American National Group Inc.

Previous wording

Management's discussion and analysis reviews our unaudited condensed consolidated financial position at June 30, 2025 compared with December 31, 2024, and our unaudited condensed consolidated results of operations for the three and six months ended June 30, 2025 and 2024, and where appropriate, factors that may affect future financial performance. This analysis should be read in conjunction with our unaudited condensed consolidated financial statements, notes thereto and selected condensed consolidated financial data appearing elsewhere in this Form 10-Q as well as the December 31, 2024 audited consolidated financial statements included in the Form 10-K, filed with the SEC on March 31, 2025. Interim operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results expected for the entire year. Preparation of financial statements requires use of management estimates and assumptions.

Current wording

Management's discussion and analysis reviews our unaudited condensed consolidated financial position at September 30, 2025 compared with December 31, 2024, and our unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2025 and 2024, and where appropriate, factors that may affect future financial performance. This analysis should be read in conjunction with our unaudited condensed consolidated financial statements, notes thereto and selected condensed consolidated financial data appearing elsewhere in this Form 10-Q as well as the December 31, 2024 audited consolidated financial statements included in the Form 10-K, filed with the SEC on March 31, 2025. Interim operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results expected for the entire year. Preparation of financial statements requires use of management estimates and assumptions.

Previous wording

As a result of the Post-Effective Merger of American National into AEL, the consolidated financial statements for the periods prior to the Post-Effective Merger represent the results of American National as the accounting acquirer. For periods subsequent to the Post-Effective Merger, the consolidated financial statements represent the combined results of American National and AEL. See Note 1 - Organization and Description of the Company for additional discussion on the Post-Effective Merger. Throughout this report, unless otherwise specified or the context otherwise requires, all references to “ANGI", the "Company", "we", "our" and similar references are to American National Group Inc. and its consolidated subsidiaries.

Current wording

As a result of the Post-Effective Merger of American National into AEL, the condensed consolidated financial statements for the periods prior to the Post-Effective Merger represent the results of American National as the accounting acquirer. For periods subsequent to the Post-Effective Merger, the condensed consolidated financial statements represent the combined results of American National and AEL. See Note 1 - Organization and Description of the Company for additional discussion on the Post-Effective Merger. Throughout this report, unless otherwise specified or the context otherwise requires, all references to “ANGI", the "Company", "we", "our" and similar references are to American National Group Inc. and its consolidated subsidiaries.

Previous wording

Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024

Current wording

Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024

Previous wording

(1)Premiums received from retail annuities are generally recorded as deposits and are not included in net premiums on the Consolidated Statements of Operations.

Current wording

(1)Premiums received from retail annuities are generally recorded as deposits and are not included in net premiums on the Condensed Consolidated Statements of Operations.

Previous wording

For the three months ended June 30, 2025, we reported total net premiums of $752 million, compared to net premiums of $1.0 billion for the same period in 2024. The decrease of $253 million is primarily due to the phased withdrawal from non-core business in our P&C segment, reinsurance agreements executed on our Life Insurance segment, and variability in our PRT business.

Current wording

For the three months ended September 30, 2025, we reported total net premiums of $566 million, compared to net premiums of $888 million for the same period in 2024. The decrease of $322 million is primarily due to the phased withdrawal from non-core business in our P&C segment, reinsurance agreements executed on our Life Insurance segment, and a decline in our PRT related premiums due to overall decline in the market in 2025.

Previous wording

For the six months ended June 30, 2025, we reported total net premiums of $1.6 billion, compared to net premiums of $2.1 billion for the same period in 2024. The decrease of $508 million is a result of the aforementioned phased withdrawal from non-core business in our P&C segment, reinsurance agreements executed on our Life Insurance segment, and seasonality in our PRT business.

Current wording

For the nine months ended September 30, 2025, we reported total net premiums of $2.2 billion, compared to net premiums of $3.0 billion for the same period in 2024. The decrease of $830 million is a result of the aforementioned phased withdrawal from non-core business in our P&C segment, reinsurance agreements executed on our Life Insurance segment, and a decline in our PRT related premiums due to overall decline in the market in 2025.

Previous wording

Gross annuity sales are comprised of directly written retail and institutional annuity deposits, which generally are not included in revenues on the Consolidated Statements of Operations.

Current wording

Gross annuity sales are comprised of directly written retail and institutional annuity deposits, which generally are not included in revenues on the Condensed Consolidated Statements of Operations.

