Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on which Registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
ITEM 1. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
ITEM 5. | ||
ITEM 6. |
September 30, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Fixed maturity, bonds held-to-maturity, at amortized cost (Fair value $9,063,688 and $8,130,084) | $ | $ | |||||
Fixed maturity, bonds available-for-sale, at fair value (Amortized cost $6,545,358 and $6,261,621) | |||||||
Equity securities, at fair value (Cost $700,727 and $714,504) | |||||||
Mortgage loans on real estate, net of allowance | |||||||
Policy loans | |||||||
Investment real estate, net of accumulated depreciation of $250,302 and $267,920 | |||||||
Short-term investments | |||||||
Other invested assets | |||||||
Total investments | |||||||
Cash and cash equivalents | |||||||
Investments in unconsolidated affiliates | |||||||
Accrued investment income | |||||||
Reinsurance recoverables | |||||||
Prepaid reinsurance premiums | |||||||
Premiums due and other receivables | |||||||
Deferred policy acquisition costs | |||||||
Property and equipment, net of accumulated depreciation of $251,832 and $236,922 | |||||||
Current tax receivable | |||||||
Prepaid pension | |||||||
Other assets | |||||||
Separate account assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES | |||||||
Future policy benefits | |||||||
Life | $ | $ | |||||
Annuity | |||||||
Health | |||||||
Policyholders’ account balances | |||||||
Policy and contract claims | |||||||
Unearned premium reserve | |||||||
Other policyholder funds | |||||||
Liability for retirement benefits | |||||||
Notes payable | |||||||
Deferred tax liabilities, net | |||||||
Other liabilities | |||||||
Separate account liabilities | |||||||
Total liabilities | |||||||
EQUITY | |||||||
American National stockholders’ equity: | |||||||
Common stock, $1.00 par value, - Authorized 50,000,000, Issued 30,832,449 and 30,832,449 Outstanding 26,887,200 and 26,885,449 shares | |||||||
Additional paid-in capital | |||||||
Accumulated other comprehensive income (loss) | ( | ) | |||||
Retained earnings | |||||||
Treasury stock, at cost | ( | ) | ( | ) | |||
Total American National stockholders’ equity | |||||||
Noncontrolling interest | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
PREMIUMS AND OTHER REVENUES | |||||||||||||||
Premiums | |||||||||||||||
Life | $ | $ | $ | $ | |||||||||||
Annuity | |||||||||||||||
Health | |||||||||||||||
Property and casualty | |||||||||||||||
Other policy revenues | |||||||||||||||
Net investment income | |||||||||||||||
Net realized investment gains (losses) | ( | ) | |||||||||||||
Other-than-temporary impairments | ( | ) | |||||||||||||
Net gains on equity securities | |||||||||||||||
Other income | |||||||||||||||
Total premiums and other revenues | |||||||||||||||
BENEFITS, LOSSES AND EXPENSES | |||||||||||||||
Policyholder benefits | |||||||||||||||
Life | |||||||||||||||
Annuity | |||||||||||||||
Claims incurred | |||||||||||||||
Health | |||||||||||||||
Property and casualty | |||||||||||||||
Interest credited to policyholders’ account balances | |||||||||||||||
Commissions for acquiring and servicing policies | |||||||||||||||
Other operating expenses | |||||||||||||||
Change in deferred policy acquisition costs | ( | ) | ( | ) | ( | ) | |||||||||
Total benefits, losses and expenses | |||||||||||||||
Income before federal income tax and other items | |||||||||||||||
Less: Provision (benefit) for federal income taxes | |||||||||||||||
Current | ( | ) | ( | ) | |||||||||||
Deferred | |||||||||||||||
Total provision for federal income taxes | |||||||||||||||
Income after federal income tax | |||||||||||||||
Equity in earnings of unconsolidated affiliates | |||||||||||||||
Other components of net periodic pension costs, net of tax | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income | |||||||||||||||
Less: Net income attributable to noncontrolling interest, net of tax | |||||||||||||||
Net income attributable to American National | $ | $ | $ | $ | |||||||||||
Amounts available to American National common stockholders | |||||||||||||||
Earnings per share | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | |||||||||||||||
Cash dividends to common stockholders | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||
Weighted average common shares outstanding and dilutive potential common shares |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||
Change in net unrealized gains (losses) on securities | ( | ) | ( | ) | ( | ) | ||||||||||
Foreign currency transaction and translation adjustments | ( | ) | ( | ) | ( | ) | ||||||||||
Defined benefit pension plan adjustment | ||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ) | ( | ) | ( | ) | ||||||||||
Total comprehensive income | ||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | ||||||||||||||||
Total comprehensive income attributable to American National | $ | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Noncontrolling Interest | Total Equity | |||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Reissuance of treasury shares | — | — | — | — | |||||||||||||||||||||||
Amortization of restricted stock | — | — | — | — | — | ||||||||||||||||||||||
Cumulative effect of accounting change | — | — | ( | ) | — | — | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||
Net income attributable to American National | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends to common stockholders | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Contributions | — | — | — | — | — | ||||||||||||||||||||||
Distributions | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Amortization of restricted stock | — | — | — | — | — | ||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||
Net income attributable to American National | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends to common stockholders | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Contributions | — | — | — | — | — | ||||||||||||||||||||||
Distributions | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||
Amortization of restricted stock | — | — | — | — | — | ||||||||||||||||||||||
Other comprehensive loss | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||
Net income attributable to American National | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends to common stockholders | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Contributions | — | — | — | — | — | ||||||||||||||||||||||
Distributions | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Net income attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | $ |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Noncontrolling Interest | Total Equity | |||||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||
Reissuance of treasury shares | — | — | — | — | |||||||||||||||||||||||
Amortization of restricted stock | — | — | — | — | — | ||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | ( | ) | — | — | |||||||||||||||||||||
Other comprehensive loss | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||
Net income attributable to American National | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends to common stockholders | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Distributions | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Balance at March 31, 2018 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Reissuance of treasury shares | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||
Amortization of restricted stock | — | — | — | — | — | ||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | ( | ) | — | — | |||||||||||||||||||||
Other comprehensive loss | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||
Net income attributable to American National | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends to common stockholders | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Distributions | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Amortization of restricted stock | — | — | — | — | — | ||||||||||||||||||||||
Other comprehensive loss | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||
Net income attributable to American National | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends to common stockholders | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Distributions | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Net income attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||||||||
Balance at September 30, 2018 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ |
Nine months ended September 30, | |||||||
2019 | 2018 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Net realized investment gains | ( | ) | ( | ) | |||
Other-than-temporary impairments | |||||||
Accretion of premiums, discounts and loan origination fees | ( | ) | ( | ) | |||
Net capitalized interest on policy loans and mortgage loans | ( | ) | ( | ) | |||
Depreciation | |||||||
Interest credited to policyholders’ account balances | |||||||
Charges to policyholders’ account balances | ( | ) | ( | ) | |||
Deferred federal income tax expense | |||||||
Equity in earnings of unconsolidated affiliates | ( | ) | ( | ) | |||
Distributions from equity method investments | |||||||
Changes in | |||||||
Policyholder liabilities | |||||||
Deferred policy acquisition costs | ( | ) | ( | ) | |||
Reinsurance recoverables | ( | ) | ( | ) | |||
Premiums due and other receivables | ( | ) | ( | ) | |||
Prepaid reinsurance premiums | |||||||
Accrued investment income | ( | ) | |||||
Current tax receivable/payable | ( | ) | |||||
Liability for retirement benefits | ( | ) | ( | ) | |||
Fair value of option securities | ( | ) | ( | ) | |||
Fair value of equity securities | ( | ) | ( | ) | |||
Other, net | ( | ) | |||||
Net cash provided by operating activities | |||||||
INVESTING ACTIVITIES | |||||||
Proceeds from sale/maturity/prepayment of | |||||||
Held-to-maturity securities | |||||||
Available-for-sale securities | |||||||
Equity securities | |||||||
Investment real estate | |||||||
Mortgage loans | |||||||
Policy loans | |||||||
Other invested assets | |||||||
Disposals of property and equipment | |||||||
Distributions from unconsolidated affiliates | |||||||
Payment for the purchase/origination of | |||||||
Held-to-maturity securities | ( | ) | ( | ) | |||
Available-for-sale securities | ( | ) | ( | ) | |||
Equity securities | ( | ) | ( | ) | |||
Investment real estate | ( | ) | ( | ) | |||
Mortgage loans | ( | ) | ( | ) | |||
Policy loans | ( | ) | ( | ) | |||
Other invested assets | ( | ) | ( | ) | |||
Additions to property and equipment | ( | ) | ( | ) | |||
Contributions to unconsolidated affiliates | ( | ) | ( | ) | |||
Change in short-term investments | ( | ) | |||||
Change in collateral held for derivatives | |||||||
Other, net | ( | ) | |||||
Net cash used in investing activities | ( | ) | ( | ) | |||
FINANCING ACTIVITIES | |||||||
Policyholders’ account deposits | |||||||
Policyholders’ account withdrawals | ( | ) | ( | ) | |||
Change in notes payable | |||||||
Dividends to stockholders | ( | ) | ( | ) | |||
Payments to noncontrolling interest | ( | ) | ( | ) | |||
Net cash provided by financing activities | |||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | |||||||
Beginning of the period | |||||||
End of the period | $ | $ |
September 30, 2019 | |||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||
Fixed maturity securities, bonds held-to-maturity | |||||||||||||||
U.S. states and political subdivisions | $ | $ | $ | $ | |||||||||||
Foreign governments | |||||||||||||||
Corporate debt securities | ( | ) | |||||||||||||
Residential mortgage-backed securities | ( | ) | |||||||||||||
Collateralized debt securities | ( | ) | |||||||||||||
Total bonds held-to-maturity | ( | ) | |||||||||||||
Fixed maturity securities, bonds available-for-sale | |||||||||||||||
U.S. treasury and government | ( | ) | |||||||||||||
U.S. states and political subdivisions | ( | ) | |||||||||||||
Foreign governments | |||||||||||||||
Corporate debt securities | ( | ) | |||||||||||||
Residential mortgage-backed securities | ( | ) | |||||||||||||
Collateralized debt securities | |||||||||||||||
Total bonds available-for-sale | ( | ) | |||||||||||||
Total investments in securities | $ | $ | $ | ( | ) | $ |
December 31, 2018 | |||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||
Fixed maturity securities, bonds held-to-maturity | |||||||||||||||
U.S. states and political subdivisions | $ | $ | $ | ( | ) | $ | |||||||||
Foreign governments | |||||||||||||||
Corporate debt securities | ( | ) | |||||||||||||
Residential mortgage-backed securities | ( | ) | |||||||||||||
Collateralized debt securities | |||||||||||||||
Other debt securities | |||||||||||||||
Total bonds held-to-maturity | ( | ) | |||||||||||||
Fixed maturity securities, bonds available-for-sale | |||||||||||||||
U.S. treasury and government | ( | ) | |||||||||||||
U.S. states and political subdivisions | ( | ) | |||||||||||||
Foreign governments | |||||||||||||||
Corporate debt securities | ( | ) | |||||||||||||
Residential mortgage-backed securities | ( | ) | |||||||||||||
Collateralized debt securities | ( | ) | |||||||||||||
Total bonds available-for-sale | ( | ) | |||||||||||||
Total investments in securities | $ | $ | $ | ( | ) | $ |
September 30, 2019 | |||||||||||||||
Bonds Held-to-Maturity | Bonds Available-for-Sale | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | $ | $ | $ | |||||||||||
Due after one year through five years | |||||||||||||||
Due after five years through ten years | |||||||||||||||
Due after ten years | |||||||||||||||
Total | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Proceeds from sales of fixed maturity available-for-sale securities | $ | $ | $ | $ | |||||||||||
Gross realized gains | |||||||||||||||
Gross realized losses | ( | ) | ( | ) | ( | ) |
Nine months ended September 30, | |||||||
2019 | 2018 | ||||||
Bonds available-for-sale: change in unrealized gains (losses) | $ | $ | ( | ) | |||
Adjustments for | |||||||
Deferred policy acquisition costs | ( | ) | |||||
Participating policyholders’ interest | ( | ) | |||||
Deferred federal income tax benefit (expense) | ( | ) | |||||
Change in net unrealized gains (losses) on debt securities, net of tax | $ | $ | ( | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Unrealized gains on equity securities | $ | $ | $ | $ | |||||||||||
Net gains (losses) on equity securities sold | ( | ) | |||||||||||||
Net gains on equity securities | $ | $ | $ | $ |
September 30, 2019 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Unrealized (Losses) | Fair Value | Unrealized (Losses) | Fair Value | Unrealized (Losses) | Fair Value | ||||||||||||||||||
Fixed maturity securities, bonds held-to-maturity | |||||||||||||||||||||||
Corporate debt securities | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||
