American National Group Inc. (ANG-PB)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 GAAP net loss to common stockholder was -$236M vs $638M in Q4 2024 and $113M in Q1 2024, driven by mark-to-market volatility in market risk benefits (+$361M) and insurance-related derivatives (+$199M), plus a non-recurring $19M impact from Series A preferred redemption .
• Total revenue was $2.339B, down 37% QoQ but up 40% YoY as net investment income rose to $1.275B (+185% YoY) while premiums normalized from Q4’s elevated level .
• Distributable Operating Earnings (DOE, non-GAAP) were $392M (-8% QoQ, +97% YoY), with pre-tax segment DOE led by Annuity at $407M (+18% QoQ, +288% YoY) .
• Annuity sales were robust: total gross sales $3.806B (-18% QoQ, +146% YoY), with retail fixed index at $1.835B (+2% QoQ, +999% YoY) and new Funding Agreements of $500M; Pension Risk Transfer (PRT) fell to $382M from $1.918B in Q4 .
• No formal guidance or earnings call transcript was available in the company’s filings set this quarter; focus for near-term stock reaction is on continued annuity sales momentum versus GAAP volatility from derivative and MRB fair value marks .

What Went Well and What Went Wrong

What Went Well

• Annuity segment momentum: Pre-tax DOE rose to $407M (+18% QoQ, +288% YoY), underscoring core spread earnings strength .
• Non-GAAP net investment income increased to $1.238B (+14% QoQ, +339% YoY) with total net investment spread of $314M (though -6% QoQ), supported by higher average invested assets of $80.1B (+8% QoQ) .
• Retail fixed index annuity sales reached $1.835B (+2% QoQ, +999% YoY), with total retail annuities at $2.924B (+7% QoQ, +233% YoY); Funding Agreements of $500M introduced incremental institutional flow .

What Went Wrong

• GAAP loss: Net loss to common was -$236M, pressured by fair value marks in market risk benefits (+$361M) and insurance-related derivatives (+$199M), overshadowing strong investment income; also included $30M preferred dividends/redemption with a $19M non-recurring item .
• Cash and cash equivalents declined to $7.520B from $11.330B (-34% QoQ), with total investments rising to $86.690B (+7% QoQ), shifting balance sheet mix .
• Institutional PRT volumes fell sharply to $382M from $1.918B in Q4 (-80% QoQ), though still +31% YoY; overall gross annuity sales dropped 18% QoQ despite strong retail .

Financial Results

Income Statement Summary vs Prior Quarters

Notes: Company does not present EPS in filings; GAAP net income to common used for profitability comparison .

Spread/Margins (Annuity Economics)

TTM Spread Metrics

Segment Distributable Operating Earnings (DOE, Non-GAAP)

KPIs: Annuity Sales

Guidance Changes

Notes: No formal guidance was included in the Q1 2025 8‑K financial supplement; Item 2.02 references only the financial supplement exhibit .

Earnings Call Themes & Trends

Notes: No Q1 2025 earnings call transcript found in the company document set.

Management Commentary

Notes: No prepared remarks or management quotes were available in the Q1 2025 filings set; the 8‑K furnished a quantitative financial supplement without narrative commentary .

Q&A Highlights

Notes: No Q&A transcript available for Q1 2025 in the document set.

Estimates Context

• S&P Global consensus estimates for Q1 2025 EPS and revenue were not available for ANG-PB in our data pull; comparison to Wall Street consensus cannot be made this quarter. Values retrieved from S&P Global.

Where estimates may need to adjust:

• Given strong DOE and retail annuity momentum but GAAP volatility from MRB/derivative marks, estimate models may need sharper differentiation between GAAP and operating metrics, with sensitivity to market inputs affecting MRB and hedging costs .

Key Takeaways for Investors

• Core operating performance solid: DOE of $392M with Annuity pre-tax DOE at $407M suggests healthy spread earnings despite quarter-to-quarter GAAP volatility .
• GAAP loss was primarily mark-to-market driven (MRB +$361M; insurance derivatives +$199M) and includes a $19M one-time preferred redemption impact; focus on underlying DOE for run-rate profitability .
• Retail annuity demand remains strong (fixed index $1.835B), and Funding Agreements ($500M) add an incremental institutional channel; watch PRT pacing after a strong Q4 .
• TTM spread metrics show modest compression (1.8% vs 1.9% prior), with cost of funds at 3.7% and asset yield at 5.5%; monitor rate backdrop and hedging economics .
• Balance sheet repositioning (cash down to $7.520B from $11.330B QoQ; investments up to $86.690B) merits attention for liquidity and asset mix impacts on spread and marks .
• Near-term trading: stock narrative likely sensitive to any signs of sustained retail sales strength and stabilization in MRB/derivative marks; absence of guidance/transcript puts emphasis on quantitative cadence in monthly/quarterly disclosures .
• Medium-term thesis: scaling annuity platform post-AEL acquisition with diversified channels (retail, PRT, funding agreements) and disciplined cost of funds should support DOE growth through cycles; manage GAAP volatility and credit quality vigilance (CM loans, NAIC mix) along the way .