American National Reports Q2 Finances

Texas-based American National Insurance Co. announced second quarter 2004 net income of $64,154,000 ($2.42 per share) compared to $25,780,000 ($0.97 per share) for the same period in 2003.

After tax net gain from operations for the second quarter was $49,758,000 ($1.88 per share) compared with $25,374,000 ($0.96 per share) for the same period in 2003, a 96.1% increase. After tax net gain from operations excludes after tax net realized investment gains and losses.

After tax net realized investment gains were $14,396,000 for the second quarter of 2004 compared with net realized gains of $406,000 for the same period in 2003.

Net income for the six months ended June 30, 2004 increased 95.5% totaling $128,858,000 ($4.87 per share) compared to $65,901,000 ($2.49 per share) for the first half of 2003. The after tax net gain from operations for the first six months totaled $112,376,000 ($4.25 per share) compared to $68,363,000 ($2.58 per share) for the same period in 2003. After tax net gain from operations excludes after tax net realized investment gains and losses which totaled a gain of $16,482,000 for the first half of 2004 compared to a net realized loss of $2,462,000 in the same period of 2003.

Premium for the first six months of 2004 was $1,024,719,000, an increase of 16.1% over the amount for the first half of 2003. Policy account deposits received were $873,558,000 versus $1,277,040,000 for the first six months of 2003. The decrease in policy account deposits was primarily the result of reduced annuity sales consistent with the 2004 business plan. Total revenues for the first six months increased by 19.7% to $1,503,151,000 versus $1,255,744,000 for the same period in 2003.

The property and casualty business of the Multiple Line operations was the largest contributor to the increase in operating earnings. After tax gain from the property and casualty business for the first half of 2004 was $47,082,000, which was more than double the results of the first six months of 2003. The combined ratio was 92.9%, a significant improvement over the 99.9% combined ratio achieved in the first half of 2003. The Multiple Line results were industry leading in many components tracked and considered to be key performance indicators by the company.

Improved profit margins on the growing block of annuity business helped Independent Marketing contribute $7,911,000 to the after tax gain from operations for the first six months of 2004 which was almost five times better than the results for the same period in 2003.