Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2024

AMERICAN NATIONAL GROUP INC.

(Exact name of registrant as specified in its charter)

Delaware		001-31911		42-1447959
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

6000 Westown Parkway

West Des Moines, IA 50266

(Address of principal executive offices and zip code)

(515) 221-0002

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A	ANGpA	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B	ANGpB	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 8.01

Other Events.

On July 23, 2024, American National Group Inc., a Delaware corporation (“ANGI” or the “Company”), filed a Current Report on Form 8-K/A which, among other things, included as Exhibit 99.1 thereto audited consolidated financial statements of American National Group, LLC as of December 31, 2023 (successor) and 2022 (successor) and for the year ended December 31, 2023 (successor), for the period from May 25, 2022 through December 31, 2022 (successor), the period from January 1, 2022 through May 24, 2022 (predecessor), and for the year ended December 31, 2021 (predecessor), including the related notes and independent auditor’s report (collectively, the “ANAT Audited Financial Statements”).

This Current Report is being filed to disclose schedules related to the ANAT Audited Financial Statements and report of independent registered public accounting firm related to the ANAT Audited Financial Statements. This Current Report also includes the previously filed ANAT Audited Financial Statements, including the related notes.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	The audited consolidated financial statements of American National Group, LLC as of December 31, 2023 (successor) and 2022 (successor) and for the year ended December 31, 2023 (successor), for the period from May 25, 2022 through December 31, 2022 (successor), the period from January 1, 2022 through May 24, 2022 (predecessor), and for the year ended December 31, 2021 (predecessor), including the related notes, Schedule I, Schedule II, Schedule III and Schedule IV, and report of independent registered public accounting firm.
104	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMERICAN NATIONAL GROUP INC.

Date: July 31, 2024	By:	/s/ Reza Syed
		Reza Syed
		Chief Financial Officer & Executive Vice President

Exhibit 99.1

AMERICAN NATIONAL GROUP, LLC

Consolidated Financial Statements

December 31, 2023

AMERICAN NATIONAL GROUP, LLC

TABLE OF CONTENTS

FINANCIAL STATEMENTS:

Report of Independent Registered Public Accounting Firm	1

Consolidated Statements of Financial Position as of December 31, 2023 (Successor) and 2022 (Successor)	4

Consolidated Statements of Operations for the year ended December 31, 2023 (Successor), for the period from May 25, 2022 through December 31, 2022 (Successor), for the period from January 1, 2022 through May 24, 2022 (Predecessor), and the year ended December 31, 2021 (Predecessor)	5

Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2023 (Successor), for the period from May 25, 2022 through December 31, 2022 (Successor), for the period from January 1, 2022 through May 24, 2022 (Predecessor), and the year ended December 31, 2021 (Predecessor)	6

Consolidated Statements of Changes in Equity for the year ended December 31, 2023 (Successor), for the period from May 25, 2022 through December 31, 2022 (Successor), for the period from January 1, 2022 through May 24, 2022 (Predecessor), and the year ended December 31, 2021 (Predecessor)	7

Consolidated Statements of Cash Flows for the year ended December 31, 2023 (Successor), for the period from May 25, 2022 through December 31, 2022 (Successor), for the period from January 1, 2022 through May 24, 2022 (Predecessor), and the year ended December 31, 2021 (Predecessor)	8

Notes to the Consolidated Financial Statements	10

Note 1 – Nature of Operations	10

Note 2 – Summary of Significant Accounting Policies and Practices	11

Note 3 – Recently Issued Accounting Pronouncements	20

Note 4 – Investment in Securities	25

Note 5 – Mortgage Loans	31

Note 6 – Real Estate and Other Investments	35

Note 7 – Derivative Instruments	38

Note 8 – Net Investment Income and Realized Investment Gains (Losses)	40

Note 9 – Fair Value of Financial Instruments	41

Note 10 – Deferred Policy Acquisition Costs and Value of Business Acquired	53

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses	54

Note 12 – Federal Income Taxes	65

Note 13 – Accumulated Other Comprehensive Income (Loss)	68

Note 14 – Equity and Noncontrolling Interests	69

Note 15 – Debt	70

Note 16 – Commitments and Contingencies	71

Note 17 – Related Party Transactions	72

Note 18 – Liability for Future Policy Benefits	73

Note 19 – Policyholders' Account Balances	75

Note 20 – Market Risk Benefits	79

Note 21 – Reinsurance	80

Note 22 – Pension and Postretirement Benefits	81

Note 23 – Segment Information	84

Note 24 – Subsequent Events	87

Financial Statement Schedules	88

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of American National Group, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of American National Group, LLC and subsidiaries (the “Company”) as of December 31, 2023 (successor) and 2022 (successor), and the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for the year ended December 31, 2023 (successor), for the period from May 25, 2022 through December 31, 2022 (successor), the period from January 1, 2022 through May 24, 2022 (predecessor), and for the year ended December 31, 2021 (predecessor), the related notes to the consolidated financial statements, and Schedules I, II, III, and IV (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 (successor) and 2022 (successor), and the results of its operations and its cash flows for the year ended December 31, 2023 (successor), for the period from May 25, 2022 through December 31, 2022 (successor), the period from January 1, 2022 through May 24, 2022 (predecessor), and for the year ended December 31, 2021 (predecessor), in conformity with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As discussed in Note 1 to the financial statements, the financial statements give effect to the May 25, 2022 acquisition of 100% of the equity of the Company by Brookfield Reinsurance Ltd., which was accounted for as a business combination. As a result, the financial statements present both predecessor and successor periods as of and for the year ended December 31, 2022.

As discussed in Note 3 to the financial statements, the Company changed its method of measurement and presentation and disclosure of long-duration insurance contracts effective January 1, 2023, using the full retrospective approach applied as of the transition date of May 25, 2022, due to the adoption of ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts.

Our opinion is not modified with respect to these matters.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Policy and Contract Claims — Refer to Notes 2 and 11 to the financial statements

Critical Audit Matter Description

The Company establishes a liability for unpaid claims and claim adjustment expenses for its property and casualty insurance products to estimate the costs of paying claims incurred but not reported and claims that have been reported but not settled. The liability for unpaid claims and claim adjustment expenses is included within Policy and Contract Claims in the consolidated statements of financial position. The liability for unpaid claims and claims adjustment expenses is estimated based upon the Company’s historical experience and actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs.

Given the subjectivity of estimating claims incurred but not reported and claims that have been reported but not settled, particularly those with payout requirements over a longer period of time such as auto liability, non-auto liability and commercial multi-peril, the related audit effort in evaluating the liability for unpaid claims and claim adjustment expenses required a high degree of auditor judgment and an increased extent of effort, including involvement of our actuarial specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the liability for unpaid claims and claim adjustment expenses included the following:

•

We tested the effectiveness of controls related to the property and casualty liability for unpaid claims and claim adjustment expenses, including management’s controls over the development, selection, and implementation of the assumptions used in the actuarial estimates.

•

We evaluated the methods and assumptions used by the Company to estimate liabilities for unpaid claims and claim adjustment expenses by performing the following:

◦

We tested the completeness and accuracy of the underlying data, on a sample basis, used to determine the assumptions for loss development patterns, including historical claims.

◦

With the assistance of our actuarial specialists, we performed a retrospective review, including comparing prior year estimates of expected incurred losses to actual experience during the current year to identify potential bias in the determination of the liability for unpaid claims and claim adjustment expenses.

◦

With the assistance of our actuarial specialists, we developed independent estimates for the liability for unpaid claims and claim adjustment expenses, particularly those with payout requirements over a longer period of time, utilizing loss data and industry claim development factors, and compared our estimates to management’s estimates and assessed the consistency of management’s approach.

Policyholders’ Account Balances – Valuation of embedded derivative liability— Refer to Notes 7, 9 and 19 to the financial statements

Critical Audit Matter Description

The Company establishes liabilities for equity-indexed contracts which include a fixed host universal life insurance or deferred annuity contract and an equity-indexed embedded derivative. The embedded derivative liability that is required to be bifurcated from a host reserve and separately accounted for is included within Policyholders’ Account Balances in the consolidated statements of financial position. The guaranteed minimum benefit features in the equity-indexed universal life insurance and equity-indexed deferred annuity contracts utilize an option adjusted spread model to estimate fair value, taking into account assumptions such as equity volatility, forward/price dividend assumptions, interest rate, and lapse rates.

Given the sensitivity of the embedded derivative value to changes in these assumptions, the related audit effort in evaluating management’s selection of the significant assumptions related to equity volatility and lapse rates required a high degree of auditor judgment and an increased extent of effort, including involvement of our actuarial and fair value specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the volatility and policyholder behavior assumptions selected by management for the valuation of the embedded derivative liability included the following:

•

We tested the effectiveness of controls related to the valuation of embedded derivative liabilities, including management’s controls over the development, selection, and implementation of the significant assumptions used in the estimate.

•

We tested the completeness and accuracy of the underlying data used in the determination of the significant assumptions.

•

We evaluated the reasonableness of the Company’s significant assumptions by comparing those selected by management to those independently derived by our fair value and actuarial specialists, drawing upon standard actuarial and industry practice.

•

With the assistance of our actuarial specialists, we evaluated the appropriateness of the significant assumptions, evaluated the consistency of the selected assumptions used in the Company’s valuation model, and tested the mathematical accuracy of the valuation model.

/s/ DELOITTE & TOUCHE LLP

Houston, Texas

July 31, 2024

We have served as the Company's auditor since 2020.

AMERICAN NATIONAL GROUP, LLC

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In thousands)

	Successor
	December 31, 2023			December 31, 2022
ASSETS
Fixed maturity, bonds available-for-sale, at estimated fair value (Allowance for credit losses of $24,218 in 2023 and $28,708 in 2022) (Amortized cost $13,475,451 in 2023 and $14,447,537 in 2022)	$	13,070,576		$	13,512,819
Equity securities, at fair value (Cost $1,336,218 in 2023 and $456,723 in 2022)		1,404,247			428,369
Mortgage loans on real estate, net of allowance for credit losses of $53,407 in 2023 and $38,266 in 2022		5,658,023			5,546,175
Policy loans		390,393			374,481
Real estate and real estate partnerships, net of accumulated depreciation of $320,088 in 2023 and $304,402 in 2022		3,610,853			1,035,719
Investment funds		1,591,768			1,226,471
Short-term investments		2,396,504			1,836,678
Other invested assets		120,818			198,079
Total investments		28,243,182			24,158,791
Cash and cash equivalents		3,192,369			1,388,943
Accrued investment income		196,163			288,841
Reinsurance recoverables		426,911			444,170
Prepaid reinsurance premiums		44,666			46,754
Premiums due and other receivables		483,834			436,264
Deferred policy acquisition costs		944,469			699,151
Market risk benefits, at estimated fair value		33,658			10,330
Property and equipment, net of accumulated depreciation of $332,951 in 2023 and $314,288 in 2022		167,946			151,335
Deferred tax asset		291,340			439,114
Current tax receivable		97,439			22,326
Prepaid pension		247,624			158,704
Other assets		205,359			133,170
Goodwill		121,097			121,097
Separate account assets		1,188,989			1,045,217
Total assets	$	35,885,046		$	29,544,207
LIABILITIES
Future policy benefits
Life	$	3,675,387		$	3,336,141
Annuity		2,373,100			1,466,192
Health		59,472			56,938
Policyholders’ account balances		17,177,476			14,309,971
Policy and contract claims		1,869,970			1,786,275
Market risk benefits, at estimated fair value		33,572			54,340
Unearned premium reserve		1,138,937			1,085,882
Other policyholder funds		334,892			322,067
Liability for retirement benefits		26,395			66,938
Long-term debt		1,493,326			1,503,400
Notes payable		174,017			150,913
Other liabilities		440,709			604,480
Separate account liabilities		1,188,989			1,045,217
Total liabilities		29,986,242			25,788,754
EQUITY
American National’s equity:
Additional paid-in capital		5,184,682			3,805,072
Accumulated other comprehensive income / (loss)		(109,196	)		(447,707	)
Retained earnings		715,836			323,820
Total American National’s equity		5,791,322			3,681,185
Noncontrolling interest		107,482			74,268
Total equity		5,898,804			3,755,453
Total liabilities and equity	$	35,885,046		$	29,544,207

See accompanying notes to the consolidated financial statements.

AMERICAN NATIONAL GROUP, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through			Year ended
	December 31, 2023			December 31, 2022			May 24, 2022			December 31, 2021
PREMIUMS AND OTHER REVENUE
Premiums
Life	$	428,230		$	253,508		$	174,290		$	412,769
Annuity		1,027,725			15,723			10,221			74,925
Health		72,292			75,709			53,810			143,484
Property and casualty		1,993,200			1,108,572			741,011			1,669,875
Other policy revenues		414,249			225,740			158,515			359,707
Net investment income		1,501,160			662,516			384,808			1,171,654
Net realized investment gains (losses)		(73,311	)		(22,889	)		21,073			64,628
Increase (Decrease) in investment credit loss		(26,648	)		(65,298	)		(14,857	)		28,778
Net gains (losses) on equity securities		96,827			49,360			(13,082	)		420,283
Other income		83,375			24,112			18,887			45,688
Total premiums and other revenues		5,517,099			2,327,053			1,534,676			4,391,791
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits and claims incurred		3,260,801			1,188,220			831,019			1,947,810
Change in fair value of market risk benefit		(69,310	)		(101,699	)		—			—
Interest credited to policyholders’ account balances		627,843			155,946			52,825			448,654
Future policy benefit remeasurement losses		28,377			1,490			—			—
Other operating expenses		713,121			365,689			256,218			569,561
Amortization of deferred policy acquisition costs		520,675			321,632			227,408			562,773
Total benefits, losses and expenses		5,081,507			1,931,278			1,367,470			3,528,798
Income before federal income tax and other items		435,592			395,775			167,206			862,993
Less: Provision (benefit) for federal income taxes
Current		(8,909	)		20,826			56,562			408,551
Deferred		55,584			52,670			(23,585	)		(241,966	)
Total provision for federal income taxes		46,675			73,496			32,977			166,585
Income after federal income tax		388,917			322,279			134,229			696,408
Other components of net periodic pension benefit (costs), net of tax		8,362			3,805			(1,625	)		3,574
Net income		397,279			326,084			132,604			699,982
Less: Net income attributable to noncontrolling interest, net of tax		5,263			2,264			1,554			657
Net income attributable to American National	$	392,016		$	323,820		$	131,050		$	699,325

Earnings per share
Basic		N/A			N/A		$	4.88		$	26.02
Diluted		N/A			N/A		$	4.87		$	26.01

See accompanying notes to the consolidated financial statements.

AMERICAN NATIONAL GROUP, LLC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through			Year ended
	December 31, 2023			December 31, 2022			May 24, 2022			December 31, 2021
Net income	$	397,279		$	326,084		$	132,604		$	699,982
Other comprehensive income (loss), net of tax
Change in net unrealized gains (losses) on securities		422,645			(721,536	)		(620,710	)		(142,854	)
Change in discount rate for liability for future policyholders’ benefit		(148,889	)		253,126			—			—
Change in instrument specific credit risk for market risk benefit		(19,958	)		20,779			—			—
Foreign currency transaction and translation adjustments		13			(1,237	)		312			62
Defined benefit pension plan adjustment		84,700			1,161			4,800			67,676
Total other comprehensive income (loss), net of tax		338,511			(447,707	)		(615,598	)		(75,116	)
Total comprehensive income (loss)		735,790			(121,623	)		(482,994	)		624,866
Less: Comprehensive income (loss) attributable to noncontrolling interest		5,263			2,264			1,554			657
Total comprehensive income (loss) attributable to American National	$	730,527		$	(123,887	)	$	(484,548	)	$	624,209

See accompanying notes to the consolidated financial statements.

AMERICAN NATIONAL GROUP, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except per share data)

Successor	Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings		Noncontrolling Interest		Total Equity
Balance at May 25, 2022	$	3,612,783		$	—		$	—	$	9,881	$	3,622,664
Share issuance		191,123			—			—		—		191,123
Accelerated vesting of RSAs		1,166			—			—		—		1,166
Other comprehensive loss		—			(447,707	)		—		—		(447,707	)
Net income attributable to American National		—			—			323,820		—		323,820
Contributions/(Distributions)		—			—			—		62,123		62,123
Net income attributable to noncontrolling interest		—			—			—		2,264		2,264
Balance at December 31, 2022	$	3,805,072		$	(447,707	)	$	323,820	$	74,268	$	3,755,453
Other comprehensive income		—			338,511			—		—		338,511
Net income attributable to American National		—			—			392,016		—		392,016
Capital contribution		2,129,610			—			—		—		2,129,610
Dividends		(750,000	)		—			—		—		(750,000	)
Contributions/(Distributions)		—			—			—		27,951		27,951
Net income attributable to noncontrolling interest		—			—			—		5,263		5,263
Balance at December 31, 2023	$	5,184,682		$	(109,196	)	$	715,836	$	107,482	$	5,898,804

Predecessor	Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Noncontrolling Interest			Total Equity
Balance at December 31, 2020	$	269	$	47,683		$	222,170		$	6,188,148		$	7,297		$	6,465,567
Amortization of restricted stock		—		79			—			—			—			79
Other comprehensive loss		—		—			(75,116	)		—			—			(75,116	)
Net income attributable to American National		—		—			—			699,325			—			699,325
Cash dividends to common stockholders (declared per share of $3.28)		—		—			—			(88,190	)		—			(88,190	)
Contributions/(Distributions)		—		—			—			—			(263	)		(263	)
Net income attributable to noncontrolling interest		—		—			—			—			657			657
Balance at January 1, 2022	$	269	$	47,762		$	147,054		$	6,799,283		$	7,691		$	7,002,059
Amortization of restricted stock		—		(707	)		—			—			—			(707	)
Other comprehensive loss		—		—			(615,598	)		—			—			(615,598	)
Net income attributable to American National		—		—			—			131,050			—			131,050
Cash dividends to common stockholders (declared per share of $0.82)		—					—			(22,048	)		—			(22,048	)
Contributions/Distributions		—		—			—			—			636			636
Net income attributable to noncontrolling interest		—		—			—			—			1,554			1,554
Balance at May 24, 2022	$	269	$	47,055		$	(468,544	)	$	6,908,285		$	9,881		$	6,496,946

See accompanying notes to the consolidated financial statements.

AMERICAN NATIONAL GROUP, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through			Year ended
	December 31, 2023			December 31, 2022			May 24, 2022			December 31, 2021
OPERATING ACTIVITIES
Net income		397,279		$	326,084		$	132,604		$	699,982
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Realized investment losses (gains)		73,311			22,889			(21,073	)		(64,628	)
Unrealized (gains) loss on investments and derivatives		(174,343	)		(19,279	)		207,508			1,269,670
Realized (gain) loss on investments and derivatives		(35,029	)		8,250			(16,228	)		(1,817,634	)
Income tax expense (benefit)		(11,942	)		20,826			56,562			311,554
Increase (Decrease) in investment credit loss		26,648			65,298			14,857			(28,778	)
Accretion of premiums, discounts and loan origination fees		(172,776	)		(48,856	)		7,016			18,932
Net capitalized interest on policy loans and mortgage loans		(11,072	)		(16,635	)		(12,703	)		(31,620	)
Depreciation		50,927			12,139			15,571			49,983
Interest credited to policyholders’ account balances		627,843			155,946			52,826			448,654
Charges to policyholders’ account balances		(414,249	)		(211,901	)		(158,514	)		(359,707	)
Deferred federal income tax expense (benefit)		55,584			52,670			(23,585	)		(241,966	)
Equity in earnings of unconsolidated affiliates		(97,863	)		(88,365	)		(134,100	)		(188,677	)
Distributions from unconsolidated affiliates		80,927			87,562			138,086			150,024
Gain on sale of business		(35,394	)		—			—			—
Changes in:
Policyholder liabilities		1,209,795			124,090			76,277			271,202
Market risk benefits		(69,310	)		(101,699	)		—			—
Deferred policy acquisition costs		(249,281	)		(122,502	)		(40,956	)		(79,632	)
Reinsurance payables		17,259			7,744			3,754			(45,262	)
Premiums due and other receivables		(47,570	)		1,198			(54,900	)		(30,590	)
Prepaid reinsurance premiums		2,088			(1,043	)		2,078			(4,985	)
Accrued investment income		92,678			(188,297	)		92,369			23,476
Liability for retirement benefits		(22,249	)		(16,599	)		(2,283	)		7,440
Other, net		(107,036	)		40,736			(457,801	)		(6,651	)
Net cash provided by (used in) operating activities		1,186,225			110,256			(122,635	)		350,787
INVESTING ACTIVITIES
Proceeds from sale/maturity/prepayment of:
Fixed maturities		3,557,709			5,486,472			978,717			2,284,768
Equity securities		108,737			844			67,410			2,467,165
Commercial paper		—			7,957,092			11,836,896			22,405,785
Real estate and real estate partnerships		40,790			3,621			5,375			21,139
Mortgage loans		623,692			779,235			520,249			1,018,572
Other invested assets		185,146			102,934			96,804			437,864
Disposals of property and equipment		—			—			—			65
Disposal of business		71,928			—			—			—
Distributions from real estate and real estate partnerships		—			—			—			120,019
Distributions from equity method investments		61,026			145,590			110,114			131,186
Payment for the purchase/origination of:
Fixed maturities		(2,540,284	)		(5,078,677	)		(2,190,353	)		(2,969,164	)
Equity securities		(530,556	)		(155,247	)		(26,899	)		(93,663	)

AMERICAN NATIONAL GROUP, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(In thousands)

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through			Year ended
	December 31, 2023			December 31, 2022			May 24, 2022			December 31, 2021
Real estate and real estate partnerships		(707,701	)		(37,402	)		(2,825	)		(12,252	)
Mortgages		(717,571	)		(1,253,576	)		(489,290	)		(867,886	)
Other invested assets		(21,127	)		(1,244,485	)		(121,831	)		(391,816	)
Commercial paper		—			(6,583,196	)		(11,352,754	)		(23,218,138	)
Additions to property and equipment		(133,776	)		(22,781	)		(14,837	)		(37,150	)
Contributions to real estate and real estate partnerships		—			—			—			(123,061	)
Contributions to equity method investments		(738,812	)		(442,535	)		(125,114	)		(591,324	)
Change in collateral held for derivatives		109,501			8,128			(147,240	)		20,604
Change in short-term investments		(468,131	)		—			—			—
Other, net		(201,206	)		47,629			99			2,633
Net cash provided by (used in) investing activities		(1,300,635	)		(286,354	)		(855,479	)		605,346
FINANCING ACTIVITIES
Issuance of equity		—			45,000			—			—
Policyholders’ account deposits		4,920,766			1,406,605			587,664			2,229,554
Policyholders’ account withdrawals		(2,280,881	)		(895,692	)		(506,159	)		(1,251,458	)
Repayment of Federal Home Loan Bank borrowings		—			—			—			(250,000	)
Borrowings from related parties		—			5,371			—			—
Borrowings from external parties		—			500,000			11,991			—
Repayment of borrowings to external parties		—			(507,579	)		(2,747	)		(4,455	)
Debt issuance costs		—			(5,146	)		—			—
Dividends to stockholders		(750,000	)		—			(22,048	)		(88,190	)
Payments (Returns) to noncontrolling interest		27,951			(4,987	)		—			(649	)
Net cash provided by financing activities		1,917,836			543,572			68,701			634,802
Net increase (decrease) in cash and cash equivalents		1,803,426			367,474			(909,413	)		1,590,935
Cash and cash equivalents at beginning of the period		1,388,943			1,021,469			1,930,882			339,947
Cash and cash equivalents at end of the period	$	3,192,369		$	1,388,943		$	1,021,469		$	1,930,882

Supplementary cash flow disclosure
Income taxes paid	$	64,000		$	46,600		$	361,000		$	—

Non-cash transactions
Equity contribution and invested assets received	$	2,129,610		$	—		$	—		$	—

See accompanying notes to the consolidated financial statements.

