U.S. insurer American National Group Inc. is exploring options that could include a sale of the company, people familiar with the matter told Reuters on Tuesday. The news sent shares of American National spiking to their highest level in more than two years, closing 16.1% higher at $142.28 to give the insurer a market value in excess of $3.8 billion. Started in 1905 by William Lewis Moody Jr., American National is still majority-owned by the founder’s family, which controls the company through a range of trusts and holdings. From American National website Response to press reports: “American National has recently been made aware that there have been media reports that speculated about the Company exploring strategic options, including a company sale. As a matter of company policy, American National does not comment on rumors or speculation.” About American National Insurance American National is a group of companies writing a broad array of insurance products and services and operating in all 50 states. American National Insurance Co. was founded in 1905 and is headquartered in Galveston, Texas. In New York, business is written through Farm Family Casualty Insurance Co., United Farm Family Insurance Co., and American National Life Insurance Co. of New York, Glenmont, New York. Property and casualty insurance is written through American National Property And Casualty Co., Springfield, Missouri, and its subsidiaries and affiliates. Other products and services, such as life insurance, annuities, health insurance, credit insurance, and pension products, are written through multiple companies. An investment bank has been hired to run an auction for American National, with prospective buyers recently contacted to gauge their interest in a deal, the sources said. The sources cautioned that no transaction is certain and asked not to be identified because the matter is confidential. American National did not respond to a request for comment. It is not clear what prompted the Galveston, Texas-based insurer to explore a sale. Some financial advisers have been encouraging corporate owners to speed up asset sales ahead of a proposed hike in capital gains and inheritance taxes put forward by U.S. President Joe Biden’s administration. American National offers a variety of products, including life, health and property and casualty (P&C) insurance, as well as annuities, according to its website. Such diversification has gone out of favor in the insurance industry, where many executives argue it is more profitable to focus on a specific area. American International Group (AIG), for example, has said it will spin its life and retirement business into a new public company. American National trades at a valuation of 0.51-times price-to-book, indicating the market is discounting its worth. Meanwhile, P&C-focused peers Progressive Corp. and Hanover Insurance Group trade at 3.61-times and 1.57-times, respectively, according to Refinitiv data. The profitability of insurers took a hit during the COVID-19 pandemic, as claims rose as a result of the economic disruption. (Reporting by David French in New York Editing by Bill Berkrot and Matthew Lewis) Topics Carriers
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Despite the pandemic and the acceleration of a remote working trend, American National Insurance Co. plans a multimillion-dollar modernization of its 20-story skyscraper in Galveston’s downtown.
Laura Elder: 409-683-5248; . American National Insurance Company (ANICO) is a major American insurance corporation based in Galveston, Texas. The company and its subsidiaries operate in all 50 U.S. states and Puerto Rico.
Traded as
Galveston, Texas, U.S. Key people Ross Rankin Moody, Chairman of the BoardJames Pozzi, President & CEOProductsInsurance, annuities, mutual funds, Financial productsRevenueUS$4.391 billion (2021)[1] Net income US$467.5 million (2020)Total assetsUS$29.5 billion (2020)Total equityUS$6.6 billion (2020)Number of employees 4,600[2] (2020)Websiteamericannational.comAmerican National was founded in 1905 by Galveston businessman William Lewis Moody Jr. Today the company offers a wide array of insurance products and services including life insurance, annuities, health insurance, property and casualty insurance, credit insurance, and pension plan services. Through its subsidiary, ANREM, the company founded and developed the large-scale housing development, South Shore Harbour, in League City, Texas.[3] Although a publicly traded company, the majority of the stock continues to be controlled by the Moody family through the Moody Foundation and Libby Shearn Moody Trust, which are administered by the trust department of the family owned Moody National Bank.[4][5][6][7] In August 2021, Brookfield Asset Management announced that it had agreed to acquire ANICO for $5.1 billion.[8] The acquisition was completed in May 2022.[9]
American National Insurance Company Building
29°18′25″N 94°47′24″W / 29.307°N 94.7899°W / 29.307; -94.7899Coordinates: 29°18′25″N 94°47′24″W / 29.307°N 94.7899°W / 29.307; -94.7899 |