Previous wording

For the three months ended June 30, 2025, we reported total gross annuity sales of $4.3 billion, compared to gross annuity sales of $3.3 billion for the same period in 2024. The increase of $935 million is primarily due to increased sales activity in our fixed index retail annuity products primarily attributable to the acquisition of American Equity during the second quarter of 2024 as well as issuances of funding agreement backed notes (“FABN”).

Current wording

For the three months ended September 30, 2025, we reported total gross annuity sales of $4.9 billion, compared to gross annuity sales of $4.1 billion for the same period in 2024. The increase of $722 million is primarily due to increased sales activity in our fixed index and fixed rate retail annuity products.

Previous wording

For the six months ended June 30, 2025, we reported total gross annuity sales of $8.1 billion, compared to gross annuity sales of $4.8 billion in the prior year period. The increase of $3.2 billion is primarily due to our FABN issuances during the period coupled with increased sales in our fixed index annuity product contributed from AEL.

Current wording

For the nine months ended September 30, 2025, we reported total gross annuity sales of $12.9 billion, compared to gross annuity sales of $9.0 billion in the prior year period. The increase of $4.0 billion is primarily due to our funding agreement backed notes (“FABN”) issuances during the period coupled with increased sales in our fixed index annuity product primarily contributed from the inclusion of AEL for the full period in 2025.

Previous wording

The following table summarizes the financial results of our business for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes the financial results of our business for the three and nine months ended September 30, 2025 and 2024:

Previous wording

For the three months ended June 30, 2025, we reported net income of $152 million, compared to net income of $255 million for the same period in 2024. The decrease of $103 million was primarily due to tax expense in 2025 compared to a benefit in 2024 driven by a deferred tax benefit recognized in 2024 related to Bermuda corporate income tax. Additionally, the decrease was driven by an increase in the change in fair value of insurance-related derivatives and embedded derivatives as a result of equity market and interest rate movements, an increase in interest sensitive contract benefits and an increase in amortization of DAC, DSI, and VOBA which are a result of continued growth of the annuity business. Those impacts were partially offset by an increase in net investment income, a decrease in the change in fair value of market risk benefits and a decrease in operating expenses.

Current wording

For the three months ended September 30, 2025, we reported net income of $219 million, compared to net loss of $(288) million for the same period in 2024. The increase of $507 million was primarily driven by a decrease in the change in fair value of insurance-related derivatives and embedded derivatives as a result of equity market and interest rate movements, a decrease in policyholder benefits and claims incurred, an increase in net investment income, and a decrease in operating expenses. Those impacts were partially offset by an increase in amortization of DAC, DSI, and VOBA which is a result of continued growth of the annuity business, a decrease in net premiums, and an increase in the change in fair value of market risk benefits.

Previous wording

Net premiums and other policy revenue were $924 million for the three months ended June 30, 2025, compared to $1.2 billion for the same period in 2024. The decrease of $265 million was primarily attributable to lower PRT sales in the quarter as compared to the prior year, reinsurance agreements executed on our Life Insurance segment, and the phased withdrawal from non-core businesses in our P&C segment.

Current wording

Net premiums and other policy revenue were $747 million for the three months ended September 30, 2025, compared to $1.1 billion for the same period in 2024. The decrease of $349 million was primarily attributable to lower PRT sales in the quarter as compared to the prior year and the phased withdrawal from non-core businesses in our P&C segment.

Previous wording

Net investment income increased by $228 million for the three months ended June 30, 2025, compared to the same period in 2024. Net investment income comprise interest and dividends received on financial instruments, equity investments and other miscellaneous fee income. The increase in 2025 was driven by the increase in assets under management due to the acquisition of AEL as well as the continued rotation into higher yielding investment strategies.

Current wording

Net investment income increased by $261 million for the three months ended September 30, 2025, compared to the same period in 2024. Net investment income comprise interest and dividends received on financial instruments, equity investments and other miscellaneous fee income. The increase in 2025 was driven by the increase in assets under management due to growth of the business as well as the continued rotation into higher yielding investment strategies.

Previous wording

Policyholder benefits and claims incurred were $828 million for the three months ended June 30, 2025, compared to $1.0 billion for the same period in 2024. The decrease of $202 million was primarily due to a decrease in PRT sales which resulted in lower reserve changes coupled with a decrease in claims incurred due to the impact of business ceded to RGA subsequent to the effectuation of the life insurance reinsurance transaction.

Current wording

Policyholder benefits and claims incurred were $527 million for the three months ended September 30, 2025, compared to $846 million for the same period in 2024. The decrease of $319 million was primarily due to a decrease in PRT sales which resulted in lower reserve changes coupled with a decrease in claims incurred due to the impact of business ceded to RGA subsequent to the effectuation of the life insurance reinsurance transaction.