Note 1 – Nature of Operations

American National Group, LLC (“ANAT”, “American National”, or the “Company”), through its consolidated subsidiaries (collectively “American National”) offers a broad portfolio of insurance products, including individual and group life insurance, annuities, pension risk transfer, and property and casualty insurance. Business is conducted in all 50 states, the District of Columbia and Puerto Rico.

On August 6, 2021, ANAT entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Brookfield Reinsurance Ltd., formerly known as Brookfield Asset Management Reinsurance Partners Ltd., an exempted company limited by shares existing under the laws of Bermuda, and Freestone Merger Sub Inc., a Delaware corporation and an indirect wholly-owned subsidiary of Brookfield Reinsurance (“Merger Sub”). On May 25, 2022 (the “Closing Date"”or “Merger Date”), upon the terms and subject to the conditions of the Merger Agreement, Merger Sub merged with and into the Company (the “Merger”), with the Company continuing as the surviving entity, which became an indirect, wholly-owned subsidiary of Brookfield Reinsurance. The Merger was unanimously approved by the Company’s board of directors. The Company received the requisite stockholder approval required under Delaware law for the adoption of the Merger Agreement. Effective September 30, 2022, the Company converted from a Delaware corporation to a Delaware limited liability company. As a result, the successor period consists of the year ended December 31, 2023 and the comparative period from May 25, 2022 to December 31, 2022. The predecessor periods consist of January 1, 2022 through May 24, 2022 and the year ended December 31, 2021.

In June 2023, a subsidiary of ANAT entered into an agreement with Core Specialty Insurance Holdings, Inc. to sell its managing general underwriter (“MGU”) stop-loss business. The business was acquired for cash through the acquisition of 100% of the stock of Standard Life and Accident Insurance Company (“SLAICO”) and certain reinsurance transactions. The life, annuity and non-MGU stop-loss health business in SLAICO was reinsured back to the Company prior to closing. The transaction was completed on December 1, 2023, and the Company recognized a gain of approximately $36 million upon closing.

Note 2 – Summary of Significant Accounting Policies and Practices

The consolidated financial statements and notes thereto have been prepared in conformity with Generally Accepted Accounting Principles ("GAAP") and are reported in U.S. currency. American National consolidates entities that are wholly-owned and those in which American National owns less than 100% but controls the voting rights, as well as variable interest entities in which American National is the primary beneficiary. Intercompany balances and transactions with consolidated entities have been eliminated. Investments in unconsolidated affiliates, which include real estate partnerships and investment funds, are accounted for using the equity method of accounting. Certain amounts in prior years have been reclassified to conform to current year presentation.

Business Combinations

Business combinations are accounted for using the acquisition method. The cost of a business acquisition is measured at the aggregate of the fair values at the date of exchange of assets given, liabilities incurred or assumed, and equity instruments issued in exchange for control of the acquiree. The acquiree’s identifiable assets, liabilities and contingent liabilities are recognized at their fair values at the acquisition date. The interest of non-controlling shareholders in the acquiree, if applicable, is initially measured at the non-controlling shareholders’ proportion of the net fair value of the identifiable assets, liabilities and contingent liabilities recognized.

To the extent the fair value of consideration paid exceeds the fair value of the net identifiable tangible and intangible assets, the excess is recorded as goodwill. To the extent the fair value of consideration paid is less than the fair value of net identifiable tangible and intangible assets, the excess is recognized in net income.

Based on the criteria outlined in ASC 805, Business Combinations the Company was deemed the accounting acquiree in the Merger. As a result of the completed Merger, for accounting purposes, our financial statements and notes are presented as "Predecessor" for historical periods prior to the Closing Date and "Successor" for the periods after the Closing Date. In accordance with accounting for business combinations, assets and liabilities were adjusted to their fair values as of the Closing Date ("Purchase GAAP Accounting" or "PGAAP"). Additionally, we have elected to apply push-down accounting to reflect the Company's assets and liabilities at fair value. To differentiate between periods, our financial statements and notes columns are titled "Predecessor" and "Successor". This division has been placed to recognize Purchase GAAP Accounting adjustments made and the resulting effect on comparability between the two periods.

Accounting for the business combination is finalized. Final valuation of the assets acquired and liabilities assumed and the completion of the purchase price allocation occurred before the end of the measurement period.

If the acquisition had occurred on January 1, 2022, consolidated unaudited pro forma revenue and profit for the year ended December 31, 2022 would have been $3.9 billion and $487 million, respectively. These amounts have been calculated using the Company's results and adjusting them for the revised depreciation and amortization that would have been charged assuming the fair value adjustments to investments, property and equipment and intangible assets had applied from January 1, 2022, together with the consequential tax effects.

Note 2 – Summary of Significant Accounting Policies and Practices - (Continued)

Under the acquisition method of accounting, the assets acquired and liabilities assumed are recorded at fair value at the date of acquisition. The following table summarizes the fair value of assets acquired and liabilities assumed as of May 25, 2022 (in thousands):

American National Group, LLC Consolidated Balance Sheet	Company Opening Balance Sheet
ASSETS
Fixed maturity securities, bonds available for sale, at estimated fair value	$	15,312,504
Equity securities, at estimated fair value		81,925
Mortgage loans on real estate		5,136,421
Policy loans		367,616
Real estate and real estate partnerships		968,264
Investment funds		987,577
Short-term investments		1,465,662
Other invested assets		142,027
Total investments		24,461,996
Cash and cash equivalents		1,021,469
Accrued investment income		100,544
Reinsurance recoverables		454,867
Prepaid reinsurance premiums		45,711
Premiums due and other receivables		437,462
Property and equipment		140,407
Deferred tax assets, net		374,185
Prepaid pension		149,093
Intangible asset - VOBA		573,315
Other assets		166,029
Goodwill		121,097
Separate account assets		1,123,432
Total assets	$	29,169,607
LIABILITIES
Future policy benefits
Life	$	2,761,227
Annuity		1,431,862
Health		46,352
Policyholders’ account balances		13,880,194
Policy and contract claims		1,705,623
Market risk benefits, at estimated fair value		172,012
Unearned premium reserve		1,072,989
Other policyholder funds		323,567
Liability for retirement benefits		73,926
Intangible liability - VOBA		913,886
Debt		1,494,627
Notes payable		158,492
Current tax payable		13,610
Other liabilities		375,144
Separate account liabilities		1,123,432
Total liabilities		25,546,943
EQUITY
Additional paid-in capital		3,612,783
Total American National equity		3,612,783
Noncontrolling interest		9,881
Total equity		3,622,664
Total liabilities and equity	$	29,169,607

Note 2 – Summary of Significant Accounting Policies and Practices - (Continued)

Basis of Presentation

The preparation of the consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported consolidated financial statement balances. Actual results could differ from those estimates.

Investments

Investment securities are comprised of bonds classified as available-for-sale that are carried at fair value. Private loans are also presented in fixed maturities and are stated at unpaid principal balance, adjusted for any unamortized discount and allowances. In addition, equity investments, other than those accounted for under the equity method or those that result in consolidation of the investee, are measured at fair value with changes in fair value recognized in earnings.

Mortgage loans on real estate are stated at unpaid principal balance, adjusted for any unamortized discount, deferred expenses, and allowances. Accretion of discounts is recorded using the effective yield method. Interest income, prepayment fees, and accretion of discounts and origination fees are reported in “Net investment income” in the consolidated statements of operations. Interest income earned is accrued on the principal amount of the loan based on contractual interest rate. However, interest ceases to accrue for loans on which interest is more than 90 days past due, when the collection of interest is not probable, or when a loan is in foreclosure. Income on past due loans is reported on a cash basis. When a loan becomes current, it is placed back into accrual status. Cash receipts on impaired loans are recorded as a reduction of principal, interest income, expense reimbursement, or other manner in accordance with the loan agreement. In the consolidated statements of operations, gains and losses from the sale of loans are reported in “Net realized investment gains,” and changes in allowances are reported in "(Increase) decrease in investment credit loss."

Mortgage loans are presented net of the Company's recorded allowance for expected credit loss, which represents the portion of amortized cost basis on mortgage loans that the Company does not expect to collect. In determining the Company’s allowance for credit losses, management: (i) pools and evaluates mortgage loans with similar risk characteristics, (ii) considers expected lifetime credit losses adjusted for prepayments and extensions, and (iii) considers past events, current economic conditions and forecasts of future economic conditions. The allowance is calculated quarterly for each property type based on inputs unique to each loan property type.

On an ongoing basis, mortgage loans with dissimilar risk characteristics (i.e., loans with significant declines in credit quality), collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable) may be evaluated individually for credit loss. The allowance for credit losses for loans evaluated individually is established using the same methodologies for the overall commercial portfolio segment except for collateral dependent loans. The allowance for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan’s underlying collateral, less selling cost when foreclosure is probable. Accordingly, the change in the estimated fair value of collateral dependent loans is recorded as a change in the allowance for credit losses which is recorded on a quarterly basis as a charge or credit to earnings.

Policy loans are carried at the outstanding balance plus any accrued interest. Due to the collateralized nature of policy loans such that they cannot be separated from the policy contracts, the unpredictable timing of repayments and the fact that settlement is at outstanding value, the carrying value of policy loans approximates fair value.

Real estate and real estate partnerships are comprised of directly owned properties, and interests in both real estate joint ventures and real estate funds which invest in diversified property-types and geographies.

Real estate joint ventures and other limited partnership interests in which the Company has more than a minor interest or influence over the investee’s operations, but it does not have a controlling interest and is not the primary beneficiary, are accounted for using the equity method. These investments are reported as "Real estate and real estate partnerships” in the consolidated statements of financial position. For certain joint ventures, American National records its share of earnings using a lag methodology of one to three months when timely financial information is not available, and the contractual right does not exist to receive such financial information. In addition to the investees’ impairment analysis of their underlying investments, American National routinely evaluates its investments in those investees for impairments. American National considers financial and other information provided by the investee, other known information, and inherent risks in the underlying investments, as well as future capital commitments, in determining whether impairment has occurred.

Note 2 – Summary of Significant Accounting Policies and Practices - (Continued)

When an impairment is deemed to have occurred at the joint venture level, American National recognizes its share as an adjustment to “Net investment income” to record the investment at its fair value. When an impairment results from American National’s separate analysis, an adjustment is made through “Net realized investment gains (losses)” to record the investment at its fair value.

Investment real estate including related improvements are stated at cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful life of the asset (typically 15 to 50 years). Rental income is recognized on a straight-line basis over the term of the respective lease. American National classifies a property as held-for-sale if it commits to a plan to sell a property within one year and actively markets the property in its current condition for a price that is reasonable in comparison to its estimated fair value. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated while it is classified as held-for-sale. American National periodically reviews its investment real estate for impairment and tests properties for recoverability whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable and the carrying value of the property exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, with the impairment loss included as an adjustment to “Net realized investment gain (loss)” in the consolidated statements of operations. Impairment losses are based upon the estimated fair value of real estate, which is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks as well as other appraisal methods. Real estate acquired upon foreclosure is recorded at the lower of its cost or its estimated fair value at the date of foreclosure.

Investment funds are primarily comprised of senior secured and second lien private loans that are secured by assets, revenues and credit/balance sheet lending. We recognize our share of the fund’s earnings in net investment income on a one-quarter lag under the equity method of accounting. Cash distributions are received from the earnings and from liquidation of underlying investments. All investment funds are reevaluated quarterly by the fund manager and are audited annually by an independent audit firm.

Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-term investments are stated at amortized cost less allowances, which approximates estimated fair value.

Other invested assets comprised primarily of equity-indexed options are carried at fair value and may be collateralized by counterparties; such collateral is restricted to the Company’s use. Federal Home Loan Bank stock is also included in other invested assets and are carried at cost. Other invested assets also include separately managed accounts, tax credit partnerships and mineral rights less allowance for depletion, where applicable.

For credit losses on fixed maturity securities, available-for-sale, in unrealized loss positions which American National does not intend to sell and for which it is not more-likely-than-not that it will be required to sell before its anticipated recovery, American National assesses whether the amortized cost basis of securities will be recovered by comparing the net present value of the expected cash flows from those securities with its amortized cost basis. The expected cash flows are discounted at the effective interest rate of the security and consider historical credit loss information that is adjusted for current market conditions and reasonable and supportable economic forecasts based upon a third-party valuation model. The valuation model calculates expected cash flows based on scenario conditioned probability of default and loss given default. Probability of default measures the likelihood of default over a specified time period, and the loss given default measures the amount that the Company could lose in the event of a counterparty default. If the net present value of the expected cash flows is less than the amortized cost, a credit loss allowance is recorded. The credit loss is recorded as the excess of amortized cost over the net present value of the expected cash flows limited by the amount the fair value is less than the amortized cost (fair-value floor). If the fair value is less than the net present value of its expected cash flows at the impairment measurement date, a non-credit loss exists which is recorded in other comprehensive income (loss) for the difference between the fair value and the net present value of the expected cash flows.

Additions to or releases of the allowance on all fixed maturity securities are reported in “Increase (decrease) in investment credit loss” in the consolidated statements of operations.

Note 2 – Summary of Significant Accounting Policies and Practices - (Continued)

Derivative instruments in the form of equity-indexed options are purchased to hedge against future interest rate increases in liabilities indexed to market rates and are recorded in the consolidated statements of financial position within other invested assets at fair value, net of collateral provided by counterparties. The change in fair value of derivative assets and liabilities is reported in the consolidated statements of operations as “Net investment income” and “Interest credited to policyholders’ account balances,” respectively. American National does not apply hedge accounting treatment to its derivative instruments. The Company uses derivative instruments to hedge its business risk and holds collateral to offset exposure from its counterparties. Collateral that supports credit risk is reported in the consolidated statements of financial position as an offset to “Other invested assets” with an associated payable to “Other liabilities” for excess collateral.

Cash and cash equivalents have durations that do not exceed 90 days at the date of acquisition, include cash on-hand and in banks, as well as amounts invested in money market funds, and are reported as “Cash and cash equivalents” in the consolidated statements of financial position.

Property and equipment consist of buildings occupied by American National, data processing equipment, software, furniture and equipment, and automobiles which are carried at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the asset (typically 3 to 50 years).

Goodwill represents the excess of amounts paid for acquiring businesses over the fair value of the net assets acquired, less any impairment of goodwill recognized. Goodwill is recognized when acquired.

Goodwill is not amortized but is tested for impairment at least annually. Goodwill is assessed for impairment whenever events or changes in circumstances, such as deteriorating or adverse market conditions, indicate that it is more likely than not that the carrying amount of the reporting unit including goodwill may exceed the fair value.

Goodwill impairment is measured and recognized as the amount by which a reporting unit’s carrying value, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill of the reporting unit. There were no impairment adjustments made to goodwill for any period presented.

Insurance specific assets and liabilities

Adoption of ASU 2018-12 - Targeted Improvements to the Accounting for Long-Duration Contracts

The Company adopted ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI") effective January 1, 2023 with a transition date of May 25, 2022 using a full retrospective approach. LDTI resulted in significant changes to the measurement, presentation and disclosure requirements for long-duration insurance contracts. A summary of the most significant changes follows:

(1) Guaranteed benefits associated with certain annuity contracts have been classified and presented separately on the consolidated balance sheets as Market Risk Benefits ("MRB"). MRBs are now measured at estimated fair value through net income and reported separately on the consolidated statements of operations, except for nonperformance risk changes, which will be recognized in Other Comprehensive Income ("OCI").

(2) Cash flow assumptions used to measure the liability for liability for future policy benefits ("LFPB") on traditional long-duration contracts (including term and non-participating whole life insurance and immediate annuities) have been updated on an annual basis.

(3) The discount rate assumption used to measure the liability for traditional long-duration contracts is now based on an upper-medium grade discount rate with changes recognized in OCI.

(4) DAC for all insurance products is required to be amortized on a constant-level basis over the expected term of the contracts, using amortization methods that are not a function of revenue or profit emergence.

(5) There was a significant increase in required disclosures, including disaggregated rollforwards of insurance contract assets and liabilities supplemented by qualitative and quantitative information regarding the cash flows, assumptions, methods and judgements used to measure those balances.

Note 2 – Summary of Significant Accounting Policies and Practices - (Continued)

The following table presents the Company's significant accounting policies which have changed as a result of the adoption of LDTI with cross-references to the notes which provide additional information on such policies.

Accounting Policy	Note
Deferred policy acquisition costs, value of business acquired, unearned revenue and other intangibles		10
Future policy benefit liabilities		18
Policyholder account balances		19
Market risk benefits		20

Deferred policy acquisition costs (“DAC”) are capitalized costs related directly to the successful acquisition of new or renewal insurance contracts. Significant costs are incurred to acquire insurance and annuity contracts, including commissions and certain underwriting, policy issuance, and processing expenses. In accordance with ASC 805, Business Combinations existing DAC balance was written off as a result of the Merger. The beginning balance as of May 25, 2022 consists of the Value of Business Acquired ("VOBA") at that date.

Insurance contracts are grouped into cohorts by contract type and issue year consistent with estimating the associated liability for future policy benefits. DAC is amortized on constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. DAC will be amortized over the following bases, all of which provide a constant level representation of contract term:

Product(s)		Amortization base
Traditional life products		Nominal face amount
Life contingent payout annuities		Annualized benefit amount in force
Health products		Original annual premium
Fixed deferred annuities, fixed indexed annuities, variable annuities		Policy count
Universal life products		Initial face amount

The bases used for amortization are projected using mortality and lapse assumptions that are based on American National's experience, industry data, and other factors consistent with those used for the liability for future policy benefits.

Amortization of DAC is included in the change in deferred acquisition costs in the consolidated statements of operations.

For short-duration contracts, DAC is grouped consistent with the manner in which insurance contracts are acquired, serviced, and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC for short-duration contracts. DAC for short duration contracts is charged to expense in proportion to premium revenue recognized.

Value of business acquired ("VOBA") is an intangible asset or liability resulting from a business combination that represents the difference between the policyholder liabilities measured in accordance with the acquiring company's accounting policies and the estimated fair value of the same acquired policyholder liabilities in-force at the acquisition date. VOBA can be either positive or negative. Positive VOBA is recorded as a component of DAC. Negative VOBA occurs when the estimated fair value of in-force contracts in a life insurance company acquisition is greater than the amount recorded as insurance contract liabilities, and is recorded in future policyholder benefits in the consolidated statements of financial position.

VOBA is amortized on an approximated straight-line basis over the remaining life of the underlying policies consistent with DAC.

Liability for future policy benefits ("LFPB") is equal to the present value of expected benefit payments and claim related expenses to be paid or on behalf of policyholders less the present value of expected net premiums to be collected from policyholders. Principal assumptions used in the establishment of the LFPB are mortality, lapse, claim-related expenses, and other contingent events as appropriate to the respective product type. American National groups contracts into annual cohorts based on product type and contract inception date for the purposes of calculating the liability for future policy benefits. A set of qualitative cohorts includes all business issued prior to the acquisition date. Another set of qualitative cohorts includes business issued between the acquisition date and year end 2022. In 2023 and beyond, there is a set of qualitative cohorts for each issue year.

Note 2 – Summary of Significant Accounting Policies and Practices - (Continued)

American National updates its estimate of cash flows over the entire life of a group of contracts using actual historical experience and current future cash flow assumptions. American National will review cash flow assumptions, including assumptions for claim-related expenses annually in the fourth quarter. Assumption revisions will be reflected in the net premium ratio and LFPB calculation in the quarter in which assumptions are revised. The net premium ratio reflects cash flows from contract inception to contract termination (i.e. through the claim paying period) and cannot exceed 100%. Change in the liability due to actual experience is recognized in reserve remeasurement (gains) losses in the consolidated statements of operations.

American National measures the LFPB at each reporting period. The discount rate assumption is determined by developing a yield curve based on market observable yields for upper-medium fixed income instruments derived from an external index. The difference between the updated carrying amount of the liability for future policy benefits measured using the current discount rate assumption and the original discount rate assumption is recognized in other comprehensive income during the period. The net premium ratio is not updated for changes in discount rate assumptions.

Should the present value of actual and future expected benefits less transition LFPB balance exceed the present value of actual and future expected gross premiums, the net premium ratio is capped at 100% and a gross premium LFPB is held. The immediate charge is the amount by which the uncapped net premium ratio exceeds 100% times the present value of future expected gross premium. This assessment is performed at the cohort level.

