Financial Data and Key Metrics Changes - FY 2025 marked a record year for the company with production of 26.6 petajoules equivalent, up 17% from FY 2024 [6] - Record revenue of $268 million, a 22% increase compared to FY 2024 [6] - Underlying EBITDAX reached $173.9 million, up 36% year-over-year, with a margin of 65% [6][27] - Adjusted cash from operations was CAD 160.5 million, a 40% increase from FY 2024 [6][30] - Unit production costs decreased by 10% to $2.33 per gigajoule [6][29] Business Line Data and Key Metrics Changes - Average annual group production rate was 73 terajoules equivalent per day, exceeding targets [2][28] - The East Coast supply project (ECSP) is on track to bring gas online as early as 2028 [4] - Average processing rate at the August plant was 62 terajoules per day, a 25% increase from FY 2024 [10] - The Athena gas plant's average processing rate was 9.4 terajoules per day, with significant reliability improvements [13] Market Data and Key Metrics Changes - Average realized gas prices increased to approximately $10 per gigajoule, a 12% rise compared to FY 2024 [4] - Over 30% of Orbost volumes were sold into spot markets, up 15% from the previous year [36] - The Sydney spot market often trades at a premium to the Victorian market, contributing to higher realized prices [37] Company Strategy and Development Direction - The company is focused on transformational growth through the ECSP, targeting to backfill the Athena gas plant with up to 90 terajoules a day by 2028 [41] - Continuous improvement programs have identified over 70 initiatives aimed at cost reductions and efficiency [5][16] - The company aims to maximize asset utilization and increase production capacity while maintaining reliability [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued profitability improvements due to strong gas market conditions and operational efficiencies [7][8] - The company is well-positioned to benefit from the growing energy demand and volatility in the National Electricity Market (NEM) [38] - Future cash flows are expected to increase, providing financial flexibility for growth and debt repayment [35] Other Important Information - The company maintained a strong safety performance with a total recordable injury frequency rate of 3.36 injuries per million hours worked, below industry benchmarks [9] - The company achieved carbon neutral certification for its operations, demonstrating commitment to environmental excellence [10] Q&A Session Summary Question: Guidance for FY 2026 and production rates from Orbost - Management clarified that the guidance reflects historical performance and does not include debottlenecking work [56][60] Question: Critical path to first supply from ECSP by 2028 - Management indicated that securing gas sales agreements and contracting services for subsea tie-ins are critical steps [65][66] Question: Impact of Woodside's entry into the Gippsland Basin - Management noted potential opportunities for collaboration and growth in domestic gas supply [68]

Financial Performance - FY25 group production reached 73 TJe/d [11], a 17% increase from 62.1 TJe/d in FY24 [60] - Average realized gas prices increased by 12% to ~$10/GJ in FY25, compared to $8.83/GJ in FY24 [11, 60] - Underlying EBITDAX increased by 36% to $173.9 million in FY25, up from $127.5 million in FY24 [60] - Adjusted cash from operations increased by 40% to $160.5 million in FY25, compared to $114.8 million in FY24 [60] - Capital expenditure incurred increased significantly by 168% to $64.1 million in FY25, up from $23.9 million in FY24 [60] - Restoration payments decreased by 70% to $63.3 million in FY25, down from $207.7 million in FY24 [60] - Cash and cash equivalents increased by 335% to $62.2 million as of June 30, 2025, compared to $14.3 million as of June 30, 2024 [60] Operational Highlights - Orbost Gas Processing Plant (OGPP) achieved new production records, with reliability loss <1% [26] - Continuous improvement program realized ~$20 million of cashflow improvement in FY25 [37] - Spot sales increased to 31% of total gas sales in FY25, compared to 15% in FY24 [68] East Coast Supply Project (ECSP) - ECSP targets 358 Bcf of gross mean unrisked prospective resource across Elanora, Isabella, and Juliet [76]

[Financial Summary](index=3&type=section&id=Financial%20Summary) The company reported a GAAP net income of $141 million for Q2 2025, a significant recovery from a loss in Q1 2025 but a 42% decrease year-over-year. Distributable operating earnings, a non-GAAP measure, were $311 million, down 21% sequentially but up 23% year-over-year. Total assets and equity showed steady growth, increasing 7% and 10% year-over-year, respectively, to $126.3 billion and $10.2 billion | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **GAAP net income (loss)** | $141M | ($236M) | $244M | 160% | -42% | | **Distributable operating earnings** | $311M | $392M | $253M | -21% | 23% | | **Total assets** | $126,345M | $123,434M | $118,618M | 2% | 7% | | **Total equity** | $10,217M | $10,045M | $9,257M | 2% | 10% | - Year-to-date 2025 GAAP net income was a loss of **$95 million**, a **127% decline** from a $357 million profit in the same period of 2024[3](index=3&type=chunk) - Year-to-date 2025 distributable operating earnings grew **56% to $703 million** compared to $452 million in the prior year period[3](index=3&type=chunk) [GAAP Financial Statements](index=4&type=section&id=GAAP%20Financial%20Statements) The company's GAAP financials for Q2 2025 show total assets reaching $126.3 billion and total equity $10.2 billion, with revenues of $2.19 billion and a net income of $141 million, driven by strong net investment income despite lower premiums [GAAP Balance Sheet](index=4&type=section&id=GAAP%20Balance%20Sheet) As of June 30, 2025, total assets reached $126.3 billion, a 4% increase year-to-date, primarily driven by a 5% growth in total investments. Total liabilities grew in line with assets to $116.1 billion, while total equity increased by 2% to $10.2 billion, supported by a 95% rise in accumulated other comprehensive income | Balance Sheet Item | June 30, 2025 | Dec 31, 2024 | YTD Change | | :--- | :--- | :--- | :--- | | **Total Investments** | $84,848M | $80,755M | 5% | | **Total Assets** | $126,345M | $121,221M | 4% | | **Total Liabilities** | $116,128M | $111,193M | 4% | | **Total Equity** | $10,217M | $10,028M | 2% | - Key drivers of asset growth year-to-date include a **16% increase** in 'Other invested assets' and a **3% rise** in 'Available-for-sale fixed maturity securities'[6](index=6&type=chunk) - Accumulated other comprehensive income (AOCI) increased significantly by **95% year-to-date**, from $340 million to $664 million[6](index=6&type=chunk) [GAAP Income Statement](index=5&type=section&id=GAAP%20Income%20Statement) For Q2 2025, the company reported total revenues of $2.19 billion and a net income of $141 million attributable to common stockholders. Net investment income was a key strength, growing 26% year-over-year to $1.16 billion. This was offset by a 25% YoY decline in premium revenues | Income Statement Item | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Premiums** | $752M | $1,005M | -25% | | **Net investment income** | $1,160M | $924M | 26% | | **Total revenue** | $2,186M | $2,115M | 3% | | **Total benefits and expenses** | $1,994M | $2,157M | -8% | | **Net income (common stockholders)** | $141M | $244M | -42% | - Year-to-date net investment income grew **77% to $2.44 billion** compared to $1.37 billion in the prior year period[7](index=7&type=chunk) - Q1 2025 results included a non-recurring **$19 million impact** related to the redemption of Series A preferred stock, which negatively affected net income for that quarter[7](index=7&type=chunk) [Non-GAAP Reconciliations](index=6&type=section&id=Non-GAAP%20Reconciliations) Non-GAAP measures for Q2 2025 show distributable operating earnings of $311 million and total adjusted common stockholders' equity of $9.97 billion, reflecting core performance and a stable equity base [Distributable Operating Earnings Reconciliation](index=6&type=section&id=Distributable%20Operating%20Earnings%20Reconciliation) Distributable operating earnings (DOE) for Q2 2025 were $311 million, reconciled from a GAAP net income of $141 million by adjusting for investment gains/losses and mark-to-market impacts. The Annuity segment was the primary contributor with $372 million in pre-tax DOE. Year-to-date DOE reached $703 million, a 56% increase from the prior year | Reconciliation Item | Q2 2025 | | :--- | :--- | | **Net income (loss)** | $141M | | Net investment gains (losses) | $121M | | Mark-to-market on insurance contracts | $36M | | Other adjustments | $13M | | **Distributable operating earnings** | **$311M** | | Pre-Tax DOE by Segment | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Annuity** | $372M | $291M | 28% | | **Property & Casualty (P&C)** | ($4M) | ($10M) | 60% | | **Life** | $40M | $56M | -29% | [Adjusted Equity Reconciliation](index=7&type=section&id=Adjusted%20Equity%20Reconciliation) Total adjusted common stockholders' equity reached $9.97 billion at the end of Q2 2025, up 3% from Q1 2025 and 23% year-over-year. This non-GAAP measure adjusts total equity by removing items such as non-controlling interests, preferred stock, AOCI, and the impact of mark-to-market on derivatives and insurance contracts to provide a view of core equity | Equity Reconciliation | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total equity** | $10,217M | $9,257M | 10% | | Less: Non-controlling interests & Preferred stock | ($723M) | ($872M) | 17% | | **Total common stockholders' equity** | $9,494M | $8,385M | 13% | | Less: AOCI | ($664M) | ($445M) | -49% | | Add: Mark-to-market impact | $1,135M | $180M | 531% | | **Total adjusted common stockholders' equity** | **$9,965M** | **$8,120M** | **23%** | [Investment Portfolio](index=8&type=section&id=Investment%20Portfolio) The $84.8 billion investment portfolio is primarily fixed income with high credit quality, including a diversified $8.8 billion commercial mortgage loan portfolio with conservative LTVs [Invested Assets Overview](index=8&type=section&id=Invested%20Assets) As of June 30, 2025, total investments stood at $84.8 billion. The portfolio is heavily weighted towards fixed income, with corporate debt securities ($32.9 billion) being the largest single category. Other significant holdings include mortgage loans ($11.2 billion) and private loans ($8.1 billion) | Investment Category | Carrying Value (June 30, 2025) | | :--- | :--- | | Corporate debt securities | $32,948M | | Mortgage loans on real estate | $11,191M | | Private loans | $8,053M | | Real estate and partnerships | $5,944M | | Collateralized debt securities | $4,728M | | **Total Investments** | **$84,848M** | [Credit Quality of Investments](index=9&type=section&id=Credit%20Quality%20of%20Investments) The investment portfolio maintains a high credit quality profile. Of the assets with an NAIC designation, 54% of the total portfolio value is rated NAIC 1 or 2. Corporate debt securities, the largest asset class, are predominantly investment grade, with 97% rated NAIC 1 or 2 - **55% of total investments** have an NAIC designation. Of these, the vast majority are high quality, with **31% of total investments rated NAIC 1** and **23% rated NAIC 2**[15](index=15&type=chunk) | Corporate Debt NAIC Designation | % of Corporate Debt (June 30, 2025) | | :--- | :--- | | 1 | 48% | | 2 | 49% | | 3 | 2% | | 4 and below | 1% | - Over **95% of available-for-sale fixed maturity securities** in U.S. treasury, government, state, and foreign government categories are rated NAIC 1 or 2[18](index=18&type=chunk) [Mortgage Loans](index=12&type=section&id=Mortgage%20Loans) The commercial mortgage loan portfolio totaled $8.8 billion as of June 30, 2025. The portfolio is diversified by property type, with the largest exposures in Apartment (25%), Industrial (19%), and Retail (16%). The portfolio maintains a conservative risk profile with an average Loan-to-Value (LTV) of 49% and a median credit rating of CM2 | Property Type | % of Portfolio (June 30, 2025) | | :--- | :--- | | Apartment | 25% | | Industrial | 19% | | Retail | 16% | | Office | 15% | | Hotel | 12% | | Other | 13% | - Non-performing commercial mortgage loans remained low at **1% of the total portfolio value**[19](index=19&type=chunk) - The portfolio's average Loan-to-Value (LTV) ratio is **49%**, with **67% of loans having an LTV of 60% or less**, indicating a strong collateral position[22](index=22&type=chunk)[24](index=24&type=chunk) [Ratings and Capitalization](index=14&type=section&id=Ratings%20and%20Capitalization) The company maintains strong 'A' financial strength ratings for its insurance subsidiaries and investment-grade credit ratings for the parent, supported by a robust $12.4 billion capitalization with a 76% equity base [Financial Strength and Credit Ratings](index=14&type=section&id=Financial%20Strength%20and%20Credit%20Ratings) The company's key insurance subsidiaries maintain strong financial strength ratings, with major entities rated 'A' by AM Best, S&P, and Fitch. The parent holding company, American National Group Inc., holds investment-grade credit ratings of BBB from S&P and BBB+ from Fitch | Company | AM Best | S&P | Fitch | | :--- | :--- | :--- | :--- | | American Equity Life Insurance Co. | A | A | A | | American National Insurance Co. | A | A | A | | Eagle Life Insurance Co. | A | A | A | - The parent holding company, American National Group Inc., has credit ratings of **BBB from S&P** and **BBB+ from Fitch**[25](index=25&type=chunk) [Capitalization](index=15&type=section&id=Capitalization) As of June 30, 2025, the company's total capitalization (excluding AOCI and NCI) was $12.4 billion. The capital structure is composed of 24% long-term borrowings ($2.95 billion) and 76% equity ($9.42 billion), reflecting a strong equity base | Capital Component | Amount | % of Total Capitalization | | :--- | :--- | :--- | | Total Long Term Borrowings | $2,953M | 24% | | Total Equity (Excl. AOCI & NCI) | $9,418M | 76% | | **Total Capitalization (Excl. AOCI & NCI)** | **$12,371M** | **100%** | [Annuity Business Analysis](index=16&type=section&id=Annuity%20Business%20Analysis) The annuity business reported a $370 million net