American National Insurance Company (Nasdaq: ANAT) announced first quarter 2008 net income of $39,025,000 ($1.46 per diluted share) compared to $49,202,000 ($1.85 per diluted share) for the same period in 2007.
After tax net gain from operations for the first quarter was $42,655,000 ($1.60 per diluted share) compared with $50,783,000 ($1.91 per diluted share) for the same period in 2007. After tax net gain from operations excludes after tax net realized investment gains and losses.
After-tax net realized investment losses were $3,630,000 ($0.14 per diluted share) for the first quarter of 2008 compared with losses of $1,581,000 ($0.06 per diluted share) for the same period in 2007. The losses for both years were primarily the result of other-than-temporary impairments on investments in common stock.
OPERATIONS
Catastrophe losses in the property and casualty business returned to a normal level in 2008 from the extremely low level in 2007. Total catastrophe losses, before tax, in the first quarter of 2008 were $14,100,000 compared to $3,700,000 in the same period of 2007. The increase in catastrophe losses was a significant part of the drop in operating income.
Total revenue for first quarter 2008 was $726,436,000, compared with the $747,671,000 total reported for the first quarter of 2007. Total assets increased 2% in the first quarter, reaching a total of $18,839,449,000. A decrease in unrealized gains on invested assets resulted in a 1% decline in stockholders' equity as of March 31, 2008 to a total of $3,690,668,000 ($138.53 per diluted share).
Annuity sales increased significantly in the first quarter of 2008. Policyholder deposits on interest sensitive products, both life insurance and annuities, totaled $664,570,000 for the three months ended March 31, 2008, as compared to 344,500,000 for the same period in 2007.
American National has entered into an agreement to sell its Mexican subsidiary, American National de Mexico, Compania de Seguras de Vida S.A. de C.V. The sale is pending regulatory approvals and is expected to close sometime in the third quarter of 2008. The sale of this subsidiary is not expected to have a material impact on American National's 2008 results. -- American National Insurance Company
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