Residential mortgage-backed securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Collateralized debt securities | ( | ) | ( | ) | |||||||||||||||||||
Total bonds held-to-maturity | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Fixed maturity securities, bonds available-for-sale | |||||||||||||||||||||||
U.S. treasury and government | ( | ) | ( | ) | ( | ) | |||||||||||||||||
U.S. states and political subdivisions | ( | ) | ( | ) | |||||||||||||||||||
Corporate debt securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Residential mortgage-backed securities | ( | ) | ( | ) | |||||||||||||||||||
Total bonds available-for-sale | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ |
December 31, 2018 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Unrealized (Losses) | Fair Value | Unrealized (Losses) | Fair Value | Unrealized (Losses) | Fair Value | ||||||||||||||||||
Fixed maturity securities, bonds held-to-maturity | |||||||||||||||||||||||
U.S. states and political subdivisions | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | |||||||||||||
Corporate debt securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Residential mortgage-backed securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Total bonds held-to-maturity | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Fixed maturity securities, bonds available-for-sale | |||||||||||||||||||||||
U.S. treasury and government | ( | ) | ( | ) | ( | ) | |||||||||||||||||
U.S. states and political subdivisions | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Corporate debt securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Residential mortgage-backed securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Collateralized debt securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Total bonds available-for-sale | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||
Amortized Cost | Estimated Fair Value | % of Fair Value | Amortized Cost | Estimated Fair Value | % of Fair Value | ||||||||||||||||
AAA | $ | $ | % | $ | $ | % | |||||||||||||||
AA | |||||||||||||||||||||
A | |||||||||||||||||||||
BBB | |||||||||||||||||||||
BB and below | |||||||||||||||||||||
Total | $ | $ | % | $ | $ | % |
September 30, 2019 | December 31, 2018 | ||||
Consumer goods | % | % | |||
Energy and utilities | |||||
Finance | |||||
Healthcare | |||||
Industrials | |||||
Information technology | |||||
Other | |||||
Total | % | % |
September 30, 2019 | December 31, 2018 | ||||
East North Central | % | % | |||
East South Central | |||||
Mountain | |||||
Pacific | |||||
South Atlantic | |||||
West South Central | |||||
Other | |||||
Total | % | % |
30-59 Days | 60-89 Days | More Than | Total | |||||||||||||||||||||||
September 30, 2019 | Past Due | Past Due | 90 Days | Total | Current | Amount | Percent | |||||||||||||||||||
Industrial | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||
Office | ||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||
Allowance for loan losses | ( | ) | ||||||||||||||||||||||||
Total, net of allowance | $ | |||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||
Industrial | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||
Office | ||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||
Allowance for loan losses | ( | ) | ||||||||||||||||||||||||
Total, net of allowance | $ |
Collectively Evaluated for Impairment | Individually Impaired | Total | ||||||||||||||||||||||||||||||
Number of Loans | Recorded Investment | Valuation Allowance | Number of Loans | Recorded Investment | Valuation Allowance | Number of Loans | Recorded Investment | Valuation Allowance | ||||||||||||||||||||||||
Beginning balance at January 1, 2019 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Change in allowance | — | — | ( | ) | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Net change in recorded investment | ( | ) | ( | ) | — | ( | ) | ( | ) | — | ( | ) | ( | ) | — | |||||||||||||||||
Ending balance at September 30, 2019 | $ | $ | $ | $ | $ | $ |
Nine months ended September 30, | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
Number of Loans | Recorded Investment Pre-Modification | Recorded Investment Post Modification | Number of Loans | Recorded Investment Pre-Modification | Recorded Investment Post Modification | |||||||||||||||||
Office | $ | $ | $ | $ | ||||||||||||||||||
Retail | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2019 | December 31, 2018 | ||||
Industrial | % | % | |||
Office | |||||
Retail | |||||
Other | |||||
Total | % | % |
September 30, 2019 | December 31, 2018 | ||||
East North Central | % | % | |||
East South Central | |||||
Mountain | |||||
Pacific | |||||
South Atlantic | |||||
West South Central | |||||
Other | |||||
Total | % | % |
September 30, 2019 | December 31, 2018 | ||||||
Investment real estate | $ | $ | |||||
Short-term investments | |||||||
Cash and cash equivalents | |||||||
Other receivables | |||||||
Other assets | |||||||
Total assets of consolidated VIEs | $ | $ | |||||
Notes payable | $ | $ | |||||
Other liabilities | |||||||
Total liabilities of consolidated VIEs | $ | $ |
Interest rate | Maturity | September 30, 2019 | December 31, 2018 | |||||||
LIBOR | 2021 | $ | $ | |||||||
4.18% fixed | 2024 | |||||||||
4% fixed | 2022 | |||||||||
Total | $ | $ |
September 30, 2019 | December 31, 2018 | ||||||||||||||
Carrying Amount | Maximum Exposure to Loss | Carrying Amount | Maximum Exposure to Loss | ||||||||||||
Investment in unconsolidated affiliates | $ | $ | $ | $ | |||||||||||
Mortgage loans | |||||||||||||||
Accrued investment income |
Derivatives Not Designated as Hedging Instruments | Location in the Consolidated Statements of Financial Position | September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Number of Instruments | Notional Amounts | Estimated Fair Value | Number of Instruments | Notional Amounts | Estimated Fair Value | ||||||||||||||||||||
Equity-indexed options | Other invested assets | $ | $ | $ | $ | ||||||||||||||||||||
Equity-indexed embedded derivative | Policyholders’ account balances |
Derivatives Not Designated as Hedging Instruments | Location in the Consolidated Statements of Operations | Gains (Losses) Recognized in Income on Derivatives | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Equity-indexed options | Net investment income | $ | $ | $ | $ | |||||||||||||
Equity-indexed embedded derivative | Interest credited to policyholders’ account balances | ( | ) | ( | ) | ( | ) | ( | ) |
September 30, 2019 | ||||||||||||||||||||||||||||||
Counterparty | Moody/S&P Rating | Options Fair Value | Collateral Held in Cash | Collateral Held in Invested Assets | Total Collateral Held | Collateral Amounts used to Offset Exposure | Excess Collateral | Exposure Net of Collateral | ||||||||||||||||||||||
Barclays | Baa3/BBB | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Credit Suisse | Baa2/BBB+ | |||||||||||||||||||||||||||||
Goldman-Sachs | A3/BBB+ | |||||||||||||||||||||||||||||
ING | Baa1/A- | |||||||||||||||||||||||||||||
Morgan Stanley | A3/BBB+ | |||||||||||||||||||||||||||||
NATIXIS* | A1/A+ | |||||||||||||||||||||||||||||
SunTrust | Baa1/BBB+ | |||||||||||||||||||||||||||||
Wells Fargo | A2/A- | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
December 31, 2018 | ||||||||||||||||||||||||||||||
Counterparty | Moody/S&P Rating | Options Fair Value | Collateral Held in Cash | Collateral Held in Invested Assets | Total Collateral Held | Collateral Amounts used to Offset Exposure | Excess Collateral | Exposure Net of Collateral | ||||||||||||||||||||||
Barclays | Baa3/BBB | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Goldman-Sachs | A3/BBB+ | |||||||||||||||||||||||||||||
ING | Baa1/A- | |||||||||||||||||||||||||||||
Morgan Stanley | A3/BBB+ | |||||||||||||||||||||||||||||
NATIXIS* | A1/A+ | |||||||||||||||||||||||||||||
SunTrust | Baa1/BBB+ | |||||||||||||||||||||||||||||
Wells Fargo | A2/A- | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
* | Includes collateral restrictions. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Bonds | $ | $ | $ | $ | |||||||||||
Dividends on equity securities | |||||||||||||||
Mortgage loans | |||||||||||||||
Real estate | |||||||||||||||
Options | |||||||||||||||
Other invested assets | |||||||||||||||
Total | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Bonds | $ | $ | $ | $ | |||||||||||
Mortgage loans | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Real estate | ( | ) | ( | ) | |||||||||||
Other invested assets | ( | ) | |||||||||||||
Total | $ | $ | ( | ) | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Bonds | $ | $ | $ | ( | ) | $ |
September 30, 2019 | December 31, 2018 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial assets | |||||||||||||||
Fixed maturity securities, bonds held-to-maturity | $ | $ | $ | $ | |||||||||||
Fixed maturity securities, bonds available-for-sale | |||||||||||||||
Equity securities | |||||||||||||||
Equity-indexed options | |||||||||||||||
Mortgage loans on real estate, net of allowance | |||||||||||||||
Policy loans | |||||||||||||||
Short-term investments | |||||||||||||||
Separate account assets ($1,008,309 and $905,824 included in fair value hierarchy) | |||||||||||||||
Separately managed accounts | |||||||||||||||
Total financial assets | $ | $ | $ | $ | |||||||||||
Financial liabilities | |||||||||||||||
Investment contracts | $ | $ | $ | $ | |||||||||||
Embedded derivative liability for equity-indexed contracts | |||||||||||||||
Notes payable | |||||||||||||||
Separate account liabilities ($1,008,309 and $905,824 included in fair value hierarchy) | |||||||||||||||
Total financial liabilities | $ | $ | $ | $ |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. | |
Level 2 | Quoted prices in markets that are not active or inputs that are observable directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 | Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect American National’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and third-party evaluation, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
• | Lapse rate assumptions are determined by company experience. Lapse rates are generally assumed to be lower during a contract’s surrender charge period and then higher once the surrender charge period has ended. Decreases to the assumed lapse rates generally increase the fair value of the liability as more policyholders persist to collect the crediting interest pertaining to the indexed product. Increases to the lapse rate assumption will have the inverse effect decreasing the fair value. |
• | Mortality rate assumptions vary by age and by gender based on company and industry experience. Decreases to the assumed mortality rates increase the fair value of the liabilities as more policyholders earn crediting interest. Increases to the assumed mortality rates decrease the fair value as higher decrements reduce the potential for future interest credits. |
• | Equity volatility assumptions begin with current market volatilities and grow to long-term values. Increases to the assumed volatility will increase the fair value of liabilities, as future projections will produce higher increases in the linked index. At September 30, 2019 and December 31, 2018, the one year implied volatility used to estimate embedded derivative value was |
Fair Value | Range | ||||||||||||
September 30, 2019 | December 31, 2018 | Unobservable Input | September 30, 2019 | December 31, 2018 | |||||||||
Indexed Annuities | $ | $ | Lapse Rate | 1-70% | 1-70% | ||||||||
Mortality Multiplier | 90-100% | 90-100% | |||||||||||
Equity Volatility | 11-46% | 19-26% | |||||||||||
Indexed Life | Equity Volatility | 11-46% | 19-26% |
Assets and Liabilities Carried at Fair Value by Hierarchy Level as of September 30, 2019 | |||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets | |||||||||||||||
Fixed maturity securities, bonds available-for-sale | |||||||||||||||
U.S. treasury and government | $ | $ | $ | $ | |||||||||||
U.S. states and political subdivisions | |||||||||||||||
Foreign governments | |||||||||||||||
Corporate debt securities | |||||||||||||||
Residential mortgage-backed securities | |||||||||||||||
Collateralized debt securities | |||||||||||||||
Total bonds available-for-sale | |||||||||||||||
Equity securities | |||||||||||||||
Common stock | |||||||||||||||
Preferred stock | |||||||||||||||
Total equity securities | |||||||||||||||
Options | |||||||||||||||
Short-term investments | |||||||||||||||
Separate account assets | |||||||||||||||
Separately managed accounts | |||||||||||||||
Total financial assets | $ | $ | $ | $ | |||||||||||
Financial liabilities | |||||||||||||||
Embedded derivative liability for equity-indexed contracts | $ | $ | $ | $ | |||||||||||
Separate account liabilities | |||||||||||||||
Total financial liabilities | $ | $ | $ | $ |
Assets and Liabilities Carried at Fair Value by Hierarchy Level as of December 31, 2018 | |||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets | |||||||||||||||
Fixed maturity securities, bonds available-for-sale | |||||||||||||||
U.S. treasury and government | $ | $ | $ | $ | |||||||||||
U.S. states and political subdivisions | |||||||||||||||
Foreign governments | |||||||||||||||
Corporate debt securities | |||||||||||||||
Residential mortgage-backed securities | |||||||||||||||
Collateralized debt securities | |||||||||||||||
Total bonds available-for-sale | |||||||||||||||
Equity securities | |||||||||||||||
Common stock | |||||||||||||||
Preferred stock | |||||||||||||||
Total equity securities | |||||||||||||||
Options | |||||||||||||||
Short-term investments | |||||||||||||||
Separate account assets | |||||||||||||||
Separately managed accounts | |||||||||||||||
Total financial assets | $ | $ | $ | $ | |||||||||||
Financial liabilities | |||||||||||||||
Embedded derivative liability for equity-indexed contracts | $ | $ | $ | $ | |||||||||||
Separate account liabilities | |||||||||||||||
Total financial liabilities | $ | $ | $ | $ |
Level 3 | |||||||||||||||||||||||
Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||||||||||||||||||
Assets | Liability | Assets | Liability | ||||||||||||||||||||
Investment Securities | Equity-Indexed Options | Embedded Derivative | Investment Securities | Equity-Indexed Options | Embedded Derivative | ||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Net gain for derivatives included in net investment income | |||||||||||||||||||||||
Net change included in interest credited | |||||||||||||||||||||||
Purchases, sales and settlements or maturities | |||||||||||||||||||||||
Purchases | |||||||||||||||||||||||
Sales | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Settlements or maturities | ( | ) | ( | ) | |||||||||||||||||||
Premiums less benefits | ( | ) | ( | ) | |||||||||||||||||||
Ending balance at September 30, 2019 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Level 3 | |||||||||||||||||||||||
