ANG-PD Swings to Profit on Soaring Investment Income

TL;DR

**ANG-PD's investment income is carrying the load, making this preferred stock a solid bet for income-focused investors.**

AI Summary

American National Group Inc. (ANG-PD) reported a significant turnaround in its financial performance for the nine months ended September 30, 2025, with net income attributable to stockholders reaching $165 million, a substantial improvement from $80 million in the prior year. This was primarily driven by a robust increase in net investment income, which surged to $3,720 million from $2,396 million. Total revenues also saw a healthy rise to $6,583 million from $5,789 million. However, net premiums decreased to $2,207 million from $3,037 million, indicating a shift in revenue mix. The company's total assets grew to $130,559 million from $121,221 million at December 31, 2024, largely due to an increase in available-for-sale fixed maturity securities to $55,408 million from $47,292 million. Total equity also increased to $10,981 million from $10,028 million, bolstered by a $792 million increase in accumulated other comprehensive income. Key risks include changes in fair value of insurance-related derivatives and market risk benefits, which showed significant fluctuations, and the ongoing integration challenges following the May 2024 merger with American Equity Investment Life Holding Company.

Why It Matters

This filing reveals a strong financial rebound for American National Group Inc., largely fueled by its investment portfolio. For investors, the significant increase in net income and total equity, alongside robust investment income, signals improved profitability and balance sheet strength, potentially making ANG-PD a more attractive preferred stock investment. Employees and customers might see enhanced stability, though the decline in net premiums could indicate shifts in product offerings or market strategy. The competitive landscape in the insurance and annuity sector remains intense, and ANG-PD's ability to leverage its investment strategies will be crucial for sustained growth against larger players like Brookfield Wealth Solutions Ltd., its indirect parent.

Risk Assessment

Risk Level: medium — The company's net income is heavily reliant on net investment income, which increased to $3,720 million for the nine months ended September 30, 2025. While positive, this exposes ANG-PD to market volatility. Additionally, significant fluctuations in the change in fair value of insurance-related derivatives and embedded derivatives (swinging from a $346 million expense in 2024 to a $143 million expense in 2025) and market risk benefits (increasing to $624 million from $292 million) indicate sensitivity to market conditions and complex financial instruments.

Analyst Insight

Investors should consider ANG-PD for its preferred stock income potential, given the strong investment income performance and improved net income. However, they should closely monitor interest rate environments and market conditions, as the company's profitability is highly sensitive to investment returns and derivative valuations. Diversification within a portfolio is advised to mitigate the inherent market risks.

Financial Highlights

revenue

$6,583M

total Assets

$130,559M

total Debt

$3,449M

net Income

$165M

cash Position

$11,568M

revenue Growth

+13.7%

Revenue Breakdown

Key Numbers

• $165M — Net income attributable to ANG Inc. stockholders (Increased from $80 million in the prior year, indicating strong profitability growth.)
• $3.72B — Net investment income (Increased significantly from $2.396 billion, driving overall revenue growth.)
• $6.58B — Total revenues (Increased from $5.789 billion, reflecting overall business expansion.)
• $2.21B — Net premiums (Decreased from $3.037 billion, suggesting a shift in revenue composition.)
• $130.56B — Total assets (Grew from $121.221 billion at December 31, 2024, indicating balance sheet expansion.)
• $55.41B — Available-for-sale fixed maturity securities (Increased from $47.292 billion, showing growth in the investment portfolio.)
• $10.98B — Total equity (Increased from $10.028 billion, reflecting improved financial health and retained earnings.)
• $792M — Increase in Accumulated Other Comprehensive Income (Contributed to the overall increase in total equity, reflecting unrealized gains.)
• $143M — Change in fair value of insurance-related derivatives (A significant expense, highlighting market risk exposure.)
• $624M — Change in fair value of market risk benefits (A substantial expense, indicating sensitivity to market fluctuations.)

Key Players & Entities

• American National Group Inc. (company) — Registrant and primary focus of the 10-Q filing
• Brookfield Wealth Solutions Ltd. (company) — Indirect parent company of American National Group Inc.
• American Equity Investment Life Holding Company (company) — Company that merged with American National Group Inc.'s predecessor
• $165 million (dollar_amount) — Net income attributable to American National Group Inc. stockholders for the nine months ended September 30, 2025
• $3,720 million (dollar_amount) — Net investment income for the nine months ended September 30, 2025
• $130,559 million (dollar_amount) — Total assets as of September 30, 2025
• $55,408 million (dollar_amount) — Available-for-sale fixed maturity securities as of September 30, 2025
• $10,981 million (dollar_amount) — Total equity as of September 30, 2025
• New York Stock Exchange (regulator) — Exchange where ANGpD is registered
• SEC (regulator) — Securities and Exchange Commission, where the 10-Q was filed

