American National Group Inc.

Previous wording

Management's discussion and analysis reviews our unaudited condensed consolidated financial position at March 31, 2026 compared with December 31, 2025, and our unaudited condensed consolidated results of operations for the three months ended March 31, 2026 and 2025, 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, 2025 audited consolidated financial statements included in the Form 10-K, filed with the SEC on March 30, 2026. Interim operating results for the three months ended March 31, 2026 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 June 30, 2026 compared with December 31, 2025, and our unaudited condensed consolidated results of operations for the three and six months ended June 30, 2026 and 2025, 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, 2025 audited consolidated financial statements included in the Form 10-K, filed with the SEC on March 30, 2026. Interim operating results for the three and six months ended June 30, 2026 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

•third parties service-provider failures to perform or to comply with legal or regulatory requirements.

Current wording

•third-party service-provider failures to perform or to comply with legal or regulatory requirements.

Previous wording

Through our insurance subsidiaries, our Company is focused on being a source of certainty for individuals and institutions through a range of insurance and retirement services. Our business is presently conducted through our subsidiaries under two operating segments: Annuities and Life Insurance.

Current wording

Through our insurance subsidiaries, our Company is focused on being a source of certainty for individuals and institutions through a range of insurance and retirement services.

Previous wording

Results of Operations for the Three Months Ended March 31, 2026 and 2025

Current wording

Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025

Previous wording

For the three months ended March 31, 2026, we reported total net premiums of $145 million, compared to net premiums of $458 million for the same period in 2025. The decrease of $313 million is a result of a smaller PRT market during 2026.

Current wording

For the three months ended June 30, 2026, we reported total net premiums of $142 million, compared to net premiums of $354 million for the same period in 2025. The decrease of $212 million is a result of a smaller PRT market during 2026 and our pricing discipline related to expected returns on this business.

Previous wording

For the three months ended March 31, 2026, we reported total gross annuity sales of $3.8 billion, compared to gross annuity sales of $3.8 billion in the prior year period. Annuity sales were largely consistent quarter over quarter led by increased sales in our fixed rate annuity product. This was offset by a decrease in PRT sales due to a smaller PRT market during 2026.

Current wording

For the six months ended June 30, 2026, we reported total gross annuity sales of $7.5 billion, compared to gross annuity sales of $8.1 billion in the prior year period. Annuity sales declined quarter over quarter due to decreased sales in our fixed index annuity product. Additionally, PRT sales decreased due to a smaller PRT market during 2026 and our pricing discipline related to expected returns on the business.

Previous wording

The following table summarizes the financial results of our business for the three months ended March 31, 2026 and 2025:

Current wording

The following table summarizes the financial results of our business for the three and six months ended June 30, 2026 and 2025:

Previous wording

Change in fair value of insurance-related derivatives and embedded derivatives decreased by $61 million for the three months ended March 31, 2026 compared to the same period of 2025. The decrease 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 $363 million for the three months ended June 30, 2026 compared to the same period of 2025. The decrease 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.

Previous wording

Income tax expense was $17 million for the three months ended March 31, 2026, resulting in an effective tax rate of 85.0%. This is compared to a $(62) million tax benefit and a 21.3% effective tax rate for the same period in 2025. For the three months ended March 31, 2026, the Company’s effective rate was higher than the statutory rate of 21% primarily due to the impact of permanent differences relative to comparatively low net income before income taxes. Items impacting the rate included changes to our Bermuda deferred tax asset and tax credit project expenses which resulted in a 70% increase in the effective tax rate. For the three month period ended March 31, 2025, the Company’s effective tax rate was not materially different from the statutory rate of 21%.

Current wording

Income tax expense was $72 million for the three months ended June 30, 2026, resulting in an effective tax rate of 25.7%. This is compared to a $27 million tax expense and a 19.4% effective tax rate for the same period in 2025. For the three months ended June 30, 2026, the Company’s effective rate was higher than the statutory rate of 21% primarily due to changes to our Bermuda deferred tax asset and tax credit project expenses charged to tax expense. For the three month period ended June 30, 2025, the Company’s effective tax rate was not materially different from the statutory rate of 21%.

Previous wording

Income from discontinuing operations, net of tax was $0 million for the three months ended March 31, 2026 compared to $26 million for the same period in 2025. Income from discontinuing operations was largely attributable to improvements in our loss experience arising from underwriting actions implemented on the property casualty block of business which was disposed of during 2025 as discussed in Note 26 - Discontinued Operations.