Three months ended September 30, 2018 | Nine months ended September 30, 2018 | ||||||||||||||||||||||
Assets | Liability | Assets | Liability | ||||||||||||||||||||
Investment Securities | Equity-Indexed Options | Embedded Derivative | Investment Securities | Equity-Indexed Options | Embedded Derivative | ||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Net gain for derivatives included in net investment income | |||||||||||||||||||||||
Net change included in interest credited | |||||||||||||||||||||||
Purchases, sales and settlements or maturities | |||||||||||||||||||||||
Purchases | |||||||||||||||||||||||
Settlements or maturities | ( | ) | ( | ) | |||||||||||||||||||
Premiums less benefits | |||||||||||||||||||||||
Ending balance at September 30, 2018 | $ | $ | $ | $ | $ | $ |
September 30, 2019 | |||||||||
FV Hierarchy Level | Carrying Amount | Fair Value | |||||||
Financial assets | |||||||||
Fixed maturity securities, bonds held-to-maturity | |||||||||
U.S. states and political subdivisions | Level 2 | $ | $ | ||||||
Foreign governments | Level 2 | ||||||||
Corporate debt securities | Level 2 | ||||||||
Corporate debt securities | Level 3 | ||||||||
Residential mortgage-backed securities | Level 2 | ||||||||
Collateralized debt securities | Level 2 | ||||||||
Total fixed maturity securities, bonds held-to-maturity | |||||||||
Mortgage loans on real estate, net allowance | Level 3 | ||||||||
Policy loans | Level 3 | ||||||||
Total financial assets | $ | $ | |||||||
Financial liabilities | |||||||||
Investment contracts | Level 3 | $ | $ | ||||||
Notes payable | Level 3 | ||||||||
Total financial liabilities | $ | $ |
December 31, 2018 | |||||||||
FV Hierarchy Level | Carrying Amount | Fair Value | |||||||
Financial assets | |||||||||
Fixed maturity securities, bonds held-to-maturity | |||||||||
U.S. states and political subdivisions | Level 2 | $ | $ | ||||||
Foreign governments | Level 2 | ||||||||
Corporate debt securities | Level 2 | ||||||||
Residential mortgage-backed securities | Level 2 | ||||||||
Collateralized debt securities | Level 2 | ||||||||
Other debt securities | Level 2 | ||||||||
Total fixed maturity securities, bonds held-to-maturity | |||||||||
Mortgage loans on real estate, net allowance | Level 3 | ||||||||
Policy loans | Level 3 | ||||||||
Total financial assets | $ | $ | |||||||
Financial liabilities | |||||||||
Investment contracts | Level 3 | $ | $ | ||||||
Notes payable | Level 3 | ||||||||
Total financial liabilities | $ | $ |
Life | Annuity | Health | Property & Casualty | Total | |||||||||||||||
Beginning balance at January 1, 2019 | $ | $ | $ | $ | $ | ||||||||||||||
Additions | |||||||||||||||||||
Amortization | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
Effect of change in unrealized gains on available-for-sale debt securities | ( | ) | ( | ) | ( | ) | |||||||||||||
Net change | ( | ) | ( | ) | ( | ) | |||||||||||||
Ending balance at September 30, 2019 | $ | $ | $ | $ | $ |
Nine months ended September 30, | |||||||
2019 | 2018 | ||||||
Unpaid claims balance, beginning | $ | $ | |||||
Less reinsurance recoverables | |||||||
Net beginning balance | |||||||
Incurred related to | |||||||
Current | |||||||
Prior years | ( | ) | ( | ) | |||
Total incurred claims | |||||||
Paid claims related to | |||||||
Current | |||||||
Prior years | |||||||
Total paid claims | |||||||
Net balance | |||||||
Plus reinsurance recoverables | |||||||
Unpaid claims balance, ending | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||
Income tax expense before tax on equity in earnings of unconsolidated affiliates | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||
Tax on equity in earnings of unconsolidated affiliates | |||||||||||||||||||||||||||
Total expected income tax expense at the statutory rate | |||||||||||||||||||||||||||
Tax-exempt investment income | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Deferred tax change | ( | ) | ( | ) | |||||||||||||||||||||||
Dividend exclusion | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Miscellaneous tax credits, net | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Low income housing tax credit expense | |||||||||||||||||||||||||||
Noncontrolling interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Change in valuation allowance | |||||||||||||||||||||||||||
Tax accrual adjustment | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Return to provision | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Other items, net | ( | ) | ( | ) | |||||||||||||||||||||||
Provision for federal income taxes | $ | % | $ | % | $ | % | $ | % |
Net Unrealized Gains (Losses) on Securities | Defined Benefit Pension Plan Adjustments | Foreign Currency Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Beginning balance at January 1, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Amounts reclassified from AOCI (net of tax expense $401 and $1,160) | — | ||||||||||||||
Unrealized holding gains arising during the period (net of tax expense $68,285) | — | — | |||||||||||||
Unrealized adjustment to DAC (net of tax benefit $17,343) | ( | ) | — | — | ( | ) | |||||||||
Unrealized gains on investments attributable to participating policyholders’ interest (net of tax benefit $3,148) | ( | ) | — | — | ( | ) | |||||||||
Foreign currency adjustment (net of tax expense $79) | — | — | |||||||||||||
Cumulative effect of changes in accounting | ( | ) | ( | ) | ( | ) | |||||||||
Ending balance at September 30, 2019 | $ | $ | ( | ) | $ | ( | ) | $ | |||||||
Beginning balance at January 1, 2018 | $ | $ | ( | ) | $ | ( | ) | $ | |||||||
Amounts reclassified from AOCI (net of tax benefit $606 and expense $1,061) | ( | ) | — | ||||||||||||
Unrealized holding losses arising during the period (net of tax benefit $47,963) | ( | ) | — | — | ( | ) | |||||||||
Unrealized adjustment to DAC (net of tax expense $8,163) | — | — | |||||||||||||
Unrealized losses on investments attributable to participating policyholders’ interest (net of tax expense $2,935) | — | — | |||||||||||||
Foreign currency adjustment (net of tax benefit $181) | — | — | ( | ) | ( | ) | |||||||||
Cumulative effect of changes in accounting (net of tax benefit $334,955) | ( | ) | — | — | ( | ) | |||||||||
Ending balance at September 30, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
September 30, 2019 | December 31, 2018 | ||||
Common stock | |||||
Shares issued | |||||
Treasury shares | ( | ) | ( | ) | |
Outstanding shares | |||||
Restricted shares | ( | ) | ( | ) | |
Unrestricted outstanding shares |
SAR | RS Shares | RS Units | ||||||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | Units | Weighted-Average Grant Date Fair Value | |||||||||||||||
Outstanding at December 31, 2018 | $ | $ | $ | |||||||||||||||||
Granted | — | — | — | — | ||||||||||||||||
Exercised | — | — | — | — | ( | ) | ||||||||||||||
Forfeited | — | — | — | — | — | — | ||||||||||||||
Expired | ( | ) | — | — | — | — | ||||||||||||||
Outstanding at September 30, 2019 | $ | $ | $ |
SAR | RS Shares | RS Units | |||||||||
Weighted-average contractual remaining life (in years) | |||||||||||
Exercisable shares | N/A | N/A | |||||||||
Weighted-average exercise price | $ | $ | $ | ||||||||
Weighted-average exercise price exercisable shares | N/A | N/A | |||||||||
Compensation expense (credit) | |||||||||||
Three months ended September 30, 2019 | $ | $ | $ | ||||||||
Three months ended September 30, 2018 | |||||||||||
Nine months ended September 30, 2019 | $ | ( | ) | $ | $ | ||||||
Nine months ended September 30, 2018 | ( | ) | |||||||||
Fair value of liability award | |||||||||||
September 30, 2019 | $ | N/A | $ | ||||||||
December 31, 2018 | N/A |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Weighted average shares outstanding | |||||||||||||||
Incremental shares from RS awards and RSUs | |||||||||||||||
Total shares for diluted calculations | |||||||||||||||
Net income attributable to American National (in thousands) | $ | $ | $ | $ | |||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||
Diluted earnings per share | $ | $ | $ | $ |
September 30, 2019 | December 31, 2018 | |||||||
Statutory capital and surplus | ||||||||
Life insurance entities | $ | $ | ||||||
Property and casualty insurance entities |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Statutory net income | |||||||||||||||
Life insurance entities | $ | $ | $ | $ | |||||||||||
Property and casualty insurance entities |
• | Life—consists of whole, term, universal, indexed and variable life insurance. Products are primarily sold through career, multiple-line, and independent agents as well as direct marketing channels. |
• | Annuity—consists of fixed, indexed, and variable annuity products. Products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents. |
• | Health—consists of Medicare Supplement, stop loss, other supplemental health products and credit disability insurance. Products are typically distributed through independent agents and managing general underwriters. |
• | Property and Casualty—consists of personal, agricultural and targeted commercial coverages and credit-related property insurance. Products are primarily sold through multiple-line and independent agents or managing general agents. |
• | Corporate and Other—consists of net investment income from investments and certain expenses not allocated to the insurance segments and revenues and related expenses from non-insurance operations. |
• | Recurring income from bonds and mortgage loans is allocated based on the assets allocated to each line of business at the average yield available from these assets. |
• | Net investment income from all other assets is allocated to the insurance segments in accordance with the amount of capital allocated to each segment, with the remainder recorded in the Corporate and Other segment. |
• | Expenses are charged to segments through direct identification and allocations based upon various factors. |
Three months ended September 30, 2019 | |||||||||||||||||||||||
Property | Corporate | ||||||||||||||||||||||
Life | Annuity | Health | & Casualty | & Other | Total | ||||||||||||||||||
PREMIUMS AND OTHER REVENUES | |||||||||||||||||||||||
Premiums | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Other policy revenues | |||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Net realized investment gains | |||||||||||||||||||||||
Net gains on equity securities | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total premiums and other revenues | |||||||||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | |||||||||||||||||||||||
Policyholder benefits | |||||||||||||||||||||||
Claims incurred | |||||||||||||||||||||||
Interest credited to policyholders’ account balances | |||||||||||||||||||||||
Commissions for acquiring and servicing policies | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Change in deferred policy acquisition costs | ( | ) | ( | ) | |||||||||||||||||||
Total benefits, losses and expenses | |||||||||||||||||||||||
Income before federal income tax and other items | $ | $ | $ | $ | $ | $ |
Three months ended September 30, 2018 | |||||||||||||||||||||||
Property | Corporate | ||||||||||||||||||||||
Life | Annuity | Health | & Casualty | & Other | Total | ||||||||||||||||||
PREMIUMS AND OTHER REVENUES | |||||||||||||||||||||||
Premiums | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Other policy revenues | |||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Net realized investment losses | ( | ) | ( | ) | |||||||||||||||||||
Net gains on equity securities | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total premiums and other revenues | |||||||||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | |||||||||||||||||||||||
Policyholder benefits | |||||||||||||||||||||||
Claims incurred | |||||||||||||||||||||||
Interest credited to policyholders’ account balances | |||||||||||||||||||||||
Commissions for acquiring and servicing policies | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Change in deferred policy acquisition costs | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Total benefits, losses and expenses | |||||||||||||||||||||||
Income before federal income tax and other items | $ | $ | $ | $ | $ | $ |
Nine months ended September 30, 2019 | |||||||||||||||||||||||
Property | Corporate | ||||||||||||||||||||||
Life | Annuity | Health | & Casualty | & Other | Total | ||||||||||||||||||
PREMIUMS AND OTHER REVENUES | |||||||||||||||||||||||
Premiums | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Other policy revenues | |||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Net realized investment gains | |||||||||||||||||||||||
Net gains on equity securities | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total premiums and other revenues | |||||||||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | |||||||||||||||||||||||
Policyholder benefits | |||||||||||||||||||||||
Claims incurred | |||||||||||||||||||||||
Interest credited to policyholders’ account balances | |||||||||||||||||||||||
Commissions for acquiring and servicing policies | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Change in deferred policy acquisition costs | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Total benefits, losses and expenses | |||||||||||||||||||||||
Income before federal income tax and other items | $ | $ | $ | $ | $ | $ |
Nine months ended September 30, 2018 | |||||||||||||||||||||||
Property | Corporate | ||||||||||||||||||||||
Life | Annuity | Health | & Casualty | & Other | Total | ||||||||||||||||||
PREMIUMS AND OTHER REVENUES | |||||||||||||||||||||||
Premiums | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Other policy revenues | |||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Net realized investment gains | |||||||||||||||||||||||
Net gains on equity securities | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total premiums and other revenues | |||||||||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | |||||||||||||||||||||||
Policyholder benefits | |||||||||||||||||||||||
Claims incurred | |||||||||||||||||||||||
Interest credited to policyholders’ account balances | |||||||||||||||||||||||
Commissions for acquiring and servicing policies | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Change in deferred policy acquisition costs | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Total benefits, losses and expenses | |||||||||||||||||||||||
Income before federal income tax and other items | $ | $ | $ | $ | $ | $ |
Dollar Amount of Transactions | ||||||||||||||||||
Nine months ended September 30, | Amount due to (from) American National | |||||||||||||||||
Related Party | Financial Statement Line Impacted | 2019 | 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||