American National periodically reviews its estimates of actuarial liabilities for future policy benefits and compares them with its actual experience. Differences between actual experience and the assumptions used in pricing these policies, guarantees and riders and in the establishment of the related liabilities result in variances in profit and could result in losses. The effects of changes in such estimated liabilities are included in the consolidated statements of operations in the period in which the changes occur.

Payout annuities include single premium immediate annuities, annuitizations of deferred annuities, and pension risk transfer. These contracts subject the insurer to risks over a period that extends beyond the period or periods in which premiums are collected. These contracts may be either non-life contingent or life contingent. Non-life contingent annuities are accounted for as investment contracts. For life contingent annuities, the Company records a liability at the present value of future annuity payments and estimated future expenses calculated using expected mortality and costs, and expense assumptions. Any gross premiums received in excess of the net premium is the deferred profit liability ("DPL") and is recognized separately in income in a constant relationship with the discounted amount of the expected future benefit payments. These liabilities are recorded in future policy benefits in the consolidated statements of financial position.

Market risk benefits ("MRB") are measured at fair value at the cohort level. Total attributed fees will include explicit rider fees and will not be negative or exceed total contract fees and assessments collectible from the contract holder. There are only rider charges and surrender charges. Surrender charges will not be included in the fair value measurement, as surrender charges do not fund any future benefits. Cash flows are projected using risk-neutral scenarios generated by the company. The Company establishes MRB assets and liabilities for guaranteed minimum withdraw benefits ("GMWB") associated with equity-indexed annuity contracts.

The actuarial assumptions used in the MRB calculation are the company’s best estimate assumptions. Assumptions are adjusted to reflect fair value by applying a margin for non-hedgeable risk and an adjustment for own credit spread through the discount rate. The risk-free discount rate is the scenario specific US treasury rate. The assumptions used for MRB are consistent with other fair value calculations performed by American National.

Policyholders’ account balances represent the contract value that has accrued to the benefit of the policyholders related to universal-life and investments-type contracts. For fixed products, these are generally equal to the accumulated deposits plus interest credited, reduced by withdrawals, payouts, and accumulated policyholder assessments. Indexed product account balances are equal to the sum of host and embedded derivative reserves computed.

Liabilities for unpaid claims and claim adjustment expenses (“CAE”) are established to provide for the estimated costs of paying claims. These reserves include estimates for both case reserves and IBNR claim liabilities. Case reserves include the liability for reported but unpaid claims. IBNR liabilities include a provision for potential development on case reserves, losses on claims currently closed which may reopen in the future, as well as IBNR claims. These liabilities also include an estimate of the expense associated with settling claims, including legal and other fees, and the general expenses of administering the claims adjustment process.

Note 2 – Summary of Significant Accounting Policies and Practices - (Continued)

Reinsurance recoverables are estimated amounts due to American National from reinsurers related to paid and unpaid ceded claims and CAE and are presented net of a reserve for collectability. Recoveries of gross ultimate losses under our non-catastrophe reinsurance are estimated by a review of individual large claims and the ceded portion of IBNR using assumed distribution of loss by percentage retained. Recoveries of gross ultimate losses under our catastrophe reinsurance are estimated by applying reinsurance treaty terms to estimates of gross ultimate losses. The most significant assumption is the average size of the individual losses for those claims that have occurred but have not yet been reported and our estimate of gross ultimate losses. The ultimate amount of the reinsurance ceded recoverable is unknown until all losses settle.

Separate account assets and liabilities

Separate account assets and liabilities are funds that are held separate from the general assets and liabilities of American National. Separate account assets include funds representing the investments of variable insurance product contract holders, who bear the investment risk of such funds. Investment income and investment gains and losses from these separate funds accrue to the benefit of the contract holders. American National reports separately, as assets and liabilities, investments held in such separate accounts and liabilities of the separate accounts if (i) such separate accounts are legally recognized; (ii) assets supporting the contract liabilities are legally insulated from American National’s general account liabilities; (iii) investments are directed by the contract holder; and (iv) all investment performance, net of contract fees and assessments, is passed through to the contract holder. In addition, American National's qualified pension plan assets are included in separate accounts. The assets of these accounts are carried at fair value. Deposits, net investment income and realized investment gains and losses for these accounts are excluded from revenues, and related liability increases are excluded from benefits and expenses in the consolidated statements of operations. Separate accounts are established in conformity with insurance laws and are not chargeable with liabilities that arise from any other business of American National.

Premiums, benefits, claims incurred, and expenses

Traditional ordinary life and health premiums are recognized as revenue when due. Benefits and expenses are associated with earned premiums to result in recognition of profits over the term of the insurance contracts.

Annuity premiums received on limited-pay and supplemental annuity contracts involving a significant life contingency are recognized as revenue when due. Deferred annuity premiums are recorded as deposits rather than recognized as revenue. Revenues from deferred annuity contracts are principally surrender charges and, in the case of variable annuities, administrative fees assessed to contract holders.

Universal life and single premium whole life revenues represent amounts assessed to policyholders including mortality charges, surrender charges actually paid, and earned policy service fees. Amounts included in expenses are benefits in excess of account balances returned to policyholders.

Property and casualty premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection, which is generally recognized evenly over the contract period, net of reinsurance ceded. Claims incurred consist of claims and CAE paid and the change in reserves, net of reinsurance received and recoverable.

Participating insurance policies

Participating business at December 31, 2023 and 2022 comprised approximately 4.0% and 3.8% of the life insurance in-force and 18.0% and 29.5% of life premiums at December 31, 2023 and 2022, respectively.

For the majority of this participating business, profits earned are reserved for the payment of dividends to policyholders, except for the stockholders’ share of profits on participating policies, which is limited to the greater of 10% of the profit on participating business, or 50 cents per thousand dollars of the face amount of participating life insurance in-force. Participating policyholders’ interest includes the accumulated net income from participating policies reserved for payment to such policyholders in the form of dividends (less net income allocated to stockholders as indicated above) as well as a pro rata portion of unrealized investment gains (losses). Dividends to participating policyholders were $8.8 million and $9.0 million for the years ended December 31, 2023 and 2022, respectively. Income of $19.4 million and $19.0 million was allocated to participating policyholders for the years ended December 31, 2023 and 2022, respectively.

For all other participating business, the allocation of dividends to participating policyowners is based upon a comparison of experienced rates of mortality, interest and expenses, as determined periodically for representative plans of insurance, issue ages and policy durations, with the corresponding rates assumed in the calculation of premiums.

Note 2 – Summary of Significant Accounting Policies and Practices - (Continued)

Federal income taxes

American National files a consolidated life and non-life federal income tax return with its parent , BAMR US Holdings LLC ("BAMR US"), a subsidiary of Brookfield Reinsurance Ltd. Certain subsidiaries that are consolidated for financial reporting are not eligible to be included in the consolidated federal income tax return, and therefore file separate returns. In accordance with the Company’s tax sharing agreement with BAMR US, tax liabilities for the consolidated federal income tax return are calculated as if each subsidiary filed a separate federal income tax return. If the Company has taxable income, it pays its share of the consolidated federal income tax liability to BAMR US. However, if the Company incurs a tax loss, the tax benefit is recovered by decreasing subsequent year’s federal income tax payments to BAMR US.

Deferred income tax assets and liabilities are recognized to reflect the future tax consequences attributable to differences between the financial statement amounts of assets and liabilities and their respective tax bases. Deferred taxes are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled.

American National recognizes tax benefits on uncertain tax positions if it is “more-likely-than-not” the position based on its technical merits will be sustained by taxing authorities. American National recognizes the largest benefit that is greater than 50% likely of being ultimately realized upon settlement. Tax benefits not meeting the “more-likely-than-not” threshold, if applicable, are included within “Other liabilities” in the consolidated statements of financial position. American National recognizes interest expense and penalties related to uncertain tax positions, if applicable, as income tax expense in the consolidated statements of operations. Accrued interest expense and penalties related to uncertain tax positions are reported as "Other liabilities" in the consolidated statements of financial position.

Pension and postretirement benefit plans

Pension and postretirement benefit obligations and costs for our frozen benefit plans are estimated using assumptions including demographic factors such as retirement age and mortality.

American National uses a discount rate to determine the present value of future benefits on the measurement date. The guideline for setting this rate is a high-quality long-term corporate bond rate. For this purpose, a hypothetical bond portfolio to match the expected monthly benefit payments under the pension plan was constructed with the resulting yield of the portfolio used as a discount rate.

In developing the investment return assumption, we relied on a model that utilizes the following factors:

Current yield to maturity of fixed income securities

Forecasts of inflation, GDP growth, and total return for each asset class

Historical plan performance

Target asset allocation

Standard deviations and correlations related to historical and expected future returns of each asset class and inflation

The resulting assumption is the assumed rate of return for the plans’ target asset allocation, net of investment expenses, and reflects anticipated returns of the plans’ current and future assets.

Using this approach, the calculated return will fluctuate from year to year; however, it is American National’s policy to hold this long-term assumption relatively constant.

Litigation contingencies

Existing and potential litigation is reviewed quarterly to determine if any adjustments to liabilities for possible losses are necessary. Reserves for losses are established whenever they are probable and reasonably estimable. If no one estimate within the range of possible losses is more probable than any other, a reserve is recorded based on the lowest amount of the range.

Note 3 – Recently Issued Accounting Pronouncements

Transition Date Impacts of the Adoption of ASU 2018-12 - Targeted Improvements to the Accounting for Long-Duration Contracts

Due to the acquisition of American National by Brookfield Reinsurance on May 25, 2022 and the guidelines under ASC 805, Business Combinations, the inception date for all contracts issued before that date became May 25, 2022. Under purchase accounting guidelines, fair value of equity must be equal to the purchase price at the acquisition date. As a result, there will not be any impact to the opening balances of retained earnings or accumulated other comprehensive income due to the adoption of the standard on the transition date of May 25, 2022.

The transition impact of the MRBs and LFPB will be recorded to VOBA liability resulting in no impact to shareholders equity, as noted above.

The following table presents a summary of the Transition Date impacts associated with the implementation of LDTI to the consolidated balance sheet (in thousands):

	Successor
		Future Policy Benefits			Market Risk Benefits		VOBA Liability
As previously reported May 25, 2022	$	4,662,434		$	—	$	662,905
Reclassification of carrying amount of contracts and contract features that are market risk benefits		(107,432	)		107,432		—
Adjustment to reflect transition impact to balance established as part of purchase accounting upon the Brookfield acquisition		(315,561	)		64,580		250,981
As adjusted May 25, 2022	$	4,239,441		$	172,012	$	913,886

The following table represents transition impacts for future policy benefits by product.

	Successor
	Term Life			Whole Life			Annuity
As previously reported May 25, 2022	$	615,782		$	1,694,351		$	1,439,449
Reclassification of carrying amount of contracts and contract features that are market risk benefits		—			—			—
Adjustment to reflect transition impact to balance established as part of purchase accounting upon the Brookfield acquisition		(84,761	)		(223,213	)		(7,586	)
As adjusted May 25, 2022	$	531,021		$	1,471,138		$	1,431,863

The following table represents the transition impact to market risk benefits by product.

	Successor
	Annuity
As previously reported May 25, 2022	$	107,432
Adjustment to reflect transition impact to balance established as part of purchase accounting upon the Brookfield acquisition		64,580
As adjusted May 25, 2022	$	172,012

The Transition Date impacts associated with the implementation of LDTI were applied as follows:

Market risk benefits - The full retrospective transition approach for MRBs required assessing products to determine whether contract or contract features expose the Company to other than nominal capital market risk. The population of MRBs identified was then reviewed to determine the historical measurement model prior to adoption of LDTI.

Note 3 – Recently Issued Accounting Pronouncements - (Continued)

At the Transition Date, the impacts to the financial statements of the full retrospective approach for MRBs include the following:

The amounts previously recorded for these contracts within additional insurance liabilities and other insurance liabilities were reclassified to MRB liabilities;

The difference between the fair value of the MRBs and the previously recorded carrying value at the Transition Date, including the cumulative effect of changes in nonperformance risk of the Company, was recorded as an adjustment to the opening balance of VOBA liability.

Liability for future policy benefits - The full retrospective transition approach for LFPB utilized a defined valuation premium method. This process required grouping contracts in-force as of the Transition Date into cohorts, and then calculating revised LFPB using an updated net premium ratio, best estimate cash flow assumptions without a provision for adverse deviation and the locked-in discount rate. The decrease to the liability for future policy benefits at transition is driven by unlocking of assumptions and measurement at upper medium grade discount rates for traditional life and life contingent payout annuity business.

Due to the acquisition of American National by Brookfield Reinsurance on May 25, 2022 , the balances of deferred acquisition costs, deferred profit liability, unearned revenue, and sales inducement assets were written down to $0 at the acquisition date. As a result, there is no impact to these balances at transition.

The following table presents amounts previously reported in 2022, the effect on those amounts of the change due to the adoption of ASU 2018-12, and the currently reported amounts in the Consolidated Statements of Financial Position (in thousands).

	Successor
	December 31, 2022
	As Previously Reported			Effect of Adoption			As Adjusted
Reinsurance recoverables, net of allowance for credit losses	$	447,124		$	(2,954	)	$	444,170
Deferred policy acquisition costs		716,381			(17,230	)		699,151
Deferred tax asset		527,768			(88,654	)		439,114
Market risk benefit asset		—			10,330			10,330
Total assets	$	29,638,489		$	(98,508	)	$	29,539,981
Future policy benefits
Life	$	3,584,520		$	(248,379	)	$	3,336,141
Annuity		1,713,528			(247,336	)		1,466,192
Health		47,045			9,893			56,938
Market risk benefit liabilities		—			54,340			54,340
Total liabilities		26,216,009			(431,481	)		25,784,528
Member's equity		4,069,824			59,068			4,128,892
Accumulated other comprehensive income (loss)		(721,612	)		273,905			(447,707	)
Total liabilities and equity	$	29,638,489		$	(98,508	)	$	29,539,981

Note 3 – Recently Issued Accounting Pronouncements - (Continued)

The following table presents amounts previously reported in 2022, the effect on those amounts of the change due to the adoption of ASU 2018-12 and the currently reported amounts in the Consolidated Statement of Operations (in thousands).

	Successor
	For the Period from May 25, 2022 through December 31, 2022
	As Previously Reported			Effect of Adoption			As Adjusted
Premiums	$	2,327,053		$	—		$	2,327,053
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits		1,165,494			24,216			1,189,710
Change in fair value of market risk benefit		—			(101,699	)		(101,699	)
Change in deferred policy acquisition costs		(125,215	)		2,713			(122,502	)
Total benefits, losses and expenses		2,006,048			(74,770	)		1,931,278
Income before federal income tax and other items		321,005			74,770			395,775
Less: Provision (benefit) for federal income taxes
Current		20,826			—			20,826
Deferred		36,968			15,702			52,670
Total provision for federal income taxes		57,794			15,702			73,496
Income after federal income tax		263,211			59,068			322,279
Other components of net periodic pension benefit (costs), net of tax		3,805			—			3,805
Net income		267,016			59,068			326,084
Less: Net income attributable to noncontrolling interest, net of tax		2,264			—			2,264
Net income attributable to American National	$	264,752		$	59,068		$	323,820

Other Adopted Accounting Pronouncements

Standard	Description	Effective Date and Method of Adoption	Impact on Financial Statements
ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings ("TDR") and Vintage Disclosures	This ASU eliminates TDR recognition and measurement guidance and, instead, requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty.	The Company adopted this standard on January 1, 2023 and applied it prospectively.	The adoption of this standard did not have a material impact to the Company's Condensed Consolidated Financial Statements or the Notes to the Condensed Consolidated Financial Statements upon adoption, but could change the future recognition and measurement of modified loans.

Future Adoption of Accounting Standards

Note 3 – Recently Issued Accounting Pronouncements - (Continued)

ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures.

Standard	Description	Effective Date and Method of Adoption	Impact on Financial Statements
ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method	The amendments in this Update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The amendments in this Update also require specific disclosures that must be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method.	The amendments in this update are effective for the Company for annual and interim reporting periods beginning January 1, 2024.	The adoption of this standard did not have a material impact to the Company's Condensed Consolidated Financial Statements or the Notes to the Condensed Consolidated Financial Statements.
ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures	The amendments in this Update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses	The amendments in this update are effective for the Company for annual reporting periods beginning January 1, 2024, and interim reporting periods beginning January 1, 2025.	The impact of this amendment to the Company's Consolidated Financial Statements and Notes to the Consolidated Financial Statements is currently under evaluation.
ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures	The amendments in this Update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate).	The amendments in this update are effective for the Company for annual reporting periods beginning January 1, 2025.	The impact of this amendment to the Company's Consolidated Financial Statements and Notes to the Consolidated Financial Statements is currently under evaluation.

Note 4 – Investment in Securities

The cost or amortized cost and fair value of investments in securities are shown below (in thousands):

	December 31, 2023
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses			Fair Value
Fixed maturity, bonds available-for-sale
U.S. treasury and government	$	63,466	$	116	$	(1,354	)	$	—		$	62,228
U.S. states and political subdivisions		593,590		685		(16,780	)		(181	)		577,314
Foreign governments		9,403		—		(276	)		(24	)		9,103
Corporate debt securities		11,337,579		79,019		(419,875	)		(18,951	)		10,977,772
Collateralized debt securities		1,340,141		8,724		(27,243	)		(4,367	)		1,317,255
Residential mortgage-backed securities		131,272		351		(4,024	)		(695	)		126,904
Total bonds available-for-sale		13,475,451		88,895		(469,552	)		(24,218	)		13,070,576
Total investments in fixed maturity	$	13,475,451	$	88,895	$	(469,552	)	$	(24,218	)	$	13,070,576

	December 31, 2022
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses			Fair Value
Fixed maturity, bonds available-for-sale
U.S. treasury and government	$	41,384	$	30	$	(1,405	)	$	—		$	40,009
U.S. states and political subdivisions		880,186		123		(24,706	)		(742	)		854,861
Foreign governments		9,314		—		(298	)		(12	)		9,004
Corporate debt securities		12,104,754		6,020		(830,095	)		(23,049	)		11,257,630
Collateralized debt securities		1,279,102		5,300		(55,261	)		(4,574	)		1,224,567
Residential mortgage-backed securities		132,797		23		(5,741	)		(331	)		126,748
Total bonds available-for-sale		14,447,537		11,496		(917,506	)		(28,708	)		13,512,819
Total investments in fixed maturity	$	14,447,537	$	11,496	$	(917,506	)	$	(28,708	)	$	13,512,819

Note 4 – Investment in Securities – (Continued)

The amortized cost and fair value, by contractual maturity, of fixed maturity securities are shown below (in thousands):

	December 31, 2023
	Bonds Available-for-Sale
	Amortized Cost		Fair Value
Due in one year or less	$	484,547	$	481,877
Due after one year through five years		5,016,193		4,935,283
Due after five years through ten years		3,850,833		3,720,967
Due after ten years		4,123,878		3,932,449
Total	$	13,475,451	$	13,070,576

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential and commercial mortgage-backed securities, which are not due at a single maturity, have been presented based on the year of final contractual maturity.

Proceeds from sales of bonds available-for-sale, with the related gross realized gains and losses, are shown below (in thousands):

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through		Year ended
	December 31, 2023			December 31, 2022			May 24, 2022		December 31, 2021
Proceeds from sales of fixed maturity, bonds available-for-sale	$	2,515,500		$	2,383,655		$	59,388	$	55,558
Gross realized gains		3,172			10,182			—		59
Gross realized losses		(68,255	)		(39,520	)		—		—

Gains and losses are determined using specific identification of the securities sold. All held-to-maturity securities were transferred to available-for-sale through a management election allowed under business combination guidance.

In accordance with various regulations, American National has bonds on deposit with regulating authorities with a carrying value of $53.5 million and $51.1 million at December 31, 2023 and December 31, 2022, respectively. In addition, American National has pledged bonds in connection with certain agreements and transactions, such as financing and reinsurance agreements. The carrying value of bonds pledged was $39.2 million and $44.8 million at December 31, 2023 and December 31, 2022, respectively.

