American National Insurance Company (NASDAQ:ANAT) announced fourth quarter 2007 net income of $53,333,000 ($2.00 per diluted share) compared to $110,864,000 ($4.17 per diluted share) for the same period in 2006.
After tax operating earnings for the fourth quarter were $48,748,000 ($1.83 per diluted share) compared with $73,733,000 ($2.77 per diluted share) for the same period in 2006. After tax operating earnings exclude after tax net realized investment gains and losses. A decrease in investment income of $26.4 million, after tax, was the primary reason for the drop in the comparative results. The 2006 investment income was favorably impacted by gains on the disposition of real estate and mortgage loan payoffs in American National's real estate subsidiaries.
After tax net realized investment gains were $4,585,000 ($0.17 per diluted share) for the fourth quarter of 2007 compared with $37,131,000 ($1.40 per diluted share) for the same period in 2006.
ANNUAL RESULTS
Net income for the full year of 2007 totaled $240,773,000 ($9.04 per diluted share) compared to $273,231,000 ($10.27 per diluted share) for 2006. The 2007 after tax operating earnings totaled $210,549,000 ($7.90 per diluted share) compared to $208,039,000 ($7.82 per diluted share) for 2006. After tax operating earnings exclude after tax net realized investment gains and losses, which totaled a net realized gain of $30,224,000 ($1.14 per diluted share) for 2007 compared to a net realized gain of $65,192,000 ($2.45 per share) in 2006.
OPERATIONS
American National's operations continue to be strong with no direct exposure to sub-prime mortgage lending. Stockholders' equity as of December 31, 2007 increased 4.5% from December 31, 2006 to a total of $3,736,784,000 ($140.28 per diluted share). Assets as of December 31, 2007 totaled $18,464,869,000, an increase of 3.0% from year-end 2006.
Life insurance and annuity sales increased significantly in 2007. Policyholder deposits on interest-sensitive products, both life insurance and annuities, totaled $1,219,919,000 in 2007, an increase of 11.8% from 2006. Earned premium from life insurance and annuities for 2007 increased 21.9% from 2006, to a total of $547,394,000.
American National Insurance Company
COMPARATIVE OPERATIONAL HIGHLIGHTS
Compiled on a GAAP basis (Unaudited)*
Quarter Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
Revenues $727,519,000 $844,107,000 $3,071,107,000 $3,114,431,000
After-tax
earnings:
Operating
earnings * $48,748,000 $73,733,000 $210,549,000 $208,039,000
Net realized
investment
gains $4,585,000 $37,131,000 $30,224,000 $65,192,000
Net income $53,333,000 $110,864,000 $240,773,000 $273,231,000
Per share
earnings:
Operating
earnings ** $1.83 $2.77 $7.90 $7.82
Net realized
investment
gains $0.17 $1.40 $1.14 $2.45
Net income -
Diluted $2.00 $4.17 $9.04 $10.27
Net income -
Basic $2.01 $4.19 $9.09 $10.32
Weighted average
number of shares
Upon which
computations
are based:
Diluted 26,638,219 26,612,464 26,638,219 26,612,464
Basic 26,479,832 26,479,832 26,479,832 26,479,832
As of
December 31, December 31,
2007 2006
Book value per
diluted share $140.28 $134.36
* Results are preliminary and unaudited. American National expects to
issue its audited consolidated financial statements in March.
** Operating earnings exclude after-tax realized investment gains and
losses. The sum of Operating earnings and Realized investment gains
(losses) is equal to Net income.
American National Insurance Company is headquartered in Galveston, Texas. American National has over $18.4 billion in assets and is rated A+ (Superior) by A.M. Best Company, and AA (Very Strong) by Standard & Poor's. The American National family of companies offers a broad line of products and services, which include life insurance, annuities, health insurance, credit insurance, pension plan services and property and casualty insurance for personal lines, agribusiness, and targeted commercial exposures. American National's major insurance subsidiaries include American National Life Insurance Company of Texas, Standard Life and Accident Insurance Company, Garden State Life Insurance Company, American National Property and Casualty Company, Farm Family Life Insurance Company, Farm Family Casualty Insurance Company, United Farm Family Insurance Company and American National de Mexico, Compania de Seguros de Vida, S.A. de C.V.
For more information, including company news and investor relations information, visit the company's web site at http://www.anico.com/.
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