Gal-Tex Hotel Corporation | Mortgage loan on real estate | $ | $ | $ | $ | |||||||||||||
Gal-Tex Hotel Corporation | Net investment income | |||||||||||||||||
Greer, Herz & Adams, LLP | Other operating expenses | ( | ) | ( | ) |
• | Economic & Investment Risk Factors |
• | the potential for difficult conditions in the economy, which may not improve in the near future, and risks related to persistently low or unpredictable interest rates; |
• | fluctuations in the markets for fixed maturity securities, equity securities, and commercial real estate, which could adversely affect the valuation of our investment portfolio, our net investment income, our retirement expense, and sales of or fees from certain of our products; |
• | lack of liquidity for certain of our investments; |
• | risk of investment losses and defaults; |
• | Operational Risk Factors |
• | differences between actual experience regarding mortality, morbidity, persistency, expense, surrenders and investment returns, and our assumptions for product pricing, establishing liabilities and reserves or for other purposes; |
• | potential ineffectiveness of our risk management policies and procedures; |
• | changes in our experience related to deferred policy acquisition costs; |
• | failures or limitations of our computer, information security and administration systems; |
• | potential employee error or misconduct, which may result in fraud or adversely affect the execution and administration of our policies and claims; |
• | potential ineffectiveness of our internal controls over financial reporting; |
• | Catastrophic Event Risk Factors |
• | natural or man-made catastrophes, pandemic disease, or other events resulting in increased claims activity from catastrophic loss of life or property; |
• | the effects of unanticipated events on our disaster recovery and business continuity planning; |
• | Marketplace Risk Factors |
• | the highly competitive nature of the insurance and annuity business; |
• | potential difficulty in attraction and retention of qualified employees and agents; |
• | the introduction of alternative healthcare solutions or changes in federal healthcare policy, both of which could impact our supplemental healthcare business; |
• | Litigation and Regulation Risk Factors |
• | adverse determinations in litigation or regulatory proceedings which may result in significant financial losses and harm our reputation; |
• | significant changes in government regulation; |
• | changes in tax law; |
• | changes in statutory or U.S. generally accepted accounting principles (“GAAP”), practices or policies; |
• | Reinsurance and Counterparty Risk Factors |
• | potential changes in the availability, affordability, adequacy and collectability of reinsurance protection; |
• | potential default or failure to perform by the counterparties to our reinsurance arrangements and derivative instruments; |
• | Other Risk Factors |
• | potentially adverse rating agency actions; |
• | control of our company by a small number of stockholders; and |
• | advances in medical technology and testing, which may increase our adverse selection risk. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
PREMIUMS AND OTHER REVENUES | ||||||||||||||||||||||||
Premiums | $ | 557,844 | $ | 558,468 | $ | (624 | ) | $ | 1,650,353 | $ | 1,664,188 | $ | (13,835 | ) | ||||||||||
Other policy revenues | 76,784 | 70,840 | 5,944 | 226,178 | 213,317 | 12,861 | ||||||||||||||||||
Net investment income | 246,620 | 285,532 | (38,912 | ) | 796,696 | 740,942 | 55,754 | |||||||||||||||||
Net realized investments gains (losses) | 31,933 | (1,276 | ) | 33,209 | 24,975 | 4,775 | 20,200 | |||||||||||||||||
Net gains on equity securities | 8,589 | 126,495 | (117,906 | ) | 282,026 | 150,487 | 131,539 | |||||||||||||||||
Other income | 10,730 | 12,177 | (1,447 | ) | 32,642 | 33,973 | (1,331 | ) | ||||||||||||||||
Total premiums and other revenues | 932,500 | 1,052,236 | (119,736 | ) | 3,012,870 | 2,807,682 | 205,188 | |||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | ||||||||||||||||||||||||
Policyholder benefits | 173,351 | 183,969 | (10,618 | ) | 518,827 | 546,322 | (27,495 | ) | ||||||||||||||||
Claims incurred | 309,262 | 302,636 | 6,626 | 871,489 | 885,702 | (14,213 | ) | |||||||||||||||||
Interest credited to policyholders’ account balances | 106,782 | 133,418 | (26,636 | ) | 371,703 | 309,694 | 62,009 | |||||||||||||||||
Commissions for acquiring and servicing policies | 128,689 | 138,979 | (10,290 | ) | 408,629 | 433,412 | (24,783 | ) | ||||||||||||||||
Other operating expenses | 128,502 | 118,761 | 9,741 | 391,645 | 373,102 | 18,543 | ||||||||||||||||||
Change in deferred policy acquisition costs (1) | 1,548 | (8,794 | ) | 10,342 | (22,391 | ) | (45,876 | ) | 23,485 | |||||||||||||||
Total benefits, losses and expenses | 848,134 | 868,969 | (20,835 | ) | 2,539,902 | 2,502,356 | 37,546 | |||||||||||||||||
Income before federal income taxes other items | $ | 84,366 | $ | 183,267 | $ | (98,901 | ) | $ | 472,968 | $ | 305,326 | $ | 167,642 |
(1) | A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
PREMIUMS AND OTHER REVENUES | ||||||||||||||||||||||||
Premiums | $ | 93,079 | $ | 91,176 | $ | 1,903 | $ | 265,634 | $ | 257,147 | $ | 8,487 | ||||||||||||
Other policy revenues | 72,446 | 67,260 | 5,186 | 213,300 | 202,222 | 11,078 | ||||||||||||||||||
Net investment income | 61,961 | 65,875 | (3,914 | ) | 194,633 | 184,725 | 9,908 | |||||||||||||||||
Other income | 441 | 492 | (51 | ) | 1,586 | 1,759 | (173 | ) | ||||||||||||||||
Total premiums and other revenues | 227,927 | 224,803 | 3,124 | 675,153 | 645,853 | 29,300 | ||||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | ||||||||||||||||||||||||
Policyholder benefits | 113,652 | 119,816 | (6,164 | ) | 327,579 | 315,320 | 12,259 | |||||||||||||||||
Interest credited to policyholders’ account balances | 22,045 | 19,537 | 2,508 | 57,561 | 56,848 | 713 | ||||||||||||||||||
Commissions for acquiring and servicing policies | 42,023 | 39,813 | 2,210 | 120,646 | 118,724 | 1,922 | ||||||||||||||||||
Other operating expenses | 46,873 | 45,467 | 1,406 | 142,520 | 144,606 | (2,086 | ) | |||||||||||||||||
Change in deferred policy acquisition costs (1) | (5,080 | ) | (4,458 | ) | (622 | ) | (19,120 | ) | (18,150 | ) | (970 | ) | ||||||||||||
Total benefits, losses and expenses | 219,513 | 220,175 | (662 | ) | 629,186 | 617,348 | 11,838 | |||||||||||||||||
Income before federal income taxes and other items | $ | 8,414 | $ | 4,628 | $ | 3,786 | $ | 45,967 | $ | 28,505 | $ | 17,462 |
(1) | A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Traditional Life | $ | 13,711 | $ | 13,834 | $ | (123 | ) | $ | 42,409 | $ | 44,322 | $ | (1,913 | ) | ||||||||||
Universal Life | 7,062 | 6,121 | 941 | 20,759 | 18,225 | 2,534 | ||||||||||||||||||
Indexed UL | 9,980 | 7,761 | 2,219 | 26,981 | 23,045 | 3,936 | ||||||||||||||||||
Total recurring | $ | 30,753 | $ | 27,716 | $ | 3,037 | $ | 90,149 | $ | 85,592 | $ | 4,557 | ||||||||||||
Single and excess (1) | $ | 420 | $ | 934 | $ | (514 | ) | $ | 1,334 | $ | 2,148 | $ | (814 | ) | ||||||||||
Credit life (1) | 2,691 | 2,010 | 681 | 8,159 | 6,188 | 1,971 | ||||||||||||||||||
Total annualized premium | $ | 33,864 | $ | 30,660 | $ | 3,204 | $ | 99,642 | $ | 93,928 | $ | 5,714 |
(1) | These are weighted amounts representing 10% of single and excess premiums and 44% and 31% of Credit Life premiums for 2019 and 2018, respectively. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Acquisition cost capitalized | $ | 34,393 | $ | 33,040 | $ | 1,353 | $ | 98,812 | $ | 98,617 | $ | 195 | ||||||||||||
Amortization of DAC | (29,313 | ) | (28,582 | ) | (731 | ) | (79,692 | ) | (80,467 | ) | 775 | |||||||||||||
Change in DAC | $ | 5,080 | $ | 4,458 | $ | 622 | $ | 19,120 | $ | 18,150 | $ | 970 |
September 30, 2019 | December 31, 2018 | Change | ||||||||||
Life insurance in-force | ||||||||||||
Traditional life | $ | 82,762,147 | $ | 78,872,533 | $ | 3,889,614 | ||||||
Interest-sensitive life | 33,274,141 | 31,483,582 | 1,790,559 | |||||||||
Total life insurance in-force | $ | 116,036,288 | $ | 110,356,115 | $ | 5,680,173 |
September 30, 2019 | December 31, 2018 | Change | |||||||
Number of policies in-force | |||||||||
Traditional life | 1,722,215 | 1,763,028 | (40,813 | ) | |||||
Interest-sensitive life | 252,954 | 243,447 | 9,507 | ||||||
Total number of policies in-force | 1,975,169 | 2,006,475 | (31,306 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
PREMIUMS AND OTHER REVENUES | ||||||||||||||||||||||||
Premiums | $ | 41,305 | $ | 47,296 | $ | (5,991 | ) | $ | 137,434 | $ | 185,140 | $ | (47,706 | ) | ||||||||||
Other policy revenues | 4,338 | 3,580 | 758 | 12,878 | 11,095 | 1,783 | ||||||||||||||||||
Net investment income | 141,684 | 174,771 | (33,087 | ) | 487,750 | 436,961 | 50,789 | |||||||||||||||||
Other income | 653 | 624 | 29 | 1,916 | 1,980 | (64 | ) | |||||||||||||||||
Total premiums and other revenues | 187,980 | 226,271 | (38,291 | ) | 639,978 | 635,176 | 4,802 | |||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | ||||||||||||||||||||||||
Policyholder benefits | 59,699 | 64,153 | (4,454 | ) | 191,248 | 231,002 | (39,754 | ) | ||||||||||||||||
Interest credited to policyholders’ account balances | 84,737 | 113,881 | (29,144 | ) | 314,142 | 252,846 | 61,296 | |||||||||||||||||
Commissions for acquiring and servicing policies | 13,368 | 18,515 | (5,147 | ) | 63,373 | 78,874 | (15,501 | ) | ||||||||||||||||
Other operating expenses | 12,264 | 11,350 | 914 | 38,087 | 34,522 | 3,565 | ||||||||||||||||||
Change in deferred policy acquisition costs (1) | 7,006 | (1,376 | ) | 8,382 | (383 | ) | (19,060 | ) | 18,677 | |||||||||||||||
Total benefits, losses and expenses | 177,074 | 206,523 | (29,449 | ) | 606,467 | 578,184 | 28,283 | |||||||||||||||||
Income before federal income taxes and other items | $ | 10,906 | $ | 19,748 | $ | (8,842 | ) | $ | 33,511 | $ | 56,992 | $ | (23,481 | ) |
(1) | A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Fixed deferred annuity | $ | 77,342 | $ | 141,480 | $ | (64,138 | ) | $ | 909,859 | $ | 307,374 | $ | 602,485 | |||||||||||
Single premium immediate annuity | 50,815 | 60,744 | (9,929 | ) | 184,823 | 225,968 | (41,145 | ) | ||||||||||||||||
Equity-indexed deferred annuity | 74,876 | 145,487 | (70,611 | ) | 281,720 | 724,097 | (442,377 | ) | ||||||||||||||||
Variable deferred annuity | 18,400 | 18,511 | (111 | ) | 50,511 | 51,258 | (747 | ) | ||||||||||||||||
Total premium and deposits | 221,433 | 366,222 | (144,789 | ) | 1,426,913 | 1,308,697 | 118,216 | |||||||||||||||||
Less: Policy deposits | 180,128 | 318,926 | (138,798 | ) | 1,289,479 | 1,123,557 | 165,922 | |||||||||||||||||
Total earned premiums | $ | 41,305 | $ | 47,296 | $ | (5,991 | ) | $ | 137,434 | $ | 185,140 | $ | (47,706 | ) |
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
Fixed deferred annuity | ||||||||
Reserve, beginning of period | $ | 6,773,603 | $ | 7,108,254 | ||||
Premiums | 909,859 | 307,374 | ||||||
Other benefits | (180,120 | ) | (248,882 | ) | ||||
Surrenders | (617,457 | ) | (450,058 | ) | ||||
Fees | (2,237 | ) | (2,264 | ) | ||||
Interest and mortality | 153,272 | 145,688 | ||||||
Reserve, end of period | 7,036,920 | 6,860,112 | ||||||
Equity-indexed annuity | ||||||||
Reserves, beginning period | 3,668,645 | 2,934,430 | ||||||
Premiums | 281,720 | 724,097 | ||||||
Other benefits | (29,426 | ) | (30,699 | ) | ||||
Surrenders | (135,281 | ) | (101,810 | ) | ||||
Fees | (2,833 | ) | (2,974 | ) | ||||
Interest and mortality | 157,517 | 104,334 | ||||||
Reserve, end of period | 3,940,342 | 3,627,378 | ||||||
Single premium immediate annuity | ||||||||
Reserve, beginning of period | 1,826,137 | 1,691,502 | ||||||
Premiums | 184,823 | 225,968 | ||||||
Other benefits | (161,161 | ) | (151,642 | ) | ||||
Interest and mortality | 47,245 | 42,112 | ||||||
Reserve, end of period | 1,897,044 | 1,807,940 | ||||||
Variable deferred annuity | ||||||||
Account value, beginning of period | 332,898 | 381,903 | ||||||
Premiums | 50,511 | 51,258 | ||||||
Other benefits | 152 | 434 | ||||||
Surrenders | (61,314 | ) | (71,391 | ) | ||||
Fees | (3,562 | ) | (3,413 | ) | ||||
Change in market value and other | 48,607 | 24,598 | ||||||
Reserve, end of period | 367,292 | 383,389 | ||||||
Total reserve, end of period | $ | 13,241,598 | $ | 12,678,819 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Acquisition cost capitalized | $ | 13,611 | $ | 16,889 | $ | (3,278 | ) | $ | 61,779 | $ | 76,580 | $ | (14,801 | ) | ||||||||||
Amortization of DAC | (20,617 | ) | (15,513 | ) | (5,104 | ) | (61,396 | ) | (57,520 | ) | (3,876 | ) | ||||||||||||
Change in DAC | $ | (7,006 | ) | $ | 1,376 | $ | (8,382 | ) | $ | 383 | $ | 19,060 | $ | (18,677 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Fixed annuity | ||||||||||||||||||||||||
Fixed investment income | $ | 97,545 | $ | 94,924 | $ | 2,621 | $ | 289,036 | $ | 287,240 | $ | 1,796 | ||||||||||||
Interest credited and mortality | (69,377 | ) | (61,388 | ) | (7,989 | ) | (200,517 | ) | (187,800 | ) | (12,717 | ) | ||||||||||||
Interest and mortality margin | 28,168 | 33,536 | (5,368 | ) | 88,519 | 99,440 | (10,921 | ) | ||||||||||||||||
Equity-indexed annuity | ||||||||||||||||||||||||
Fixed investment income | 38,471 | 34,894 | 3,577 | 113,186 | 98,160 | 15,026 | ||||||||||||||||||
Option return | 5,667 | 44,981 | (39,314 | ) | 85,528 | 51,588 | 33,940 | |||||||||||||||||
Interest credited and mortality | (31,063 | ) | (65,091 | ) | 34,028 | (157,517 | ) | (104,334 | ) | (53,183 | ) | |||||||||||||
Interest and mortality margin | 13,075 | 14,784 | (1,709 | ) | 41,197 | 45,414 | (4,217 | ) | ||||||||||||||||
Variable annuity | ||||||||||||||||||||||||
Separate account management fees | 1,085 | 1,069 | 16 | 3,101 | 3,210 | (109 | ) | |||||||||||||||||
Interest and mortality margin | 1,085 | 1,069 | 16 | 3,101 | 3,210 | (109 | ) | |||||||||||||||||
Total interest and mortality margin | $ | 42,328 | $ | 49,389 | $ | (7,061 | ) | $ | 132,817 | $ | 148,064 | $ | (15,247 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
PREMIUMS AND OTHER REVENUES | ||||||||||||||||||||||||
Premiums | $ | 40,676 | $ | 45,154 | $ | (4,478 | ) | $ | 121,581 | $ | 135,039 | $ | (13,458 | ) | ||||||||||
Net investment income | 2,381 | 2,233 | 148 | 7,177 | 6,850 | 327 | ||||||||||||||||||
Other income | 5,021 | 6,631 | (1,610 | ) | 15,940 | 18,597 | (2,657 | ) | ||||||||||||||||
Total premiums and other revenues | 48,078 | 54,018 | (5,940 | ) | 144,698 | 160,486 | (15,788 | ) | ||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | ||||||||||||||||||||||||
Claims incurred | 28,567 | 29,751 | (1,184 | ) | 81,042 | 90,201 | (9,159 | ) | ||||||||||||||||
Commissions for acquiring and servicing policies | 7,405 | 8,516 | (1,111 | ) | 22,975 | 23,658 | (683 | ) | ||||||||||||||||
Other operating expenses | 9,504 | 10,829 | (1,325 | ) | 31,203 | 31,277 | (74 | ) | ||||||||||||||||