FAQ

Risk Factors

• Market Risk and Investment Fluctuations [high — market]: The company is exposed to market risk, as evidenced by significant fluctuations in the fair value of insurance-related derivatives ($143M expense) and market risk benefits ($624M expense). These fluctuations can materially impact financial results.
• Merger Integration Challenges [medium — operational]: The ongoing integration following the May 2024 merger with American Equity Investment Life Holding Company presents operational risks. Successful integration is crucial for realizing synergies and avoiding disruptions to business operations.
• Interest Rate Sensitivity [medium — financial]: As a significant holder of fixed maturity securities ($55,408M), the company is exposed to interest rate risk. Changes in interest rates can affect the fair value of these investments and the company's net investment income.
• Regulatory Environment Changes [medium — regulatory]: Changes in insurance regulations or accounting standards could impact the company's financial reporting and operations. Compliance with evolving regulatory requirements is a continuous challenge.
• Credit Risk in Investment Portfolio [medium — financial]: The company holds substantial investments in fixed maturity securities, mortgage loans, and private loans, exposing it to credit risk. Deterioration in the credit quality of these assets could lead to realized losses.

Industry Context

The life and annuity insurance sector is characterized by its sensitivity to interest rates and equity market performance, impacting investment income and the valuation of liabilities. Companies in this space face ongoing competition and evolving regulatory landscapes. Consolidation, driven by the pursuit of scale and efficiency, remains a trend, as seen with the American National Group and American Equity merger.

Regulatory Implications

Insurance companies operate under stringent state-based regulations focused on solvency, consumer protection, and fair market practices. Changes in accounting standards (e.g., Long-Duration Targeted Improvements) and capital requirements can significantly impact financial reporting and operational strategies.

What Investors Should Do

1. Monitor integration progress of the American Equity merger.
2. Analyze the drivers of net investment income growth.
3. Assess the impact of market volatility on derivatives and market risk benefits.
4. Evaluate the shift in revenue mix away from net premiums.

Key Dates

• 2024-05-01: Merger with American Equity Investment Life Holding Company — This significant event impacts the company's structure, operations, and future strategic direction, with ongoing integration challenges.
• 2025-09-30: End of Nine Months Reporting Period — The period reflects a strong financial turnaround with significant net income growth and increased investment income.
• 2024-12-31: End of Prior Fiscal Year — Provides a baseline for comparison of asset growth, equity changes, and investment portfolio composition.

Glossary

Available-for-sale fixed maturity securities

Investments in debt securities (like bonds) that the company intends to hold for an indefinite period but may sell in response to needs for liquidity or changes in interest rates. Their value fluctuates with market conditions. (A significant portion of the company's assets ($55,408M), their fair value changes impact comprehensive income and overall financial position.)

Accumulated Other Comprehensive Income (AOCI)

A measure of the total unrealized gains or losses on investments that have not yet been realized (sold). It's part of the equity section of the balance sheet. (An increase of $792M in AOCI contributed to the growth in total equity, indicating positive unrealized gains on investments.)

Net Investment Income

Income generated from the company's investments, primarily interest and dividends from securities and loans. (A key driver of profitability, increasing to $3,720M and significantly boosting net income.)

Market Risk Benefits

Liabilities related to guarantees or benefits that are sensitive to market fluctuations, such as changes in interest rates or equity prices. (A substantial expense of $624M highlights the company's exposure to market volatility.)

Deferred Policy Acquisition Costs (DPAC)

Costs incurred in acquiring new insurance policies that are capitalized and amortized over the expected life of the policies. (Represents a significant asset on the balance sheet ($11,384M), reflecting future revenue streams.)

Year-Over-Year Comparison

Compared to the prior year, American National Group Inc. has demonstrated a significant financial turnaround, with net income attributable to stockholders more than doubling to $165 million. This improvement was largely driven by a substantial increase in net investment income, which grew by over 55% to $3.72 billion. While total revenues saw a healthy 13.7% increase to $6.58 billion, net premiums experienced a notable decline of 27.3%, indicating a strategic shift in the company's revenue composition. Total assets and equity have also grown, with assets increasing to $130.56 billion, bolstered by a larger investment in available-for-sale fixed maturity securities. A significant increase in accumulated other comprehensive income also contributed positively to equity.