Previous wording

Interest sensitive contract benefits represent interest credited to policyholders’ account balances from our investment contracts with customers. During the three months ended June 30, 2025, interest sensitive contract benefits increased by $95 million compared to the same period in 2024, driven mainly by new business issued within our annuities segment.

Current wording

Interest sensitive contract benefits represent interest credited to policyholders’ account balances from our investment contracts with customers. During the three months ended September 30, 2025, interest sensitive contract benefits were equivalent compared to the same period in 2024, driven mainly by new business issued within our annuities segment and equity market movements, offset by surrender and withdrawal activities.

Previous wording

Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $133 million compared to the same period in 2024, primarily due to the continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.

Current wording

Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $56 million compared to the same period in 2024, primarily due to the continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.

Previous wording

Change in fair value of insurance-related derivatives and embedded derivatives increased by $110 million for the three months ended June 30, 2025 compared to the same period of 2024. The increase was primarily due to the impact of interest rates and equity market performance on the fair value of the embedded derivatives and equity-indexed options.

Current wording

Change in fair value of insurance-related derivatives and embedded derivatives decreased by $531 million for the three months ended September 30, 2025 compared to the same period of 2024. The decrease was primarily due to the favorable impact of assumption updates as a result of our annual assumption review along with the impact of interest rates and equity market performance on the fair value of the embedded derivatives and equity-indexed options.

Previous wording

Change in fair value of market risk benefits represents the mark-to-market movements of our liability based on protection to the policyholder from capital market risk. The decrease in the fair value of market risk benefits of $186 million for the three months ended June 30, 2025 compared to the same period of 2024 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities.

Current wording

Change in fair value of market risk benefits represents the mark-to-market movements of our liability based on protection to the policyholder from capital market risk. The increase in the fair value of market risk benefits of $176 million for the three months ended September 30, 2025 compared to the same period of 2024 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities coupled with the impact of assumption updates as a result of our annual assumption review.

Previous wording

Operating expenses were $216 million for the three months ended June 30, 2025, compared to $335 million for the same period in 2024, a decrease of $119 million. The decrease was primarily driven by non-recurring costs associated with the acquisition of AEL included in the prior year quarter as well as ongoing cost optimization efforts.

Current wording

Operating expenses were $156 million for the three months ended September 30, 2025, compared to $228 million for the same period in 2024, a decrease of $72 million. The decrease was primarily driven by a non-recurring $27 million benefit realized from the termination of American National’s pension plan, as well as ongoing cost optimization efforts.

Previous wording

The increase of $6 million of interest expense on borrowings compared to the same period in 2024 was mainly due to increased borrowings with the new term loan entered into in May 2024.

Current wording

The decrease of $2 million of interest expense on borrowings compared to the same period in 2024 was mainly due to the consolidation impact of certain investment variable interest entities.

Previous wording

For the six months ended June 30, 2025, we reported net loss of $(54) million, compared to a net income of $368 million for the same period in 2024. The decrease is primarily due to a lower tax benefit in 2025 compared to 2024 driven by a deferred tax benefit recognized in 2024 related to Bermuda corporate income tax. Additionally, the decrease was driven by an increase in the change in fair value of insurance-related derivatives and embedded derivatives and increase in the change in fair value of market risk benefits as a result of equity market and interest rate movements, an increase in interest sensitive contract benefits, an increase in amortization of DAC, DSI, and VOBA, and an increase in operating expense all of which are a result of continued growth of the annuity business and inclusion of American Equity following the acquisition. Those impacts were partially offset by an increase in net investment income and an increase in other policy revenue due to the inclusion of American Equity following the acquisition.

Current wording

For the nine months ended September 30, 2025, we reported net income of $165 million, compared to a net income of $80 million for the same period in 2024. The increase is primarily driven by an increase in net investment income due to the inclusion of American Equity following the acquisition and an increase in investment related gains (losses) as a result of the non-recurrence of realized losses recognized in the prior year as a result of the transfer of assets pursuant to the RGA reinsurance transaction which was effective July 1, 2024, and a decrease in policyholder benefits and claims incurred. Those impacts were partially offset by an increase in the change in fair value of market risk benefits as a result of equity market and interest rate movements, an increase in interest sensitive contract benefits, an increase in amortization of DAC, DSI, and VOBA, and an increase in interest expense all of which are a result of continued growth of the annuity business and inclusion of American Equity following the acquisition.

Previous wording

Net premiums and other policy revenue of $2.0 billion decreased by $483 million for the six months ended June 30, 2025, compared to the same period in 2024 primarily due to lower PRT sales as compared to the prior year period coupled with the phased withdrawal from non-core businesses in our P&C segment.