Current wording

Income from discontinuing operations, net of tax was $0 million for the three months ended June 30, 2026 compared to $42 million for the same period in 2025. Income from discontinuing operations in the prior period was primarily attributable to unrealized gains on the equity securities portfolio coupled with net premiums in excess of policyholder benefits and claims incurred due to improved loss experience arising from underwriting actions implemented on the property casualty block of business which was disposed of during 2025 as discussed in Note 26 - Discontinued Operations.

Previous wording

For the three months ended March 31, 2026, we reported a net loss of $(1) million, compared to a net loss of $(206) million for the same period in 2025. The change in net income (loss) is primarily driven by decreases in the expense associated with the change in fair value of market risk benefits and the expense associated with the change in fair value of insurance-related derivatives and embedded derivatives as a result of equity market and interest rate movements. Additionally, there was an increase in net investment income due to continued rotation into higher yielding investment strategies and a decrease in policyholder benefits and claims incurred, partially offset by a decrease in net premiums, due to lower PRT sales. Those impacts were partially offset by 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.

Current wording

For the six months ended June 30, 2026, we reported a net income of $203 million, compared to a net loss of $(54) million for the same period in 2025. The change in net income (loss) is primarily driven by decreases in the expense associated with the change in fair value of market risk benefits and the expense associated with the change in fair value of insurance-related derivatives and embedded derivatives as a result of equity market and interest rate movements. Additionally, there was an increase in net investment income due to continued rotation into higher yielding investment strategies and a decrease in policyholder benefits and claims incurred, partially offset by a decrease in net premiums, due to lower PRT sales. Those impacts were partially offset by an increase in interest sensitive contract benefits due to an increase in index credits from changes in the equity market and an increase in amortization of DAC, DSI, and VOBA which are a result of continued growth of the annuity business.

Previous wording

Net premiums and other policy revenue of $307 million decreased by $300 million for the three months ended March 31, 2026, compared to the same period in 2025 primarily due to lower PRT sales as compared to the prior year period due to a smaller PRT market during 2026.

Current wording

Net premiums and other policy revenue of $639 million decreased by $494 million for the six months ended June 30, 2026, compared to the same period in 2025 primarily due to lower PRT sales as compared to the prior year period due to a smaller PRT market during 2026 and our pricing discipline related to expected return on this business.

Previous wording

Net investment income increased by $38 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily driven by the increase in assets under management due to sustained growth of the business as well as continued rotation into higher yielding investment strategies.

Current wording

Net investment income increased by $188 million for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily driven by the increase in assets under management due to sustained growth of the business as well as continued rotation into higher yielding investment strategies.

Previous wording

The Company realized investment related losses of $30 million for the three months ended March 31, 2026, compared to gains of $3 million for the same period in 2025. The decrease in investment gains of $33 million was primarily due to unrealized losses on equity securities during 2026.

Current wording

The Company realized investment related gains of $29 million for the six months ended June 30, 2026, compared to losses of $8 million for the same period in 2025. The increase in investment gains of $37 million was primarily due to the change in unrealized gains/losses on equity securities during 2026 as well as realized gains on investments in certain limited partnerships and limited liability corporations.

Previous wording

Policyholder benefits and claims incurred decreased by $371 million for the three months ended March 31, 2026, compared to the same period in 2025. The decrease is primarily due to a reduction in PRT sales which resulted in lower reserve changes.

Current wording

Policyholder benefits and claims incurred decreased by $637 million for the six months ended June 30, 2026, compared to the same period in 2025. The decrease is primarily due to a reduction in PRT sales which resulted in lower reserve changes.

Previous wording

For the three months ended March 31, 2026, interest sensitive contract benefits increased compared to the same period in 2025 by $33 million which was primarily driven by an increase in the in-force block of annuity business due to continued growth of the business.

Current wording

For the six months ended June 30, 2026, interest sensitive contract benefits increased by $310 million compared to the same period in 2025 primarily driven by an increase in the in-force block of annuity business due to continued growth of the business as well as higher index credits driven by the change in equity market activity.during the period.

Previous wording

Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $34 million compared to the same period in 2025, primarily due to 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 $59 million compared to the same period in 2025, primarily due to continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.

Previous wording

The decrease in the change in fair value of market risk benefit of $222 million for the three months ended March 31, 2026 compared to the same period of 2025 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities.

Current wording

The decrease in the change in fair value of market risk benefit of $66 million for the six months ended June 30, 2026 compared to the same period of 2025 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities.

Previous wording

Operating expenses decreased by $18 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily driven by a one-time non-recurring transaction related expense in 2025.

Current wording

Operating expenses increased by $44 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily driven by a one-time impairment of office property as well as non-recurring expenses related to the termination of the sale of new life insurance products through its career agent distribution channel in Q2 2026.