Filing Documents

• angpd-20250930.htm (10-Q) — 4063KB
• a2025-09x30ex311.htm (EX-31.1) — 11KB
• a2025-09x30ex312.htm (EX-31.2) — 11KB
• a2025-09x30ex321.htm (EX-32.1) — 6KB
• a2025-09x30ex322.htm (EX-32.2) — 6KB
• 0001039828-25-000034.txt ( ) — 25136KB
• angpd-20250930.xsd (EX-101.SCH) — 111KB
• angpd-20250930_cal.xml (EX-101.CAL) — 230KB
• angpd-20250930_def.xml (EX-101.DEF) — 701KB
• angpd-20250930_lab.xml (EX-101.LAB) — 1332KB
• angpd-20250930_pre.xml (EX-101.PRE) — 1025KB
• angpd-20250930_htm.xml (XML) — 6138KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

: Financial Statements (unaudited)

Item 1: Financial Statements (unaudited): Condensed Consolidated Statements of Financial Position (unaudited) 2 Condensed Consolidated Statements of Operations (unaudited) 4 Condensed Consolidated Statements of Comprehensive Income (unaudited) 5 Condensed Consolidated Statements of Changes in Equity (unaudited) 6 Condensed Consolidated Statements of Cash Flows (unaudited) 8 Notes to Condensed Consolidated Financial Statements (unaudited) 10 Note 1. Organization and Description of the Company 10 Note 2. Summary of Significant Accounting Policies 10 Note 3. Available-For-Sale Fixed Maturity Securities 12 Note 4. Equity Securities 15 Note 5. Mortgage Loans on Real Estate 15 Note 6. Private Loans 19 Note 7. Real Estate and Real Estate Partnerships 20 Note 8. Variable Interest Entities and Equity Method Investments 20 Note 9. Derivative Instruments 22 Note 10. Net Investment Income and Investment Related Gains (Losses) 27 Note 11. Fair Value of Financial Instruments 28 Note 12. Reinsurance 37 Note 13. Separate Account Assets and Liabilities 38 Note 14. Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired 39 Note 15. Intangible Assets 41 Note 16. Acquisitions 42 Note 17. Future Policy Benefits 43 Note 18. Policyholders' Account Balances 46 Note 19. Market Risk Benefits 48 Note 20. Liability for Unpaid Claims and Claim Adjustment Expenses 49 Note 21. Long Term Borrowings 50 Note 22. Income Taxes 50 Note 23. Stockholders' Equity 51 Note 24. Accumulated Other Comprehensive Income 52 Note 25. Related Party Transactions 52 Note 26. Segment Reporting 54 Note 27. Financial Commitments and Contingencies 57 Note 28. Subsequent Events 57

: Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations 58

: Quantitative and Qualitative Disclosures about Market Risk

Item 3: Quantitative and Qualitative Disclosures about Market Risk 68

: Controls and Procedures

Item 4: Controls and Procedures 70

- OTHER INFORMATION

PART II - OTHER INFORMATION

: Legal Proceedings

Item 1: Legal Proceedings 70

: Risk Factors

Item 1A: Risk Factors 70

: Unregistered Sales of Equity Securities and Use of Proceeds

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 70

: Defaults Upon Senior Securities

Item 3: Defaults Upon Senior Securities 70

: Mine Safety Disclosures

Item 4: Mine Safety Disclosures 70

: Other Information

Item 5: Other Information 70

: Exhibits

Item 6: Exhibits 71

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Dollars in millions, except share and per share data) (Unaudited) September 30, 2025 December 31, 2024 Assets Investments: Available-for-sale fixed maturity securities, at fair value (net of allowance for credit losses of $ 3 and $ 27 , respectively; amortized cost of $ 54,104 and $ 47,127 , respectively) $ 55,408 $ 47,292 Equity securities, at fair value 1,212 1,142 Mortgage loans on real estate, at amortized cost (net of allowance for credit losses of $ 134 and $ 155 , respectively) 11,090 12,117 Private loans, at amortized cost (net of allowance for credit loss of $ 142 and $ 66 , respectively) 8,387 5,732 Real estate and real estate partnerships (net of accumulated depreciation of $ 252 and $ 228 , respectively) 6,061 4,992 Investment funds 3,809 3,015 Policy loans 253 274 Short-term investments, at estimated fair value 1,435 4,177 Other invested assets 2,073 2,014 Total investments 89,728 80,755 Cash and cash equivalents 11,568 11,330 Accrued investment income 786 761 Deferred policy acquisition costs, deferred sales inducements and value of business acquired 11,384 10,631 Premiums due and other receivables 499 437 Ceded unearned premiums 143 132 Deferred tax asset 303 529 Reinsurance recoverables and deposit assets 9,531 10,055 Property and equipment (net of accumulated depreciation of $ 347 and $ 352 , respectively) 170 175 Intangible assets (net of accumulated amortization of $ 127 and $ 56 , respectively) 1,541 1,545 Goodwill 783 783 Other assets 2,928 2,745 Separate account assets 1,195 1,343 Total assets $ 130,559 $ 121,221 2 AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Dollars in millions, except share and per share data) (Unaudited) September 30, 2025 December 31, 2024 Liabilities Future policy benefits $ 10,

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