GALVESTON, Texas, March 30 /PRNewswire-FirstCall/ -- American National Insurance Company announced that - as a result of refinements in its review of other-than-temporary impairments on investments after its February 20, 2009 announcement of year-end 2008 results and before finalizing its 2008 annual report - it would record an additional $47.1 million (pre-tax) in non-cash impairment charges to earnings for the fourth quarter of 2008.
Because the investments in securities were carried at fair value at December 31, 2008, the losses on these securities were previously reported as unrealized losses within accumulated other comprehensive income, a component of total stockholders' equity on the Company's balance sheet. As a result of how these securities were carried, the additional impairment charge had no impact on total stockholders equity.
This charge increased the full-year 2008 net loss to $154.0 million ($5.82 per share) from the $123.5 million ($4.66 per share) reported previously. For the fourth quarter of 2008, the charge increased the net loss to $65.1 million ($2.46 per share) from the $34.6 million ($1.31) previously reported. American National will release its annual report on its web site on March 31, 2009.
The following table presents revised amounts from those previously reported on February 20, 2009:
American National Insurance Company COMPARATIVE OPERATIONAL HIGHLIGHTS Compiled on a GAAP basis Quarter Ended Twelve Months Ended December 31, December 31, 2008 2007 2008 2007 ---- ---- ---- ---- Revenues $540,880,000 $725,193,000 $2,518,641,000 $3,056,073,000 After-tax earnings: Operating earnings * $44,019,000 $48,746,000 $92,813,000 $214,105,000 Net realized investment (losses) Gains $(109,074,000) $4,586,000 $(246,811,000) $26,668,000 Net (loss) Income $(65,055,000) $53,332,000 $(153,998,000) $240,773,000 Per share earnings: Operating earnings * $1.66 $1.83 $3.50 $8.04 Net realized investment (losses) gains $(4.12) $0.17 $(9.32) $1.00 Net (loss) income - Diluted ** $(2.46) $2.00 $(5.82) $9.04 Net (loss) income - Basic $(2.46) $2.01 $(5.82) $9.09 Weighted average number of shares upon which computations are based: Diluted 26,479,832 26,638,219 26,479,832 26,638,219 Basic 26,479,832 26,479,832 26,479,832 26,479,832 As of December 31, December 31, 2008 2007 Book value per basic share $118.35 $141.12 * Operating earnings exclude after-tax realized investment gains and losses. The sum of Operating earnings and Realized investment gains (losses) is equal to Net income. ** Due to the net loss, all diluted amounts for 2008 are equal to the basic amounts
American National Insurance Company is headquartered in Galveston, Texas. American National has over $18.3 billion in assets and is rated A+ (Superior) by A.M. Best Company, and AA- (Very Strong) by Standard & Poor's. The American National family of companies offers a broad line of products and services, which include life insurance, annuities, health insurance, credit insurance, pension plan services and property and casualty insurance for personal lines, agribusiness, and targeted commercial exposures. American National's major insurance subsidiaries include American National Life Insurance Company of Texas, Standard Life and Accident Insurance Company, Garden State Life Insurance Company, American National Property and Casualty Company, Farm Family Life Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company.
For more information, including company news and investor relations information, visit the company's web site at http://www.anico.com/.
The statements contained in this release that are not historical statements, including statements regarding future performance, plans and projections, are forward-looking statements based on management's current expectations. These statements involve certain risks and uncertainties detailed in the Company's financial statements. Actual results may differ materially from these statements due to changes in business, regulatory, competitive, market, economic, and political factors that are beyond our control. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
American National Insurance Company
CONTACT: Steve Pavlicek of American National Insurance Company,
+1-409-766-6447
Web Site: http://www.anico.com/