Change in deferred policy acquisition costs (1) | 258 | 466 | (208 | ) | 919 | 2,060 | (1,141 | ) | ||||||||||||||||
Total benefits, losses and expenses | 45,734 | 49,562 | (3,828 | ) | 136,139 | 147,196 | (11,057 | ) | ||||||||||||||||
Income before federal income taxes and other items | $ | 2,344 | $ | 4,456 | $ | (2,112 | ) | $ | 8,559 | $ | 13,290 | $ | (4,731 | ) |
(1) | A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Medicare Supplement | $ | 19,982 | $ | 18,155 | $ | 1,827 | $ | 57,211 | $ | 53,094 | $ | 4,117 | ||||||||||||
MGU | 6,358 | 11,659 | (5,301 | ) | 21,344 | 34,661 | (13,317 | ) | ||||||||||||||||
Supplemental insurance | 5,344 | 5,895 | (551 | ) | 16,233 | 18,414 | (2,181 | ) | ||||||||||||||||
Credit Health | 4,492 | 4,439 | 53 | 13,475 | 13,354 | 121 | ||||||||||||||||||
Medical expense | 2,374 | 2,738 | (364 | ) | 7,221 | 8,440 | (1,219 | ) | ||||||||||||||||
All other | 2,126 | 2,268 | (142 | ) | 6,097 | 7,076 | (979 | ) | ||||||||||||||||
Total | $ | 40,676 | $ | 45,154 | $ | (4,478 | ) | $ | 121,581 | $ | 135,039 | $ | (13,458 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Medicare Supplement | $ | 16,096 | $ | 13,931 | $ | 2,165 | $ | 46,514 | $ | 40,599 | $ | 5,915 | ||||||||||||
MGU | 6,029 | 9,625 | (3,596 | ) | 18,790 | 30,087 | (11,297 | ) | ||||||||||||||||
Supplemental insurance | 2,192 | 1,579 | 613 | 6,464 | 5,915 | 549 | ||||||||||||||||||
Credit Health | 1,020 | 1,228 | (208 | ) | 2,493 | 3,590 | (1,097 | ) | ||||||||||||||||
Medical expense | 1,665 | 1,862 | (197 | ) | 3,950 | 5,465 | (1,515 | ) | ||||||||||||||||
All other | 1,565 | 1,526 | 39 | 2,831 | 4,545 | (1,714 | ) | |||||||||||||||||
Total | $ | 28,567 | $ | 29,751 | $ | (1,184 | ) | $ | 81,042 | $ | 90,201 | $ | (9,159 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Acquisition cost capitalized | $ | 1,085 | $ | 3,337 | $ | (2,252 | ) | $ | 7,629 | $ | 9,268 | $ | (1,639 | ) | ||||||||||
Amortization of DAC | (1,343 | ) | (3,803 | ) | 2,460 | (8,548 | ) | (11,328 | ) | 2,780 | ||||||||||||||
Change in DAC | $ | (258 | ) | $ | (466 | ) | $ | 208 | $ | (919 | ) | $ | (2,060 | ) | $ | 1,141 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
PREMIUMS AND OTHER REVENUES | ||||||||||||||||||||||||
Net premiums written | $ | 390,799 | $ | 388,632 | $ | 2,167 | $ | 1,180,451 | $ | 1,163,814 | $ | 16,637 | ||||||||||||
Net premiums earned | $ | 382,784 | $ | 374,842 | $ | 7,942 | $ | 1,125,704 | $ | 1,086,862 | $ | 38,842 | ||||||||||||
Net investment income | 16,357 | 15,629 | 728 | 48,085 | 46,983 | 1,102 | ||||||||||||||||||
Other income | 3,137 | 3,399 | (262 | ) | 8,689 | 7,726 | 963 | |||||||||||||||||
Total premiums and other revenues | 402,278 | 393,870 | 8,408 | 1,182,478 | 1,141,571 | 40,907 | ||||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | ||||||||||||||||||||||||
Claims incurred | 280,695 | 272,885 | 7,810 | 790,447 | 795,501 | (5,054 | ) | |||||||||||||||||
Commissions for acquiring and servicing policies | 65,893 | 72,135 | (6,242 | ) | 201,635 | 212,156 | (10,521 | ) | ||||||||||||||||
Other operating expenses | 50,111 | 45,277 | 4,834 | 151,677 | 138,244 | 13,433 | ||||||||||||||||||
Change in deferred policy acquisition costs (1) | (636 | ) | (3,426 | ) | 2,790 | (3,807 | ) | (10,726 | ) | 6,919 | ||||||||||||||
Total benefits, losses and expenses | 396,063 | 386,871 | 9,192 | 1,139,952 | 1,135,175 | 4,777 | ||||||||||||||||||
Income before federal income taxes and other items | $ | 6,215 | $ | 6,999 | $ | (784 | ) | $ | 42,526 | $ | 6,396 | $ | 36,130 | |||||||||||
Loss ratio | 73.3 | % | 72.8 | % | 0.5 | % | 70.2 | % | 73.2 | % | (3.0 | )% | ||||||||||||
Underwriting expense ratio | 30.1 | 30.4 | (0.3 | ) | 31.0 | 31.2 | (0.2 | ) | ||||||||||||||||
Combined ratio | 103.4 | % | 103.2 | % | 0.2 | % | 101.2 | % | 104.4 | % | (3.2 | )% | ||||||||||||
Impact of catastrophe events on combined ratio | 9.6 | 9.1 | 0.5 | 7.2 | 8.1 | (0.9 | ) | |||||||||||||||||
Combined ratio without impact of catastrophe events | 93.8 | % | 94.1 | % | (0.3 | )% | 94.0 | % | 96.3 | % | (2.3 | )% | ||||||||||||
Gross catastrophe losses | $ | 36,634 | $ | 34,112 | $ | 2,522 | $ | 80,456 | $ | 89,000 | $ | (8,544 | ) | |||||||||||
Net catastrophe losses | $ | 36,796 | $ | 34,514 | $ | 2,282 | $ | 81,005 | $ | 91,300 | $ | (10,295 | ) |
(1) | A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Net premiums written | ||||||||||||||||||||||||
Automobile | $ | 145,573 | $ | 145,465 | $ | 108 | $ | 432,795 | $ | 427,202 | $ | 5,593 | ||||||||||||
Homeowner | 81,424 | 78,806 | 2,618 | 221,604 | 213,285 | 8,319 | ||||||||||||||||||
Other Personal | 15,244 | 13,922 | 1,322 | 43,203 | 39,394 | 3,809 | ||||||||||||||||||
Total net premiums written | $ | 242,241 | $ | 238,193 | $ | 4,048 | $ | 697,602 | $ | 679,881 | $ | 17,721 | ||||||||||||
Net premiums earned | ||||||||||||||||||||||||
Automobile | $ | 142,475 | $ | 139,532 | $ | 2,943 | $ | 419,666 | $ | 401,672 | $ | 17,994 | ||||||||||||
Homeowner | 71,160 | 67,370 | 3,790 | 207,510 | 196,038 | 11,472 | ||||||||||||||||||
Other Personal | 13,606 | 12,274 | 1,332 | 39,258 | 35,359 | 3,899 | ||||||||||||||||||
Total net premiums earned | $ | 227,241 | $ | 219,176 | $ | 8,065 | $ | 666,434 | $ | 633,069 | $ | 33,365 | ||||||||||||
Loss ratio | ||||||||||||||||||||||||
Automobile | 72.7 | % | 80.9 | % | (8.2 | )% | 71.9 | % | 78.6 | % | (6.7 | )% | ||||||||||||
Homeowner | 102.3 | % | 98.2 | % | 4.1 | % | 83.2 | % | 86.6 | % | (3.4 | )% | ||||||||||||
Other Personal | 57.4 | % | 70.0 | % | (12.6 | )% | 58.2 | % | 70.0 | % | (11.8 | )% | ||||||||||||
Personal line loss ratio | 81.1 | % | 85.6 | % | (4.5 | )% | 71.4 | % | 80.6 | % | (9.2 | )% | ||||||||||||
Combined Ratio | ||||||||||||||||||||||||
Automobile | 95.3 | % | 102.6 | % | (7.3 | )% | 94.9 | % | 101.4 | % | (6.5 | )% | ||||||||||||
Homeowner | 135.5 | % | 133.7 | % | 1.8 | % | 118.3 | % | 121.3 | % | (3.0 | )% | ||||||||||||
Other Personal | 102.6 | % | 104.3 | % | (1.7 | )% | 103.5 | % | 106.1 | % | (2.6 | )% | ||||||||||||
Personal line combined ratio | 108.3 | % | 112.2 | % | (3.9 | )% | 102.8 | % | 107.8 | % | (5.0 | )% |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Net premiums written | ||||||||||||||||||||||||
Commercial Business | $ | 53,182 | $ | 48,172 | $ | 5,010 | $ | 178,928 | $ | 169,614 | $ | 9,314 | ||||||||||||
Agricultural Business | 38,783 | 37,465 | 1,318 | 120,080 | 114,274 | 5,806 | ||||||||||||||||||
Automobile | 27,925 | 24,892 | 3,033 | 97,059 | 88,191 | 8,868 | ||||||||||||||||||
Total net premiums written | $ | 119,890 | $ | 110,529 | $ | 9,361 | $ | 396,067 | $ | 372,079 | $ | 23,988 | ||||||||||||
Net premiums earned | ||||||||||||||||||||||||
Commercial Business | $ | 58,280 | $ | 54,474 | $ | 3,806 | $ | 168,061 | $ | 156,016 | $ | 12,045 | ||||||||||||
Agricultural Business | 38,038 | 36,275 | 1,763 | 112,044 | 106,542 | 5,502 | ||||||||||||||||||
Automobile | 29,496 | 27,245 | 2,251 | 85,510 | 79,086 | 6,424 | ||||||||||||||||||
Total net premiums earned | $ | 125,814 | $ | 117,994 | $ | 7,820 | $ | 365,615 | $ | 341,644 | $ | 23,971 | ||||||||||||
Loss ratio | ||||||||||||||||||||||||
Commercial Business | 48.6 | % | 48.9 | % | (0.3 | )% | 49.6 | % | 50.3 | % | (0.7 | )% | ||||||||||||
Agricultural Business | 64.7 | % | 35.5 | % | 29.2 | % | 72.5 | % | 66.1 | % | 6.4 | % | ||||||||||||
Automobile | 82.9 | % | 88.8 | % | (5.9 | )% | 79.7 | % | 85.1 | % | (5.4 | )% | ||||||||||||
Commercial line loss ratio | 61.5 | % | 54.0 | % | 7.5 | % | 63.7 | % | 63.3 | % | 0.4 | % | ||||||||||||
Combined ratio | ||||||||||||||||||||||||
Commercial Business | 81.4 | % | 81.4 | % | — | % | 83.0 | % | 82.8 | % | 0.2 | % | ||||||||||||
Agricultural Business | 100.6 | % | 72.8 | % | 27.8 | % | 109.3 | % | 104.2 | % | 5.1 | % | ||||||||||||
Automobile | 107.8 | % | 111.9 | % | (4.1 | )% | 104.6 | % | 109.1 | % | (4.5 | )% | ||||||||||||
Commercial line combined ratio | 93.4 | % | 85.8 | % | 7.6 | % | 96.1 | % | 95.5 | % | 0.6 | % |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Net premiums written | $ | 28,669 | $ | 39,910 | $ | (11,241 | ) | $ | 86,782 | $ | 111,854 | $ | (25,072 | ) | ||||||||||
Net premiums earned | 29,731 | 37,672 | (7,941 | ) | 93,656 | 112,149 | (18,493 | ) | ||||||||||||||||
Loss ratio(1) | 64.3 | % | 57.2 | % | 7.1 | % | 64.0 | % | 61.5 | % | 2.5 | % | ||||||||||||
Combined ratio(1) | 109.1 | % | 105.2 | % | 3.9 | % | 110.8 | % | 112.5 | % | (1.7 | )% |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
OTHER REVENUES | ||||||||||||||||||||||||
Net investment income | $ | 24,237 | $ | 27,024 | $ | (2,787 | ) | $ | 59,051 | $ | 65,423 | $ | (6,372 | ) | ||||||||||
Net realized investment gains (losses) | 31,933 | (1,276 | ) | 33,209 | 24,975 | 4,775 | 20,200 | |||||||||||||||||
Net gains on equity securities | 8,589 | 126,495 | (117,906 | ) | 282,026 | 150,487 | 131,539 | |||||||||||||||||
Other income | 1,478 | 1,031 | 447 | 4,511 | 3,911 | 600 | ||||||||||||||||||
Total other revenues | 66,237 | 153,274 | (87,037 | ) | 370,563 | 224,596 | 145,967 | |||||||||||||||||
BENEFITS, LOSSES AND EXPENSES | ||||||||||||||||||||||||
Other operating expenses | 9,750 | 5,838 | 3,912 | 28,158 | 24,453 | 3,705 | ||||||||||||||||||
Total benefits, losses and expenses | 9,750 | 5,838 | 3,912 | 28,158 | 24,453 | 3,705 | ||||||||||||||||||
Income before federal income taxes and other items | $ | 56,487 | $ | 147,436 | $ | (90,949 | ) | $ | 342,405 | $ | 200,143 | $ | 142,262 |
September 30, 2019 | December 31, 2018 | |||||||||||||
Fixed maturity, bond held-to-maturity, at amortized cost | $ | 8,715,569 | 37.0 | % | $ | 8,211,449 | 36.8 | % | ||||||
Fixed maturity, bond available-for-sale, at fair value | 6,826,245 | 29.0 | 6,215,563 | 27.9 | ||||||||||
Equity securities, at fair value | 1,678,657 | 7.1 | 1,530,228 | 6.9 | ||||||||||
Mortgage loans on real estate, net of allowance | 4,936,605 | 21.0 | 5,124,707 | 23.0 | ||||||||||
Policy loans | 380,018 | 1.6 | 376,254 | 1.7 | ||||||||||
Investment real estate, net of accumulated depreciation | 556,503 | 2.3 | 587,516 | 2.6 | ||||||||||
Short-term investments | 398,948 | 1.7 | 206,760 | 0.9 | ||||||||||
Other invested assets | 63,034 | 0.3 | 50,087 | 0.2 | ||||||||||
Total investments | $ | 23,555,579 | 100.0 | % | $ | 22,302,564 | 100.0 | % |
September 30, 2019 | December 31, 2018 | Change | ||||||||||
Held-to-Maturity | ||||||||||||
Gains | $ | 355,009 | $ | 72,403 | $ | 282,606 | ||||||
Losses | (6,890 | ) | (153,768 | ) | 146,878 | |||||||
Net gains (losses) | 348,119 | (81,365 | ) | 429,484 | ||||||||
Available-for-Sale | ||||||||||||
Gains | 301,024 | 61,286 | 239,738 | |||||||||
Losses | (20,137 | ) | (107,344 | ) | 87,207 | |||||||
Net gains (losses) | 280,887 | (46,058 | ) | 326,945 | ||||||||
Total | $ | 629,006 | $ | (127,423 | ) | $ | 756,429 |
September 30, 2019 | December 31, 2018 | |||||||
American National stockholders’ equity, excluding accumulated other comprehensive income, net of tax (“AOCI”) | $ | 5,741,137 | $ | 5,356,986 | ||||
Accumulated other comprehensive income (loss) | 85,444 | (99,738 | ) | |||||
Total American National stockholders’ equity | $ | 5,826,581 | $ | 5,257,248 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Capital and Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | Capital and Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||
Net income attributable to American National | $ | 449,241 | $ | — | $ | 449,241 | $ | 158,995 | $ | — | $ | 158,995 | ||||||||||||
Dividends to shareholders | (66,195 | ) | — | (66,195 | ) | (88,228 | ) | — | (88,228 | ) | ||||||||||||||
Change in net unrealized gains (losses) on debt securities | — | 181,305 | 181,305 | — | (136,261 | ) | (136,261 | ) | ||||||||||||||||
Foreign currency transaction and translation adjustment | — | 297 | 297 | — | (900 | ) | (900 | ) | ||||||||||||||||
Defined benefit pension plan adjustment | — | 4,365 | 4,365 | — | 22,326 | 22,326 | ||||||||||||||||||
Cumulative effect of accounting change | 785 | (785 | ) | — | 687,051 | (627,119 | ) | 59,932 | ||||||||||||||||
Other | 320 | — | 320 | (5,375 | ) | — | (5,375 | ) | ||||||||||||||||
Total | $ | 384,151 | $ | 185,182 | $ | 569,333 | $ | 752,443 | $ | (741,954 | ) | $ | 10,489 |
ITEM 6. | EXHIBITS |
Exhibit Number | Description | |
3.1 | ||
3.2 | ||
31.1 | ||
31.2 | ||
32.1 | ||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101). |
By: | /s/ James E. Pozzi | |
Name: | James E. Pozzi | |
Title: | President and Chief Executive Officer | |
By: | /s/ Timothy A. Walsh | |
Name: | Timothy A.Walsh | |
Title: | Executive Vice President, CFO, Treasurer and ML and P&C Operations |
/s/ James E. Pozzi |
James E. Pozzi |
President and Chief Executive Officer |
(Principal Executive Officer) |
Date: November 5, 2019 |
/s/ Timothy A. Walsh |
Timothy A. Walsh |
Executive Vice President, |
CFO, Treasurer and ML and P&C Operations |
(Principal Financial Officer) |
Date: November 5, 2019 |
/s/ James E. Pozzi |
James E. Pozzi |
President and Chief Executive Officer |
(Principal Executive Officer) |
/s/ Timothy A. Walsh |
Timothy A. Walsh |
Executive Vice President, |
CFO, Treasurer and ML and P&C Operations |
(Principal Financial Officer) |
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Derivative Instruments (Tables) |
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Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments Reported in Financial Position | The detail of derivative instruments is shown below (in thousands, except number of instruments):
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Schedule of Derivative Instruments Reported in Statements of Operations |
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Schedule of Information Regarding Company's Exposure to Credit Loss on the Options Holds | Information regarding the Company’s exposure to credit loss on the options it holds is presented below (in thousands):
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Stockholders' Equity and Noncontrolling Interests |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Noncontrolling Interests | Stockholders’ Equity and Noncontrolling Interests American National has one class of common stock with a par value of $1.00 per share and 50,000,000 authorized shares. The amounts outstanding at the dates indicated are shown below:
Stock-based compensation American National has a stock-based compensation plan, which allows for grants of Non-Qualified Stock Options, Stock Appreciation Rights (“SAR”), Restricted Stock (“RS”) Awards, Restricted Stock Units (“RSU”), Performance Awards, Incentive Awards or any combination thereof. This plan is administered by the American National Board Compensation Committee. To date, only SAR, RS and RSU awards have been made. All awards are subject to review and approval by the Board Compensation Committee both at the time of setting applicable performance objectives and at payment of the awards. The number of shares available for grants under the plan cannot exceed 2,900,000 shares, and no more than 200,000 shares may be granted to any one individual in any calendar year. Grants were made to certain officers meeting established performance objectives, and grants are made to directors as compensation and to align their interests with those of other shareholders. SAR, RS and RSU information for the periods indicated are shown below:
The SARs give the holder the right to cash compensation based on the difference between the stock price on the grant date and the stock price on the exercise date. The SARs vest at a rate of 20% per year for five years and expire five years after vesting. RS awards entitle the participant to full dividend and voting rights. Each RS share awarded has the value of one share of restricted stock and vests 10 years from the grant date. Unvested shares are restricted as to disposition, and are subject to forfeiture under certain circumstances. Compensation expense is recognized over the vesting period. The restrictions on these awards lapse after 10 years and most of these awards feature a graded vesting schedule in the case of the retirement, death or disability of an award holder. Restricted stock awards for 350,334 shares have been granted at an exercise price of zero, of which 10,000 shares are unvested. RSU awards to our directors and advisory directors vest after one-year or upon earlier death, disability or retirement from service after age 65. Upon vesting, RSU awards are settled in cash based upon the market price of our common stock on the date of vesting. Earnings per share Basic earnings per share were calculated using a weighted average number of shares outstanding. Diluted earnings per share include RS and RSU award shares.
Statutory Capital and Surplus Risk Based Capital (“RBC”) is a measure insurance regulators use to evaluate the capital adequacy of American National Insurance Company and its insurance subsidiaries. RBC is calculated using formulas applied to certain financial balances and activities that consider, among other things, investment risks related to the type and quality of investments, insurance risks associated with products and liabilities, interest rate risks and general business risks. Insurance companies that do not maintain capital and surplus at a level at least 200% of the authorized control level RBC are required to take certain actions. At September 30, 2019 and December 31, 2018, American National Insurance Company’s statutory capital and surplus was $3,552,712,000 and $3,162,808,000, respectively. American National Insurance Company and each of its insurance subsidiaries had statutory capital and surplus at September 30, 2019 and December 31, 2018, substantially above 200% of the authorized control level. American National and its insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile, which include certain components of the National Association of Insurance Commissioners’ Codification of Statutory Accounting Principles (“NAIC Codification”). NAIC Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting practices continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the statutory capital and surplus of American National Insurance Company and its insurance subsidiaries. Statutory accounting differs from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. One of American National’s insurance subsidiaries has been granted a permitted practice from the Missouri Department of Insurance to record as the valuation of its investment in a wholly-owned subsidiary that is the attorney-in-fact for a Texas domiciled insurer, the statutory capital and surplus of the Texas domiciled insurer. This permitted practice increases the statutory capital and surplus of both American National Insurance Company and the Missouri domiciled insurance subsidiary by $68,527,000 and $69,787,000 at September 30, 2019 and December 31, 2018, respectively. The statutory capital and surplus of both American National Insurance Company and the Missouri domiciled insurance subsidiary would have remained substantially above the Company action level RBC had it not used the permitted practice. The statutory capital and surplus and net income of our life and property and casualty insurance entities in accordance with statutory accounting practices are shown below (in thousands):
Dividends We paid a dividend of $0.82 for the three months ended September 30, 2019 and December 31, 2018. We expect to continue to pay regular cash dividends, although there is no assurance as to future dividends because they depend on future earnings, capital requirements and financial conditions. American National Insurance Company’s payment of dividends to stockholders is restricted by insurance law. The restrictions require life insurance companies to maintain minimum amounts of capital and surplus, and in the absence of special approval, limit the payment of dividends to the greater of the prior year’s statutory net income from operations, or 10% of prior year statutory surplus. American National Insurance Company is permitted without prior approval of the Texas Department of Insurance to pay total dividends of $316,281,000 during 2019. Similar restrictions on amounts that can transfer in the form of dividends, loans, or advances to American National Insurance Company apply to its insurance subsidiaries. Noncontrolling interests American National County Mutual Insurance Company (“County Mutual”) is a mutual insurance company owned by its policyholders. American National has a management agreement that effectively gives it control of County Mutual. As a result, County Mutual is included in the consolidated financial statements of American National. Policyholder interests in the financial position of County Mutual are reflected as noncontrolling equity of $6,750,000 at September 30, 2019 and December 31, 2018. American National Insurance Company and its subsidiaries exercise control or ownership of various joint ventures, resulting in their consolidation into American National’s consolidated financial statements. The interests of the other partners in the consolidated joint ventures are shown as a noncontrolling deficit of $1,623,000 and noncontrolling equity of $7,517,000 at September 30, 2019 and December 31, 2018, respectively.
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Summary of Significant Accounting Policies and Practices (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | |
Consolidation | American National consolidates entities that are wholly-owned and those in which American National owns less than 100% but controls the voting rights, as well as variable interest entities in which American National is the primary beneficiary. Intercompany balances and transactions with consolidated entities have been eliminated. Investments in unconsolidated affiliates are accounted for using the equity method of accounting. |
Reclassification | Certain amounts in prior years have been reclassified to conform to current year presentation. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported consolidated financial statement balances. Actual results could differ from those estimates. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, "Revenue from Contracts with Customers," that superseded most existing revenue recognition requirements in GAAP. Insurance contracts generally are excluded from the scope of the guidance. For those contracts which are impacted, the transaction price is attributed to the underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. The Company’s revenues include premiums, other policy revenues, net investment income, realized investment gains, net gains on equity securities, and other income. Other income includes fee income which is recognized when obligations under the terms specified within a contract with a customer are either (1) satisfied at a point in time or (2) based upon the progress of completion measured over a period of time as the obligation is performed using the input method. The Company adopted the standard on its required effective date of January 1, 2018 using the modified retrospective approach. The majority of our revenue sources are insurance related and not in the scope of the guidance. The adoption of the standard did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the nine months ended September 30, 2019. In January 2016, the FASB issued ("ASU") 2016-01, "Financial Instruments," which changed certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The new guidance requires that equity investments, other than those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value with the changes in fair value recognized through earnings. When the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk will be recognized separately in other comprehensive income. The guidance also simplifies the impairment assessment of equity investments and eliminates the disclosure requirements for methods and significant assumptions used to estimate fair value of financial instruments that are measured at amortized cost on the statement of financial position. The Company adopted the standard on its required effective date of January 1, 2018 using a modified retrospective approach. Upon adoption, cumulative unrealized gains on equity securities, net of tax, of $667.7 million, partially offset by $30.4 million participating policyholders’ interest in such gains, net of tax, were reclassified from accumulated other comprehensive income to retained earnings. In April 2018, an additional $10.2 million deferred policy acquisition cost adjustment, net of tax, related to net unrealized gains and losses on equity securities, was reclassified from accumulated other comprehensive income to retained earnings. The change in net gains on equity securities increased earnings by $222.8 million and $118.9 million, net of tax, for the nine months ended September 30, 2019 and 2018, respectively. In October of 2016, the FASB issued ASU 2016-16, “Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory,” which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset was sold to an outside party. The Company adopted the standard on its required effective date of January 1, 2018 using a modified retrospective approach. Upon adoption, a liability was released and retained earnings increased by $59.9 million. In February 2016, the FASB issued ASU 2016-02, “Leases,” that required significant changes to the statement of financial position of lessees. The new standard required lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase by the lessee. This classification is used to determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months, regardless of their classification. Lessor accounting was less affected by the standard but was updated to align with certain changes in the lessee model and the new revenue recognition standard. The Company adopted the standard on its required effective date of January 1, 2019 using the effective date method, which required a cumulative-effect adjustment to the opening balance of retained earnings. Upon adoption, the Company recorded a right-of-use asset and liability of $13.1 million. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The standard was adopted on its required effective date of January 1, 2019 and resulted in a $0.8 million increase in retained earnings and a corresponding decrease to accumulated other comprehensive income. Future Adoption of New Accounting Standards— The FASB issued the following accounting guidance relevant to American National: In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments,” which will significantly change how entities measure credit losses for most financial assets, reinsurance recoverables and certain other instruments that are not measured at fair value through net income. The guidance will replace the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than a direct write down of the investment, as required by the current other-than-temporary impairment model. The standard also requires additional disclosures. This standard will become effective for the Company for all annual and interim periods beginning January 1, 2020. The Company is in the process of determining the impact of adopting the standard on our results of operations and financial position. In August 2018, the FASB issued ASU 2018-12, “Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts,” that impacts financial reporting for insurance companies that issue long-duration contracts. The guidance will improve the timeliness of recognizing changes in the liability for future policy benefits for traditional and limited payment long-duration contracts and will modify the rate used to discount future cash flows. The guidance will also simplify the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, simplify the amortization of deferred acquisition costs and add significant qualitative and quantitative disclosures. This standard will become effective for the Company for all annual and interim periods beginning January 1, 2022. This standard could have a material impact on our results of operations and financial position. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” guidance that modifies the disclosure requirements on fair value measurements. Certain disclosure requirements are removed, modified or added to improve the relevancy of the fair value measurement disclosures. The new standard will become effective for the Company for all interim and annual periods beginning January 1, 2020. The Company does not expect the adoption of this guidance to have a material impact on the results of operations or financial position. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General: Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans,” which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance removes certain defined benefit pension or other postretirement plan disclosures that are no longer cost beneficial, clarifies the specific requirements for each disclosure and adds disclosure requirements. This standard will become effective for the annual period ending December 31, 2020. The Company does not expect the adoption of this standard to have a material impact on our results of operations or financial position. In August 2018, the FASB issued ASU 2018-15 “Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which seeks to align the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Current GAAP does not specifically address the implementation costs of a cloud computing arrangement that is service contract. This standard will become effective for the Company for all interim and annual periods beginning January 1, 2020. The Company is in the process of determining the impact of adopting the standard.