investment spread and $4.3 billion in sales, primarily from Fixed Index products, with $77.9 billion in account value largely protected by surrender charges [Annuity Investment Spread](index=16&type=section&id=Annuity%20Investment%20Spread) The total net investment spread for the annuity business was $370 million in Q2 2025, a 27% increase year-over-year. For the twelve months ended June 30, 2025, the yield on net invested assets was 6.0% against an aggregate cost of funds of 4.1%, resulting in a healthy net investment spread of 1.9% | Metric (Q2 2025) | Amount | | :--- | :--- | | Non-GAAP net investment income | $1,238M | | Cost of funds | $868M | | **Total net investment spread** | **$370M** | - For the twelve months ended June 30, 2025, the net investment spread was **1.9%**, derived from a **6.0% yield on assets** and a **4.1% cost of funds**[30](index=30&type=chunk) [Reconciliation to Annuity Cost of Funds](index=17&type=section&id=Reconciliation%20of%20Benefits%20and%20Expenses%20to%20Cost%20of%20Funds) The total annuity cost of funds for Q2 2025 was calculated at $868 million. This non-GAAP measure is derived by adjusting total GAAP benefits and expenses ($1,994 million) for items such as premiums, product charges, and fair value changes in derivatives to isolate the costs specifically associated with the annuity business - Total annuity cost of funds, a non-GAAP measure, was **$868 million in Q2 2025**, reconciled from $1,994 million in US GAAP benefits and expenses[32](index=32&type=chunk) [Annuity Sales](index=18&type=section&id=Annuity%20Sales) Total gross annuity sales reached $4.3 billion in Q2 2025, a 30% increase year-over-year, driven by strong retail sales. Fixed Index annuity sales were particularly robust, growing 69% YoY to $2.5 billion and accounting for nearly 60% of total sales | Annuity Sales (Q2 2025) | Amount | YoY Change | | :--- | :--- | :--- | | **Retail** | | | | Fixed Index | $2,513M | 69% | | Fixed Rate | $1,029M | -32% | | **Institutional** | $662M | 142% | | **Total Gross Annuity Sales** | **$4,284M** | **30%** | - Year-to-date total gross annuity sales were up **67% to $8.1 billion**, with Fixed Index sales up **164% to $4.3 billion**[34](index=34&type=chunk) [Surrender Charge Exposure](index=19&type=section&id=Surrender%20Charge%20Exposure) As of Q2 2025, the total annuity account value was $77.9 billion. A significant portion of this value is protected by surrender charges, with a weighted average of approximately 6 years remaining in the protected period. Only $10.1 billion (13%) of the account value has no remaining surrender charge, indicating a stable liability base | Years of Surrender Charge Remaining | Account Value (Q2 2025) | | :--- | :--- | | No surrender charge | $10,081M | | 0 to < 3 years | $13,021M | | 3 to < 6 years | $15,485M | | 6 to < 9 years | $27,157M | | 9 or greater | $12,159M | | **Total** | **$77,903M** | - The weighted average remaining surrender charge period is approximately **6 years**, which contributes to the stability of the company's liabilities[37](index=37&type=chunk) [Disclosures](index=20&type=section&id=Disclosures) This section provides legal disclaimers regarding the document's informational nature and defines key non-GAAP financial measures used to present core operating performance [Legal Notice](index=20&type=section&id=Legal%20Notice) This section contains standard legal disclaimers, stating that the document is for informational purposes only, is not an offer to sell securities, and should not be relied upon for investment decisions. It also notes that past performance is not indicative of future results - The document is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any securities[38](index=38&type=chunk)[40](index=40&type=chunk) - The information is provided as of the report date, and the company does not guarantee its accuracy or completeness and assumes no responsibility for independent verification[42](index=42&type=chunk) [Non-GAAP Financial Disclosures](index=21&type=section&id=Non-GAAP%20Financial%20Disclosures) This section defines the non-GAAP financial measures used in the report, such as Distributable Operating Earnings (DOE), Total Adjusted Common Stockholders' Equity, Non-GAAP Net Investment Income, and Annuity Cost of Funds. Management believes these measures provide a better understanding of the company's core operating performance by excluding certain volatile or non-recurring items - Distributable Operating Earnings (DOE) is defined as net income adjusted for items like depreciation, certain deferred taxes, transaction costs, and specific investment and insurance reserve gains/losses to reflect core operating performance[45](index=45&type=chunk) - Total Adjusted Common Stockholders' Equity excludes the impact of AOCI and mark-to-market gains/losses on derivatives and insurance contracts to provide a more stable view of equity[47](index=47&type=chunk) - Annuity Cost of Funds is a non-GAAP measure that isolates liability costs related to the annuity business, including interest crediting, option costs, amortization, and operating expenses net of product revenues[49](index=49&type=chunk)

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1: Financial Statements](index=5&type=section&id=Item%201%3A%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for periods ended June 30, 2025, covering financial position, operations, comprehensive income, equity changes, cash flows, and detailed notes on accounting policies, investments, and segment reporting [Condensed Consolidated Statements of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets increased to **$126.3 billion** by June 30, 2025, from **$121.2 billion** at year-end 2024, driven by investments, while total liabilities and equity also saw growth Condensed Consolidated Statements of Financial Position (Unaudited) | Account | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total investments** | **$84,848** | **$80,755** | | Cash and cash equivalents | $12,104 | $11,330 | | **Total assets** | **$126,345** | **$121,221** | | Policyholders' account balances | $86,934 | $83,079 | | **Total liabilities** | **$116,128** | **$111,193** | | **Total equity** | **$10,217** | **$10,028** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net income attributable to common stockholders decreased to **$141 million** from **$244 million** in Q2 2024, with H1 2025 showing a net loss of **$95 million** due to lower premiums, derivative changes, and non-recurring tax benefits Condensed Consolidated Statements of Operations (Unaudited) | Metric (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $2,186 | $2,115 | $4,525 | $3,785 | | Total benefits and expenses | $1,994 | $2,157 | $4,591 | $3,684 | | Net income (loss) before income taxes | $192 | $(42) | $(66) | $101 | | Income tax expense (benefit) | $38 | $(289) | $(17) | $(260) | | Net income (loss) | $154 | $247 | $(49) | $361 | | **Net income (loss) attributable to common stockholder** | **$141** | **$244** | **$(95)** | **$357** | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income attributable to the company significantly decreased to **$146 million** in Q2 2025 from **$759 million** in Q2 2024, mainly due to smaller unrealized investment gains Condensed Consolidated Statements of Comprehensive Income (Unaudited) | Metric (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $154 | $247 | $(49) | $361 | | Total other comprehensive income (loss) | $(6) | $503 | $324 | $554 | | **Comprehensive income attributable to American National Group Inc.