to COVID-19 and its impacts on us will be contained in our Form 10-Q for the quarterly period ended June 30, 2020, which we expect to file on a timely basis with the Securities and Exchange Commission.
(1) Effective July 1, 2020, American National Group, Inc. was established as the parent company of American National Insurance Company under a previously announced holding company reorganization. As a result of the reorganization, American National Group, Inc. replaced American National Insurance Company as the publicly held corporation.
(2) Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
A reconciliation of adjusted net operating income, a non-GAAP measure, to GAAP net income is included in the following table:
American National Consolidated Financial Highlights
(Preliminary & Unaudited in millions, except per share data)
