GALVESTON, Texas, April 24, 2018 (GLOBE NEWSWIRE) -- American National Insurance Company ANAT announced net income of $18.8 million or $0.70 per diluted share for the first quarter of 2018. Net income for the first quarter of 2018 was reduced by $25.7 million in unrealized losses on equity securities as a result of our adoption of new accounting guidance(1) which impacted the first quarter of 2018 but not the first quarter of 2017. Excluding the impact of these unrealized losses, net income would have been $44.5 million or $1.66 per diluted share as compared to first quarter 2017 net income of $39.8 million or $1.48 per diluted share.
Operating income for the first quarter of 2018 increased to $44.1 million or $1.63 per diluted share compared to $28.3 million or $1.05 per diluted share for the same period of 2017. Operating income for the quarter primarily increased as a result of improved earnings from our property and casualty segment due to a lower combined ratio in the first quarter of 2018 as compared to the same period in 2017. 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 was $194.37 as of March 31, 2018 consistent with book value per share of $194.61 on December 31, 2017.
After-tax realized investment earnings for the first quarter of 2018 were $0.4 million or $0.03 per diluted share compared to earnings of $11.5 million or $0.43 per diluted share for the same period in 2017.
First quarter 2018 Highlights:
- First quarter 2018 premiums and other revenues, at $803.4 million, increased $23.6 million, or 3.0%, compared to the first quarter of 2017
- After-tax operating income increased $15.7 million, or 55.6% over the prior year quarter
- Total life insurance in force increased by $1.8 billion to reach $104.9 billion as of March 31, 2018
(1) Reflects the January 1, 2018 adoption of ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities
American National Insurance Company
COMPARATIVE OPERATIONAL HIGHLIGHTS
Compiled on a GAAP basis (Preliminary & Unaudited)*
| Quarters Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| Revenues | $ | 803,375,000 | $ | 779,797,000 | ||||
| After-tax earnings: | ||||||||
| Operating income ** | $ | 44,068,000 | $ | 28,320,000 | ||||
| Net realized and unrealized gains (losses)** | (25,291,000 | ) | 11,520,000 | |||||
| Net income | $ | 18,777,000 | $ | 39,840,000 | ||||
| Per diluted share earnings: | ||||||||
| Operating income ** | $ | 1.63 | $ | 1.05 | ||||
| Net realized and unrealized gains (losses)** | (0.93 | ) | 0.43 | |||||
| Net income | $ | 0.70 | $ | 1.48 | ||||
| Weighted average number of diluted shares | ||||||||
| upon which computations are based | 26,964,355 | 26,972,128 | ||||||
| As of | ||||||||
| March 31, 2018 | December 31, 2017 | |||||||
| Book value per diluted share | $ | 194.37 | $ | 194.61 | ||||
* Results are preliminary and unaudited. American National expects to timely file its Form 10-Q in May.
** Operating income excludes unrealized investment gains (losses) on equity securities and net 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, $26.4 billion in assets, $21.2 billion in liabilities and $5.2 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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