The components of the change in net unrealized gains (losses) on debt securities are shown below (in thousands):

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through			Year ended
	December 31, 2023			December 31, 2022			May 24, 2022			December 31, 2021
Bonds available-for-sale: change in unrealized gains (losses)	$	525,353		$	(906,010	)	$	(997,300	)	$	(248,756	)
Short-term change in unrealized losses		12,181			(13,076	)		—			—
Adjustments for
Deferred policy acquisition costs		—			—			199,027			58,281
Participating policyholders’ interest		(2,218	)		8,647			13,478			8,275
Deferred federal income tax benefit (expense)		(112,671	)		188,903			164,085			39,346
Change in net unrealized gains (losses) on debt securities, net of tax	$	422,645		$	(721,536	)	$	(620,710	)	$	(142,854	)

Note 4 – Investment in Securities – (Continued)

The components of the change in net gains (losses) on equity securities are shown below (in thousands):

	Successor				Predecessor
	Year ended		Period from May 25, 2022 through		Period from January 1, 2022 through			Year ended
	December 31, 2023		December 31, 2022		May 24, 2022			December 31, 2021
Unrealized gains (losses) on equity securities	$	85,074	$	49,313	$	(7,288	)	$	38,771
Net gains (losses) on equity securities sold		11,753		47		(5,794	)		381,512
Net gains (losses) on equity securities	$	96,827	$	49,360	$	(13,082	)	$	420,283

The gross unrealized losses and fair value of bonds available-for-sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position due to market factors are shown below (in thousands, except number of issues):

	December 31, 2023
	Less than 12 months							12 months or more							Total
	Number of Issues		Gross Unrealized Losses			Fair Value		Number of Issues		Gross Unrealized Losses			Fair Value		Number of Issues		Gross Unrealized Losses			Fair Value
Fixed maturity, bonds available-for-sale
U.S. treasury and government		17	$	(531	)	$	27,163		35	$	(823	)	$	24,902		52	$	(1,354	)	$	52,065
U.S. states and political subdivisions		214		(3,210	)		218,774		142		(13,570	)		284,892		356		(16,780	)		503,666
Foreign governments		—		—			—		2		(276	)		9,103		2		(276	)		9,103
Corporate debt securities		1,343		(141,365	)		2,941,484		1,906		(278,510	)		6,474,799		3,249		(419,875	)		9,416,283
Collateralized debt securities		102		(4,272	)		257,735		201		(22,971	)		781,849		303		(27,243	)		1,039,584
Residential mortgage-backed securities		6		(895	)		39,089		39		(3,129	)		64,057		45		(4,024	)		103,146
Total		1,682	$	(150,273	)	$	3,484,245		2,325	$	(319,279	)	$	7,639,602		4,007	$	(469,552	)	$	11,123,847

	December 31, 2022
	Less than 12 months							12 months or more						Total
	Number of Issues		Gross Unrealized Losses			Fair Value		Number of Issues		Gross Unrealized Losses		Fair Value		Number of Issues		Gross Unrealized Losses			Fair Value
Fixed maturity, bonds available-for-sale
U.S. treasury and government		18	$	(1,405	)	$	36,692		—	$	—	$	—		18	$	(1,405	)	$	36,692
U.S. states and political subdivisions		580		(24,706	)		833,315		—		—		—		580		(24,706	)		833,315
Foreign governments		1		(298	)		9,005		—		—		—		1		(298	)		9,005
Corporate debt securities		1,212		(830,095	)		9,951,734		—		—		—		1,212		(830,095	)		9,951,734
Collateralized debt securities		71		(55,261	)		776,938		—		—		—		71		(55,261	)		776,938
Residential mortgage-backed securities		46		(5,741	)		93,008		—		—		—		46		(5,741	)		93,008
Total		1,928	$	(917,506	)	$	11,700,692		—	$	—	$	—		1,928	$	(917,506	)	$	11,700,692

Note 4 – Investment in Securities – (Continued)

Several assumptions and underlying estimates are made in the evaluation of allowance for credit loss. Examples include financial condition, near term and long-term prospects of the issue or issuer, including relevant industry conditions and trends and implications of rating agency actions and offering prices. Based on this evaluation, unrealized losses on bonds available-for-sale where an allowance for credit loss was not recorded were concentrated in the Company's fixed maturity securities within the transportation sector.

Equity securities by market sector distribution are shown below, based on fair value:

	December 31, 2023				December 31, 2022
Energy and utilities	$	426,087	30.2	%	$	30,722	7.2	%
Finance		338,052	24.0			374,688	87.4
Healthcare		119,620	8.5			—	—
Industrials		47,506	3.4			—	—
Information technology		253,859	18.0			—	—
Other		219,123	15.9			22,959	5.4
Total	$	1,404,247	100	%	$	428,369	100	%

Allowance for Credit Losses

Available-for-Sale Securities—For available-for-sale bonds in an unrealized loss position, the Company first assesses whether it intends to sell the security or will be required to sell the security before recovery of its amortized cost basis. If either of these criteria are met, the security’s amortized cost basis is written down to fair value through income. For bonds available-for-sale that do not meet either indicated criteria, the Company evaluates whether the decline in fair value has resulted from credit events or market factors. In making this assessment, management first calculates the extent to which fair value is less than amortized cost, and then may consider any changes to the rating of the security by a rating agency, and any specific conditions related to the security. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded through income, limited to the amount fair value is less than amortized cost. Any remaining unrealized loss is recognized in other comprehensive income.

When the discounted cash flow method is used to determine the allowance for credit losses, management's estimates incorporate expected prepayments, if any. Model inputs are considered reasonable and supportable for three years. A mean reversion is applied in years four and five. Credit loss allowance is not measured on accrued interest receivable because the balance is written

off to net investment income in a timely manner, within 90 days. Changes in the allowance for credit losses are recognized through the consolidated statement of operations as "(Increase) decrease in investment credit loss."

No accrued interest receivables were written off as of December 31, 2023 and 2022.

Note 4 – Investment in Securities – (Continued)

The rollforward of the allowance for credit losses for available-for-sale debt securities is shown below (in thousands):

Successor	U.S. State and Political Subdivisions			Foreign Governments			Corporate Debt Securities			Collateralized Debt Securities			Residential Mortgage Backed Securities			Total
Balance at May 25, 2022	$	—		$	—		$	—		$	—		$	—		$	—
Increase in allowance related to purchases		—			—			(1,374	)		(364	)		(14	)		(1,752	)
Reduction in allowance related to dispositions		—			—			430			220			82			732
Allowance on securities that had an allowance recorded in a previous period		(15	)		—			(1,308	)		(1,013	)		(270	)		(2,606	)
Allowance on securities where credit losses were not previously recorded		(727	)		(12	)		(20,797	)		(3,417	)		(129	)		(25,082	)
Balance at December 31, 2022		(742	)		(12	)		(23,049	)		(4,574	)		(331	)		(28,708	)
Increase in allowance related to purchases		(20	)		—			(3,210	)		(967	)		(2	)		(4,199	)
Reduction in allowance related to dispositions		30			—			4,467			714			2			5,213
Allowance on securities that had an allowance recorded in a previous period		596			33			38,904			7,925			(61	)		47,397
Allowance on securities where credit losses were not previously recorded		(45	)		(45	)		(36,063	)		(7,465	)		(303	)		(43,921	)
Balance at December 31, 2023	$	(181	)	$	(24	)	$	(18,951	)	$	(4,367	)	$	(695	)	$	(24,218	)

Note 4 – Investment in Securities – (Continued)

Predecessor	U.S. State and Political Subdivisions			Foreign governments		Corporate Debt Securities			Collateralized Debt Securities			Residential Mortgage Backed Securities			Total
Beginning balance at January 1, 2021	$	—		$	—	$	(7,275	)	$	(19	)	$	(188	)	$	(7,482	)
Increase in allowance related to purchases		—		$	—		(3,158	)		(538	)		—			(3,696	)
Reduction in allowance related to disposition		—		$	—		4,117			182			—			4,299
Allowance on securities that had an allowance recorded in a previous period		12		$	—		3,680			(1,507	)		(29	)		2,159
Allowance on securities where credit losses were not previously recorded		(26	)	$	—		(4,505	)		(1,005	)		(51	)		(5,590	)
Balance at December 31, 2021	$	(14	)	$	—	$	(7,141	)	$	(2,887	)	$	(268	)	$	(10,310	)
Increase in allowance related to purchases		—			—		(10,286	)		(59	)		—			(10,345	)
Reduction in allowance related to disposition		—			—		459			—			—			459
Allowance on securities that had an allowance recorded in a previous period		(67	)		—		4,729			(1,134	)		(42	)		3,486
Allowance on securities where credit losses were not previously recorded		(56	)		—		(16,005	)		(51	)		—			(16,112	)
Balance at May 24, 2022	$	(137	)	$	—	$	(28,244	)	$	(4,131	)	$	(310	)	$	(32,822	)

Credit Quality Indicators

The Company monitors the credit quality of bonds available-for-sale through the use of credit ratings provided by third party rating agencies, which are updated on a monthly basis. Information is also gathered regarding the asset performance of available-for-sale bonds. The two traditional metrics for assessing interest rate risks are interest-coverage ratios and capitalization ratios,

which can also be used in the assessment of credit risk. These risks are mitigated through the diversification of bond investments. Categories of diversification include credit ratings, geographic locations, maturities, and market sector.

Note 5 – Mortgage Loans

Generally, commercial mortgage loans are secured by first liens on income-producing real estate. American National attempts to maintain a diversified portfolio by considering both the location of the underlying collateral as well as the type of mortgage loan. The geographic categories come from the U.S. Census Bureau's "Census Regions and Divisions of the United States."

The distribution based on carrying amount of mortgage loans by location is as follows (in thousands, except percentages):

	December 31, 2023					December 31, 2022
	Amount		Percentage			Amount		Percentage
East North Central	$	822,459		14.5	%	$	898,915		16.2	%
East South Central		49,219		0.9			65,548		1.2
Mountain		1,317,761		23.3			1,360,837		24.5
Pacific		899,549		15.9			924,187		16.7
South Atlantic		989,930		17.5			967,353		17.4
West South Central		1,066,151		18.8			1,068,239		19.3
Other		512,954		9.1			261,096		4.7
Total	$	5,658,023		100.0	%	$	5,546,175		100.0	%

As of December 31, 2023 and December 31, 2022, loans in foreclosure and loans foreclosed are as follows (in thousands, except number of loans):

	December 31, 2023				December 31, 2022
Foreclosure and foreclosed	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
In foreclosure		—	$	—		1	$	27,001
Filed for bankruptcy		—		—		—		—
Total in foreclosure		—	$	—		1	$	27,001

Foreclosed		3	$	79,430		—	$	—

Note 5 – Mortgage Loans – (Continued)

The age analysis of past due loans is shown below (in thousands, except percentages):

					More Than
	30-59 Days		60-89 Days		90 Days						Total
December 31, 2023	Past Due		Past Due		Past Due		Total		Current		Amount			Percentage
Apartment	$	—	$	50,000	$	—	$	50,000	$	1,040,743	$	1,090,743			17.3	%
Hotel		—		13,212		—		13,212		952,640		965,852			17.9
Industrial		—		—		—		—		1,052,491		1,052,491			19.0
Office		22,182		—		5,260		27,442		971,781		999,223			16.0
Parking		—		—		9,257		9,257		404,303		413,560			7.3
Retail		4,111		—		—		4,111		776,441		780,552			14.3
Storage		—		—		—		—		118,448		118,448			2.1
Other		26,052		—		—		26,052		264,509		290,561			6.1
Total	$	52,345	$	63,212	$	14,517	$	130,074	$	5,581,356	$	5,711,430			100.0	%
Allowance for credit losses												(53,407	)
Total, net of allowance											$	5,658,023


					More Than
	30-59 Days		60-89 Days		90 Days						Total
December 31, 2022	Past Due		Past Due		Past Due		Total		Current		Amount			Percentage
Apartment	$	—	$	—	$	—	$	—	$	805,690	$	805,690			14.4	%
Hotel		—		—		—		—		1,009,560		1,009,560			18.1
Industrial		—		—		—		—		1,043,305		1,043,305			18.7
Office		—		—		27,001		27,001		1,104,981		1,131,982			20.3
Parking		—		—		—		—		419,878		419,878			7.5
Retail		—		—		—		—		842,483		842,483			15.1
Storage		—		—		—		—		118,875		118,875			2.1
Other		—		—		—		—		212,668		212,668			3.8
Total	$	—	$	—	$	27,001	$	27,001	$	5,557,440	$	5,584,441			100.0	%
Allowance for credit losses												(38,266	)
Total, net of allowance											$	5,546,175

Through the COVID-19 pandemic, American National provided modifications to loans in the form of forbearance of principal and interest payments for up to six months, extensions of maturity dates, and/or provisions for interest only payments. As a result of improved economic conditions, all loans have been paid in full or have completed the modified terms and returned to the original loan agreement as of December 31, 2022, except for three loans. These three loans received additional modifications in the form of extended maturity dates or interest only periods. All loans have fully repaid deferred interest on COVID modifications as of December 31, 2023.

Modifications to Borrowers Experiencing Financial Difficulty

The Company may modify the terms of a loan when the borrower is experiencing financial difficulties, as a means to optimize recovery of amounts due on the loan. Modifications may involve temporary relief, such as payment forbearance for a short period of time (where interest continues to accrue) or may involve more substantive changes to a loan. Changes to the terms of a loan, pursuant to a modification agreement, are factored into the analysis of the loan’s expected credit losses, under the allowance model applicable to the loan.

For commercial mortgage loans, modifications for borrowers experiencing financial difficulty are tailored for individual loans and may include interest rate relief, maturity extensions or, less frequently, principal forgiveness. For residential mortgage loans, the most common modifications for borrowers experiencing financial difficulty, aside from insignificant delays in payment, typically involve interest rate relief, deferral of missed payments to the end of the loan term, or maturity extensions.

For the year ended December 31, 2023, the Company granted additional extensions on nine previously restructured loans totaling $141.0 million in amortized cost. The loan term modifications ranged from 3 months to 24 months and represented approximately 2.4% of the portfolio segment.

Note 5 – Mortgage Loans – (Continued)

Allowance for Credit Losses

Mortgage loans on real estate are stated at unpaid principal balance, adjusted for any unamortized discount, deferred expenses and allowances. The allowance for credit losses is based upon the current expected credit loss model. The model considers past loss experience, current economic conditions, and reasonable and supportable forecasts of future conditions. Reversion for the allowance calculation is implicit in the models used to determine the allowance. The methodology uses a discounted cash flow approach based on expected cash flows.

The Predecessor balance of $92.8 million at May 24, 2022 was closed out and the Successor recovered the entire allowance balance after the Merger as required by PGAAP guidance. The provision of $38.3 million is the net amount of recovery and adjustment for the period from May 25, 2022 through December 31, 2022. Refer to Note 1, Nature of Operations, for more information.

The rollforward of the allowance for credit losses for mortgage loans is shown below (in thousands):

Successor	Commercial Mortgage Loans
Balance at May 25, 2022	$	—
Charge offs		—
Provision		(38,266	)
Balance at December 31, 2022		(38,266	)
Charge offs		(15,051	)
Recoveries		15,051
Provision		(15,141	)
Balance at December 31, 2023	$	(53,407	)

Predecessor	Commercial Mortgage Loans
Balance at December 31, 2020	$	(125,703	)
Provision		28,624
Balance at December 31, 2021	$	(97,079	)
Provision		4,255
Balance at May 24, 2022	$	(92,824	)

The $15.1 million increase in allowance from prior year is driven by loans in the deteriorating Office sector.

Note 5 – Mortgage Loans – (Continued)

The asset and allowance balances for credit losses for mortgage loans by property-type are shown below (in thousands):

	December 31, 2023					December 31, 2022
	Asset Balance		Allowance			Asset Balance		Allowance
Apartment	$	1,090,743	$	(3,155	)	$	805,690	$	(1,111	)
Hotel		965,852		(2,162	)		1,009,560		(5,400	)
Industrial		1,052,491		(871	)		1,043,305		(4,118	)
Office		999,223		(28,844	)		1,131,982		(17,420	)
Parking		413,560		(2,729	)		419,878		(5,566	)
Retail		780,552		(3,324	)		842,483		(3,740	)
Storage		118,448		(346	)		118,875		(469	)
Other		290,561		(11,976	)		212,668		(442	)
Total	$	5,711,430	$	(53,407	)	$	5,584,441	$	(38,266	)

Credit Quality Indicators

Mortgage loans are segregated by property-type and quantitative and qualitative allowance factors are applied. Qualitative factors are developed quarterly based on the pooling of assets with similar risk characteristics and historical loss experience adjusted for the expected trend in the current market environment. Credit losses are pooled by property-type as it represents the most similar and reliable risk characteristics in our portfolio. The amortized cost of mortgage loans by year of origination by property-type are shown below (in thousands):

	Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
Apartment	$	69,584	$	491,509	$	269,226	$	83,453	$	76,379	$	100,592	$	1,090,743
Hotel		124,956		222,393		32,157		38,808		129,058		418,480		965,852
Industrial		971		316,958		159,057		215,075		128,765		231,665		1,052,491
Office		93,607		101,098		6,643		23,912		45,778		728,185		999,223
Parking		—		54,731		28,848		26,810		12,677		290,494		413,560
Retail		—		232,709		118,523		64,454		34,470		330,396		780,552
Storage		—		8,157		20,461		36,117		37,925		15,788		118,448
Other		29,437		134,284		44,544		—		28,252		54,044		290,561
Total	$	318,555	$	1,561,839	$	679,459	$	488,629	$	493,304	$	2,169,644	$	5,711,430
Allowance for credit losses														(53,407	)
Total, net of allowance													$	5,658,023

Generally, mortgage loans are secured by first liens on income-producing real estate with a loan-to-value ratio of up to 75%. It is the Company's policy to not accrue interest on loans that are 90 days delinquent and where amounts are determined to be uncollectible. At December 31, 2023, three commercial loans were past due over 90 days or in non-accrual status.

Off-Balance Sheet Credit Exposures

The Company has off-balance sheet credit exposures related to non-cancellable unfunded commitment amounts on commercial mortgage loans. We estimate the allowance for these exposures by applying the allowance rate we computed for each property type to the related outstanding commitment amounts. As of December 31, 2023, we have included a $3.5 million liability in other liabilities on the consolidated statements of financial position based on unfunded loan commitments of $468 million.

Note 6 – Real Estate and Other Investments

The Company's real estate investment portfolio is diversified by property type, geography and income stream, including income from operating leases, and equity in earnings from equity method real estate joint ventures. Real estate investments were as follows as of December 31, 2023 and 2022 (in thousands, except percentages):

	December 31,
	Successor
	2023		2022

Income Type	Carrying Value
Leased real estate	$	755,011	$	562,375
Real estate partnerships		2,855,842		473,344
Total real estate and real estate partnerships	$	3,610,853	$	1,035,719

	December 31,
	Successor
	2023					2022

Property Type	Carrying value
Leased real estate investments	Amount		Percentage			Amount		Percentage
Hotel	$	13,933		1.8	%	$	14,988		2.7	%
Industrial		65,116		8.6			82,906		14.7
Land		37,177		4.9			31,919		5.7
Office		358,422		47.5			205,188		36.5
Retail		218,029		28.9			194,936		34.7
Apartments		59,783		7.9			—		—
Other		2,551		0.4			32,438		5.7
Total leased real estate investments	$	755,011		100.0	%	$	562,375		100.0	%

	December 31,
	Successor
	2023					2022

Geography Type	Carrying value
Leased real estate investments	Amount		Percentage			Amount		Percentage
East North Central	$	36,393		4.8	%	$	40,256		7.2	%
East South Central		4,576		0.6			3,649		0.6
Mountain		54,942		7.3			75,273		13.4
Pacific		70,765		9.4			81,456		14.5
South Atlantic		196,507		26.0			61,631		11.0
West South Central		313,886		41.6			249,445		44.4
Other		77,942		10.3			50,665		8.9
Total leased real estate investments	$	755,011		100.0	%	$	562,375		100.0	%

As of December 31, 2023 and 2022, no real estate investments met the criteria as held-for-sale.

Note 6 – Real Estate and Other Investments – (Continued)

Consolidated VIEs

American National regularly invests in real estate partnerships and frequently participates in the design with the sponsor, but in most cases, its involvement is limited to financing. Some of these partnerships have been determined to be variable interest entities (“VIEs”). In certain instances, in addition to an economic interest in the entity, American National holds the power to direct significant activities of the entity and is deemed the primary beneficiary. The assets of the consolidated VIEs are restricted and must first be used to settle their liabilities. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of American National, as American National’s obligation is limited to the amount of its committed investment.

American National has not provided financial or other support to the VIEs in the form of liquidity arrangements, guarantees, or other commitments to third-parties that may affect the fair value or risk of its variable interest in the VIEs in 2023 or 2022.

The assets and liabilities relating to the VIEs included in the consolidated financial statements are as follows (in thousands):

	December 31, 2023		December 31, 2022
Fixed maturity securities, bonds available-for-sale, at estimated fair value	$	63,025	$	282,535
Private loans, net		187,849		—
Equity Securities, at fair value		15,004		44,858
Real estate and real estate partnerships, net of accumulated depreciation		172,131		123,630
Investment funds		4,480		799,886
Short-term investments		4,100		500
Total investments		446,589		1,251,409
Cash and cash equivalents		25,751		12,953
Premiums due and other receivables		1,867		2,221
Other assets		59,284		74,393
Total assets of consolidated VIEs	$	533,491	$	1,340,976
Notes payable	$	174,017	$	150,913
Other liabilities		13,885		1,141,026
Total liabilities of consolidated VIEs	$	187,902	$	1,291,939

The notes payable in the consolidated statements of financial position pertain to the borrowings of the consolidated VIEs. The liability of American National relating to notes payable of the consolidated VIEs is limited to the amount of its direct or indirect investment in the respective ventures, which totaled $2.9 million and $10.5 million at December 31, 2023 and December 31, 2022, respectively.

The total long-term notes payable of the consolidated VIEs consists of the following (in thousands):

Interest rate	Maturity		December 31, 2023		December 31, 2022
LIBOR or Equivalent		2023	$	—	$	10,702
4.18%		2024		61,478		61,905
1M TermSOFR + applicable margin		2025		12,683		—
3.25%		2026		9,842		6,420
7.25%		2026		10,600		—
1M SOFR + 2.5%, Rate Floor 3.5%		2029		79,414		71,886
Total notes payable of consolidated VIEs			$	174,017	$	150,913

Note 6 – Real Estate and Other Investments – (Continued)

For other real estate partnership VIEs, American National is not the primary beneficiary as major decisions impacting the economic activities of the VIE require consent from both partners. The carrying amount and maximum exposure to loss relating to these unconsolidated VIEs follows (in thousands):

Unconsolidated VIEs

	December 31, 2023				December 31, 2022
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
Real estate and real estate partnerships	$	300,959	$	300,959	$	316,692	$	316,692
Mortgage loans on real estate		629,840		629,840		601,198		601,198
Accrued investment income		2,272		2,272		1,863		1,863

American National’s equity in earnings of real estate partnerships is the Company’s share of operating earnings and realized gains from investments in real estate joint ventures and other limited partnership interests (“joint ventures”) using the equity method of accounting.

