Business Context and Reporting Period
Company: American National Group Inc. (ANGI)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Ownership Structure: ANGI is an indirect, wholly-owned subsidiary of Brookfield Wealth Solutions Ltd. (formerly Brookfield Reinsurance Ltd.). As of March 27, 2026, all 10,000 shares of common stock are held by Brookfield Wealth Solutions Ltd. and its affiliates. Only Series D Preferred Stock is listed on the NYSE.
Operational Segments: The Company operates through two segments: Annuities and Life Insurance. On October 1, 2025, the Company completed the transfer of its Property and Casualty (P&C) subsidiaries to Clearbrook Group Holdings Inc., which are now reported as discontinued operations.
Key Financial Metrics
| Metric (in millions) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Total Assets | $130,257 | $121,221 | $35,855 |
| Total Revenues | $7,487 | $7,519 | $3,395 |
| Net Income (GAAP) | $540 | $680 | $397 |
| Net Income Attributable to Common Stockholder | $469 | $696 | $392 |
| Distributable Operating Earnings (DOE) | $1,750 | $1,267 | $598 |
| Net Premiums | $1,716 | $3,679 | $1,669 |
| Gross Annuity Sales | $19,510 | $13,620 | $5,385 |
| Long-Term Borrowings | $2,951 | $2,957 | N/A |
| Total Liquidity (Non-GAAP) | $55,206 | $42,561 | N/A |
Material Changes vs. Prior Period
- Net Income Decline: Net income attributable to common stockholders decreased to $469 million in 2025 from $696 million in 2024. This was primarily driven by a significant decrease in net premiums ($1.7 billion vs. $3.7 billion) due to a more competitive Pension Risk Transfer (PRT) market and a strategic decision to allocate capital to retail annuity and funding agreement opportunities.
- Revenue Composition: While total revenues remained relatively flat ($7.49 billion vs. $7.52 billion), the mix shifted. Net investment income increased by $1.4 billion to $4.89 billion, driven by the full-year contribution of American Equity's investment portfolio and rotation into higher-yielding strategies.
- Expense Increases: Amortization of deferred policy acquisition costs (DAC), deferred sales inducements (DSI), and value of business acquired (VOBA) increased to $1.0 billion from $587 million, reflecting the full-year impact of the American Equity acquisition. Operating expenses rose slightly to $725 million.
- Discontinued Operations: The P&C segment was divested in October 2025. Income from discontinued operations was $126 million in 2025, an increase from $111 million in 2024, largely due to improved loss experience on the disposed block.
- Balance Sheet Growth: Total assets increased by $9.0 billion to $130.3 billion, driven by net annuity inflows and the redeployment of cash into fixed maturity investments.
Guidance, Outlook, and Risks
Management Commentary: Management focuses on Distributable Operating Earnings (DOE) as a primary performance metric, which increased to $1.75 billion in 2025. The Company is leveraging its relationship with Brookfield Asset Management (BAM) to access higher-yielding alternative assets. The Company ceased offering new life insurance policies through multiple-line and independent agent channels effective May 31, 2025, focusing instead on career agent channels.
Key Risks and Contingencies:
- Interest Rate and Market Risk: Significant exposure to interest rate changes and equity market volatility, which impact the valuation of embedded derivatives and market risk benefits (MRB). A 50 basis point increase in interest rates would decrease the fair value of fixed maturity securities by approximately $1.4 billion but also decrease insurance liabilities by $853 million.
- Regulatory Environment: Subject to extensive state and federal regulation, including new Bermuda corporate income tax (15% rate effective Jan 1, 2025) and evolving rules on AI usage in underwriting and data privacy (e.g., NYDFS Circular Letter No. 7).
- Counterparty and Reinsurance Risk: Reliance on reinsurance counterparties (e.g., RGA, North End Re) and derivatives counterparties. The Company recaptured a significant reinsurance treaty with North End Re in December 2024.
- Cybersecurity: Ongoing threats to information systems and data privacy, with potential for material fines and reputational damage.
Investor Verification Checklist
- DOE Reconciliation: Verify the reconciliation of GAAP Net Income to Distributable Operating Earnings (DOE), specifically the adjustments for mark-to-market losses on investments and insurance contracts.
- Market Risk Benefits (MRB): Review Note 19 for the valuation assumptions (utilization, option budget, non-performance risk) used for MRB liabilities, which saw a $725 million expense increase in 2025.
- Reinsurance Agreements: Confirm the status and terms of the RGA reinsurance treaty (effective July 2024) and the recapture of the North End Re treaty, as these significantly impact net premiums and reserves.
- Preferred Stock Dividends: Monitor the declaration and payment of dividends on Series D Preferred Stock, as the Company has no obligation to pay if not declared.
- Discontinued Operations: Ensure financial statements are reviewed on a pro-forma basis excluding the P&C segment for forward-looking comparisons.