American National Sees 71 Percent Increase in 2ndQ Results

Texas-based American National Insurance Company reported its gain from operations after tax for the second quarter of 2002 was $27,565,000 ($1.04 per share) versus $16,116,000 ($0.61 per share) for the same period in 2001, a 71 percent increase. For the first six months of 2002, the gain from operations after tax was $64,122,000 ($2.42 per share) versus $50,282,000 ($1.90 per share) for the same period in 2001.

The company attributed the improved gain from operations to significant improvements in the Multiple Line Property and Casualty operations, which were near breakeven year-to-date, and the Health Division, which contributed significantly to the year-to-date gain from operations before tax.

Net Income for the six months ended June 30 was $63,127,000 ($2.38 per share) versus $78,123,000 ($2.95 per share) for the same period in 2001. The decrease in net income was due to realized losses on investments, including other-than- temporary impairment write-downs. Net realized losses after tax for the first six months of 2002 were $995,000 ($0.04 per share) versus a net gain after tax of $27,841,000 ($1.05 per share) for the same period in 2001. The net realized losses resulted primarily from losses on securities investments totaling $24,801,000, after tax, in the second quarter of 2002. Among these losses was a loss of $13,436,000, after tax, from Worldcom securities. On an after-tax basis, these securities losses had a $0.94 per share affect on net income.

Earned premiums for the first six months of 2002 were 23.1 percent ahead of the same period for 2001. Total revenues for the first six months of 2002 were 12.6 percent ahead of the same period for 2001.

Topics Profit Loss