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Investment in Securities - Proceeds from Available for Sale Securities and Realized Gain Loss (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of fixed maturity available-for-sale securities | $ 14,921 | $ 18,424 | $ 15,205 | $ 64,980 |
Gross realized gains | 56 | 0 | 56 | 376 |
Gross realized losses | $ 0 | $ (569) | $ (23) | $ (1,156) |
Summary of Significant Accounting Policies and Practices - Additional Information (Detail) |
Sep. 30, 2019 |
---|---|
Maximum | |
Schedule Of Significant Accounting Policies [Line Items] | |
Entity ownership percentage | 100.00% |
Investment in Securities - Bond by Credit Quality Rating Distribution (Detail) - Bonds - Credit Risk Financial Instruments - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Concentration Risk [Line Items] | ||
Amortized cost | $ 15,260,927 | $ 14,473,070 |
Estimated fair value | $ 15,889,933 | $ 14,345,647 |
Percent of fair value | 100.00% | 100.00% |
AAA | ||
Concentration Risk [Line Items] | ||
Amortized cost | $ 764,050 | $ 690,009 |
Estimated fair value | $ 795,776 | $ 702,531 |
Percent of fair value | 5.00% | 4.90% |
AA | ||
Concentration Risk [Line Items] | ||
Amortized cost | $ 1,219,171 | $ 1,326,947 |
Estimated fair value | $ 1,274,409 | $ 1,336,380 |
Percent of fair value | 8.00% | 9.30% |
A | ||
Concentration Risk [Line Items] | ||
Amortized cost | $ 5,702,178 | $ 5,350,316 |
Estimated fair value | $ 5,959,712 | $ 5,314,589 |
Percent of fair value | 37.50% | 37.00% |
BBB | ||
Concentration Risk [Line Items] | ||
Amortized cost | $ 7,101,873 | $ 6,584,478 |
Estimated fair value | $ 7,399,545 | $ 6,507,212 |
Percent of fair value | 46.60% | 45.40% |
BB and below | ||
Concentration Risk [Line Items] | ||
Amortized cost | $ 473,655 | $ 521,320 |
Estimated fair value | $ 460,491 | $ 484,935 |
Percent of fair value | 2.90% | 3.40% |
Net Investment Income and Realized Investment Gains (Losses) - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | $ 246,620 | $ 285,532 | $ 796,696 | $ 740,942 |
Bonds | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 154,322 | 141,045 | 452,786 | 423,669 |
Dividends on equity securities | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 7,985 | 10,387 | 25,292 | 30,725 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 64,753 | 64,741 | 191,110 | 187,608 |
Real estate | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 1,005 | 2,783 | 7,310 | 11,278 |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 12,277 | 15,633 | 24,310 | 29,086 |
Options | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | $ 6,278 | $ 50,943 | $ 95,888 | $ 58,576 |
Fair Value of Financial Instruments - Additional Information (Detail) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2018 |
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Unrealized gain (losses) relating to assets still held and included in net investment income | $ 79,991,000 | $ 18,868,000 | |
Transfer between Level 1 and Level 2 fair value hierarchies | $ 0 | $ 0 | |
Price Volatility | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity volatility (as percent) | 0.147 | 0.232 |
Real Estate and Other Investments - Carrying Amount and Maximum Exposure to Loss Related to VIEs (Detail) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Mortgage loans | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 590,432 | $ 633,533 |
Maximum exposure to loss | 590,432 | 633,533 |
Investment in unconsolidated affiliates | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 326,537 | 330,730 |
Maximum exposure to loss | 326,537 | 330,730 |
Accrued investment income | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 2,018 | 2,191 |
Maximum exposure to loss | $ 2,018 | $ 2,191 |
Mortgage Loans - Additional Information (Detail) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2019
USD ($)
loan
|
Sep. 30, 2018
loan
|
Dec. 31, 2018
USD ($)
loan
|
|
Financing Receivable, Modifications [Line Items] | |||
Number of mortgage loan foreclosed | 2 | 4 | |
Mortgage loans foreclosed | $ | $ 16,008,000 | $ 22,608,000 | |
Number of loans in foreclosure process | 0 | 1 | |
Mortgage loans foreclosure process | $ | $ 7,363,000 | ||
Number of mortgage loans sold | 0 | 0 | |
Unamortized discounts | $ | $ 0 | $ 0 | |
Unamortized origination fees, mortgage loans | $ | $ 28,335,000 | $ 31,586,000 | |
Number of Loans | 3 | 1 | |
Retail | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | 2 | 0 |
Related Party Transactions - Additional Information (Detail) - Affiliate |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Related Party Transaction [Line Items] | |
Interest rate on mortgage loans | 7.25% |
Due date of mortgage loans receivable | Apr. 01, 2019 |
Moody Foundation | Gal-Tex | |
Related Party Transaction [Line Items] | |
Noncontrolling owners, ownership percentage | 34.00% |
Moody Foundation | American National | |
Related Party Transaction [Line Items] | |
Noncontrolling owners, ownership percentage | 22.75% |
Libbie Shearn Moody Trust | |
Related Party Transaction [Line Items] | |
Noncontrolling owners, ownership percentage | 50.20% |
Libbie Shearn Moody Trust | American National | |
Related Party Transaction [Line Items] | |
Noncontrolling owners, ownership percentage | 37.00% |
Segment Information - Additional Information (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2019
segment
| |
Segment Reporting [Abstract] | |
Segment information, number of operating segments | 5 |
Real Estate and Other Investments |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate and Other Investments | Real Estate and Other Investments Investment real estate by property-type and geographic distribution are as follows:
American National regularly invests in real estate partnerships and joint ventures. American National frequently participates in the design of these entities with the sponsor, but in most cases, our involvement is limited to financing. Through analysis performed by American National, some of these partnerships and joint ventures have been determined to be variable interest entities (“VIEs”). In certain instances, in addition to an economic interest in the entity, American National holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary or consolidator of the entity. The assets of the consolidated VIEs are restricted and must first be used to settle their liabilities. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of American National, as American National’s obligation is limited to the amount of its committed investment. American National has not provided financial or other support to the VIEs in the form of liquidity arrangements, guarantees, or other commitments to third parties that may affect the fair value or risk of its variable interest in the VIEs in 2019 or 2018. The assets and liabilities relating to the VIEs included in the consolidated financial statements are as follows (in thousands):
The notes payable in the consolidated statements of financial position pertain to the borrowings of the consolidated VIEs. The liability of American National relating to notes payable of the consolidated VIEs is limited to the amount of its direct or indirect investment in the respective ventures, which totaled $6,071,000 and $26,635,000 at September 30, 2019 and December 31, 2018, respectively. The total long-term notes payable of the consolidated VIEs consists of the following (in thousands):
For other VIEs in which American National is a partner, it is not the primary beneficiary, and these entities are not consolidated, as the major decisions that most significantly impact the economic activities of the VIE require consent of all partners. The carrying amount and maximum exposure to loss relating to unconsolidated VIEs follows (in thousands):
As of September 30, 2019, one real estate investment with a carrying value of $3,364,000 met the criteria as held-for-sale.
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Deferred Policy Acquisition Costs |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Deferred policy acquisition costs are shown below (in thousands):
Commissions comprise the majority of the additions to deferred policy acquisition costs.
|
Summary of Significant Accounting Policies and Practices |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Practices | Summary of Significant Accounting Policies and Practices The consolidated financial statements and notes thereto have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and are reported in U.S. currency. American National consolidates entities that are wholly-owned and those in which American National owns less than 100% but controls the voting rights, as well as variable interest entities in which American National is the primary beneficiary. Intercompany balances and transactions with consolidated entities have been eliminated. Investments in unconsolidated affiliates are accounted for using the equity method of accounting. Certain amounts in prior years have been reclassified to conform to current year presentation. The interim consolidated financial statements and notes herein are unaudited and reflect all adjustments which management considers necessary for the fair presentation of the interim consolidated statements of financial position, operations, comprehensive income, changes in equity, and cash flows. The interim consolidated financial statements and notes should be read in conjunction with the annual consolidated financial statements and notes thereto included in American National’s Annual Report on Form 10-K as of and for the year ended December 31, 2018. The consolidated results of operations for the interim periods should not be considered indicative of results to be expected for the full year. |
Federal Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective Income Tax Reconciliation | A reconciliation of the effective tax rate to the statutory federal tax rate is shown below (in thousands, except percentages):
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Net Investment Income and Realized Investment Gains (Losses) (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Investment Income | Net investment income is shown below (in thousands):
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Summary of Realized Investment Gains (Losses) | Net realized investment gains (losses) are shown below (in thousands):
Other-than-temporary impairment losses are shown below (in thousands):
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Related Party Transactions (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | The impact on the consolidated financial statements of significant related party transactions is shown below (in thousands):
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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 105,943 | $ 175,841 | $ 460,685 | $ 278,161 |
Other comprehensive income (loss), net of tax | ||||
Change in net unrealized gains (losses) on securities | (2,569) | (14,395) | 181,305 | (142,116) |
Foreign currency transaction and translation adjustments | (293) | (181) | 297 | (681) |
Defined benefit pension plan adjustment | 1,454 | 1,601 | 4,365 | 3,991 |
Total other comprehensive income (loss), net of tax | (1,408) | (12,975) | 185,967 | (138,806) |
Total comprehensive income | 104,535 | 162,866 | 646,652 | 139,355 |
Less: Comprehensive income attributable to noncontrolling interest | 13,759 | 2,377 | 11,444 | 1,781 |
Total comprehensive income attributable to American National | $ 90,776 | $ 160,489 | $ 635,208 | $ 137,574 |
Mortgage Loans - Distribution Based on Carrying Amount of Mortgage Loans by Location (Detail) - Mortgage Loans On Real Estate Concentration Risk - Geographic Concentration Risk |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Concentration Risk [Line Items] | ||
Distribution, percentage | 100.00% | 100.00% |
East North Central | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 13.50% | 13.90% |
East South Central | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 2.60% | 2.80% |
Mountain | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 22.30% | 20.00% |
Pacific | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 17.50% | 16.20% |
South Atlantic | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 12.30% | 12.10% |
West South Central | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 25.00% | 27.20% |
Other | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 6.80% | 7.80% |
Mortgage Loans Mortgage Loans - Schedule of Troubled Debt Restructuring Mortgage Loan Information (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2019
USD ($)
loan
|
Sep. 30, 2018
USD ($)
loan
|
|
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 3 | 1 |
Recorded Investment Pre-Modification | $ 50,625 | $ 5,164 |
Recorded Investment Post Modification | $ 50,625 | $ 5,164 |
Office | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment Pre-Modification | $ 9,271 | $ 5,164 |
Recorded Investment Post Modification | $ 9,271 | $ 5,164 |
Retail | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 0 |
Recorded Investment Pre-Modification | $ 41,354 | $ 0 |
Recorded Investment Post Modification | $ 41,354 | $ 0 |
Real Estate and Other Investments - Schedule of Long-term Notes Payable of Consolidated VIEs (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Debt Instrument [Line Items] | ||
Notes payable | $ 159,043 | $ 137,963 |
VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 159,043 | 137,963 |
Long Term Notes Payable Due 2024 | VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Interest rate on long-term notes | 4.18% | |
Long Term Notes Payable Due 2022 | VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 82,475 | 84,730 |
Interest rate on long-term notes | 4.00% | |
LIBOR | Long Term Notes Payable Due 2021 | VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 10,840 | 10,834 |
Basis spread on variable rate | LIBOR | |
LIBOR | Long Term Notes Payable Due 2024 | VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 65,728 | $ 42,399 |
Liability for Unpaid Claims and Claim Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Insurance [Abstract] | ||
Description of increase (decrease) in claims and claim adjustment expenses | The net and gross reserve calculations have shown favorable development as a result of favorable loss emergence compared to what was implied by the loss development patterns used in the original estimation of losses in prior years. | |
Decrease in claims and claim adjustments expenses amount | $ 47,048 | $ 11,101 |
Short-duration health insurance claims | $ 21,362 |
Mortgage Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | Mortgage Loans Generally, commercial mortgage loans are secured by first liens on income-producing real estate. American National attempts to maintain a diversified portfolio by considering the location of the underlying collateral. The distribution based on carrying amount of mortgage loans by location is as follows:
During the nine months ended September 30, 2019, American National foreclosed on two loans with a total recorded investment of $16,008,000 and no loans were in the process of foreclosure at September 30, 2019. For the year ended December 31, 2018, American National foreclosed on four loans with a total recorded investment of $22,608,000, and one loan with a total recorded investment of $7,363,000 was in the process of foreclosure. American National did not sell any loans during the nine months ended September 30, 2019 or during the year ended December 31, 2018. The age analysis of past due loans is shown below (in thousands):
There were no unamortized purchase discounts as of September 30, 2019 or during the year ended December 31, 2018. Total mortgage loans were net of unamortized origination fees of $28,335,000 and $31,586,000 at September 30, 2019 and December 31, 2018, respectively. No unearned income is included in these amounts. Allowance for Credit Losses A loan is considered impaired when it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Mortgage loans with temporary difficulties are not considered impaired when the borrower has the financial capacity to fund revenue shortfalls from the properties for the foreseeable future. Individual valuation allowances are established for impaired loans to reduce the carrying value to the estimated fair value of the collateral. Loans not evaluated individually for collectability are segregated by property-type and location, and allowance factors are applied. These factors are developed based on historical loss experience adjusted for the expected trend in the rate of foreclosure losses. Allowance factors are higher for loans of certain property types and in certain regions based on loss experience or a blended historical loss factor. The change in allowance for credit losses in mortgage loans is shown below (in thousands, except number of loans):
Troubled Debt Restructurings American National has granted concessions which are classified as troubled debt restructurings to certain mortgage loan borrowers. Concessions are generally one of, or a combination of, a delay in payment of principal or interest, a reduction of the contractual interest rate or an extension of the maturity date. American National considers the amount, timing and extent of concessions in determining any impairment or changes in the specific allowance for loan losses recorded in connection with a troubled debt restructuring. The carrying value after specific allowance, before and after modification in a troubled debt restructuring, may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. Troubled debt restructuring mortgage loan information is as follows (in thousands, except number of loans):
There were three loans determined to be a troubled debt restructuring for the nine months ended September 30, 2019. There were no commitments to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring during the periods presented.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount and fair value of financial instruments are shown below (in thousands):
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. A fair value hierarchy is used to determine fair value based on a hypothetical transaction at the measurement date from the perspective of a market participant. American National has evaluated the types of securities in its investment portfolio to determine an appropriate hierarchy level based upon trading activity and the observability of market inputs. The classification of assets or liabilities within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are defined as follows:
Valuation Techniques Fixed Maturity Securities and Equity Options—American National utilizes a pricing service to estimate fair value measurements. The estimates of fair value for most fixed maturity securities, including municipal bonds, provided by the pricing service are disclosed as Level 2 measurements as the estimates are based on observable market information rather than market quotes. The pricing service utilizes market quotations for fixed maturity securities that have quoted prices in active markets. Since fixed maturity securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, an option adjusted spread model is used to develop prepayment and interest rate scenarios. The pricing service evaluates each asset class based on relevant market information, credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and economic events. The extent of the use of each market input depends on the asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary. American National has reviewed the inputs and methodology used and the techniques applied by the pricing service to produce quotes that represent the fair value of a specific security. The review confirms that the pricing service is utilizing information from observable transactions or a technique that represents a market participant’s assumptions. American National does not adjust quotes received from the pricing service. The pricing service utilized by American National has indicated that they will only produce an estimate of fair value if there is objectively verifiable information available. American National holds a small amount of private placement debt and fixed maturity securities that have characteristics that make them unsuitable for matrix pricing. For these securities, a quote from an independent broker (typically a market maker) is obtained. Due to the disclaimers on the quotes that indicate that the price is indicative only, American National includes these fair value estimates in Level 3. For securities priced using a quote from an independent broker, such as the equity-indexed options and certain fixed maturity securities, American National uses a market-based fair value analysis to validate the reasonableness of prices received. Price variances above a certain threshold are analyzed further to determine if any pricing issue exists. This analysis is performed quarterly. Equity Securities—For publicly-traded equity securities, prices are received from a nationally recognized pricing service that are based on observable market transactions, and these securities are classified as Level 1 measurements. For certain preferred stock, current market quotes in active markets are unavailable. In these instances, an estimate of fair value is received from the pricing service. The service utilizes similar methodologies to price preferred stocks as it does for fixed maturity securities. If applicable, these estimates would be disclosed as Level 2 measurements. American National tests the accuracy of the information provided by reference to other services annually. Short-term investments—Short-term investments are primarily commercial paper rated A2 or P2 or better by Standard & Poor's and Moody's, respectively. Commercial paper is carried at amortized cost which approximates fair value. These investments are classified as Level 2 measurements. Separate account assets and liabilities—Separate account assets and liabilities are funds that are held separate from the general assets and liabilities of American National and that represent the investments of variable insurance product contract holders, who bear the investment risk of such funds. Investment income and investment gains and losses from these separate funds accrue to the benefit of the contract holders. Separate accounts are established in conformity with insurance laws and are not chargeable with liabilities that arise from any other business of American National. American National reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if (i) such separate accounts are legally recognized; (ii) assets supporting the contract liabilities are legally insulated from American National’s general account liabilities; (iii) investments are directed by the contract holder; and (iv) all investment performance, net of contract fees and assessments, is passed through to the contract holder. The assets of these accounts are carried at fair value. Deposits, net investment income and realized investment gains and losses for these accounts are excluded from revenues, and related liability increases are excluded from benefits and expenses in the consolidated financial statements. The separate account assets included on the quantitative disclosures fair value hierarchy table is made up of short-term investments, equity securities, and fixed maturity securities of available-for-sale bonds. Equity securities are classified as Level 1 measurements. Short-term investments and fixed maturity securities are classified as Level 2 measurements. These classifications for separate account assets reflect the same fair value level methodologies as listed above as they are derived from the same vendors and follow the same process. The separate account assets account also includes cash and cash equivalents, investments in unconsolidated affiliates, accrued investment income, and receivables for securities. These are not financial instruments and are not included in the quantitative disclosures of fair value hierarchy table. Embedded Derivative— The amounts reported within policyholder contract deposits include equity linked interest crediting rates based on the S&P 500 index within index annuities and indexed life. The following unobservable inputs are used for measuring the fair value of the embedded derivatives associated with the policyholder contract liabilities:
Fair values of indexed life and annuity liabilities are calculated using the discounted cash flow technique. Shown below are the significant unobservable inputs used to calculate the Level 3 fair value of the embedded derivatives within policyholder contract deposits (in millions, except range percentages):
Quantitative Disclosures The fair value hierarchy measurements of the financial instruments are shown below (in thousands):
For financial instruments measured at fair value on a recurring basis using Level 3 inputs during the period, a reconciliation of the beginning and ending balances is shown below (in thousands):
Within the net gain for derivatives included in net investment income were unrealized gains of $79,991,000 and $18,868,000, relating to assets still held at September 30, 2019, and 2018, respectively. There were no transfers between Level 1 and Level 2 fair value hierarchies during the periods presented. Unless information is obtained from the brokers that indicate observable inputs were used in their pricing, there are not enough observable inputs to enable American National to classify the securities priced by the brokers as other than Level 3. American National’s valuation of these securities involves judgment regarding assumptions market participants would use including quotes from independent brokers. The inputs used by the brokers include recent transactions in the security, similar bonds with same name, ratings, maturity and structure, external dealer quotes in the security, Bloomberg evaluated pricing and prior months pricing. None of them are observable to American National as of September 30, 2019. Fair Value Information About Financial Instruments Not Measured at Fair Value Information about fair value estimates for financial instruments not measured at fair values is discussed below: Mortgage Loans—The fair value of mortgage loans is estimated using discounted cash flow analyses on a loan by loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. Factors used to arrive at the discount rate include inputs from spreads based on U.S. Treasury notes and the loan’s credit quality, region, property type, lien priority, payment type and current status. Policy loans—The carrying value of policy loans is the outstanding balance plus any accrued interest. Due to the collateralized nature of policy loans such that they cannot be separated from the policy contracts, the unpredictable timing of repayments and the fact that settlement is at outstanding value, American National believes the carrying value of policy loans approximates fair value. Separately managed accounts—The amounts reported in separately managed accounts consist primarily of notes and private equity. These investments are private placements and do not have a readily determinable fair value. The carrying value of the separately managed accounts is cost or market value if available from the separately managed account manager. Market value is provided by the separately managed account manager in subsequent quarters. American National believes that cost approximates fair value at initial recognition during the quarter of investment. Investment contracts—The carrying value of investment contracts is equivalent to the accrued account balance. The accrued account balance consists of deposits, net of withdrawals, plus or minus interest credited, fees and charges assessed and other adjustments. American National believes that the carrying value of investment contracts approximates fair value because the majority of these contracts’ interest rates reset at anniversary. Notes payable—Notes payable are carried at outstanding principal balance. The carrying value of the notes payable approximates fair value because the underlying interest rates approximate market rates at the balance sheet date. The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below (in thousands):
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Nature of Operations - Additional Information (Detail) |
Sep. 30, 2019
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states | 50 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Premiums | ||||
Other policy revenues | $ 76,784 | $ 70,840 | $ 226,178 | $ 213,317 |
Net investment income | 246,620 | 285,532 | 796,696 | 740,942 |
Net realized investment gains (losses) | 31,933 | (1,276) | 31,943 | 4,775 |
Other-than-temporary impairments | 0 | 0 | (6,968) | 0 |
Net gains on equity securities | 8,589 | 126,495 | 282,026 | 150,487 |
Other income | 10,730 | 12,177 | 32,642 | 33,973 |
Total premiums and other revenues | 932,500 | 1,052,236 | 3,012,870 | 2,807,682 |
Policyholder benefits | ||||
Life | 113,652 | 119,816 | 327,579 | 315,320 |
Annuity | 59,699 | 64,153 | 191,248 | 231,002 |
Claims incurred | ||||
Health | 28,567 | 29,751 | 81,042 | 90,201 |
Property and casualty | 280,695 | 272,885 | 790,447 | 795,501 |
Interest credited to policyholders’ account balances | 106,782 | 133,418 | 371,703 | 309,694 |
Commissions for acquiring and servicing policies | 128,689 | 138,979 | 408,629 | 433,412 |
Other operating expenses | 128,502 | 118,761 | 391,645 | 373,102 |
Change in deferred policy acquisition costs | 1,548 | (8,794) | (22,391) | (45,876) |
Total benefits, losses and expenses | 848,134 | 868,969 | 2,539,902 | 2,502,356 |
Income before federal income tax and other items | 84,366 | 183,267 | 472,968 | 305,326 |
Less: Provision (benefit) for federal income taxes | ||||
Current | 4,433 | (39,937) | 32,444 | (26,404) |
Deferred | 18,042 | 59,156 | 79,356 | 68,769 |
Total provision for federal income taxes | 22,475 | 19,219 | 111,800 | 42,365 |
Income after federal income tax | 61,891 | 164,048 | 361,168 | 262,961 |
Equity in earnings of unconsolidated affiliates | 45,075 | 13,029 | 102,325 | 18,905 |
Other components of net periodic pension costs, net of tax | (1,023) | (1,236) | (2,808) | (3,705) |
Net income | 105,943 | 175,841 | 460,685 | 278,161 |
Less: Net income attributable to noncontrolling interest, net of tax | 13,759 | 2,377 | 11,444 | 1,781 |
Net income attributable to American National | $ 92,184 | $ 173,464 | $ 449,241 | $ 276,380 |
Earnings per share | ||||
Basic (in usd per share) | $ 3.43 | $ 6.45 | $ 16.71 | $ 10.28 |
Diluted (in usd per share) | 3.43 | 6.44 | 16.71 | 10.26 |
Cash dividends to common stockholders (in usd per share) | $ 0.82 | $ 0.82 | $ 2.46 | $ 2.46 |
Weighted average common shares outstanding (in shares) | 26,881,700 | 26,886,498 | 26,883,025 | 26,886,299 |
Weighted average common shares outstanding and dilutive potential common shares (in shares) | 26,888,172 | 26,893,013 | 26,889,338 | 26,923,540 |
Life | ||||
Premiums | ||||
Revenue | $ 93,079 | $ 91,176 | $ 265,634 | $ 257,147 |
Annuity | ||||
Premiums | ||||
Revenue | 41,305 | 47,296 | 137,434 | 185,140 |
Health | ||||
Premiums | ||||
Revenue | 40,676 | 45,154 | 121,581 | 135,039 |
Property and casualty | ||||
Premiums | ||||
Revenue | $ 382,784 | $ 374,842 | $ 1,125,704 | $ 1,086,862 |
Nature of Operations |
9 Months Ended |
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Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations |
Accumulated Other Comprehensive Income (Loss) (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income | The components of and changes in the accumulated other comprehensive income (“AOCI”), and the related tax effects, are shown below (in thousands):
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Fair Value of Financial Instruments (Tables) |
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount and Fair Value of Financial Instruments | The carrying amount and fair value of financial instruments are shown below (in thousands):
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Schedule of Significant Unobservable Inputs Used to Calculate Level 3 Fair Value of Embedded Derivatives within Policyholder Contract Deposits | Shown below are the significant unobservable inputs used to calculate the Level 3 fair value of the embedded derivatives within policyholder contract deposits (in millions, except range percentages):
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Quantitative Disclosures Regarding Fair Value Hierarchy Measurements | The fair value hierarchy measurements of the financial instruments are shown below (in thousands):
The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below (in thousands):
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Financial Instruments Measured at Fair Value on Recurring Basis Using (Level 3) Inputs | For financial instruments measured at fair value on a recurring basis using Level 3 inputs during the period, a reconciliation of the beginning and ending balances is shown below (in thousands):
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of and changes in the accumulated other comprehensive income (“AOCI”), and the related tax effects, are shown below (in thousands):
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions American National has entered into recurring transactions and agreements with certain related parties. These include mortgage loans, management contracts, agency commission contracts, marketing agreements, health insurance contracts, and legal services. The impact on the consolidated financial statements of significant related party transactions is shown below (in thousands):
Mortgage Loans to Gal-Tex Hotel Corporation (“Gal-Tex”): American National held a first mortgage loan which originated in 1999, with an interest rate of 7.25% and final maturity date of April 1, 2019 issued to a subsidiary of Gal-Tex, which was collateralized by a hotel property in San Antonio, Texas. This loan has been paid in full. The Moody Foundation owns 34.0% of Gal-Tex and 22.75% of American National, and the Libbie Shearn Moody Trust owns 50.2% of Gal-Tex and 37.0% of American National. Transactions with Greer, Herz & Adams, LLP: Irwin M. Herz, Jr. is a director on the American National Board of Directors and a Partner with Greer, Herz & Adams, LLP, which serves as American National’s General Counsel.
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Real Estate and Other Investments (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Real Estate by Property-Type and Geographic Distribution | Investment real estate by property-type and geographic distribution are as follows:
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Assets and Liabilities Related to VIEs | The assets and liabilities relating to the VIEs included in the consolidated financial statements are as follows (in thousands):
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Schedule of Long-term Notes Payable of Consolidated VIEs | The total long-term notes payable of the consolidated VIEs consists of the following (in thousands):
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Carrying Amount and Maximum Exposure to Loss Related to VIEs | The carrying amount and maximum exposure to loss relating to unconsolidated VIEs follows (in thousands):
|
Investment in Securities - Equity Securities by Market Sector Distribution (Detail) - Credit Concentration Risk - Equity Securities |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Concentration Risk [Line Items] | ||
Distribution, percentage | 100.00% | 100.00% |
Consumer goods | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 19.90% | 21.10% |
Energy and utilities | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 8.50% | 8.20% |
Finance | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 17.80% | 18.10% |
Healthcare | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 12.70% | 13.50% |
Industrials | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 8.10% | 9.00% |
Information technology | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 23.60% | 22.60% |
Other | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 9.40% | 7.50% |
Investment in Securities - Additional Information (Detail) - USD ($) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Securities transferred from held-to-maturity to available-for-sale | $ 157,939,000,000 | $ 34,850,000 | |
Realized loss, transferred securities | $ 0 | $ 0 | |
Bonds | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Securities transferred from held-to-maturity to available-for-sale | $ 38,221,000 |
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