 GALVESTON, Texas, Aug. 03, 2020 GLOBE NEWSWIRE -- American National Group, Inc. NASDAQ: ANAT formerly American National Insurance Company1 and subsidiaries collectively, the Company announced net income for the second quarter of 2020 of 210.5 million or 7.83 per diluted share, compared to 98.8 million or 3.67 per diluted share for the same period in 2019. The increase in net income for the second quarter of 2020 was primarily attributable to an after-tax net gain on equity securities of 236.1 million or 8.78 per diluted share due to favorable equity market conditions, compared to 53.0 million or 1.97 per diluted share for the same period in 2019. Net income for the second quarter of 2020 included after-tax net realized investment losses of 49.0 million or 1.82 per diluted share, compared to after-tax net realized investment earnings of 6.4 million or 0.23 per diluted share during the same period in 2019. The after-tax net realized investment loss in the second quarter of 2020 included an expense of 41.2 million or 1.53 per diluted share due to changes in estimated credit losses resulting from our adoption of new accounting guidance, which was effective January 1, 2020 and had no impact on 20192. The increase in estimated credit losses was primarily due to the economic disruption relating to the novel coronavirus COVID-19 and its impact on some of our mortgage loans.After-tax net loss for the six months ended June 30, 2020 was 9.9 million or 0.37 per diluted share, down from net income of 357.1 million or 13.28 per diluted share for the same period in 2019. The net loss for the six months ended June 30, 2020 included an after-tax net loss on equity securities of 26.7 million or 0.99 per diluted share compared to an after-tax net gain on equity securities of 216.0 million or 8.03 per diluted share for the same period in 2019. The year-to-date loss on equity securities in 2020 was primarily driven by the first quarter downturn in financial markets resulting from the impacts of COVID-19.In addition, the net loss for the six months ended June 30, 2020 included after-tax net realized investment losses of 71.5 million or 2.66 per diluted share, compared to after-tax net realized investment earnings of 42.0 million or 1.56 per diluted share for the same period in 2019. The after-tax net realized investment loss for the six months ended June 30, 2020 included an expense of 79.4 million or 2.95 per diluted share due to changes in estimated credit losses resulting from our adoption of the aforementioned new accounting guidance2. In addition, earnings from unconsolidated affiliates decreased from prior year due to reduced sales of real estate development entities and lower valuations of alternative investment entities given current market conditions.After-tax adjusted net operating income for the second quarter of 2020 was 23.4 million or 0.87 per diluted share compared to 39.4 million or 1.47 per diluted share for the same period in 2019. The decrease in earnings was driven by higher catastrophe losses in our property and casualty homeowners line of business and a reduction in earnings from our life business. During the second quarter of 2020, our life business had unfavorable mortality experience in early duration term policies when compared to the second quarter of 2019. This change in life mortality was not related to COVID-19.After-tax adjusted net operating income for the six months ended June 30, 2020 was 88.3 million or 3.28 per diluted share compared to 99.1 million or 3.69 per diluted share for the same period in 2019. The decrease in earnings is primarily the result of less investment income in 2020 and an unfavorable change in mark-to-market reserves in our indexed annuity products.For the six months ended June 30, 2020, total life insurance in force increased by 5.0 billion to 123.1 billion, and book value per share declined slightly to 221.90 primarily due to a 2.66 loss per diluted share resulting from changes in estimated credit losses2.In regard to COVID-19, American National continues to be fully operational with the majority of our employees working remotely. We continue to monitor developments related to the COVID-19 pandemic to assess its impact on our business; however, due to the evolving and highly uncertain nature of this event, it currently is not possible to estimate with reasonable confidence the ultimate direct and indirect impact of COVID-19 on our business, results of operations, financial condition, or liquidity. To date, COVID-19 has impacted us most notably with economic uncertainty and volatility in the financial markets in which we