UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
Form 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): July 24, 2018
American National Insurance Company
(Exact Name of Registrant as Specified in Charter)
| TEXAS | 001-34280 | 74-0484030 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| One Moody Plaza, Galveston, Texas 77550-7999 |
| (Address of Principal Executive Offices) (Zip Code) |
(409) 763-4661
(Registrant's telephone number, including area code)
n/a
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On July 24, 2018, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| American National Insurance Company | ||
| Date: July 24, 2018 | By: | /s/ Timothy A. Walsh |
| Timothy A. Walsh | ||
| Chief Financial Officer | ||
EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Press Release dated July 24, 2018 |
EXHIBIT 99.1
American National Announces Second Quarter Results
GALVESTON, Texas, July 24, 2018 (GLOBE NEWSWIRE) -- American National Insurance Company (Nasdaq:ANAT) announced net income of $84.1 million or $3.12 per diluted share for the second quarter of 2018. Net income for the second quarter of 2018 increased by $35.1 million due to the inclusion of unrealized gains on equity securities as a result of new required accounting guidance(1) effective January 1, 2018. Excluding the impact of these unrealized gains, net income increased to $49.0 million or $1.82 per diluted share compared to net income of $35.9 million or $1.33 per diluted share for the second quarter of 2017.
Operating income for the second quarter of 2018 increased to $29.9 million or $1.11 per diluted share compared to $21.2 million or $0.79 per diluted share for the same period of 2017. The increase in operating income for the quarter compared to the same period in 2017 was due primarily to improved performance in our life, annuity and health segments.
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. After-tax realized investment earnings for the second quarter of 2018 were $19.1 million or $0.71 per diluted share compared to earnings of $14.7 million or $0.54 per diluted share for the same period in 2017.
Book value per diluted share as of June 30, 2018 was $194.34, compared to book value per share of $194.61 on December 31, 2017. The slight reduction in book value was primarily due to the impact of unrealized losses on bonds and dividends to shareholders which offset increases to book value from net income and the cumulative effect of accounting changes.
Net income for the six months ended June 30, 2018 was $102.9 million. Excluding the impact of $9.4 million in unrealized gains on equity securities resulting from new required accounting guidance(1), net income was $93.5 million compared to $75.8 million for the same period in 2017. Operating earnings through June 2018 increased $24.3 million to $73.9 million from $49.6 million over prior year primarily because of improved results from our life, property and casualty, health and corporate and other segments.
Second quarter 2018 Highlights:
(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 June 30, | Six Months Ended June 30, | ||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||
| Revenues | $ | 952,071,000 | $ | 834,093,000 | $ | 1,755,446,000 | $ | 1,613,890,000 | |||||
| After-tax earnings: | |||||||||||||
| Operating income ** | $ | 29,876,000 | $ | 21,240,000 | $ | 73,944,000 | $ | 49,560,000 | |||||
| Net realized and unrealized gains (losses)** | 54,263,000 | 14,719,000 | 28,972,000 | 26,239,000 | |||||||||
| Net income | $ | 84,139,000 | $ | 35,959,000 | $ | 102,916,000 | $ | 75,799,000 | |||||
| Per diluted share earnings: | |||||||||||||
| Operating income ** | $ | 1.11 | $ | 0.79 | $ | 2.74 | $ | 1.84 | |||||
| Net realized and unrealized gains (losses)** | 2.01 | 0.54 | 1.08 | 0.97 | |||||||||
| Net income | $ | 3.12 | $ | 1.33 | $ | 3.82 | $ | 2.81 | |||||
| Weighted average number of diluted shares | |||||||||||||
| upon which computations are based | 26,910,257 | 26,955,881 | 26,933,123 | 26,966,175 | |||||||||
| As of | |||||||||||||
| June 30, 2018 | December 31, 2017 | ||||||||||||
| Book value per diluted share | $ | 194.34 | $ | 194.61 | |||||||||
* Results are preliminary and unaudited. American National expects to timely file its Form 10-Q in August.
** 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, $26.8 billion in assets, $21.6 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