Current wording

Net premiums and other policy revenue of $2.7 billion decreased by $832 million for the nine months ended September 30, 2025, compared to the same period in 2024 primarily due to lower PRT sales as compared to the prior year period coupled with the phased withdrawal from non-core businesses in our P&C segment.

Previous wording

Net investment income increased by $1.1 billion for the six months ended June 30, 2025, compared to the same period in 2024. The increase was primarily driven by the increase in assets under management following the acquisition of American Equity as well as the continued rotation into higher yielding investment strategies.

Current wording

Net investment income increased by $1.3 billion for the nine months ended September 30, 2025, compared to the same period in 2024. The increase was primarily driven by the increase in assets under management following the acquisition of American Equity as well as the continued rotation into higher yielding investment strategies.

Previous wording

Policyholder benefits and claims incurred decreased by $400 million for the six months ended June 30, 2025, compared to the same period in 2024. The decrease is primarily due to a reduction in PRT sales which resulted in lower reserve changes coupled with a decrease in claims incurred due to the impact of business ceded to RGA subsequent to the effectuation of the reinsurance transaction.

Current wording

Policyholder benefits and claims incurred decreased by $719 million for the nine months ended September 30, 2025, compared to the same period in 2024. The decrease is primarily due to a reduction in PRT sales which resulted in lower reserve changes coupled with a decrease in claims incurred due to the impact of life insurance business ceded to RGA subsequent to the effectuation of the reinsurance transaction.

Previous wording

For the six months ended June 30, 2025, interest sensitive contract benefits increased compared to the same period in 2024 by $452 million which was primarily driven by an increase in the in-force block of annuity business following the acquisition of American Equity.

Current wording

For the nine months ended September 30, 2025, interest sensitive contract benefits increased compared to the same period in 2024 by $452 million which was primarily driven by an increase in the in-force block of annuity business following the acquisition of American Equity.

Previous wording

Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $290 million compared to the same period in 2024, primarily due to an increase in the amortization of VOBA due to the increase in the VOBA asset following the acquisition of American Equity as well as the continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.

Current wording

Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $346 million compared to the same period in 2024, primarily due to an increase in the amortization of VOBA due to the increase in the VOBA asset following the acquisition of American Equity as well as the continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.

Previous wording

Change in fair value of insurance-related derivatives and embedded derivatives increased by $328 million for the six months ended June 30, 2025 compared to the same period of 2024. The increase was primarily due to the impact of interest rates and equity market performance on the fair value of the embedded derivatives and equity-indexed options.

Current wording

Change in fair value of insurance-related derivatives and embedded derivatives decreased by $203 million for the nine months ended September 30, 2025 compared to the same period of 2024. The decrease was primarily due to the favorable impact of assumption updates as a result of our annual assumption review in the third quarter of 2025 along with the impact of interest rates and equity market performance on the fair value of the embedded derivatives and equity-indexed options.

Previous wording

The increase in the change in fair value of market risk benefit of $156 million for the six months ended June 30, 2025 compared to the same period of 2024 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities. Additionally, the market risk benefit liabilities increased as a result of the acquisition of American Equity leading to increases in the change in the fair value of these liabilities.

Current wording

The increase in the change in fair value of market risk benefit of $332 million for the nine months ended September 30, 2025 compared to the same period of 2024 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities, as well as impacts from assumption updates as a result of the annual assumption review. Additionally, the market risk benefit liabilities increased as a result of the acquisition of American Equity leading to increases in the change in the fair value of these liabilities.

Previous wording

Interest expense on borrowings increased by $28 million for the six months ended June 30, 2025 compared to the same period in 2024 primarily as a result of increased borrowings with the new term loan entered into in May 2024 as well as the acquisition of American Equity which included legacy senior notes and subordinated debt.

Current wording

Interest expense on borrowings increased by $26 million for the nine months ended September 30, 2025 compared to the same period in 2024 primarily as a result of increased borrowings with the new term loan entered into in May 2024, senior notes issued in June 2025, junior subordinated notes entered into in August 2025, as well as the acquisition of American Equity which included legacy senior notes and subordinated debt. These increases in interest expense were partially offset by recurring repayments of the term loan during 2025.

Previous wording

The following table presents DOE of each of our reporting segments for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table presents DOE of each of our reporting segments for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Annuities – DOE within our annuities business represents contribution from both our retail and institutional platforms. DOE increased by $126 million for the three months ended June 30, 2025 compared to the same period in 2024. The increase is primarily attributable to a full period of earnings contributed from AEL as well as increased investment income from our continued deployment into higher yielding investment strategies.