** | **$146** | **$759** | **$270** | **$922** | [Condensed Consolidated Statements of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to **$10.22 billion** by June 30, 2025, from **$10.03 billion** at year-end 2024, driven by other comprehensive income despite a net loss and preferred stock redemptions - Total equity increased by **$189 million** during the first six months of 2025, primarily due to positive other comprehensive income of **$324 million**, which more than offset the net loss of **$49 million**[26](index=26&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$1.2 billion** for H1 2025, with **$3.1 billion** used in investing and **$2.7 billion** provided by financing, resulting in a **$774 million** net increase in cash and cash equivalents Six Months Ended June 30 Cash Flow Summary (Unaudited) | Activity (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Cash flows provided by operating activities | $1,206 | $1,377 | | Cash flows (used in) provided by investing activities | $(3,138) | $7,675 | | Cash flows provided by financing activities | $2,706 | $1,651 | | **Net change in cash and cash equivalents** | **$774** | **$10,703** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the company's organization post-AEL merger, significant accounting policies, investment portfolios, fair value measurements, reinsurance, insurance liabilities, the AEL acquisition, segment performance, and commitments - On May 7, 2024, American National Group, LLC merged with American Equity Investment Life Holding Company (AEL), with AEL surviving and being renamed American National Group Inc. Financial statements prior to this date represent American National as the accounting acquirer[35](index=35&type=chunk)[36](index=36&type=chunk) - The company's available-for-sale fixed maturity securities portfolio grew to a fair value of **$48.9 billion** as of June 30, 2025, up from **$47.3 billion** at year-end 2024, with corporate debt securities comprising the largest portion[45](index=45&type=chunk) - The acquisition of AEL on May 2, 2024, involved a total consideration of **$4.53 billion**, resulting in the recognition of **$7.24 billion** in Value of Business Acquired (VOBA) and **$662 million** in goodwill[134](index=134&type=chunk)[140](index=140&type=chunk) - The company operates through three segments: Annuities, Property and Casualty (P&C), and Life Insurance. As of June 30, 2025, the Annuities segment held the vast majority of assets (**$112.3 billion**) and liabilities (**$102.8 billion**)[189](index=189&type=chunk)[195](index=195&type=chunk)[201](index=201&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=67&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance for Q2 and H1 2025, highlighting decreased net income due to tax changes and derivative valuations, strong annuity sales, and a solid financial condition with increased assets and liquidity [Results of Operations](index=68&type=section&id=Results%20of%20Operations) Q2 2025 net income decreased to **$152 million** from **$255 million** year-over-year, primarily due to tax expense and derivative valuations, while H1 2025 reported a net loss of **$54 million** amid declining net premiums - The decrease in Q2 2025 net income was primarily due to tax expense compared to a significant tax benefit in 2024 related to the Bermuda corporate income tax, along with increased amortization of VOBA and unfavorable movements in insurance-related derivatives[225](index=225&type=chunk) Gross Annuity Sales (in millions) | Annuity Type | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Retail | $3,622 | $3,077 | $6,546 | $3,897 | | Institutional | $662 | $272 | $1,544 | $944 | | **Total** | **$4,284** | **$3,349** | **$8,090** | **$4,841** | [Distributable Operating Earnings](index=72&type=section&id=Distributable%20Operating%20Earnings) Total Segment Distributable Operating Earnings (DOE) grew to **$408 million** in Q2 2025 from **$289 million** in Q2 2024, driven by Annuities segment growth, despite a decrease in Life Insurance DOE Segment Distributable Operating Earnings (DOE) (in millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Annuities | $372 | $246 | $779 | $351 | | Life Insurance | $40 | $63 | $72 | $120 | | Property and Casualty | $(4) | $(20) | $60 | $29 | | **Total Segment DOE** | **$408** | **$289** | **$911** | **$500** | [Financial Condition](index=73&type=section&id=Financial%20Condition) Total assets increased by **$5.1 billion** to **$126.3 billion** by June 30, 2025, driven by annuity inflows and investment fair value movements, strengthening the company's financial condition - Total assets increased by **$5.1 billion** in the first half of 2025, driven by net annuity inflows, investment purchases, and favorable fair value movements on the equity securities portfolio[254](index=254&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity increased to **$49.9 billion** by June 30, 2025, with cash and cash equivalents rising by **$774 million**, maintaining a strong capital position and compliance with NAIC RBC standards Total Liquidity (Non-GAAP, in millions) | Component | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $12,104 | $11,330 | | Liquid financial assets | $36,398 | $32,947 | | Undrawn credit facilities | $1,351 | $881 | | **Total liquidity** | **$49,853** | **$45,158** | - The company is in compliance with all capital requirements as of June 30, 2025, including the NAIC's Risk Based Capital (RBC) standards[276](index=276&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages primary market risks, including interest rate, foreign currency, and credit risk, through an ALM framework, diversification, derivatives, and mitigates insurance and operational risks via reinsurance and internal controls - The company's significant market risks are primarily associated with interest rates, foreign currency exchange rates, and credit risk. These are managed through an asset liability management (ALM) framework and the use of derivatives[285](index=285&type=chunk)[290](index=290&type=chunk) - Insurance risk related to mortality, longevity, and policyholder behavior is managed through underwriting and the use of reinsurance[295](index=295&type=chunk)[296](index=296&type=chunk) [Item 4: Controls and Procedures](index=82&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[301](index=301&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter ended June 30, 2025[302](index=302&type=chunk) [PART II - OTHER INFORMATION](index=82&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1: Legal Proceedings](index=82&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in various ordinary course lawsuits, but management anticipates no material adverse effect on financial condition or results of operations