AMERICAN NATIONAL GROUP INC. FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2024
American National Group Inc. filed its annual report for the fiscal year ended December 31, 2024, in the reduced disclosure format. The company reported that it is a non-accelerated filer and a smaller reporting company. The report does not provide detailed financial information, but it does indicate that the company has elected not to use the extended transition period for complying with new or revised financial accounting standards. The company also reported that it has not filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act. The report does not provide information on the company’s financial performance, but it does indicate that as of March 28, 2025, 10,000 shares of the company’s common shares were outstanding, all of which are held by Brookfield Wealth Solutions Ltd. and its affiliates.
Overview of the Company’s Financial Performance
American National Group Inc. (ANGI) is a leading insurance and financial services company that provides a wide range of products including annuities, life insurance, and property and casualty insurance. In 2024, the company reported strong financial results, driven by continued growth in its annuities business and the successful acquisition of American Equity Life Insurance Company (AEL).
Total assets increased significantly to $121.2 billion as of December 31, 2024, up from $35.9 billion the prior year. This was primarily due to the $81.2 billion in assets acquired from AEL, as well as organic growth in the company’s annuity and pension risk transfer (PRT) businesses.
Net income attributable to ANGI common stockholders was $696 million in 2024, up from $392 million in 2023. This increase was driven by higher net premiums, investment income, and earnings contributions from the AEL acquisition, partially offset by higher policyholder benefits, interest expenses, and operating expenses.
Revenue and Profit Trends
ANGI’s total revenues grew 76% to $9.5 billion in 2024, up from $5.4 billion in 2023. This was largely due to a $2.0 billion increase in net premiums, primarily from growth in the PRT business and the company’s first U.K. reinsurance transaction.
Net investment income also increased by $2.2 billion, driven by the growth in assets under management following the AEL acquisition, as well as the continued deployment of capital into higher-yielding investment strategies.
On the expense side, policyholder benefits and claims incurred rose $2.1 billion, reflecting the growth in the PRT business. Interest sensitive contract benefits increased $1.3 billion due to the larger in-force block of annuity business. Amortization of deferred policy acquisition costs, deferred sales inducements, and value of business acquired increased $414 million, primarily from the AEL acquisition.
Operating expenses grew $279 million, largely due to transaction costs related to the AEL acquisition and the inclusion of eight months of AEL’s operating expenses.
Despite the increase in expenses, ANGI’s Distributable Operating Earnings (DOE), a non-GAAP measure of operating performance, grew 130% to $1.4 billion in 2024, up from $617 million in 2023. This growth was driven by strong performance across the company’s annuities, property and casualty, and life insurance segments.
Analysis of Strengths and Weaknesses
One of ANGI’s key strengths is its diversified business model, with operations spanning annuities, life insurance, and property and casualty insurance. This diversification helps to mitigate risk and provides multiple avenues for growth.
The company’s successful acquisition of AEL has also been a major strength, allowing it to significantly expand its annuities platform and gain a stronger foothold in the PRT market. The integration of AEL’s operations has gone smoothly, and the company has been able to capitalize on cross-selling opportunities and realize cost synergies.
Another strength is ANGI’s strong liquidity position, with $45.2 billion in total liquidity as of December 31, 2024. This provides the company with ample financial flexibility to pursue growth opportunities and withstand potential economic downturns.
However, one potential weakness is the company’s exposure to interest rate and equity market risks through its annuities and life insurance products. While ANGI has implemented various hedging strategies to mitigate these risks, it remains vulnerable to significant market volatility.
Additionally, the company’s growing debt load, with $3.1 billion in total borrowings as of the end of 2024, could become a concern if interest rates continue to rise. ANGI will need to carefully manage its debt levels and ensure it maintains a strong credit profile.
Outlook and Future Prospects
Looking ahead, ANGI’s management is optimistic about the company’s future prospects. The successful integration of AEL is expected to continue driving growth in the annuities business, particularly in the PRT market, where the combined company has a stronger competitive position.
The company also sees opportunities to further expand its property and casualty insurance operations, leveraging its strong underwriting capabilities and distribution network. Additionally, the life insurance segment is expected to benefit from favorable mortality experience and higher investment income.
However, ANGI will need to navigate a challenging macroeconomic environment, with rising interest rates, elevated inflation, and the potential for a economic slowdown. The company’s ability to effectively manage its investment portfolio, control costs, and adapt its product offerings to changing market conditions will be crucial to its continued success.
Overall, ANGI’s strong financial performance in 2024, coupled with its diversified business model and robust liquidity position, suggest the company is well-positioned to capitalize on future growth opportunities and deliver value to its shareholders.
