GALVESTON, TX — American National Group, Inc. (NASDAQ: ANAT) and subsidiaries (collectively, the “Company”) announced net income for the first quarter of 2022 of $108.8 million or $4.05 per diluted share, compared to net income of $170.2 million or $6.33 per diluted share for the same period in 2021. The reduction in net income in the first quarter of 2022 was primarily due to an $83.3 million decrease in net gains on equity securities, partially offset by an increase in realized investment earnings of $20.4 million.
Net losses on equity securities 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 for the same period in 2021, primarily as a result of favorable market conditions for equity securities during the first quarter of 2021. Additionally, the Company liquidated almost its entire investment in equity securities in the fourth quarter of 2021.
Net realized investment earnings for the first quarter of 2022 were $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 earnings was attributable to an increase in sales of real estate development properties in the first quarter of 2022.
After-tax adjusted net operating income 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 an increase in earnings from our corporate and other segment driven by higher investment income coupled with increased earnings in our annuity segment partially offset by a decrease in earnings from our life segment due to adverse mortality experience.
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 $249.56. The decrease in book value per share is primarily attributable to unrealized losses on available-for-sale bonds due to increased interest rates during the quarter.
Update Regarding Pending Merger with Brookfield Asset Management
Reinsurance Partners Ltd. As previously announced, the Company entered into a merger agreement with Brookfield Asset Management Reinsurance Partners Ltd. ("Brookfield Reinsurance") and its wholly-owned merger subsidiary on August 6, 2021. Subject to the conditions set forth in the merger agreement, at the closing of the transaction, the Company will become a wholly owned subsidiary of Brookfield Reinsurance and each then-outstanding share of the Company’s common stock 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 remaining significant merger closing condition is the receipt of the required regulatory approval from the insurance authorities in Texas, Missouri, New York, Louisiana, and California. On September 3, 2021, Brookfield Reinsurance made the required Form A filings with each of these state insurance regulators. Those regulators are reviewing the filings and the insurance regulatory process has been moving forward consistent with our prior disclosures, and we continue to expect to complete the Merger before the end of the first half of 2022. However, because state insurance regulatory approval remains outstanding, the Company cannot provide assurance the Merger will be completed on the terms or timeline currently contemplated, or 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:
American National Consolidated Financial Highlights
(Preliminary & Unaudited in $USD millions, except per share data)