from their ultimate liability - The company is a defendant in various lawsuits arising from the ordinary course of business, but management does not expect the outcomes to have a material adverse effect on its financial statements[206](index=206&type=chunk)[303](index=303&type=chunk) [Item 1A: Risk Factors](index=82&type=section&id=Item%201A%3A%20Risk%20Factors) This section refers to the detailed discussion of risk factors presented in the company's 2024 Annual Report on Form 10-K - For a discussion of factors that may affect the company's business, this report refers to the 'Risk Factors' section in the 2024 Annual Report on Form 10-K[304](index=304&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported[305](index=305&type=chunk) [Item 3: Defaults Upon Senior Securities](index=82&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None reported[306](index=306&type=chunk) [Item 5: Other Information](index=82&type=section&id=Item%205%3A%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the three months ended June 30, 2025[308](index=308&type=chunk) [Item 6: Exhibits](index=83&type=section&id=Item%206%3A%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, indentures, and officer certifications required by the Sarbanes-Oxley Act - The report includes exhibits such as corporate governance documents, indentures for senior notes, and certifications from the CEO and CFO as required by Sections 302 and 906 of the Sarbanes-Oxley Act[310](index=310&type=chunk)

Financial Data and Key Metrics Changes - The company achieved record production, spot gas sales, and revenue for the June quarter, with group production averaging 77 terajoules per day, exceeding the target of 70 terajoules per day set a year ago [3][18] - For FY '25, total sales revenue reached $267.7 million, a 22% increase from FY '24, with quarterly revenue hitting a record of £70.7 million, up 12% from the previous quarter [4][5] - Net debt decreased to $242.8 million, over $35 million below its peak, despite investments in the East Coast supply project [5][18] Business Line Data and Key Metrics Changes - Production from the August field averaged 67.1 terajoules per day for the quarter, a 17% increase from the prior quarter, while Orbis produced an average of 62 terajoules per day for FY '25, a 25% increase from FY '24 [8][18] - Spot sales reached a new record of 2 petajoules of gas sold into spot markets, averaging 21 terajoules per day, representing about a third of average production [4] Market Data and Key Metrics Changes - The East Coast domestic gas market is in urgent need of new supply sources, with the company positioned to deliver significant new gas supply to meet the demands of over 600,000 homes [19][20] - Spot gas prices increased due to a combination of factors, including outages at power stations and seasonal demand, with the average realized gas price for FY '25 at $9.91 per gigajoule, a 12% increase over FY '24 [13][20] Company Strategy and Development Direction - The company is focused on four business priorities for FY '25, including production performance, progressing the East Coast Supply project, increasing realized gas prices, and driving cost and emission reductions [7][14] - The East Coast Supply project aims to utilize existing infrastructure to bring new gas supply to the southeast Australian market by 2028, with drilling of the first well expected to commence later this year [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining production near nameplate capacity and highlighted the importance of gas in ensuring energy security in Australia [4][18] - The company anticipates continued growth into FY '26, with a strong focus on optimizing production costs and debottlenecking operations [18] Other Important Information - The company has initiated a marketing campaign for the East Coast Supply Project, engaging with potential gas customers for foundation contracts [12][38] - A pilot sales agreement for sulfur produced from the Orbis gas processing plant has been established, contributing to sustainable agricultural practices while reducing waste costs [17] Q&A Session Summary Question: Regarding realized gas prices and the drop relative to the previous quarter - Management explained that the drop was due to warm weather at the start of the quarter, affecting spot prices, but noted strong pricing in June due to increased demand from power generation [23][24] Question: On the Minerva decommissioning work - Management confirmed that the capping of wells is complete, and arrangements are being made for infrastructure removal, targeting better weather windows for the work [25] Question: About the Patricia Bellem project and its commercialization - Management indicated that they are in the early stages of assessing the restart and potential gas storage opportunities, with further studies planned [26][28] Question: Update on debottlenecking activities at Orbost - Management confirmed that technical work is complete and regulatory approvals are in progress, with incremental increases in production being trialed [30][32] Question: Cost comparison of awarded contracts for the East Coast Supply project - Management stated that over 98% of contracts have been awarded within the previously announced cost range [34] Question: Engagement with gas buyers for the East Coast Supply project - Management confirmed that marketing efforts have begun, with positive sentiment from customers regarding future contracts [36][38] Question: Potential uplift in sole reserves - Management indicated that there is confidence in the potential uplift, with further details to be provided in the upcoming reserves report [42][43] Question: Progress on Athena gas plant and potential tolling - Management confirmed ongoing discussions with parties interested in utilizing the Athena gas plant for tolling [44][45] Question: Competitiveness of Patricia Bailene as a storage field - Management noted that while it's early days, existing brownfield infrastructure makes it competitive compared to other options [47][48]

Financial Data and Key Metrics Changes - The company achieved record production, spot gas sales, and revenue for Q4 FY '25, with group production averaging 77 terajoules per day in June, exceeding the target of 70 terajoules per day set a year ago [3][20] - For FY '25, total sales revenue reached $267.7 million, a 22% increase from FY '24, while quarterly revenue was £70.7 million, up 12% from the previous quarter [6][5] - Net debt decreased to $242.8 million, over $35 million below its peak, despite investments in the East Coast supply project [6][20] Business Line Data and Key Metrics Changes - Production from the August field averaged 67.1 terajoules per day for the quarter, a 17% increase from the prior quarter, while Orbis produced an average of 62 terajoules per day for FY '25, a 25% increase from FY '24 [8][10] - Spot sales reached a record of 2 petajoules, averaging 21 terajoules per day, with a third of average production now going into the spot market [4][3] - The average realized gas price for FY '25 was $9.91 per gigajoule, a 12% increase over FY '24, while the average spot gas price was $11.6 