Previous wording

Interest expense on borrowings increased by $5 million for the three months ended March 31, 2026 compared to the same period in 2025 primarily as a result of increased borrowings with senior notes issued in June 2025 and junior subordinated notes entered into in August 2025. These increases in interest expense were partially offset by recurring repayments of the term loan during 2025.

Current wording

Interest expense on borrowings decreased by $2 million for the six months ended June 30, 2026 compared to the same period in 2025 primarily as a result of recurring repayments of the term loan during 2025 partially offset by increased borrowings with senior notes issued in June 2025 and junior subordinated notes entered into in August 2025.

Previous wording

The following table presents DOE of each of our reporting segments for the three months ended March 31, 2026 and 2025:

Current wording

The following table presents DOE of our reporting segment for the three and six months ended June 30, 2026 and 2025:

Previous wording

Annuities – DOE decreased by $25 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease is primarily attributable to a decrease in net premiums and policyholder benefits due to a smaller PRT market during 2026 as well as an increase in interest sensitive contract benefits as a result of increased new business option costs and fixed interest. These changes were partially offset by increased investment income from our continued deployment into higher yielding investment strategies coupled with an increased asset base from annuity sales over the past twelve months.

Current wording

DOE decreased by $64 million for the six months ended June 30, 2026 compared to the same period in 2025. The decrease is primarily attributable to an increase in cost of funds as a result of increased new business option costs and fixed interest. These changes were partially offset by increased investment income from our continued deployment into higher yielding investment strategies coupled with an increased asset base from annuity sales over the past twelve months.

Previous wording

Total assets increased by $149 million during the period to $130.4 billion. The increase is primarily driven by net annuity inflows which results in increased cash and investment purchases as well as additional capitalization of deferred policy acquisition costs and deferred sales inducements due to continued strong annuity sales.

Current wording

Total assets increased by $1.5 billion during the period to $131.7 billion. The increase is primarily driven by net annuity inflows which results in increased investment purchases as well as additional capitalization of deferred policy acquisition costs and deferred sales inducements due to continued strong annuity sales.

Previous wording

Total investments increased by $3.0 billion from December 31, 2025 to March 31, 2026. The increase is primarily driven by net annuity inflows and redeployment of cash and cash equivalents into fixed maturity investments resulting in increased investment purchases.

Current wording

Total investments increased by $4.9 billion from December 31, 2025 to June 30, 2026. The increase is primarily driven by net annuity inflows and deployment of cash and cash equivalents into fixed maturity investments resulting in increased investment purchases, partially offset by the change in net unrealized investment losses.

Previous wording

Cash and cash equivalents decreased by $2.7 billion from December 31, 2025 to March 31, 2026. The decrease is primarily driven by the deployment of funds 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 decreased by $3.2 billion from December 31, 2025 to June 30, 2026. The decrease is primarily driven by the deployment of funds into our investments. We continue to maintain a strong liquidity position across our business. 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 $102 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 $152 million primarily driven by deferrals associated with writing new business during the period.

Previous wording

Deferred tax assets decreased by $14 million from December 31, 2025 to March 31, 2026. The decrease is primarily due to changes in the deferred tax asset related to the Bermuda corporate income tax.

Current wording

Deferred tax assets decreased by $25 million from December 31, 2025 to June 30, 2026. The decrease is primarily due to changes in the deferred tax asset related to the Bermuda corporate income tax.

Previous wording

Reinsurance recoverables and deposit assets are estimated amounts due to the Company from reinsurers and include reinsurance receivables and recoverables from reinsurers and deposit assets associated with reinsurance agreements. The amount decreased by $163 million primarily driven by a reduction in the associated insurance liabilities as well as the run off of certain blocks of business ceded to external reinsurers.

Current wording

Reinsurance recoverables and deposit assets are estimated amounts due to the Company from reinsurers and include reinsurance receivables and recoverables from reinsurers and deposit assets associated with reinsurance agreements. The amount decreased by $424 million primarily driven by a reduction in the associated insurance liabilities as well as the run off of certain blocks of business ceded to external reinsurers.

Previous wording

Intangible assets decreased by $18 million during the year, primarily due to the amortization of intangible assets during the period.

Current wording

Intangible assets decreased by $21 million during the year, primarily due to the amortization of intangible assets during the period.

Previous wording

Other assets decreased by $36 million during the year to $2.8 billion. The balance includes current tax asset, market risk benefit asset, as well as other miscellaneous receivables, and is primarily attributable to a decrease in the current tax assets as a result of changes to net income (loss) before income taxes.

Current wording

Other assets increased by $88 million during the year to $2.9 billion. The balance includes current tax asset, market risk benefit asset, as well as other miscellaneous receivables, and is primarily attributable to investment transaction settlement timing and change in volume partially offset by a decrease in the current tax assets as a result of changes to net income (loss) before income taxes.