Current wording

Annuities – DOE within our annuities business represents contribution from both our retail and institutional platforms. DOE increased by $47 million for the three months ended September 30, 2025 compared to the same period in 2024. The increase is primarily attributable to increased investment income from our continued deployment into higher yielding investment strategies.

Previous wording

Life Insurance – DOE decreased by $23 million for the three months ended June 30, 2025 compared to the same period in 2024. The decrease is primarily driven by the impact of the RGA reinsurance treaty executed during the third quarter of 2024.

Current wording

Life Insurance – DOE decreased by $5 million for the three months ended September 30, 2025 compared to the same period in 2024. The decrease is primarily driven by the favorable impact of assumption updates from the annual assumption review.

Previous wording

Property and Casualty – DOE increased by $16 million for the three months ended June 30, 2025 compared to the same period in 2024. The increase was driven by improvements in our loss experience arising from underwriting actions implemented over the past twelve months.

Current wording

Property and Casualty – DOE increased by $15 million for the three months ended September 30, 2025 compared to the same period in 2024. The increase was driven by improvements in our loss experience arising from underwriting actions implemented over the past twelve months.

Previous wording

Annuities – DOE increased by $428 million for the six months ended June 30, 2025 compared to the same period in 2024. The increase is primarily attributable to a full period of earnings contributed from AEL, coupled with new business wins and higher spread earnings.

Current wording

Annuities – DOE increased by $477 million for the nine months ended September 30, 2025 compared to the same period in 2024. The increase is primarily attributable to a full period of earnings contributed from AEL, coupled with new business wins and higher spread earnings.

Previous wording

Life Insurance – DOE decreased by $48 million for the six months ended June 30, 2025 compared to the same period in 2024. The decrease was driven by the impact of the aforementioned RGA reinsurance treaty executed during the third quarter of 2024.

Current wording

Life Insurance – DOE decreased by $53 million for the nine months ended September 30, 2025 compared to the same period in 2024. The decrease was driven by the impact of the aforementioned RGA reinsurance treaty executed during the third quarter of 2024.

Previous wording

Property and Casualty – DOE increased by $31 million for the six months ended June 30, 2025 compared to the same period in 2024. The increase was driven by improvements in loss experience arising from underwriting actions implemented since the prior year period.

Current wording

Property and Casualty – DOE increased by $47 million for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was driven by improvements in loss experience arising from underwriting actions implemented since the prior year period.

Previous wording

Total assets increased by $5.1 billion during the period to $126.3 billion. The increase is primarily driven by net annuity inflows, investment purchases and favorable fair value movements on our equity securities portfolio.

Current wording

Total assets increased by $9.3 billion during the period to $130.6 billion. The increase is primarily driven by net annuity inflows which results in increased cash and investment purchases, the issuance of the 2055 Notes, and favorable fair value movements on our equity securities portfolio.

Previous wording

Total investments increased by $4.1 billion from December 31, 2024 to June 30, 2025. The increase is primarily driven by the redeployment of cash and cash equivalents into fixed maturity investments, investment purchases and favorable unrealized fair value movements on our equity securities portfolio.

Current wording

Total investments increased by $9.0 billion from December 31, 2024 to September 30, 2025. The increase is primarily driven by the net annuity inflows and redeployment of cash and cash equivalents into fixed maturity investments resulting in increased investment purchases and favorable unrealized fair value movements on our equity securities portfolio.

Previous wording

Cash and cash equivalents increased by $774 million from December 31, 2024 to June 30, 2025. The increase is primarily driven by annuity sales during the period not yet deployed into our investments. We continue to maintain a strong liquidity position across our segments. For further information, refer to “Liquidity and Capital Resources” section within this MD&A.

Current wording

Cash and cash equivalents increased by $238 million from December 31, 2024 to September 30, 2025. The increase is primarily driven by the issuance of the 2055 Notes during the third quarter of 2025 as well as annuity sales during the period not yet deployed into our investments. We continue to maintain a strong liquidity position across our segments. For further information, refer to “Liquidity and Capital Resources” section within this MD&A.

Previous wording

Deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA”) are capitalized costs directly related to writing new policyholder contracts and include the VOBA intangible assets. During the year, the balance increased by $420 million primarily driven by deferrals associated with writing new business during the period.

Current wording

Deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA”) are capitalized costs directly related to writing new policyholder contracts and include the VOBA intangible assets. During the year, the balance increased by $753 million primarily driven by deferrals associated with writing new business during the period.