per gigajoule [14][13] Market Data and Key Metrics Changes - Spot gas prices rose and became more volatile due to increased demand for gas power generation following an outage at the Uborne Brown Coal Power Station [5] - The East Coast domestic gas market is in need of new supply sources, with the company positioned to deliver gas to meet the demands of over 600,000 homes [21][22] Company Strategy and Development Direction - The company is focused on four business priorities: production performance, progressing the East Coast Supply project, increasing realized gas prices, and driving cost and emission reductions [7][15] - The East Coast Supply project aims to bring new gas supply to the southeast Australian market by 2028, with drilling of the first well expected later this year [12][20] - Continuous improvement initiatives have resulted in improved cash flow of around $20 million in FY '25, with ongoing efforts to reduce costs and emissions [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining production near nameplate capacity and highlighted the importance of gas in ensuring energy security in Australia [3][5] - The company anticipates strong demand for gas in the coming years, particularly from 2028 onwards, and is optimistic about the gas market review focusing on streamlining regulations [22][21] - The company exited FY '25 with strong momentum and is focused on continuing growth into FY '26 [20] Other Important Information - The company is working on a pilot sales agreement for sulfur produced from the Orbis gas processing plant, contributing to sustainable agricultural practices while reducing waste costs [18][19] - Ian Davies will join the Board as Chairman-elect, succeeding John Conday, who will retire following the Annual General Meeting [23] Q&A Session Summary Question: Regarding realized gas prices and the drop relative to the previous quarter - Management explained that the drop was due to warm weather at the start of the quarter, which pushed spot prices down, but strong pricing returned in June due to increased demand from gas power generation [25][26] Question: Update on Minerva decommissioning work - Management confirmed that the capping of wells is complete, and arrangements are being made for infrastructure removal, targeting better weather windows for the work [27] Question: Potential commercialization of Patricia Bellem - Management indicated that they are in the select phase for the restart of Patricia Bellem, which involves studies and engineering to determine production rates [28][29] Question: Update on debottlenecking activities at Orbost - Management confirmed that technical work is complete and is now going through regulatory approvals, with incremental increases in production being tested [31][34] Question: Cost comparison of awarded contracts for the East Coast Supply project - Management stated that over 98% of contracts have been awarded and are within the previously announced cost range [35] Question: Engagement with gas buyers for the East Coast Supply project - Management confirmed that a marketing campaign has commenced, with positive sentiment from customers regarding future contracts [36][38] Question: Confidence in potential sole reserves uplift - Management indicated that the reserves are looking positive, with potential for additional production to be added to the reserve [42][43] Question: Progress on Athena gas plant and potential tolling - Management confirmed ongoing conversations with parties in the region to commercialize gas through the Athena gas plant [44][45] Question: Competitiveness of Patricia Bailene as a storage field - Management noted that while it's early days, existing brownfield infrastructure makes it competitive compared to other options [46][47]

Financial Performance - GAAP net income for Q4 2024 was $638 million, a 313% increase from Q3 2024 and a 179% increase year-over-year[6]. - Distributable operating earnings reached $424 million in Q4 2024, up 18% quarter-over-quarter and 141% year-over-year, totaling $1,236 million for the year[4]. - Net income for Q4 2024 was $638 million, a significant increase of 313% quarter-over-quarter and 179% year-over-year[7]. - Distributable operating earnings for Q4 2024 reached $424 million, reflecting an 18% increase from Q3 2024 and a 141% increase from Q4 2023[7]. - Non-GAAP net investment income for Q4 2024 was $1,083 million, a 6% increase QoQ and a 295% increase YoY[28]. Assets and Liabilities - Total assets increased to $121,221 million, a 238% rise compared to $35,885 million in December 2023[5]. - Total liabilities rose to $111,193 million, reflecting a 271% increase from $29,986 million in December 2023[5]. - Total equity stood at $10,028 million, a 70% increase from $5,899 million in December 2023[5]. - Cash and cash equivalents increased to $11,330 million, a 255% rise from $3,192 million in December 2023[5]. - Total invested assets as of December 31, 2024, amounted to $80,755 million, with a slight increase of $109 million compared to December 31, 2023[9]. Investment Performance - Net investment income for Q4 2024 was $1,232 million, a 20% increase from Q3 2024 and a 238% increase year-over-year[6]. - The annuity investment spread was reported at 1.9% for Q4 2024[4]. - The total investments, net of coinsurance funds withheld, were $77,636 million, with a 96% GAAP carrying value[10]. - The carrying value of fixed maturities, available-for-sale, at fair value was $44,141 million, representing 55% of total GAAP carrying value[10]. - Corporate debt securities accounted for $30,918 million, representing 65% of the total carrying value as of December 31, 2024, compared to 84% at the end of 2023[11]. Sales and Growth - Premiums for Q4 2024 were $2,482 million, a 180% increase from Q3 2024 and a 160% increase year-over-year[6]. - Gross annuity sales for Q4 2024 totaled $4,647 million, a 12% increase QoQ and 518% increase YoY[32]. - Pension risk transfer sales in Q4 2024 were $1,918 million, a significant increase of 564% QoQ and 523% YoY[32]. - Total net annuity sales for 2024 were $13,582 million, reflecting a 152% increase compared to 2023[32]. Credit Quality and Risk - Non-performing commercial mortgage loans increased to $117 million, up from $15 million in the previous year, indicating a rise in credit risk[16]. - The average loan-to-value (LTV) ratio improved to 49% in 2024 from 53% in 2023, reflecting a stronger collateral position[20]. - The median credit rating for commercial mortgage loans was CM2, consistent with the previous year, indicating stable credit quality[20]. Financial Metrics and Ratios - The aggregate cost of funds for 2024 was 3.3%, while the yield on net invested assets was 5.2%[28]. - Total adjustments to arrive at cost of funds were $2,148 million in Q4 2024[30]. - The average surrender charge account value increased to $74,265 million in Q4 2024, an 8% increase YoY[34]. - The company believes that cost of funds is a meaningful financial metric that enhances understanding of underlying profitability drivers[45]. - Cost of funds should not be used as a substitute for total benefits and expenses presented under US GAAP[45].