invest and with the diminished ability of certain of our clients and borrowers to make timely payments to us. This has resulted in our taking protective measures to mitigate the impact of COVID-19 on performance and increase liquidity should a need arise. Additional discussion and detail about our response to COVID-19 and its impacts on us will be contained in our Form 10-Q for the quarterly period ended June 30, 2020, which we expect to file on a timely basis with the Securities and Exchange Commission.1Effective July 1, 2020, American National Group, Inc. was established as the parent company of American National Insurance Company under a previously announced holding company reorganization. As a result of the reorganization, American National Group, Inc. replaced American National Insurance Company as the publicly held corporation. 2Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses Topic 326: Measurement of Credit Losses on Financial Instruments. A reconciliation of adjusted net operating income, a non-GAAP measure, to GAAP net income is included in the following table. American National Consolidated Financial Highlights Preliminary Unaudited in millions, except per share data Quarters Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income loss GAAP basis210.5 98.8 9.9 357.1 Adjustments to eliminate the impact of: Unrealized gains losses on equity securities236.1 40.8 27.5 201.2 Net gains on equity securities sold 12.2 0.8 14.8 Net gains losses on equity securities236.1 53.0 26.7 216.0 Adjustments to eliminate the impact of: Net realized investment gains losses3.1 7.9 6.4 5.5 Change in estimated credit loss 241.2 79.4 Equity in earnings losses of unconsolidated affiliates10.7 13.3 1.6 45.2 Net gain loss attributable to noncontrolling interest0.2 1.0 0.1 2.3 Net realized investment earnings losses49.0 6.4 71.5 42.0 Adjusted net operating income3 non-GAAP basis23.4 39.4 88.3 99.1 Per diluted share Net income loss GAAP basis7.83 3.67 0.37 13.28 Net gains losses on equity securities8.78 1.97 0.99 8.03 Net realized investment earnings losses1.82 0.23 2.66 1.56 Adjusted net operating income3 non-GAAP basis0.87 1.47 3.28 3.69 Weighted average number of diluted shares upon which computations are based26,887,129 26,888,964 26,889,448 26,889,936 As of June 30, 2020 December 31, 2019 Book value per diluted share 221.90 222.74 This measure is non-GAAP because it is not based on accounting principles generally accepted in the United States. This non-GAAP measure is used by the Company to enhance comparability between periods and to eliminate the impact of certain items listed in footnote 2, which can fluctuate in a manner unrelated to core operations due to factors such as market volatility, interest rate changes and credit risk. In the opinion of the Companys management, inclusion of this non-GAAP measure is meaningful to provide an understanding of the significant factors that comprise the Companys periodic results of operations and financial condition. 2Effective January 1, 2020, the Company adopted a new accounting standard that significantly changes how it estimates credit losses for most of our investments, reinsurance recoverables and certain other assets. Upon adoption, a cumulative effect adjustment was made reducing stockholders equity by 33.5 million or 1.25 per diluted share. Beginning in the first quarter of 2020, changes in the estimate of these expected credit losses are recognized through income. The total change in credit loss for the first six months of 2020 reduced net income by 79.4 million or 2.95 per diluted share. The new guidance was effective January 1, 2020 and had no impact on 2019. 3Adjusted net operating income excludes the after-tax impact of net gains losses, both realized and unrealized, on equity securities and net realized investment earnings. Realized investment earnings losses are comprised of realized investment gains on assets excluding equity securities, changes in estimated credit loss, and earnings losses from our equity in unconsolidated affiliates and non-controlling interests. American National is a family of companies that has, on a consolidated GAAP basis, 29.0 billion in assets, 23.0 billion in liabilities and 6.0 billion in stockholders equity. American National Insurance Company, founded in 1905 and headquartered in Galveston, Texas, and its other American National subsidiaries offer a broad portfolio of products and services, which include life insurance, annuities, property and casualty insurance, health insurance, credit insurance, and pension products. The American National companies operate in all 50 states. 