Galveston, TX — 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:
- improved earnings in our property and casualty segment and annuity segment;
- an increase in net realized investment earnings; and
- a decline in net gains on equity securities.
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:
- improved earnings in our property and casualty segment and annuity segment;
- an increase in net realized investment earnings; and
- an increase in net gains on equity securities.
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)