Revenue and Income - Total revenues for Q1 2025 increased to $2,339 million, up 40% from $1,670 million in Q1 2024[16] - Net investment income surged to $1,275 million in Q1 2025, compared to $440 million in Q1 2024, reflecting a significant increase of 190%[16] - The company reported a net loss of $203 million for Q1 2025, contrasting with a net income of $114 million in Q1 2024[19] - Comprehensive income attributable to American National Group Inc. was $124 million for Q1 2025, down from $163 million in Q1 2024[19] - For the three months ended March 31, 2025, the net income was a loss of $203 million, compared to a net income of $114 million for the same period in 2024[25] - The company reported a significant increase in insurance-related liabilities, which rose to $652 million from $238 million year-over-year[25] - The company experienced losses on investments and derivatives amounting to $308 million, compared to gains of $47 million in the previous year[25] Assets and Liabilities - Total assets rose to $123,434 million as of March 31, 2025, compared to $121,221 million at the end of 2024, marking an increase of 1.8%[13] - The company’s total liabilities increased to $113,389 million as of March 31, 2025, compared to $111,193 million at the end of 2024, an increase of 2%[13] - The company’s equity totaled $10,045 million as of March 31, 2025, slightly up from $10,028 million at the end of 2024[13] - The total financial liabilities increased to $9,538 million as of March 31, 2025, compared to $9,324 million as of December 31, 2024, reflecting an increase of approximately 2.3%[90] - The total liabilities of the Company as of March 31, 2025, were $110.234 billion, an increase from $107.791 billion as of December 31, 2024[199] Cash Flow and Investments - Cash flows provided by operating activities increased to $671 million, up from $262 million year-over-year[25] - Cash flows used in investing activities significantly increased to $(5,748) million, compared to $(1,538) million in the prior year[27] - The cash and cash equivalents at the end of the period were $7,520 million, a decrease from $11,330 million at the beginning of the period[27] - The fair value of cash and cash equivalents decreased to $7,520 million as of March 31, 2025, from $11,330 million as of December 31, 2024, a decline of approximately 33.5%[90] - The company held excess collateral of $16 million as of March 31, 2025, down from $76 million as of December 31, 2024[86] Premiums and Claims - Net premiums decreased to $889 million in Q1 2025, down 22% from $1,144 million in Q1 2024[16] - The net amount of policyholder benefits and claims incurred was $888 million for the three months ended March 31, 2025, down from $1,086 million in 2024, a decrease of about 18.2%[128] - The liability for unpaid claims increased to $1,908 million as of March 31, 2025, compared to $1,854 million at the end of 2024, reflecting a growth of 2.9%[157] - Total incurred claims for the current accident year were $291 million for the three months ended March 31, 2025, down from $343 million for the same period in 2024[157] Acquisitions and Intangible Assets - The acquisition of AEL was completed for approximately $2.5 billion in cash and 28,803,599 shares of BAM, with goodwill recognized at $662 million as of March 31, 2025[136][137] - The total intangible assets as of March 31, 2025, amounted to $1,654 million, compared to $1,601 million at the end of December 31, 2024, reflecting an increase of about 3.3%[133] - The total value of business acquired (VOBA) decreased to $8,718 million as of March 31, 2025, down from $8,913 million at the beginning of the period, a reduction of approximately 2.2%[130] Equity and Stock Transactions - The company redeemed 16,000 shares of Series A preferred stock for a total payment of $408 million on February 24, 2025, recognizing a loss of $11 million[173] - The company issued 12,000 shares of Series D preferred stock with a liquidation preference of $25,000 per share for net proceeds of $292 million on January 10, 2025[175] Segment Performance - For the three months ended March 31, 2025, the Company reported segment revenues of $2,400 million, an increase from $1,708 million in the same period of 2024, representing a growth of approximately 40.5%[194] - The Distributable Operating Earnings (DOE) for the Annuities segment was $407 million for Q1 2025, compared to $105 million in Q1 2024, indicating a significant increase of approximately 287.6%[194] - The Life Insurance segment generated $152 million in revenues for Q1 2025, a decrease from $311 million in Q1 2024, reflecting a decline of approximately 51.1%[194] Regulatory and Accounting Changes - The amendments in ASU 2023-09 will require public business entities to disclose specific categories in the rate reconciliation starting from annual reporting periods after December 15, 2024[44] - The company is currently evaluating the impact of ASU 2024-03, which will require additional expense category disclosures starting from annual reporting periods after December 15, 2026[45]

Financial Performance - For the year ended December 31, 2024, total net premiums reached $5.5 billion, an increase of $2.0 billion from $3.5 billion in 2023, primarily driven by growth in the Pension Risk Transfer (PRT) business [259]. - The Company reported distributable operating earnings of $1.418 billion for 2024, compared to $617 million in 2023, reflecting a significant increase in profitability [255]. - Gross annuity sales for 2024 totaled $13.6 billion, up $8.2 billion from $5.4 billion in 2023, largely due to the addition of fixed index annuity deposits and increased PRT sales [264]. - Net income attributable to common stockholders was $696 million for 2024, compared to $392 million in 2023, indicating a strong growth trajectory [255]. - For the year ended December 31, 2024, net income increased to $729 million, up from $392 million in 2023, primarily due to higher net premiums from a U.K. pension risk transfer deal [269]. - Net premiums and other policy revenue reached $6.2 billion in 2024, compared to $3.9 billion in 2023, reflecting a $2.3 billion increase driven by growth in the PRT business [270]. Business Segments - The PRT business contributed significantly to the increase in net premiums, with $3.148 billion reported in 2024 compared to $1.008 billion in 2023 [258]. - The total net premiums for the Annuities segment increased by $2.1 billion in 2024, driven by the growth in the PRT business [259]. - The Company’s entrance into the PRT market in 2023 was a key factor in the overall increase in net premiums and gross annuity sales [260]. Assets and Investments - The Company’s total assets as of December 31, 2024, were $121.221 billion, a substantial increase from $35.885 billion in 2023 [255]. - Total assets increased by $85.3 billion during the year to $121.2 billion, primarily due to the acquisition of $81.2 billion of assets from American Equity [301]. - Total investments increased by $52.5 billion from December 31, 2023 to December 31, 2024, mainly due to the acquisition of $43.0 billion of investments from American Equity [302]. - Future policy benefits and policyholders' account balances increased by $69.0 billion from December 31, 2023 to December 31, 2024, primarily due to the acquisition of American Equity [311]. - Market risk benefits increased by $3.6 billion from December 31, 2023 to December 31, 2024, primarily due to the acquisition of American Equity [312]. - Goodwill increased by $662 million during 2024 as a result of the acquisition of American Equity [310]. - Other liabilities increased by $3.7 billion from December 31, 2023 to December 31, 2024, primarily due to the acquisition of American Equity [315]. Cash Flow and Liquidity - As of December 31, 2024, the company's total liquidity was $45.2 billion, a significant increase from $14.2 billion