Previous wording

Separate account assets and liabilities both decreased by $42 million during 2026, primarily due to policyholder benefits and withdrawals during the quarter as well as net realized losses on investments.

Current wording

Separate account assets and liabilities both increased by $52 million during 2026, primarily due to net realized capital gains on investments during the period, partially offset by policyholder benefits and withdrawals.

Previous wording

Future policy benefits and policyholders’ account balances increased by $911 million during 2026 primarily driven by annuity sales during the period and the impact of changes in interest rates and equity markets on the valuation of the embedded derivatives during the period.

Current wording

Future policy benefits and policyholders’ account balances increased by $3.0 billion during 2026 primarily driven by annuity sales during the period and the impact of changes in interest rates and equity markets on the valuation of the embedded derivatives during the period.

Previous wording

Market risk benefits decreased by $35 million during 2026 primarily due to the impact of changes in interest rates and equity markets.

Current wording

Market risk benefits increased by $215 million during 2026 primarily due to the impact of changes in interest rates and equity markets.

Previous wording

Funds withheld for reinsurance liabilities decreased by $119 million during 2026 as a result of decrements on the existing ceded liabilities and the corresponding funds withheld payable as flow business is not being ceded to external reinsurers.

Current wording

Funds withheld for reinsurance liabilities decreased by $201 million during 2026 as a result of decrements on the existing ceded liabilities and the corresponding funds withheld payable as flow business is not being ceded to external reinsurers.

Previous wording

Other liabilities decreased by $219 million during 2026. The balance includes the reinsured market risk benefits liability, accrued interest on debt and other miscellaneous payables. The decrease during 2026 is primarily driven by a decrease in deferred tax liabilities as a result of changes in unrealized gains or losses and future policy benefits and a decrease in miscellaneous payables due to timing.

Current wording

Other liabilities decreased by $497 million during 2026. The balance includes the reinsured market risk benefits liability, accrued interest on debt and other miscellaneous payables. The decrease during 2026 is primarily driven by a decrease in deferred tax liabilities as a result of changes in unrealized gains or losses and the timing and change in volume of investment transaction settlements.

Previous wording

Today, we have significant liquidity within our insurance portfolios, giving us flexibility to secure attractive investment opportunities. In addition to a portfolio of highly liquid financial assets, our operating companies have additional access to liquidity from sources such as the Federal Home Loan Bank (“FHLB”) and access to a sub-allocation under the Brookfield Wealth Solutions revolving credit facility. As of March 31, 2026, the Company had no drawings and a total of $1.2 billion undrawn commitment available related to the FHLB program, and access to $500 million of capacity under the revolving credit facility.

Current wording

Today, we have significant liquidity within our insurance portfolios, giving us flexibility to secure attractive investment opportunities. In addition to a portfolio of highly liquid financial assets, our operating companies have additional access to liquidity from sources such as the Federal Home Loan Bank (“FHLB”) and access to a sub-allocation under the Brookfield Wealth Solutions Ltd. revolving credit facility. As of June 30, 2026, the Company had no drawings and a total of $1.4 billion undrawn commitment available related to the FHLB program, and access to $500 million of capacity under the revolving credit facility.

Previous wording

Liquidity within our insurance subsidiaries may be restricted from time to time due to regulatory constraints. As of March 31, 2026, the Company’s total liquidity was $53.3 billion, which included $502 million of cash and cash equivalents held outside of the regulated insurance companies.

Current wording

Liquidity within our insurance subsidiaries may be restricted from time to time due to regulatory constraints. As of June 30, 2026, the Company’s total liquidity was $52.8 billion, which included $422 million of cash and cash equivalents held outside of the regulated insurance companies.

Previous wording

Comparison of the Three Months Ended March 31, 2026 and 2025

Current wording

Comparison of the Six Months Ended June 30, 2026 and 2025

Previous wording

The following table presents a summary of our cash flows and ending cash balances for the three months ended March 31, 2026 and 2025:

Current wording

The following table presents a summary of our cash flows and ending cash balances for the six months ended June 30, 2026 and 2025:

Previous wording

For the three months ended March 31, 2026, we generated $699 million of cash from operating activities compared to $672 million during 2025, primarily due to an increase in net investment income due to continued rotation into higher yielding investment strategies for three months ended March 31, 2026 compared to the three months ended March 31, 2025 as detailed above.

Current wording

For the six months ended June 30, 2026, we generated $1.4 billion of cash from operating activities compared to $1.2 billion during 2025, primarily due to an increase in net investment income due to continued rotation into higher yielding investment strategies, partially offset by an increase in operating expenses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 as detailed above.