The Company's total investment in investment funds, real estate partnerships, and other partnerships of which substantially all are limited liability companies ("LLCs") or limited partnerships, consists of the following (in thousands):

	December 31, 2023		December 31, 2022
Investment funds	$	1,591,768	$	1,226,471
Real estate partnerships		2,855,842		473,344
Other		—		16,814
Total investments in partnerships	$	4,447,610	$	1,716,629

Note 7 – Derivative Instruments

American National purchases over-the-counter equity-indexed options as economic hedges against fluctuations in the equity markets to which equity-indexed products are exposed. These options are not designated as hedging instruments for accounting purposes under GAAP. Equity-indexed contracts include a fixed host universal-life insurance or annuity contract and an equity-indexed embedded derivative. The detail of derivative instruments is shown below (in thousands, except number of instruments):

	Location in the Consolidated	December 31, 2023						December 31, 2022
Derivatives Not Designated as Hedging Instruments	Statements of Financial Position	Number of Instruments		Notional Amounts		Estimated Fair Value		Number of Instruments		Notional Amounts		Estimated Fair Value
Equity-indexed options	Other invested assets		652	$	4,083,900	$	226,644		531	$	3,772,900	$	121,150
Equity-indexed embedded derivative	Policyholders’ account balances		140,382		3,845,098		872,746		134,505		3,658,231		725,546

		Gains (Losses) Recognized in Income on Derivatives
		Successor						Predecessor
Derivatives Not Designated as Hedging Instruments	Location in the Consolidated Statements of Operations	Year ended December 31, 2023			Period from May 25, 2022 through December 31, 2022			Period from January 1, 2022 through May 24, 2022			Year ended Dcember 31, 2021
Equity-indexed options	Net investment income	$	(111,764	)	$	(38,284	)	$	(127,587	)	$	127,681
Equity-indexed embedded derivative	Interest credited to policyholders’ account balances		(148,432	)		61,173			96,815			(107,162	)

The Company’s use of derivative instruments exposes it to credit risk in the event of non-performance by counterparties. The Company has a policy of only dealing with counterparties it believes are creditworthy and obtaining sufficient collateral where appropriate, as a means of mitigating the financial loss from defaults. The Company holds collateral in cash and notes secured by U.S. government-backed assets. The non-performance risk is the net counterparty exposure based on fair value of open contracts less fair value of collateral held. The Company maintains master netting agreements with its current active trading partners. A right of offset has been applied to collateral that supports credit risk and has been recorded in the consolidated statements of financial position as an offset to “Other invested assets” with an associated payable to “Other liabilities” for excess collateral.

Note 7 – Derivative Instruments – (Continued)

Information regarding the Company’s exposure to credit loss on the options it holds is presented below (in thousands):

		December 31, 2023
Counterparty	Moody/S&P Rating	Options Fair Value		Collateral Held in Cash		Collateral Held in Invested Assets		Total Collateral Held		Collateral Amounts Used to Offset Exposure		Excess Collateral		Exposure Net of Collateral
Bank of America	A2/A-	$	23,798	$	23,430	$	—	$	23,430	$	23,430	$	—	$	368
Barclays	Baa2/BBB		24,363		14,193		10,000		24,193		24,193		—		169
Credit Suisse	Baa1/BBB		16,105		18,170		—		18,170		16,105		2,065		—
ING	Baa1/A-		9,867		9,810		—		9,810		9,810		—		57
JP Morgan Chase	A1/A-		12,148		12,370		—		12,370		12,148		—		—
Morgan Stanley	A1/A-		42,984		38,166		5,700		43,866		42,984		882		—
NATIXIS*	A1/A		3,483		3,420		—		3,420		3,420		—		63
Truist	A3/A-		58,877		53,810		5,000		58,810		58,755		55		123
Wells Fargo	A1/BBB+		35,018		35,710		—		35,710		35,018		692		—
Total		$	226,643	$	209,079	$	20,700	$	229,779	$	225,863	$	3,694	$	780


		December 31, 2022
Counterparty	Moody/S&P Rating	Options Fair Value		Collateral Held in Cash		Collateral Held in Invested Assets		Total Collateral Held		Collateral Amounts Used to Offset Exposure		Excess Collateral		Exposure Net of Collateral
Bank of America	A2/A-	$	4,821	$	5,050	$	—	$	5,050	$	4,821	$	229	$	—
Barclays	Baa2/BBB		26,615		16,902		10,000		26,902		26,615		287		—
Credit Suisse	Baa1/BBB+		6,124		5,280		—		5,280		5,280		—		844
ING	Baa1/A-		8,559		8,650		—		8,650		8,559		91		—
Morgan Stanley	A1/BBB+		23,420		17,386		5,700		23,086		23,086		—		334
NATIXIS*	A1/A		18,841		19,130		—		19,130		18,841		289		—
Truist	A3/A-		22,172		17,540		5,000		22,540		22,172		368		—
Wells Fargo	A1/BBB+		10,598		10,610		—		10,610		10,468		142		130
Total		$	121,150	$	100,548	$	20,700	$	121,248	$	119,842	$	1,406	$	1,308

Collateral is prohibited from being held in invested assets.

Note 8 – Net Investment Income and Realized Investment Gains (Losses)

Net investment income is shown below (in thousands):

	Successor					Predecessor
	Year ended		Period from May 25, 2022 through			Period from January 1, 2022 through			Year ended
	December 31, 2023		December 31, 2022			May 24, 2022			December 31, 2021
Bonds	$	718,401	$	335,509		$	223,195		$	523,422
Short-term investments		186,934		58,298			3,870			—
Equity securities		7,938		2,467			629			28,102
Mortgage loans		299,847		180,882			123,278			260,721
Real estate and real estate partnerships		42,366		60,450			111,344			99,483
Investment funds		81,416		33,951			34,431			99,007
Equity-indexed options		111,764		(38,284	)		(127,587	)		127,681
Other invested assets		52,494		29,243			15,648			33,238
Total	$	1,501,160	$	662,516		$	384,808		$	1,171,654

Net investment income from equity method investments, comprised of real estate partnerships and investment funds was $108.0 million, $89.0 million, $120.7 million and $188.7 million for the year ended December 31, 2023, for the period from May 25, 2022 through December 31, 2022, for the period from January 1, 2022 through May 24, 2022 and the year ended December 31, 2021, respectively.

Net realized investment gains (losses) are shown below (in thousands):

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through		Year ended
	December 31, 2023			December 31, 2022			May 24, 2022		December 31, 2021
Bonds	$	(69,064	)	$	(30,493	)	$	10,339	$	54,941
Mortgage loans		(9,695	)		—			—		(768	)
Real estate		(4,093	)		7,418			10,461		10,240
Other invested assets		9,541			186			273		215
Total	$	(73,311	)	$	(22,889	)	$	21,073	$	64,628

Note 9 – Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments are shown below (in thousands):

	December 31, 2023				December 31, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Fixed maturity, bonds available-for-sale	$	13,070,576	$	13,070,576	$	13,512,819	$	13,512,819
Equity securities		1,404,247		1,404,247		428,369		428,369
Equity-indexed options, included in other invested assets		226,644		226,644		121,150		121,150
Mortgage loans on real estate, net of allowance		5,658,023		5,405,016		5,546,175		5,306,834
Policy loans		390,393		390,393		374,481		374,481
Short-term investments		2,396,504		2,396,504		1,836,678		1,836,678
Separate account assets ($1,163,261 and $1,012,499 included in fair value hierarchy)		1,188,989		1,188,989		1,045,217		1,045,217
Separately managed accounts, included in other invested assets		104,698		104,698		127,291		127,291
Total financial assets	$	24,440,074	$	24,187,067	$	22,992,180	$	22,752,839
Financial liabilities
Investment contracts	$	14,096,714	$	14,096,714	$	9,780,174	$	9,780,174
Embedded derivative liability for equity-indexed contracts		872,746		872,746		725,546		725,546
Notes payable		174,017		174,017		150,913		150,913
Separate account liabilities ($1,163,261 and $1,012,499 included in fair value hierarchy)		1,188,989		1,188,989		1,045,217		1,045,217
Total financial liabilities	$	16,332,466	$	16,332,466	$	11,701,850	$	11,701,850

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. A fair value hierarchy is used to determine fair value based on a hypothetical transaction at the measurement date from the perspective of a market participant. American National has evaluated the types of securities in its investment portfolio to determine an appropriate hierarchy level based upon trading activity and the observability of market inputs. The classification of assets or liabilities within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are defined as follows:

Level 1		Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2		Quoted prices in markets that are not active or inputs that are observable directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3		Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect American National’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and third-party evaluation, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Note 9 – Fair Value of Financial Instruments – (Continued)

Valuation Techniques for Financial Instruments Recorded at Fair Value

Fixed Maturity Securities and Equity Options—American National utilizes a pricing service to estimate fair value measurements. The fair value for fixed maturity securities that are disclosed as Level 1 measurements are based on unadjusted quoted market prices for identical assets that are readily available in an active market. The estimates of fair value for most fixed maturity securities, including municipal bonds, provided by the pricing service are disclosed as Level 2 measurements as the estimates are based on observable market information rather than market quotes. The pricing service utilizes market quotations for fixed maturity securities that have quoted prices in active markets. Since fixed maturity securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, an option adjusted spread model is used to develop prepayment and interest rate scenarios.

The pricing service evaluates each asset class based on relevant market information, credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, pricing source quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and economic events. The extent of the use of each market input depends on the asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary.

American National has reviewed the inputs and methodology used and the techniques applied by the pricing service to produce quotes that represent the fair value of a specific security. The review confirms that the pricing service is utilizing information from observable transactions or a technique that represents a market participant’s assumptions. American National does not adjust quotes received from the pricing service. The pricing service utilized by American National has indicated that they will only produce an estimate of fair value if there is objectively verifiable information available.

American National holds a small amount of private placement debt and fixed maturity securities that have characteristics that make them unsuitable for matrix pricing. For these securities, a quote from an independent pricing source (typically a market maker) is obtained. Due to the disclaimers on the quotes that indicate the price is indicative only, American National includes these fair value estimates in Level 3.

For securities priced using a quote from an independent pricing source, such as the equity-indexed options and certain fixed maturity securities, American National uses a market-based fair value analysis to validate the reasonableness of prices received. Price variances above a certain threshold are analyzed further to determine if any pricing issue exists. This analysis is performed quarterly.

Equity Securities—For publicly-traded equity securities, prices are received from a nationally recognized pricing service that are based on observable market transactions, and these securities are classified as Level 1 measurements. For certain preferred stock, current market quotes in active markets are unavailable. In these instances, an estimated fair value is received from the pricing service. The service utilizes similar methodologies to price preferred stocks as it does for fixed maturity securities. If applicable, these estimates would be disclosed as Level 2 measurements. American National tests the accuracy of the information provided by reference to other services annually.

Short-term Investments—Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-term investments are stated at amortized cost less allowances, which approximates estimated fair value.

Note 9 – Fair Value of Financial Instruments – (Continued)

Separate Account Assets and Liabilities—Separate account assets and liabilities are funds that are held separate from the general assets and liabilities of American National. Separate account assets include funds representing the investments of variable insurance product contract holders, who bear the investment risk of such funds. Investment income and investment gains and losses from these separate funds accrue to the benefit of the contract holders. American National reports separately, as assets and liabilities, investments held in such separate accounts and liabilities of the separate accounts if (i) such separate accounts are legally recognized; (ii) assets supporting the contract liabilities are legally insulated from American National’s general account liabilities; (iii) investments are directed by the contract holder; and (iv) all investment performance, net of contract fees and assessments, is passed through to the contract holder. In addition, American National's qualified pension plan assets are included in separate accounts. The assets of these accounts are carried at fair value. Deposits, net investment income and realized investment gains and losses for these accounts are excluded from revenues, and related liability increases are excluded from benefits and expenses in the consolidated statements of operations. Separate accounts are established in conformity with insurance laws and are not chargeable with liabilities that arise from any other business of American National.

The separate account assets included on the quantitative disclosures fair value hierarchy table are comprised of short-term investments, equity securities, and fixed maturity bonds available-for-sale. Equity securities are classified as Level 1 measurements. Short-term investments and fixed maturity securities are classified as Level 2 measurements. These classifications for separate account assets reflect the same fair value level methodologies as listed above as they are derived from the same vendors and follow the same process.

The separate account assets also include cash and cash equivalents, investment funds, accrued investment income, and receivables for securities. These are not financial instruments and are not included in the quantitative disclosures of fair value hierarchy table.

The balances and changes in separate account assets and liabilities for the years ended December 31, 2023 and 2022 were as follows (in thousands):

	December 31, 2023
	Variable Life			Variable Annuities			Pension			Total
Balance, beginning of year	$	230,148		$	349,820		$	465,249		$	1,045,217
Premiums and deposits		11,015			64,415			1,585			77,015
Policy charges		(9,513	)		(4,602	)		(241	)		(14,356	)
Surrenders and withdrawals		(17,099	)		(73,750	)		(261	)		(91,110	)
Benefit payments		—			—			(22,959	)		(22,959	)
Investment performance		50,463			60,253			92,357			203,073
Net transfers from (to) general account		(2,424	)		(5,467	)		—			(7,891	)
Balance, end of period	$	262,590		$	390,669		$	535,730		$	1,188,989

Cash Surrender Value	$	260,879		$	382,080		$	—		$	642,959

	December 31, 2022
	Variable Life			Variable Annuities			Pension			Total
Balance, beginning of year	$	303,409		$	455,150		$	562,353		$	1,320,912
Premiums and deposits		11,053			62,492			1,289			74,834
Policy charges		(9,701	)		(4,393	)		(201	)		(14,295	)
Surrenders and withdrawals		(13,754	)		(68,462	)		(242	)		(82,458	)
Benefit payments		—			—			(26,520	)		(26,520	)
Investment performance		(59,540	)		(79,809	)		(71,430	)		(210,779	)
Net transfers from (to) general account		(1,319	)		(15,158	)		—			(16,477	)
Balance, end of period	$	230,148		$	349,820		$	465,249		$	1,045,217

Cash Surrender Value	$	229,715		$	346,044		$	—		$	575,759

Note 9 – Fair Value of Financial Instruments – (Continued)

Embedded Derivatives—The amounts reported within policyholder contract deposits include equity linked interest crediting rates based on the S&P 500 within indexed annuities and indexed life. The following unobservable inputs are used for measuring the fair value of the embedded derivatives associated with the policyholder contract liabilities:

•

Lapse rate assumptions are determined by company experience. Lapse rates are generally assumed to be lower during a contract’s surrender charge period and then higher once the surrender charge period has ended. Decreases to the assumed lapse rates generally increase the fair value of the liability as more policyholders persist to collect the crediting interest pertaining to the indexed product. Increases to the lapse rate assumption decrease the fair value.

•

Mortality rate assumptions vary by age and gender based on company and industry experience. Decreases to the assumed mortality rates increase the fair value of the liabilities as more policyholders earn crediting interest. Increases to the assumed mortality rates decrease the fair value as higher decrements reduce the potential for future interest credits.

•

Equity volatility assumptions begin with current market volatilities and grow to long-term values. Increases to the assumed volatility will increase the fair value of liabilities, as future projections will produce higher increases in the linked index. At December 31, 2023 and December 31, 2022, the one year implied volatility used to estimate embedded derivative value was 16.4% and 23.4%, respectively.

Fair values of indexed life and annuity liabilities are calculated using the discounted cash flow technique. Shown below are the significant unobservable inputs used to calculate the Level 3 fair value of the embedded derivatives within policyholder contract deposits (in millions, except range percentages):

	Fair Value					Range
	December 31, 2023		December 31, 2022		Unobservable Input	December 31, 2023		December 31, 2022
Security type
Embedded derivative
Indexed Annuities	$	826.3	$	713.5	Lapse Rate		1-50%		1-50%
					Mortality Multiplier		100%		100%
					Equity Volatility		10-62%		16-66%
Indexed Life	$	46.4	$	12.1	Equity Volatility		10-62%		16-66%

Note 9 – Fair Value of Financial Instruments – (Continued)

Quantitative Disclosures

The fair value hierarchy measurements of the financial instruments are shown below (in thousands):

	Assets and Liabilities Carried at Fair Value by Hierarchy Level at December 31, 2023
	Total Fair Value		Level 1		Level 2		Level 3
Financial assets
Fixed maturity, bonds available-for-sale
U.S. treasury and government	$	62,228	$	62,228	$	—	$	—
U.S. states and political subdivisions		577,314		—		577,314		—
Foreign governments		9,103		—		9,103		—
Corporate debt securities		10,977,772		—		8,570,110		2,407,662
Residential mortgage-backed securities		126,904		—		126,904		—
Collateralized debt securities		1,317,255		—		416,226		901,029
Total bonds available-for-sale		13,070,576		62,228		9,699,657		3,308,691
Equity securities
Common stock		1,307,700		313,951		—		993,749
Preferred stock		96,547		21,620		—		74,927
Total equity securities		1,404,247		335,571		—		1,068,676
Options		226,644		—		—		226,644
Short-term investments		2,396,504		1,099,820		—		1,296,684
Separate account assets		1,163,260		405,737		757,523		—
Separately managed accounts		104,698		—		—		104,698
Total financial assets	$	18,365,929	$	1,903,356	$	10,457,180	$	6,005,393
Financial liabilities
Embedded derivative for equity-indexed contracts	$	872,746	$	—	$	—	$	872,746
Separate account liabilities		1,163,260		405,737		757,523		—
Total financial liabilities	$	2,036,006	$	405,737	$	757,523	$	872,746

Note 9 – Fair Value of Financial Instruments – (Continued)

	Assets and Liabilities Carried at Fair Value by Hierarchy Level at December 31, 2022
	Total Fair Value		Level 1		Level 2		Level 3
Financial assets
Fixed maturity, bonds available-for-sale
U.S. treasury and government	$	40,009	$	40,009	$	—	$	—
U.S. states and political subdivisions		854,861		—		854,861		—
Foreign governments		9,004		—		9,004		—
Corporate debt securities		11,257,630		—		10,525,008		732,622
Residential mortgage-backed securities		126,748		—		126,748		—
Collateralized debt securities		1,224,567		—		362,381		862,186
Total bonds available-for-sale		13,512,819		40,009		11,878,002		1,594,808
Equity securities
Common stock		371,836		203,034		—		168,802
Preferred stock		56,533		21,917		—		34,616
Total equity securities		428,369		224,951		—		203,418
Options		121,150		—		—		121,150
Short-term investments		1,836,678		595,098		—		1,241,580
Separate account assets		1,012,499		313,752		698,747		—
Separately managed accounts		127,291		—		—		127,291
Total financial assets	$	17,038,806	$	1,173,810	$	12,576,749	$	3,288,247
Financial liabilities
Embedded derivative for equity-indexed contracts	$	725,546	$	—	$	—	$	725,546
Notes payable		150,913		—		—		150,913
Separate account liabilities		1,012,499		313,752		698,747		—
Total financial liabilities	$	1,888,958	$	313,752	$	698,747	$	876,459

Note 9 – Fair Value of Financial Instruments – (Continued)

For financial instruments measured at fair value on a recurring basis using Level 3 inputs during the period, a reconciliation of the beginning and ending balances is shown below (in thousands):

	Level 3
	Assets									Liability
Successor	Investment Securities			Equity-Indexed Options			Separately Managed Accounts			Embedded Derivative
Beginning balance, May 25, 2022	$	376,254		$	114,883		$	112,866		$	745,075
Net gain (loss) for derivatives included in net investment income		1,587			(38,284	)		—			—
Net change included in interest credited		—			—			—			(61,173	)
Net fair value change included in other comprehensive income		(158,428	)		—			(367	)		—
Purchases, sales and settlements or maturities
Purchases		2,827,947			63,858			32,654			—
Sales		(7,554	)		—			(17,862	)		—
Settlements or maturities		—			(19,307	)		—			—
Premiums less benefits		—			—			—			41,644
Ending balance, December 31, 2022	$	3,039,806		$	121,150		$	127,291		$	725,546
Net gain for derivatives and bonds included in net investment income		—			19,482			—			—
Net change included in interest credited		—			—			—			148,432
Net fair value change included in other comprehensive income		250,915			89,269			(4,443	)		—
Purchases, sales and settlements or maturities
Purchases		7,280,080			133,133			21,127			—
Sales		(4,896,510	)		—			(39,277	)		—
Settlements or maturities		(240	)		(136,390	)		—			—
Premiums less benefits		—			—			—			(1,232	)
Ending balance, December 31, 2023	$	5,674,051		$	226,644		$	104,698		$	872,746

Note 9 – Fair Value of Financial Instruments – (Continued)

	Level 3
	Assets									Liability
Predecessor	Investment Securities			Equity-Indexed Options			Separately Managed Accounts			Embedded Derivative
Balance at December 31, 2020	$	111,505		$	242,201		$	64,424		$	705,013
Net gain for derivatives included in net investment income		—			127,681			—			—
Net change included in interest credited		—			—			—			107,162
Net fair value change included in other comprehensive income		3,269			—			1,444			—
Purchases, sales and settlements or maturities
Purchases		225,063			97,712			56,712			—
Sales		(58,593	)		—			(22,696	)		—
Settlements or maturities		—			(208,211	)		—			—
Premiums less benefits		—			—			—			20,404
Gross transfers into Level 3		1,479			—			—			—
Gross transfers out of Level 3		(2,018	)		—			—			—
Ending balance, December 31, 2021	$	280,705		$	259,383		$	99,884		$	832,579
Net loss for derivatives included in net investment income		—			(127,587	)		—			—
Net change included in interest credited		—			—			—			(96,815	)
Net fair value change included in other comprehensive income		395			—			(368	)		—
Purchases, sales and settlements or maturities
Purchases		145,542			43,934			23,046			—
Sales		(50,388	)		—			(9,696	)		—
Settlements or maturities		—			(60,847	)		—			—
Premiums less benefits		—			—			—			9,311
Ending balance at May 24, 2022	$	376,254		$	114,883		$	112,866		$	745,075

Within the net gain (loss) for derivatives included in net investment income were unrealized losses of $59.2 million and unrealized gains of $30.0 million, relating to assets still held at December 31, 2023 and 2022, respectively.

There were no transfers between Level 1 and Level 2 fair value hierarchies during the periods presented. American National’s valuation of financial instruments categorized as Level 3 in the fair value hierarchy are based on valuation techniques that use significant inputs that are unobservable or had a decline in market activity that obscured observability. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and discounted cash flow methodology based on spread/yield assumptions. Approximately $3,354.0 million of securities were priced by third party services as of December 31, 2023. There were $802.1 million of bonds and $186.4 million equities priced at cost as of December 31, 2023.

Equity-Indexed Options—Certain over the counter equity options are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility and forward price/dividend assumptions. Other primary inputs include interest rate assumptions (risk-free rate assumptions), and underlying equity quoted index prices for identical or similar assets in markets that exhibit less liquidity relative to those markets.