in 2023 [317]. - Cash and cash equivalents rose to $11.3 billion in 2024 from $3.2 billion in 2023, reflecting a net change of $8.1 billion during the period [318]. - The company generated $2.5 billion in cash from operating activities in 2024, up from $1.2 billion in 2023, primarily due to higher investment income [319]. - Investing activities resulted in a net inflow of $2.5 billion in 2024, compared to a net deployment of $1.3 billion in 2023, driven by the acquisition of American Equity [321]. - Financing activities yielded a net cash inflow of $3.1 billion in 2024, an increase from $1.9 billion in 2023, largely due to net payments received on policyholders' account deposits [323]. - The company had $881 million in undrawn credit facilities available as of December 31, 2024, enhancing its liquidity position [316]. Expenses and Liabilities - Policyholder benefits and claims incurred increased by $2.1 billion to $5.4 billion in 2024, mainly due to growth in the PRT business and higher catastrophe claims [273]. - Interest sensitive contract benefits increased by $1.3 billion to $1.7 billion in 2024, driven by growth in the in-force block of annuities following the acquisition of American Equity [274]. - Operating expenses rose to $880 million in 2024, up from $601 million in 2023, primarily due to transaction expenses related to the acquisition of American Equity [278]. - Interest expense on borrowings increased by $66 million to $165 million in 2024, driven by new borrowings associated with the acquisition of American Equity [279]. - Amortization of deferred policy acquisition costs increased to $939 million in 2024, compared to $525 million in 2023, due to the growth of the annuities business and the acquisition of American Equity [275]. Risk Management - The company manages interest rate risk through asset liability management (ALM), matching the durations of the investment portfolio to insurance liabilities [364]. - The company manages credit risk by establishing concentration limits by counterparty, credit rating, and asset class, while regularly monitoring the financial condition of counterparties [371][372]. - Insurance risk is managed through the purchase of reinsurance for certain amounts of risk underwritten across Annuities, P&C, and Life Insurance segments [374]. - Operational risk is mitigated through internal control processes, including a risk register and independent internal audit reviews, alongside measures to prevent fraud [376]. Market Conditions - The company is affected by global economic conditions, including interest rates and consumer spending, which impact the demand for financial and insurance products [360]. - Insurers are facing financial market volatility, with public market valuations compressed and capital needs growing, leading to a focus on diversifying investment portfolios to include alternative and private credit assets [366]. - Many insurers are shifting towards less asset-intensive insurance products to free up capital, particularly in response to the capital-intensive nature of life and annuity liabilities [366]. - The reinsurance market is providing opportunities for under-capitalized companies, especially those writing annuity products, to raise or free up capital amid higher hedging costs and regulatory changes [366].

Financial Performance - GAAP net income for Q3 2024 was -$299 million, a decrease of 223% QoQ and 654% YoY[4] - Distributable operating earnings for Q3 2024 were $360 million, an increase of 42% QoQ and 157% YoY[4] - Net investment income for Q3 2024 was $1.024 billion, an increase of 11% QoQ and 173% YoY[6] - Total revenue for Q3 2024 was $2.004 billion, a decrease of 5% QoQ but an increase of 59% YoY[6] - Net income attributable to American National Group Inc. common stockholders for Q3 2024 was -$299 million, a decrease of 223% QoQ and 654% YoY[6] - Net income for Q3 2024 was $(299) million, a decrease of 223% QoQ and 654% YoY[7] - Distributable operating earnings for Q3 2024 were $360 million, up 42% QoQ and 157% YoY[7] - Non-GAAP net investment income increased by 301% YoY to $1,021 million in Q3 2024, with total net investment spread growing 326% YoY to $404 million[22] - Average invested assets surged 180% YoY to $69,878 million in Q3 2024, driven by significant portfolio expansion[22] - Yield on net invested assets was 4.8% with an aggregate cost of funds at 3.0%, resulting in a total net investment spread of 1.8% for the twelve months ended September 30, 2024[22] Balance Sheet - Total assets as of September 30, 2024, were $123.659 billion, a 255% increase YoY[4] - Total liabilities as of September 30, 2024, were $113.677 billion, a 286% increase YoY[4] - Total equity, excluding AOCI, was $8.501 billion, a 47% increase YoY[4] - Total investments as of September 30, 2024, were $76,024 million, with unrealized gains of $1,755 million[9] - Fixed maturity investments increased to $42,502 million as of September 30, 2024, from $12,877 million at the end of 2023[9] - Equity securities totaled $1,522 million as of September 30, 2024, with unrealized gains of $21 million[9] - Mortgage loans on real estate increased to $11,800 million as of September 30, 2024, from $5,658 million at the end of 2023[9] - Corporate debt securities increased to $29,398 million as of September 30, 2024, from $10,784 million at the end of 2023[9] - Total fixed maturities, available-for-sale, at fair value, were $42,169 million, representing 55% of total investments as of September 30, 2024[11] - Mortgage loans accounted for 16% of total investments as of September 30, 2024, compared to 20% at the end of 2023[11] - Coinsurance funds withheld investments were $3,284 million as of September 30, 2024, representing 5% of total investments[11] - Total fixed maturities, available-for-sale increased to $45,683 million in September 2024 from $12,877 million in December 2023, with corporate debt securities making up 64% of the total[12] - Corporate debt securities with NAIC designation 1 and 2 accounted for 95% of total U.S. corporate debt securities in September 2024, up from 93% in December 2023[12] - Commercial mortgage loans increased to $9,169 million in September 2024 from $5,711 million in December 2023, with apartment loans representing 23% of the total[16] - Non-performing mortgage loans rose to $290 million (3% of total) in September 2024 from $15 million (0% of total) in December 2023[16] - Total long-term borrowings stood at $2,959 million, representing 26% of total capitalization as of September 2024[19] - Total equity, excluding AOCI and NCI, is a non-GAAP measure used to provide a view of equity attributable to American National Group, Inc[39] Expenses and Benefits - Policyholder benefits and claims incurred for Q3 2024 were $846 million, a decrease of 18% QoQ but an increase of 18% YoY[6] - Total benefits and expenses for Q3 2024 were $2.413 billion, an increase of 12% QoQ and 101% YoY[6] - US GAAP benefits and expenses for Q3 2024 were $2,413 million, a 12% increase from Q2 2024's $2,157 million[24] - Total annuity cost of funds for Q3 2024 was $616 million, up 37% from Q2 2024's $449 million[24] Annuity Sales - Gross annuity sales for Q3 2024 reached $4,132 million, a 26% increase from Q2 2024's $3,292 million[26] - Fixed Index annuity sales in Q3 2024 were $2,027 million, a 37% increase from Q2 2024's $1,483 million[26] - Total net annuity sales for Q3 2024 were $4,122 million, up 26% from Q2 2024's $3,267 million[26] - Pension Risk Transfer sales in Q3 2024 were $289 million, a 6% increase from Q2 2024's $273 million[26] - American Equity gross annuity sales since the acquisition on May 2, 2024 were $3,222 million[27] Surrender Charges - The weighted average surrender charge for Q3 2024 was 8%, up from 5% in Q4 2023[29] - The weighted average years remaining in the protected surrender charge period is approximately 6 years[30]