Note 9 – Fair Value of Financial Instruments – (Continued)

The following summarizes the fair value (in thousands), valuation techniques and unobservable inputs of the Level 3 fair value measurements:

Fair Value at
December 31, 2023

Valuation Technique

Unobservable Input

Range/Weighted Average

Security type

Investment securities

Common stock

961

Guideline public company method ⁽¹⁾

Recurring Revenue Multiple

6.3

CVM

LTM Revenue Multiple

2.1

NCY Cash Flow Multiple

5.0

Preferred stock

4,771

Guideline public company method

LTM Revenue Multiple ⁽²⁾

LTM EBITDA Multiple

12.7

NCY CF Multiple

Term (Years)

1.1

LTM EBITDA (est.) Multiple

7.5

NTM Adj. EBITDA Multiple

NCY Cash Flow Multiple

Option pricing method, Volatility

73.6

Separately managed accounts

104,698

Discounted cash flows (yield analysis)

Discount rate

8.80-18.50%

CVM

NCY EBITDA

Market transaction

N/A

Note 9 – Fair Value of Financial Instruments – (Continued)

Fair Value at
December 31, 2022

Valuation Technique

Unobservable Input

Range/Weighted
Average

Security type

Investment securities

Common stock

1,131

Guideline public company method ⁽¹⁾

LTM Revenue Multiple

CVM

NCY Revenue Multiple ⁽⁴⁾

0.6

NCY EBITDA Multiple

5.5

LQA Recurring Revenue Multiple

7.25

Preferred stock

5,058

Guideline public company method

LTM Revenue Multiple ⁽²⁾

5.40

CVM

NCY Revenue Multiple

6.82

LTM EBITDA Multiple

5.50

NCY EBITDA Multiple ⁽³⁾

5.50

Separately managed accounts

127,291

Discounted cash flows (yield analysis)

Discount rate

7.60-21.10

CVM

NCY EBITDA

Market transaction

N/A

	(1)	Guideline public company method uses price multiples from data on comparable public companies. Multiples are then adjusted to account for differences between what is being valued and comparable firms.
	(2)	LTM Revenue Multiple valuation metric shows revenue for the past 12 month period.
	(3)	Next Calendar Year (“NCY”) EBITDA Multiple is the forecasted EBITDA expected to be achieved over the next calendar year.
	(4)	NCY Revenue forecast revenue over the next calendar year.
	(5)	Last quarter annualized recurring revenue. Total recurring revenue realized during the previous quarter multiplied by 4.

Investment Securities—These bonds use cost as the best estimate of fair value. They are valued at cost because the value would not change unless there is a fundamental deterioration in the portfolio. There is no observable market valuation price or third-party sources that provide market values for these securities since they are not publicly traded. The common and preferred stock are valued at market transaction, option pricing method, or guideline public company method based on the best available information.

Separately Managed Accounts—The separately managed account manager uses the mid-point of a range from a third-party to price these securities. Discounted cash flows (yield analysis) and market transactions approach are used in the valuation. They use discount rate which is considered an unobservable input.

Fair Value Information About Financial Instruments Not Recorded at Fair Value

Information about fair value estimates for financial instruments not measured at fair value is discussed below:

Mortgage Loans—The fair value of mortgage loans is estimated using discounted cash flow analyses on a loan-by-loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. Factors used to arrive at the discount rate include inputs from spreads based on U.S. Treasury notes and the loan’s credit quality, region, property-type, lien priority, payment type and current status.

Note 9 – Fair Value of Financial Instruments – (Continued)

Policy Loans—The carrying value of policy loans is the outstanding balance plus any accrued interest. Due to the collateralized nature of policy loans such that they cannot be separated from the policy contracts, the unpredictable timing of repayments and the fact that settlement is at outstanding value, American National believes the carrying value of policy loans approximates fair value.

Investment Contracts—The carrying value of investment contracts is equivalent to the accrued account balance. The accrued account balance consists of deposits, net of withdrawals, net of interest credited, fees and charges assessed and other adjustments. American National believes that the carrying value of investment contracts approximates fair value because the majority of these contracts’ interest rates reset at anniversary.

Long-term Debt —Long-term debt is carried at outstanding principal balance less unamortized fees. The carrying value approximates fair value because the underlying interest rates approximate market rates at the balance sheet date.

Notes Payable—Notes payable are carried at outstanding principal balance. The carrying value of the notes payable approximates fair value because the underlying interest rates approximate market rates at the balance sheet date.

Note 9 – Fair Value of Financial Instruments – (Continued)

The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below (in thousands):

	December 31, 2023
	FV Hierarchy Level	Carrying Amount		Fair Value
Financial assets
Mortgage loans on real estate, net of allowance	Level 3	$	5,658,023	$	5,405,016
Policy loans	Level 3		390,393		390,393
Total financial assets		$	6,048,416	$	5,795,409
Financial liabilities
Investment contracts	Level 3	$	14,096,714	$	14,096,714
Long-term debt	Level 3		1,493,326		1,479,000
Notes payable	Level 3		174,017		174,017
Total financial liabilities		$	15,764,057	$	15,749,731

	December 31, 2022
	FV Hierarchy Level	Carrying Amount		Fair Value
Financial assets
Mortgage loans on real estate, net of allowance	Level 3	$	5,546,175	$	5,306,834
Policy loans	Level 3		374,481		374,481
Total financial assets		$	5,920,656	$	5,681,315
Financial liabilities
Investment contracts	Level 3	$	9,780,174	$	9,780,174
Long-term debt	Level 3		1,503,400		1,503,400
Notes payable	Level 3		150,913		150,913
Total financial liabilities		$	11,434,487	$	11,434,487

Note 10 – Deferred Policy Acquisition Costs and Value of Business Acquired

The changes in the asset for DAC and VOBA for the year ended December 31, 2023 and the period from May 25, 2022 to December 31, 2022 were as follows (in thousands):

Successor	Life			Annuity			Health			Property & Casualty			Total
Beginning balance, May 25, 2022	$	343,550		$	44,788		$	3,977		$	181,000		$	573,315
Additions		113,049			47,952			9,233			273,900			444,134
Amortization		(39,276	)		(2,935	)		(6,057	)		(270,029	)		(318,297	)
Net change		73,773			45,017			3,176			3,871			125,837
Beginning balance at January 1, 2023		417,323			89,805			7,153			184,871			699,152
Additions		145,012			165,727			8,575			450,642			769,956
Amortization		(43,182	)		(18,552	)		(5,436	)		(457,469	)		(524,639	)
Net change		101,830			147,175			3,139			(6,827	)		245,317
Ending balance at December 31, 2023	$	519,153		$	236,980		$	10,292		$	178,044		$	944,469

Predecessor	Life			Annuity			Health			Property & Casualty			Total
Balance at December 31, 2020	$	896,208		$	309,056		$	32,885			122,062		$	1,360,211
Additions		161,898			99,971			14,369			366,167			642,405
Amortization		(111,764	)		(77,133	)		(17,906	)		(355,970	)		(562,773	)
Effect of change in unrealized gains on available-for-sale debt securities		9,703			48,578			—			—			58,281
Net change		59,837			71,416			(3,537	)		10,197			137,913
Balance at December 31, 2021	$	956,045		$	380,472		$	29,348		$	132,259		$	1,498,124
Additions		64,974			27,268			5,398			170,724			268,364
Amortization		(51,399	)		(9,301	)		(6,483	)		(160,225	)		(227,408	)
Effect of change in unrealized gains on available-for-sale debt securities		10,753			188,274			—			—			199,027
Net change		24,328			206,241			(1,085	)		10,499			239,983
Ending balance at May 24, 2022	$	980,373		$	586,713		$	28,263		$	142,758		$	1,738,107

Commissions comprise the majority of additions to deferred policy acquisition costs.

The following table provides the projected VOBA amortization expenses for a five-year period and thereafter (in thousands):

Years	Asset
2024	$	32,289
2025		29,129
2026		26,569
2027		24,270
2028		22,590
Thereafter		228,949
Total amortization expense	$	363,796

The amortization of the VOBA asset is included in the change in deferred acquisition costs in the consolidated statements of operations.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses

The liability for unpaid claims and claim adjustment expenses (“claims”) for health and property and casualty insurance is included in “Policy and contract claims” in the consolidated statements of financial position and is the amount estimated for incurred but not reported (“IBNR”) claims and claims that have been reported but not settled. The liability for unpaid claims is estimated based upon American National’s historical experience and actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs, less anticipated salvage and subrogation. The effects of the changes are included in the consolidated results of operations in the period in which the changes occur. The time value of money is not taken into account for the purposes of calculating the liability for unpaid claims. There have been no significant changes in methodologies or assumptions used to calculate the liability for unpaid claims and claim adjustment expenses.

Information regarding the liability for unpaid claims is shown below (in thousands):

	Successor						Predecessor
	Year ended December 31, 2023			Period from May 25, 2022 through December 31, 2022			Period from January 1, 2022 through May 24, 2022
Unpaid claims balance, beginning	$	1,554,761		$	1,496,156		$	1,455,080
Less: Reinsurance recoverables		305,334			281,156			288,358
Net beginning balance		1,249,427			1,215,000			1,166,722
Incurred related to
Current		1,604,971			830,701			562,144
Prior years		(80,373	)		(31,184	)		(21,106	)
Total incurred claims		1,524,598			799,517			541,038
Paid claims related to
Current		938,101			554,598			225,241
Prior years		480,621			196,703			267,519
Total paid claims		1,418,722			751,301			492,760
Net balance		1,355,303			1,263,216			1,215,000
Plus: Reinsurance recoverables		301,591			305,327			281,156
Unpaid claims balance, ending	$	1,656,894		$	1,568,543		$	1,496,156

Estimates for ultimate incurred claims attributable to insured events of prior years’ decreased by approximately $80.0 million during the year ended December 31, 2023 and decreased by $31.2 million during the period from May 25, 2022 through December 31, 2022. The favorable development in 2023 was a reflection of lower-than-anticipated losses arising from commercial lines of business. The favorable development in 2022 during the "Successor" period was a reflection of lower-than-anticipated settlement of losses emerging from commercial automotive, agribusiness, commercial business owner and guaranteed asset protection waiver lines of business, and for the "Successor" period a reflection of lower-than-anticipated settlement of losses emerging from Managing General Underwriting, credit health, worksite health, personal Auto, commercial auto and agribusiness lines of business.

For short-duration health insurance claims, the total of IBNR plus expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses at December 31, 2023 and December 31, 2022 was $4.2 million and $16.0 million, respectively.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows (in thousands):

	December 31, 2023		December 31, 2022
Net outstanding liabilities
Auto Liability	$	489,354	$	460,351
Non-Auto Liability		349,575		328,797
Commercial Multi-Peril		202,832		191,571
Homeowners		124,970		94,665
Short Tail Property		63,920		49,170
Credit Property and Casualty		26,341		18,906
Credit Life		1,052		959
Health		7,925		20,321
Credit Health		3,858		4,056
Other		451		891
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance		1,270,278		1,169,687
Reinsurance recoverable on unpaid claims
Auto Liability		13,435		12,604
Non-Auto Liability		65,372		59,563
Commercial Multi-Peril		36,985		33,677
Homeowners		8,368		9,456
Short Tail Property		7,746		7,963
Credit Property & Casualty		19,886		13,944
Credit Life		259		725
Health		40,719		201,023
Credit Health		1,095		1,473
Other		6,841		6,545
Total reinsurance recoverable on unpaid claims		200,706		346,973
Insurance lines other than short-duration		150,923		198,548
Unallocated claims adjustment expenses		88,519		71,067
Other		159,544		—
Total gross liability for unpaid claims and claim adjustment expense	$	1,869,970	$	1,786,275

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Property and Casualty Reserving Methodology—The following methods are utilized:

Initial Expected Loss Ratio—This method calculates an estimate of ultimate losses by applying an estimated loss ratio to actual earned premium for each calendar/accident year. This method is appropriate for classes of business where the actual paid or reported loss experience is not yet mature enough to influence initial expectations of the ultimate loss ratios.

Pegged Frequency and Severity—This method uses actual claims count data and emergence patterns of older accident periods to project the ultimate number of reported claims for a given accident year. A similar process projects the ultimate average severity per claim so that the product of the two projections results in a projection of ultimate loss for a given accident year.

Bornhuetter-Ferguson—This method uses, as a starting point, either an assumed Initial Expected Loss Ratio Method or Pegged Frequency and Severity method and blends in the loss ratio or frequency and severity implied by the claims experience to date by using loss development patterns based on our historical experience. This method is generally appropriate where there are few reported claims and an unstable pattern of reported losses.

Loss or Expense Development (Chain Ladder)—This method uses actual loss or defense and cost containment expense data and the historical development profiles on older accident periods to project more recent, less developed periods to their ultimate total. This method is appropriate when there is a relatively stable pattern of loss and expense emergence and a relatively large number of reported claims.

Ratio of Paid Defense and Cost Containment Expense to Paid Loss Development—This method uses the ratio of paid defense and cost containment expense to paid loss data and the historical development profiles on older accident periods to project more recent, less developed periods to their ultimate total. In this method, an ultimate ratio of paid defense and cost containment expense to paid loss is selected for each accident period. The selected paid defense and cost containment expense to paid loss ratio is then applied to the selected ultimate loss for each accident period to estimate the ultimate defense and cost containment expense. Paid defense and cost containment expense is then subtracted from the ultimate defense and cost containment expense to calculate the unpaid defense and cost containment expense for that accident period.

Calendar Year Paid Adjusting and Other Expense to Paid Loss—This method uses a selected prior calendar years’ paid expense to paid loss ratio to project ultimate loss adjustment expenses for adjusting and other expense. A percentage of the selected ratio is applied to the case reserves (depending on the line of insurance) and 100% to the indicated IBNR reserves. These ratios assume that a percentage of the expense is incurred when a claim is opened and the remaining percentage is paid throughout the claim’s life.

For most credit property and casualty products, IBNR liability is calculated as a percentage of pro rata unearned premium, with the specific percentage for a given product line informed by a traditional completion factor claim reserve analysis.

The expected development on reported claims is the sum of a pay-to-current reserve and a future reserve. The pay-to-current reserve is calculated for each open claim having a monthly indemnity and contains the amount required to pay the open claim from the last payment date to the current valuation date. The future reserve is calculated by assigning to each open claim a fixed reserve amount based on the historical average severity. For debt cancellation products and involuntary unemployment insurance, this reserve is calculated using published valuation tables.

Cumulative claim frequency information is calculated on a per claim basis. Claims that do not result in a liability are not considered in the determination of unpaid liabilities.

For any given line of business, none of these methods are relied on exclusively. With minor exceptions, multiple methods may be used for a line of business as a check for reasonableness of our reselected reserve value.

The following contains information about incurred and paid claims development as of December 31, 2023, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liabilities plus expected development on reported claims included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2014 to 2022 is presented as supplementary information.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Auto Liability—Consists of personal and commercial auto. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				December 31, 2023
	Years ended December 31,																					IBNR Plus Expected	Cumulative Number of Reported
Accident Year		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023		Development	Claims
2014	$	232,146	$	223,386	$	217,819	$	215,419	$	214,870	$	214,557	$	214,326	$	214,253	$	214,373	$	214,410	$	78	36,043
2015				237,578		240,697		239,421		245,775		244,798		244,621		243,304		243,214		242,937		62	36,129
2016						259,177		256,080		261,400		259,128		257,633		256,294		256,759		256,511		327	37,153
2017								269,803		280,012		275,850		273,551		270,464		268,775		267,984		523	38,626
2018										314,467		299,512		288,806		282,805		277,906		274,349		1,508	37,875
2019												330,988		313,636		305,312		295,834		292,213		4,146	36,366
2020														277,597		254,808		241,381		234,547		7,698	26,420
2021																299,746		294,676		286,590		18,182	29,282
2022																		309,321		305,957		47,603	26,875
2023																				345,522		100,065	27,971
																		Total	$	2,721,020

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	Years ended December 31,
Accident Year		2014*			2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023
2014	$	72,838		$	134,376	$	166,947	$	187,375	$	204,057	$	209,401	$	210,994	$	212,522	$	212,940	$	213,108
2015					78,861		149,366		186,281		211,908		231,530		237,792		239,986		240,829		241,681
2016							86,492		153,911		198,326		225,869		237,592		247,640		251,920		253,768
2017									88,357		175,175		218,435		241,823		255,530		261,535		263,084
2018											95,777		185,317		227,312		248,183		262,077		266,316
2019													98,545		193,389		231,892		258,959		274,221
2020															78,699		151,722		184,874		207,391
2021																	85,916		179,363		223,116
2022																			93,500		185,697
2023																					106,971
																			Total		2,235,353
	All outstanding liabilities before 2014, net of reinsurance*																				3,687
			Liabilities for claims and claim adjustment expenses, net of reinsurance																	$	489,354

Unaudited supplementary information.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Non-Auto Liability—Consists of workers’ compensation and other liability occurrence. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				December 31, 2023
	Years ended December 31,																					IBNR Plus Expected	Cumulative Number of Reported
Accident Year		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023*		Development	Claims
2014	$	83,084	$	75,550	$	72,624	$	67,339	$	67,865	$	67,267	$	67,268	$	66,250	$	66,212	$	65,880	$	2,335	6,144
2015				83,897		78,968		76,724		67,548		64,189		63,326		63,523		62,929		62,644		2,714	5,572
2016						86,935		83,179		73,764		73,195		68,178		67,347		68,142		66,687		3,362	4,623
2017								102,616		88,902		81,240		77,322		76,540		74,173		74,088		4,089	8,219
2018										88,986		85,910		79,493		75,207		74,115		72,093		9,376	13,746
2019												96,064		95,340		92,544		89,475		87,888		14,387	11,954
2020														90,197		83,339		80,839		76,851		19,345	10,242
2021																102,869		100,813		96,477		29,411	9,683
2022																		109,460		106,699		43,263	9,382
2023																				117,726		64,479	13,491
																		Total	$	827,033

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	Years ended December 31,
Accident Year		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023
2014	$	11,201	$	26,587	$	36,220	$	45,206	$	51,853	$	55,307	$	57,497	$	58,559	$	59,886	$	61,155
2015				11,979		23,488		37,059		46,285		51,303		53,478		55,434		56,890		57,583
2016						12,733		24,633		35,502		45,820		50,596		55,205		57,958		59,210
2017								14,865		37,139		48,654		53,996		59,582		63,025		64,274
2018										13,156		26,115		37,574		45,316		49,940		52,983
2019												12,204		30,199		40,729		49,979		59,086
2020														9,596		23,838		36,066		43,576
2021																12,389		32,658		43,504
2022																		14,029		36,188
2023																				18,743
																		Total		496,302
		All outstanding liabilities before 2014, net of reinsurance*																		18,844
	Liabilities for claims and claim adjustment expenses, net of reinsurance																		$	349,575

Unaudited supplementary information.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Commercial Multi-Peril—Consists of business owners insurance and mortgage fire business. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				December 31, 2023
		Years ended December 31,																				IBNR Plus Expected	Cumulative Number of Reported
Accident Year		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023		Development	Claims
2014	$	36,852	$	31,220	$	34,911	$	33,962	$	36,132	$	34,279	$	34,004	$	33,836	$	33,730	$	33,871	$	165	2,314
2015				33,997		31,488		29,023		32,282		31,285		33,059		34,282		33,889		33,453		467	2,251
2016						38,115		33,475		33,080		31,615		33,628		32,705		32,867		33,555		728	4,810
2017								42,411		37,079		40,611		43,367		47,660		49,825		48,621		1,456	6,817
2018										50,784		50,182		51,519		51,035		51,124		49,996		1,444	5,693
2019												56,062		59,789		58,262		57,780		54,578		3,245	3,644
2020														68,226		63,281		64,265		62,993		6,466	4,174
2021																95,708		92,644		94,135		15,864	5,794
2022																		128,960		117,713		28,245	6,027
2023																				139,797		50,801	5,656
																		Total	$	668,712

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	Years ended December 31,
Accident Year		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023
2014	$	12,001	$	16,484	$	20,199	$	24,602	$	27,339	$	31,448	$	32,702	$	32,934	$	33,102	$	33,162
2015				9,820		12,956		16,402		21,680		25,188		27,201		28,566		29,692		29,833
2016						11,327		17,193		19,085		22,339		25,686		26,690		27,629		29,249
2017								12,458		20,828		23,294		26,202		28,420		34,892		38,587
2018										18,027		30,078		32,490		35,781		41,169		42,447
2019												22,098		32,295		37,408		41,045		44,916
2020														25,492		38,415		42,677		49,483
2021																41,452		60,141		63,057
2022																		45,624		74,252
2023																				63,327
																		Total		468,313
						All outstanding liabilities before 2014, net of reinsurance*														2,433
		Liabilities for claims and claim adjustment expenses, net of reinsurance																	$	202,832

Unaudited supplementary information.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Homeowners—Consists of homeowners and renters business. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				December 31, 2023
	Years ended December 31,																					IBNR Plus Expected	Cumulative Number of Reported
Accident Year		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023		Development	Claims
2014	$	132,651	$	131,634	$	130,287	$	131,546	$	130,895	$	130,747	$	130,799	$	130,713	$	130,705	$	131,078	$	—	18,183
2015				125,430		124,199		123,619		123,824		123,731		123,357		123,312		123,293		123,292		—	17,759
2016						147,264		145,373		144,376		145,019		144,828		144,766		144,717		144,700		—	21,564
2017								164,284		172,274		172,491		169,524		169,430		169,370		169,584		25	23,604
2018										174,495		179,561		176,317		176,681		177,437		177,331		62	22,605
2019												177,854		176,005		173,763		174,563		175,304		78	20,340
2020														227,298		228,441		228,215		229,652		63	25,091
2021																240,732		248,886		246,327		2,128	22,310
2022																		247,088		251,277		5,368	23,048
2023																				338,894		53,844	24,781
																		Total	$	1,987,439

		Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
		Years ended December 31,
Accident Year			2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023
2014		$	96,300	$	122,601	$	126,245	$	129,467	$	130,059	$	130,305	$	130,542	$	130,577	$	130,588	$	131,078
2015					86,617		114,696		119,331		122,585		122,955		123,065		123,161		123,288		123,292
2016							105,415		136,796		140,972		144,000		144,596		144,635		144,696		144,700
2017									116,075		159,107		166,009		167,638		168,241		168,661		168,803
2018											121,631		165,203		170,850		174,077		176,476		176,889
2019													122,530		163,400		170,229		173,047		174,629
2020															166,352		217,224		223,741		226,511
2021																	175,265		234,852		241,146
2022																			174,402		236,656
2023																					238,585
																			Total		1,862,289
		All outstanding liabilities before 2014, net of reinsurance*																			(180	)
	Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	124,970

Unaudited supplementary information.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Short Tail Property—Consists of auto physical damage, fire, rental owners, standard fire policy, country estates, inland marine and watercraft. This line of business has substantially all claims settled and paid in less than two years. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim
	Adjustment Expenses, Net of Reinsurance				As of December 31, 2023
	Years ended December 31,					IBNR Plus Expected	Cumulative Number of
Accident Year		2022*		2023		Development	Reported Claims
2022	$	343,392	$	347,477	$	379	56,443
2023				387,100		4,816	60,768
		Total	$	734,577

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	Years ended December 31,
Accident Year		2022*		2023
2022	$	297,877	$	344,150
2023				329,235
		Total		673,385
All outstanding liabilities before 2022, net of reinsurance*				2,728
Liabilities for claims and claim adjustment expenses, net of reinsurance			$	63,920

Unaudited supplementary information.

Credit Property and Casualty—Consists of credit property insurance, vendor’s or lender’s single interest insurance, GAP insurance, GAP waiver, debt cancellation products, involuntary unemployment insurance and collateral protection insurance. This line of business has substantially all claims settled and paid in less than two years. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim
	Adjustment Expenses, Net of Reinsurance				As of December 31, 2023
	Years ended December 31,				IBNR Plus Expected		Cumulative Number of
Accident Year	2022*		2023		Development		Reported Claims
2022	$	58,468	$	53,643	$	216		15,587
2023				102,704		16,533		16,843
		Total	$	156,347

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	Years ended December 31,
Accident Year		2022*		2023
2022	$	39,807	$	52,851
2023				77,334
		Total		130,185
All outstanding liabilities before 2022, net of reinsurance*				179
Liabilities for claims and claim adjustment expenses, net of reinsurance			$	26,341

Unaudited supplementary information.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Credit Life—For credit life products, IBNR is calculated as a percentage of life insurance in-force. This line of business has substantially all claims settled and paid in less than two years. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim
	Adjustment Expenses, Net of Reinsurance				As of December 31, 2023
	Years ended December 31,					IBNR Plus Expected	Cumulative Number of
Accident Year		2022*		2023		Development	Reported Claims
2022	$	7,634	$	6,009	$	7	41
2023				5,293		1,009	22
		Total	$	11,302

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	Years ended December 31,
Accident Year		2022*		2023
2022	$	6,709	$	6,002
2023				4,248
		Total		10,250
All outstanding liabilities before 2022, net of reinsurance*				—
Liabilities for claims and claim adjustment expenses, net of reinsurance			$	1,052

Unaudited supplementary information.

Health Reserving Methodology—The following methods are utilized:

Completion Factor Approach—This method assumes that the historical claim patterns will be an accurate representation of unpaid claim liabilities. An estimate of the unpaid claims is calculated by subtracting period-to-date paid claims from an estimate of the ultimate “complete” payment for all incurred claims in the period. Completion factors are calculated which “complete” the current period-to-date payment totals for each incurred month to estimate the ultimate expected payout.

Tabular Claims Reserves—This method is used to calculate the reserves for long-term care and disability income blocks of business. These reserves rely on published valuation continuance tables created using industry experience regarding assumptions of continued morbidity and subsequent recovery. Reserves are calculated by applying these continuance tables, along with appropriate company experience adjustments, to the stream of contractual benefit payments. These expected benefit payments are discounted at the required interest rate.

Future Policy Benefits—Reserves are equal to the aggregate of the present value of expected future benefit payments, less the present value of expected future premiums. Morbidity and termination assumptions are based on our experience or published valuation tables when available and appropriate.

Premium Deficiency Reserves—Deficiency reserves are established when the expected future claim payments and expenses for a classification of policies are in excess of the expected premiums for these policies. The determination of a deficiency reserve takes into consideration the likelihood of premium rate increases, the timing of these increases, future net investment income, and the expected benefit utilization patterns. We have established premium deficiency reserves for portions of the major medical business and the long-term care business that are in run-off. The assumptions and methods used to determine the deficiency reserves are reviewed periodically for reasonableness, and the reserve amount is monitored against emerging losses.

There is no expected development on reported claims in the health blocks. Claim frequency is determined by totaling the number of unique claim numbers during the period as each unique claim number represents a claim event for an individual claimant.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Health—Consists of stop-loss and other supplemental health products. This line of business has substantially all claims settled and paid in less than five years. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										As of December 31, 2023
	Years ended December 31,											IBNR Plus Expected	Cumulative Number of
Accident Year		2019*		2020*		2021*		2022*		2023		Development	Reported Claims
2019	$	48,125	$	52,587	$	47,373	$	47,439	$	—	$	—	3
2020				36,717		36,406		32,779		17		—	23
2021						36,653		37,142		6,171		1	590
2022								29,932		24,963		318	17,170
2023										21,682		2,657	23,325
								Total	$	52,833

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	Years ended December 31,
Accident Year		2019*		2020*		2021*		2022*		2023
2019	$	33,207	$	47,312	$	47,371	$	47,373	$	—
2020				22,036		32,584		32,740		17
2021						22,086		34,282		6,094
2022								17,480		24,680
2023										18,501
								Total		49,292
All outstanding liabilities before 2019, net of reinsurance*										4,384
Liabilities for claims and claim adjustment expenses, net of reinsurance									$	7,925

Unaudited supplementary information.

Credit Health Reserving Methodology—The following methods are utilized:

Tabular Claims Reserves—These reserves rely on published valuation continuance tables. The insured's age at disablement, the duration of the claim and the remaining term of the policy are used to provide a factor which is applied to the remaining exposure to calculate the present value of future benefits for insureds on claim.

The claim liability consists of IBNR and Due/Unpaid. The IBNR utilizes an inventory type method based on historical patterns of claim payments incurred but not reported within the last six months of the valuation date.

The Due/Unpaid reserves are the amount needed to pay an open claim from the last date of payment to the reserve valuation date.

Note 11 – Liability for Unpaid Claims and Claim Adjustment Expenses - (Continued)

Credit Health—The claim liability consists of credit disability. This line of business has substantially all claims settled and paid in less than five years. Claims and claim adjustment expenses are shown below (in thousands):

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance										As of December 31, 2023
	Years ended December 31,										IBNR Plus  Expected		Cumulative Number of   Reported
Accident Year	2019*		2020*		2021*		2022*		2023			Development	Claims
2019	$	3,898	$	3,705	$	3,631	$	3,628	$	355	$	30	16
2020				3,736		3,741		3,804		751		86	48
2021						3,415		3,401		1,547		138	188
2022								2,756		2,715		284	1,312
2023										2,772		638	977
								Total	$	8,140

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	Years ended December 31,
Accident Year	2019*		2020*		2021*		2022*		2023
2019	$	1,207	$	2,618	$	3,138	$	3,424	$	258
2020				1,179		2,613		3,100		468
2021						1,098		2,274		1,093
2022								930		1,784
2023										679
								Total		4,282
		All outstanding liabilities before 2019, net of reinsurance*								—
		Liabilities for claims and claim adjustment expenses, net of reinsurance							$	3,858

Unaudited supplementary information.

The following table is supplementary information. A 10-year average annual percentage payout of incurred claims is shown below:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
	Year 1			Year 2			Year 3			Year 4			Year 5			Year 6			Year 7			Year 8			Year 9			Year 10
Auto Liability		32.6	%		30.6	%		15.2	%		9.4	%		6.0	%		2.6	%		1.0	%		0.6	%		0.3	%		1.7	%
Non-Auto Liability		16.2	%		20.9	%		15.4	%		11.7	%		8.3	%		4.9	%		3.1	%		1.9	%		1.5	%		16.1	%
Commercial Multi-Peril		37.1	%		18.3	%		7.0	%		9.8	%		8.5	%		7.4	%		4.5	%		3.0	%		0.5	%		3.9	%
Homeowner		70.8	%		23.2	%		3.2	%		1.8	%		0.6	%		0.2	%		0.1	%		—	%		—	%		0.1	%
Short Tail Property		85.4	%		14.6	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%
Credit P&C		74.8	%		25.2	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%
Credit Life		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%

Note 12 – Federal Income Taxes

A reconciliation of the effective tax rate to the statutory federal tax rate is shown below (in thousands, except percentages):

	Successor												Predecessor
	Year ended December 31, 2023						Period from May 25, 2022 through December 31, 2022						Period from January 1, 2022 through May 24, 2022						Year ended December 31, 2021
	Amount			Rate			Amount			Rate			Amount			Rate			Amount			Rate
Total expected income tax expense at the statutory rate	$	91,475			21.0	%	$	83,113			21.0	%	$	35,113			21.0	%	$	181,229			21.0	%
Implementation of new tax legislation		(35,000	)		(8.0	)		—			—			—			—			—			—
Tax-exempt investment income		(2,968	)		(0.7	)		(2,082	)		(0.5	)		(1,811	)		(1.1	)		(3,929	)		(0.5	)
Tax credits, net		(14,995	)		(3.4	)		(12,959	)		(3.3	)		(2,213	)		(1.3	)		(4,988	)		(0.6	)
Low income housing tax credit expense		3,062			0.7			2,063			0.5			1,344			0.8			4,744			0.5
Merger transaction costs		—			—			3,113			0.8			2,621			1.6			—			—
Deferred tax adjustment		—			—			—			—			(2,148	)		(1.3	)		(8,375	)		(1.0	)
Other items, net		5,101			1.1			248			0.1			71			0.1			(2,096	)		(0.1	)
Total	$	46,675			10.7	%	$	73,496			18.6	%	$	32,977			19.8	%	$	166,585			19.3	%

American National’s federal income tax returns for tax years 2020 to 2022 are subject to examination by the Internal Revenue Service. In the opinion of management, all prior year deficiencies have been paid or adequate provisions have been made for any tax deficiencies that may be upheld.

As of December 31, 2023, American National had no provision for uncertain tax positions and no provision for penalties or interest. In addition, management does not believe there are any uncertain tax benefits that could be recognized within the next twelve months that would impact American National’s effective tax rate.

Note 12 – Federal Income Taxes - (Continued)

The tax effects of temporary differences that gave rise to the deferred tax assets and liabilities are shown below (in thousands):

	December 31, 2023			December 31, 2022
DEFERRED TAX ASSETS
Bonds	$	257,181		$	399,999
Market Risk		—			9,242
Mortgage loans on real estate		33,891			41,420
Future policy benefits, policyholders' account balances and claims		49,236			13,254
Unearned premium reserve		30,356			27,531
Participating policyholders’ liability		57,970			55,273
Deferred compensation		8,470			8,203
Other assets		35,000			—
Tax carryforwards		31,449			2,255
Gross deferred tax assets before valuation allowance		503,553			557,177
Valuation allowance		(4,913	)		(2,800	)
Gross deferred tax assets after valuation allowance		498,640			554,377

DEFERRED TAX LIABILITIES
Equity securities		8,416			5,022
Real estate, real estate partnerships and investment funds		5,372			22,333
Other invested assets		17,677			17
Deferred acquisition costs		80,511			40,156
Market Risk		18			—
Property and equipment		17,013			8,717
Pension and liability for retirement benefits		48,783			21,065
Other liabilities		29,510			17,953
Gross deferred tax liabilities		207,300			115,263
Total net deferred tax asset (liability)	$	291,340		$	439,114

As of December 31, 2023, American National reported a deferred tax asset of $291.3 million compared to a deferred tax asset at December 31, 2022 of $439.1 million. The decrease from prior year was primarily due to a change in unrealized losses on investments not recognized for tax.

As of December 31, 2023, American National had net operating loss carryforwards of $134 million and foreign tax credit carryovers of $3 million. If not utilized, net operating loss carryforwards of $56 million will expire in 2043 and $55 million may be carried forward indefinitely. Foreign tax credit carryovers, of not utilized, will expire in 2033.

GAAP requires us to evaluate the recoverability of our deferred tax assets and establish a valuation allowance, if necessary, to reduce our deferred tax assets to an amount that is more-likely-than-not to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. There were no material changes to our valuation allowance recorded during the years ended December 31, 2023 and 2022. Although realization is not assured, management believes it is more-likely-than-not that our remaining deferred tax assets will be realized and that as of December 31, 2023, no additional valuation allowance is required.

On August 16, 2022, the Inflation Reduction Act (the "Act") was signed into law. The Act included several tax provisions including a corporate alternative minimum tax ("CAMT") effective in 2023. As of December 31, 2023, American National is not an applicable reporting entity and as such, had no provision under CAMT.

Introduction of Pillar Two

The Organization for Economic Cooperation and Development (“OECD”) and its member countries with support from the G20, have proposed the enactment of a global minimum tax of 15% for Multinational Enterprise (“MNE”) groups with global annual revenue of €750 million or more (“Pillar Two”). The Company may become subject to additional income taxes as a result of these proposals, as enacted locally across jurisdictions.

Note 12 – Federal Income Taxes - (Continued)

American National's wholly owned subsidiary, Freestone Re LTD., is incorporated under the laws of Bermuda and is not required to pay any taxes in Bermuda based upon income or capital gains. However, in December 2023, the Government of Bermuda enacted a corporate income tax (“CIT”) regime, designed to align with the OECD’s global minimum tax rules. Effective January 1, 2025, the regime applies a 15% CIT to Bermuda businesses that are part of MNE groups with annual revenue of €750 million or more. As a result of this new regime, American National recognized a deferred tax asset of $35 million as of December 31, 2023. We will continue to monitor developments prior to the commencement of this regime.

Note 13 – Accumulated Other Comprehensive Income (Loss)

According to PGAAP Accounting, accumulated other comprehensive income (loss) (“AOCI”), was written off as a result of the Merger with Brookfield Reinsurance. The components of and changes in AOCI are shown below (in thousands):

Successor	Net Unrealized Gains (Losses) on Securities			Defined Benefit Pension Plan Adjustments			Foreign Currency Adjustments			Change in Discount Rate Used to Measure LFPB			Change in Fair Value of Market Risk Benefits			Accumulated Other Comprehensive Income (Loss)
Beginning balance at May 25, 2022	$	—		$	—		$	—		$	—		$	—		$	—
Amounts reclassified to from AOCI		18,421			1,161			—						—			19,582
Unrealized losses arising during the period		(739,957	)		—			—			—			—			(739,957	)
Unrealized losses on investments attributable to participating policyholders’ interest					—			—			—			—			—
Change in discount rates		—			—			—			253,126			—			253,126
Change in fair value market risk benefits		—			—			—			—			20,779			20,779
Foreign currency adjustment		—			—			(1,237	)		—			—			(1,237	)
Ending balance at December 31, 2022		(721,536	)		1,161			(1,237	)		253,126			20,779			(447,707	)
Amounts reclassified from AOCI		74,579			107,215			—			—			—			181,794
Unrealized gains arising during the period		460,737			—			—			—			—			460,737
Unrealized losses on investments attributable to participating policyholders’ interest		—			—			—			—			—			—
Change in discount rates		—			—			—			(188,467	)		—			(188,467	)
Change in fair value market risk benefits		—			—			—			—			(25,263	)		(25,263	)
Foreign currency adjustment		—			—			13			—			—			13
Deferred income tax benefit (expense)		(112,671	)		(22,515	)		—			39,578			5,305			(90,303	)
Ending balance at December 31, 2023	$	(298,891	)	$	85,861		$	(1,224	)	$	104,237		$	821		$	(109,196	)

Predecessor	Net Unrealized Gains (Losses) on Securities			Defined Benefit Pension Plan Adjustments			Foreign Currency Adjustments			Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2020	$	292,166		$	(67,130	)	$	(2,866	)	$	222,170
Amounts reclassified from AOCI		(32,382	)		7,584			—			(24,798	)
Unrealized holding losses arising during the period		(163,051	)		—			—			(163,051	)
Unrealized adjustment to DAC		46,042			—			—			46,042
Unrealized losses on investments attributable to participating policyholders’ interest		6,537			—			—			6,537
Actuarial gain arising during the period		—			60,092			—			60,092
Foreign currency adjustment		—			—			62			62
Balance at December 31, 2021	$	149,312		$	546		$	(2,804	)	$	147,054
Amounts reclassified from AOCI		(6,587	)		4,800			—			(1,787	)
Unrealized losses arising during the period		(782,002	)		—			—			(782,002	)
Unrealized adjustment to DAC		157,231			—			—			157,231
Unrealized losses on investments attributable to participating policyholders’ interest		10,648			—			—			10,648
Foreign currency adjustment		—			—			312			312
Ending balance at May 24, 2022	$	(471,398	)	$	5,346		$	(2,492	)	$	(468,544	)

Unrealized gains increased during the year ended December 31, 2023 as a result of a decrease in the benchmark ten-year interest rates and tightening of credit spreads.

Note 14 – Equity and Noncontrolling Interests

Prior to the Merger, ANAT had one class of common stock with a par value of $0.01 per share, with 50,000,000 authorized shares and 26,887,200 outstanding shares (including 10,000 shares of restricted stock). On May 25, 2022, the effective date of the Merger, each issued and outstanding share of the Company's common stock was converted into the right to receive $190.00 in cash without interest pursuant to the Merger Agreement. Refer to Note 1, Nature of Operations, for more information. Subsequent to the closing of the Merger, and effective September 30, 2022, ANAT converted from a corporation to a limited liability company. Following such conversion, there is one outstanding member unit, which is indirectly owned by Brookfield Reinsurance.

Earnings per Share

Prior to the Merger, basic earnings per share were calculated using a weighted average number of shares outstanding. Diluted earnings per share include Restricted Stock (“RS”) awards and Restricted Stock Units (“RSU”) award shares issued in 2019. RSUs issued in 2021 may only be settled in cash. All stock-based compensation awards were settled at the closing of the Merger, with no such awards outstanding as of May 25, 2022.

	Predecessor
	Period from January 1, 2022 through May 24, 2022		Year ended December 31, 2021
Weighted average shares outstanding		26,877,200		26,877,200
Incremental shares from RS awards and RSUs		7,529		7,479
Total shares for diluted calculations		26,884,729		26,884,679
Net income attributable to American National (in thousands)	$	131,050	$	699,325
Basic earnings per share	$	4.88	$	26.02
Diluted earnings per share	$	4.87	$	26.01

Statutory Capital and Surplus

Risk Based Capital (“RBC”) is a measure defined by the National Association of Insurance Commissioners ("NAIC") and is used by insurance regulators to evaluate the capital adequacy of American National's insurance subsidiaries. RBC is calculated using formulas applied to certain financial balances and activities that consider, among other things, investment risks related to the type and quality of investments, insurance risks associated with products and liabilities, interest rate risks and general business risks. Insurance companies that do not maintain capital and surplus at a level at least 100% of the company action level RBC are required to take certain actions.

American National's insurance subsidiaries prepare financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of each subsidiary's state of domicile, which include certain components of the National Association of Insurance Commissioners’ Codification of Statutory Accounting Principles (“NAIC Codification”). NAIC Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting practices continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the statutory capital and surplus of our insurance subsidiaries.

Statutory accounting differs from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus.

American National has been granted a permitted practice from the Texas Department of Insurance to recognize an admitted asset related to the notional value of coverage defined in an excess of loss reinsurance agreement. The permitted practice increases the statutory capital and surplus of American National by $548.2 million at December 31, 2023. The statutory capital and surplus of American National would have remained above authorized control level RBC had it not used the permitted practice.

One of American National’s insurance subsidiaries has been granted a permitted practice from the Missouri Department of Insurance to record as the valuation of its investment in a wholly-owned subsidiary that is the attorney-in-fact for a Texas domiciled insurer, the statutory capital and surplus of the Texas domiciled insurer. This permitted practice increases the statutory capital and surplus of American National Property And Casualty Company ("ANPAC") by $70.6 million and $79.3 million at December 31, 2023 and December 31, 2022, respectively. The statutory capital and surplus of both ANPAC and American National Lloyds Insurance Company would have remained above the authorized control level RBC had it not used the permitted practice.

The statutory capital and surplus and net income (loss) of our life and property and casualty insurance entities in accordance with statutory accounting practices are shown below (in thousands):

	December 31, 2023		December 31, 2022
Statutory capital and surplus
Life insurance entities	$	2,776,265	$	4,207,301
Property and casualty insurance entities		1,701,884		1,768,116

	Years ended December 31,
	2023			2022		2021
Statutory net income (loss)
Life insurance entities	$	(354,917	)	$	353,796	$	956,053
Property and casualty insurance entities		(38,193	)		50,055		383,962

Dividends

We paid a quarterly dividend of $0.82 per share during the three months ended March 31, 2022, prior to the completion of the Merger effective May 25, 2022.

Under the terms of the Merger Agreement with Brookfield Reinsurance, American National was not permitted to pay cash dividends prior to the closing of the Merger, except for quarterly cash dividends of not more than $0.82 per share, with record and payment dates set forth on an agreed schedule that reflected American National’s historical dividend amounts, record dates and payment dates. Consistent with that schedule, American National paid four quarterly cash dividends after the Merger Agreement was signed on August 6, 2021.

On January 1, 2023, ANICO's wholly-owned subsidiary ANH Investments, LLC (“ANH”) distributed the stock of its wholly- owned subsidiary American National Insurance Holdings, Inc. (“ANIH”) to ANICO, and ANICO distributed such stock to ANAT. Such transactions were pursuant to approvals from the domiciliary state insurance regulators of ANICO and the subsidiary insurance companies owned by ANIH as of December 31, 2022. In addition, on January 1, 2023, ANICO distributed its entire interest in its wholly-owned subsidiary, ANTAC, LLC to ANAT.

During the year ended December 31, 2023, ANAT paid dividends of $750.0 million.

Noncontrolling Interest

American National County Mutual Insurance Company (“County Mutual”) is a mutual insurance company owned by its policyholders. ANICO has a management agreement that effectively gives it control of County Mutual. As a result, County Mutual is included in the consolidated financial statements of American National. Policyholder interests in the financial position of County Mutual are reflected as noncontrolling interest of $6.8 million at December 31, 2023 and 2022.

ANAT and its subsidiaries exercise control or ownership of various joint ventures, resulting in their consolidation into American National’s consolidated financial statements. The interests of the other partners in the consolidated joint ventures are shown as a noncontrolling interest of $100.7 million and $67.5 million at December 31, 2023 and December 31, 2022, respectively.

Note 15 – Debt

As a result of the Merger on May 25, 2022, the Company assumed the Term Loan Agreement with a consortium of banks providing for five-year term loans in the aggregate principal amount of $1.5 billion maturing May 23, 2027. Interest is tied to Secured Overnight Financing Rate ("SOFR") and reset and paid quarterly. The all in rate at the end of the fourth quarter was 6.278%. On June 13, 2022, the Company repaid $500 million under the Term Loan Agreement and at December 31, 2023 had $1.0 billion principal amount outstanding. The outstanding debt balance was reduced by $2.6 million in unamortized issuance costs as of December 31, 2023. Interest payments of $64.8 million and $18.5 million were made during the year ended December 31, 2023 and for the period from May 25, 2022 through December 31, 2022, respectively.

In June 2022, the Company issued $500 million of 6.144% unsecured Senior Notes maturing June 13, 2032. Interest is payable in arrears in June and December of each year. Such notes were offered under Rule 144A of the Securities Act of 1933, as amended. The proceeds from the Senior Notes were used to repay a portion of the Term Loan Agreement. The outstanding note balance was reduced by $4.1 million in unamortized issuance costs as of December 31, 2023. Interest payments of $30.8 million and $15.4 million were made during the year ended December 31, 2023 and for the period from May 25, 2022 through December 31, 2022, respectively.

Note 16 – Commitments and Contingencies

Commitments

American National and its subsidiaries lease insurance sales office space, technological equipment, and automobiles. The remaining long-term lease commitments at December 31, 2023 were approximately $13.6 million.

American National had aggregate commitments at December 31, 2023 to purchase, expand or improve real estate, to fund fixed interest rate mortgage loans, and to purchase other invested assets of $1.7 billion, of which $1.2 billion is expected to be funded in 2024, with the remainder of $461.5 million funded in 2025 and beyond.

In addition, the Company had revolving commitments of $112.5 million expected to be funded during 2023 and 2024.

American National had outstanding letters of credit in the amount of $3.5 million as of December 31, 2023 and December 31, 2022.

Federal Home Loan Bank ("FHLB") Agreements

The Company has access to the FHLB’s financial services including advances that provide an attractive funding source for short-term borrowing and for access to other funding agreements. As of December 31, 2023, certain municipal bonds and collateralized mortgage obligations with a fair value of approximately $7.6 million and commercial mortgage loans of approximately $977.4 million were on deposit with the FHLB as collateral for borrowing. As of December 31, 2023, the collateral provided borrowing capacity of approximately $646.1 million. The deposited securities and commercial mortgage loans are included in the Company’s consolidated statements of financial position within fixed maturity securities and mortgage loans on real estate, net of allowance, respectively.

Litigation

American National and certain subsidiaries are defendants in various lawsuits concerning alleged breaches of contracts, various employment matters, allegedly deceptive insurance sales and marketing practices, and miscellaneous other causes of action arising in the ordinary course of operations. Certain of these lawsuits include claims for compensatory and punitive damages. We provide accruals for these items to the extent we deem the losses probable and reasonably estimable. After reviewing these matters with legal counsel, based upon information presently available, management is of the opinion that the ultimate resultant liability, if any, would not have a material adverse effect on American National’s consolidated financial position, liquidity or results of operations; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future.

Such speculation warrants caution, as the frequency of large damage awards, which bear little or no relation to the economic damages incurred by plaintiffs in some jurisdictions, continues to create the potential for an unpredictable judgment in any given lawsuit. These lawsuits are in various stages of development, and future facts and circumstances could result in management changing its conclusions. It is possible that, if the defenses in these lawsuits are not successful, and the judgments are greater than management can anticipate, the resulting liability could have a material impact on our consolidated financial position, liquidity, or results of operations. With respect to the existing litigation, management currently believes that the possibility of a material judgment adverse to American National is remote. Accruals for losses are established whenever they are probable and reasonably estimable. If no one estimate within the range of possible losses is more probable than any other, an accrual is recorded based on the lowest amount of the range.

Note 17 – Related Party Transactions

American National has entered into recurring transactions and agreements with certain related parties. Prior to the Merger, these included mortgage loans, management contracts, agency commission contracts, marketing agreements, health insurance contracts, and legal services. The impact on the consolidated financial statements of significant related party transactions is discussed below.

In 2023, the Company purchased related party investments totaling $4.0 billion, of which $2.2 billion were collateral loans, $1.3 billion in bonds and $492.7 million in common stock and other various investment classes. In 2022, the Company purchased $140.8 million in related party investments, composed of $88.9 million in commercial mortgage loans, and $51.7 million in bonds. Investment transactions with related parties are accounted for in the same manner as those with unrelated parties in the financial statements.

For the year ended December 2023, the Company paid investment management fees due to related party arrangements of $43.4 million. For the period from May 25, 2022 through December 31, 2022, the Company paid investment management fees of $24.2 million.

On November 8, 2022 ANAT and BAMR US Holdings LLC entered into a deposit agreement. The balance at December 31, 2023 and 2022 was $294.3 million and $603.6 million, respectively. The deposit is considered cash and cash equivalent in the Company's consolidated statements of financial position as of December 31, 2023 and 2022.

On August 17, 2023 ANTAC, LLC (a subsidiary of ANAT) and BAMR US Holdings LLC entered into a deposit agreement. The balance at December 31, 2023 was $180.7 million. The deposit is considered cash and cash equivalents in the Company's consolidated statements of financial position as of December 31, 2023.

The Company's subsidiary deposited $250.0 million with the Brookfield Treasury Management Inc (“BTMI”) as of December 31, 2023. This amount is included in cash and cash equivalents. Interest income earned was $2.9 million for the year ended December 31, 2023.

Note 18 – Liability for Future Policy Benefits

The balances and changes in the liability for future policy benefits for the year ended December 31, 2023 and the period from May 25, 2022 through December 31, 2022 are as follows (in thousands):

	December 31, 2023
	Term Life			Whole Life			Annuity			Health
Present value of Expected Net Premiums:
Balance, January 1, 2023	$	2,181,520		$	1,338,304		$	—		$	254,452
Beginning balance at original discount rate		2,400,114			1,425,419			—			262,239
Effect of changes in cash flow assumptions		(348,834	)		(3,650	)		—			35,898
Effect of actual variances from expected experience		(84,388	)		25,538			1,684			(1,438	)
Adjusted beginning of period balance		1,966,892			1,447,307			1,684			296,699
Net issuances (lapses)		38,600			53,299			985,147			(36,816	)
Interest accrual		75,049			45,982			7,820			9,819
Net premiums collected		(146,150	)		(227,487	)		(994,651	)		(36,461	)
Ending balance at original discount rate		1,934,391			1,319,101			—			233,241
Effect of changes in discount rate assumptions		(74,760	)		(34,064	)		—			(10,020	)
Balance, December 31, 2023	$	1,859,631		$	1,285,037		$	—		$	223,221

Present value of Expected Future Policy Benefits:
Balance, January 1, 2023	$	2,694,329		$	2,635,785		$	1,288,034		$	292,528
Beginning balance at original discount rate		2,960,617			2,914,365			1,368,141			303,469
Effect of changes in cash flow assumptions		(357,635	)		(4,505	)		(1,282	)		40,453
Effect of actual variances from expected experience		(84,356	)		25,742			(25,118	)		1,619
Adjusted beginning of period balance		2,518,626			2,935,602			1,341,741			345,541
Net issuances (lapses)		38,485			53,282			990,191			(37,202	)
Interest accrual		94,482			93,533			73,322			11,682
Benefit payments		(108,155	)		(348,860	)		(188,599	)		(39,514	)
Ending balance at original discount rate		2,543,438			2,733,557			2,216,655			280,507
Effect of changes in discount rate assumptions		(99,726	)		(137,193	)		(3,770	)		(14,823	)
Balance, December 31, 2023		2,443,712			2,596,364			2,212,885			265,684

Gross liability for future policy benefits		584,081			1,311,327			2,212,885			42,463
Net liability for future policy benefits		584,081			1,311,327			2,212,885			42,463
Less: Reinsurance recoverable		(44,995	)		—			—			(14,581	)
Net liability for future policy benefits, after reinsurance recoverable	$	539,086		$	1,311,327		$	2,212,885		$	27,882

Weighted-average liability duration of the liability		13.9			17.1			8.0			6.0
Undiscounted expected future benefit payments	$	4,659		$	5,694		$	3,466		$	403
Undiscounted expected gross premiums	$	4,834		$	2,707		$	—		$	470
Gross premiums recognized in statement of operations	$	188,897		$	263,133		$	1,027,430		$	154,593
Interest expense recognized in statement of operations	$	26,821		$	68,015		$	83,470		$	4,281
Interest accretion rate		4.8	%		4.5	%		4.9	%		3.8	%
Current discount rate		5.1	%		5.0	%		4.9	%		4.5	%

Note 18 – Liability for Future Policy Benefits (Continued)

	December 31, 2022
	Term Life			Whole Life			Annuity			Health
Present value of Expected Net Premiums:
Balance, May 25, 2022	$	2,365,603		$	1,477,772		$	—		$	308,925
Beginning balance at original discount rate		2,365,603			1,477,772			—			308,017
Effect of changes in cash flow assumptions		(3,093	)		(1,140	)		—			(1,894	)
Effect of actual variances from expected experience		(28,618	)		13,997			3,228			8,227
Adjusted beginning of period balance		2,333,892			1,490,629			3,228			314,350
Net issuances (lapses)		121,292			34,304			13,050			(28,883	)
Interest accrual		32,751			19,692			45			5,240
Net premiums collected		(87,821	)		(119,206	)		(16,323	)		(28,468	)
Ending balance at original discount rate		2,400,114			1,425,419			—			262,239
Effect of changes in discount rate assumptions		(218,594	)		(87,115	)		—			(7,787	)
Balance, December 31, 2022	$	2,181,520		$	1,338,304		$	—		$	254,452

Present value of Expected Future Policy Benefits:
Balance, May 25, 2022	$	2,896,654		$	2,948,910		$	1,431,862		$	349,347
Beginning balance at original discount rate		2,896,624			2,948,910			1,431,862			348,419
Effect of changes in cash flow assumptions		(3,100	)		(1,129	)		(171	)		7,999
Effect of actual variances from expected experience		(28,730	)		13,994			(571	)		(391	)
Adjusted beginning of period balance		2,864,794			2,961,775			1,431,120			356,027
Net issuances (lapses)		121,291			34,303			12,714			(29,097	)
Interest accrual		40,061			39,506			18,787			5,982
Benefit payments		(65,529	)		(121,219	)		(94,479	)		(29,443	)
Ending balance at original discount rate		2,960,617			2,914,365			1,368,142			303,469
Effect of changes in discount rate assumptions		(266,288	)		(278,580	)		(80,107	)		(10,941	)
Balance, December 31, 2022		2,694,329			2,635,785			1,288,035			292,528

Gross liability for future policy benefits		512,809			1,297,481			1,288,035			38,076
Net liability for future policy benefits		512,809			1,297,481			1,288,035			38,076
Less: Reinsurance recoverable		(53,943	)		—			—			(10,416	)
Net liability for future policy benefits, after reinsurance recoverable	$	458,866		$	1,297,481		$	1,288,035		$	27,660

Weighted-average liability duration of the liability		12.8			18.1			7.8			5.9
Undiscounted expected future benefit payments	$	5,822,884		$	6,231,388		$	2,003,560		$	466,519
Undiscounted expected gross premiums	$	6,222,388		$	2,809,944		$	—		$	571,248
Gross premiums recognized in statement of operations	$	111,515		$	153,458		$	18,089		$	18,840
Interest expense recognized in statement of operations	$	7,311		$	19,814		$	18,742		$	743
Interest accretion rate		4.6	%		4.4	%		4.4	%		4.1	%
Current discount rate		5.4	%		5.3	%		5.2	%		4.7	%

Note 18 – Liability for Future Policy Benefits – (Continued)

The reconciliation of liability for future policy benefits to the liability for future policy benefits in the consolidated statement of financial position follows (in thousands):

	December 31, 2023		December 31, 2022
Term life	$	584,081	$	512,809
Whole life		1,311,327		1,297,481
Annuity		2,212,885		1,288,035
Health		42,463		38,076
Deferred profit liability		129,754		23,896
VOBA		884,291		883,642
Liability for future policy benefits not subject to LDTI		943,158		815,332
Total	$	6,107,959	$	4,859,271

Note 19 – Policyholders' Account Balances

Policyholder account balances relate to investment-type contracts and universal life-type policies. Investment-type contracts principally include traditional individual fixed annuities in the accumulation phase and non-variable group annuity contracts. Policyholder account balances are equal to (i) policy account values, which consist of an accumulation of gross premium payments; (ii) credited interest, ranging from 1.0% to 8.0% (some annuities have enhanced first year crediting rates ranging from 1.0% to 7.0%), less expenses, mortality charges, and withdrawals; and (iii) fair value adjustment.

The balances and changes in policyholders' account balances for the year ended December 31, 2023 and the period from May 25, 2022 through December 31, 2022 were as follows (in thousands):

	December 31, 2023
	Universal Life			Equity Indexed Universal Life			Fixed Deferred Annuity			Equity Indexed Annuity
Balance, January 1, 2023	$	1,286,762		$	613,661		$	7,295,531		$	4,745,678
Issuances		37,320			46,747			3,988,887			392,978
Premiums received		254,619			144,252			23,669			10,264
Policy charges		(266,948	)		(94,736	)		(6,317	)		(33,051	)
Surrenders and withdrawals		(89,114	)		(21,305	)		(1,500,934	)		(631,085	)
Interest credited		35,160			61,772			304,242			239,034
Balance, December 31, 2023	$	1,257,799		$	750,391		$	10,105,078		$	4,723,818

Weighted-average crediting rate		2.7	%		9.1	%		3.5	%		5.1	%
Net amount at risk	$	21,585,998		$	16,354,794		$	—		$	392,017
Cash surrender value	$	1,122,202		$	594,772		$	9,593,887		$	4,088,713

Note 19 – Policyholder Account Balances - (Continued)

	December 31, 2022
	Universal Life			Equity Indexed Universal Life			Fixed Deferred Annuity			Equity Indexed Annuity
Balance, May 25, 2022	$	1,357,668		$	563,314		$	6,922,832		$	4,652,470
Issuances		20,659			24,325			795,563			258,774
Premiums received		145,262			80,554			23,912			1,949
Policy charges		(222,174	)		(51,308	)		(1,434	)		(8,987	)
Surrenders and withdrawals		(29,185	)		(8,653	)		(554,563	)		(184,277	)
Interest credited		21,105			5,429			109,221			14,962
Other		(6,573	)		—			—			10,787
Balance, December 31, 2022	$	1,286,762		$	613,661		$	7,295,531		$	4,745,678

Weighted-average crediting rate		1.60	%		0.90	%		2.70	%		0.50	%
Net amount at risk	$	20,997,901		$	14,901,018		$	—		$	313,347
Cash surrender value	$	1,224,061		$	470,048		$	6,660,479		$	4,238,886

The reconciliation of policyholders’ account balances to the policyholders’ account balances’ liability in the consolidated statement of financial position are shown below (in thousands):

	December 31, 2023		December 31, 2022
Universal life	$	1,257,799	$	1,286,762
Equity indexed universal life		750,391		613,661
Fixed deferred annuity		10,105,078		7,295,531
Equity indexed annuity		4,723,818		4,745,678
Single premium immediate annuity		291,146		304,677
Variable universal life		36,419		42,911
Variable deferred annuity		8,469		16,754
Other		4,356		3,997
Total	$	17,177,476	$	14,309,971

Note 19 – Policyholder Account Balances - (Continued)

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are shown below (in thousands):

		December 31, 2023
	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 - 50 Basis Points Above		51 - 150 Basis Points Above		> 150 Basis Points Above		Total
Universal Life	0.00%-1.00%	$	—	$	—	$	—	$	—	$	—
	1.00%-2.00%	$	22,077	$	2,042	$	11,445	$	—	$	35,564
	2.00%-3.00%		414,979		—		148,086		—		563,065
	Greater than 3.00%		659,170		—		—		—		659,170
	Total	$	1,096,226	$	2,042	$	159,531	$	—	$	1,257,799
Equity Indexed Universal Life	0.00%-1.00%	$	—	$	—	$	—	$	—	$	—
	1.00%-2.00%	$	153,554	$	—	$	133,834	$	391,830	$	679,218
	2.00%-3.00%		—		—		71,173		—		71,173
	Greater than 3.00%		—		—		—		—		—
	Total	$	153,554	$	—	$	205,007	$	391,830	$	750,391
Fixed Deferred Annuity	0.00%-1.00%	$	—	$	—	$	—	$	—	$	—
	1.00%-2.00%	$	302,924	$	382,126	$	1,804,089	$	2,055,022	$	4,544,161
	2.00%-3.00%		746,465		398,243		46,630		4,088,400		5,279,738
	Greater than 3.00%		272,563		6,520		891		1,205		281,179
	Total	$	1,321,952	$	786,889	$	1,851,610	$	6,144,627	$	10,105,078
Equity Indexed Annuity	0.00%-1.00%	$	2,584,504	$	30,135	$	487,196	$	726,897	$	3,828,732
	1.00%-2.00%		381,269		48,009		140,382		82,936		652,596
	2.00%-3.00%		85,543		11,398		9,286		136,263		242,490
	Greater than 3.00%		—		—		—		—		—
	Total	$	3,051,316	$	89,542	$	636,864	$	946,096	$	4,723,818

Note 19 – Policyholder Account Balances - (Continued)

		December 31, 2022
	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 - 50 Basis Points Above		51 - 150 Basis Points Above		> 150 Basis Points Above		Total
Universal Life	0.00%-1.00%	$	—	$	—	$	—	$	—	$	—
	1.00%-2.00%		10,840		2,111		8,614		—		21,565
	2.00%-3.00%		408,839		—		149,034		—		557,873
	Greater than 3.00%		707,324		—		—		—		707,324
	Total	$	1,127,003	$	2,111	$	157,648	$	—	$	1,286,762
Equity Indexed Universal Life	0.00%-1.00%	$	—	$	—	$	—	$	—	$	—
	1.00%-2.00%		389,112		—		27,189		131,530		547,831
	2.00%-3.00%		—		—		65,830		—		65,830
	Greater than 3.00%		—		—		—		—		—
	Total	$	389,112	$	—	$	93,019	$	131,530	$	613,661
Fixed Deferred Annuity	0.00%-1.00%	$	—	$	—	$	—	$	—	$	—
	1.00%-2.00%		510,502		624,421		2,049,501		2,347,188		5,531,612
	2.00%-3.00%		1,012,392		570,158		20,137		56,949		1,659,636
	Greater than 3.00%		97,813		4,947		1,314		209		104,283
	Total	$	1,620,707	$	1,199,526	$	2,070,952	$	2,404,346	$	7,295,531
Equity Indexed Annuity	0.00%-1.00%	$	3,510,442	$	4,454	$	649,207	$	50,374	$	4,214,477
	1.00%-2.00%		250,481		95,273		107,262		9,106		462,122
	2.00%-3.00%		62,643		3,077		3,359		—		69,079
	Greater than 3.00%		—		—		—		—		—
	Total	$	3,823,566	$	102,804	$	759,828	$	59,480	$	4,745,678

Note 20 – Market Risk Benefits

American National classifies the Lifetime Income Rider ("LIR") as an MRB. The LIR is a rider offering guaranteed minimum withdrawal benefits available on certain fixed indexed annuity products.

The balances of and changes in guaranteed minimum withdrawal benefits associated with annuity contracts follow (in thousands).

	For the year ended			For the period from May 25, 2022 through
	December 31, 2023			December 31, 2022
Balance, beginning of period	$	44,010		$	172,012
Effect of changes in the beginning instrument-specific credit risk		26,303			43,734
Effect of model refinements		(13,050	)		—
Effect of non-financial assumption update		—			—
Attributed fees collected		13,175			4,527
Interest Accrual		3,067			2,167
Adjustment from deterministic to stochastic		18,972			12,026
Effect of experience variance		(13,051	)		(4,298	)
Effect of changes in financial assumptions		(79,779	)		(118,573	)
Issuance		1,307			2,451
Balance, end of period, before effect of changes in nonperformance risk		954			114,046
Effect of changes in the ending instrument-specific credit risk		(1,040	)		(70,036	)
Balance, end of period		(86	)		44,010
Reinsurance recoverable, end of period		—			—
Balance, end of period, net of reinsurance	$	(86	)	$	44,010

	December 31, 2023		December 31, 2022
Net amount at risk	$	—	$	453,000
Weighted-average attained age of contract holders amounted		65		64

The reconciliation of market risk benefits by amounts in an asset position and in a liability position to the market risk benefits amount in the consolidated statement of financial position follows (in thousands).

	December 31, 2023
	Asset		Liability		Net
Annuity	$	33,658	$	33,572	$	(86	)

	December 31, 2022
	Asset		Liability		Net
Annuity	$	10,330	$	54,340	$	44,010

Note 21 – Reinsurance

American National reinsures portions of certain life insurance policies to provide a greater diversification of risk and manage exposure on larger risks. For the Property and Casualty segment during 2023, American National retained the first $2.0 million of loss per risk. Reinsurance covered up to $6.0 million of property and liability losses per risk. Additional excess property per risk coverage was purchased to cover risks up to $20.0 million, and excess casualty clash coverage was purchased to cover losses up to $60.0 million. Excess casualty clash covered losses incurred as a result of one casualty event involving multiple policies, excess policy limits and extra contractual obligations. Facultative reinsurance was purchased for individual risks attaching at $20.0 million as needed. Corporate catastrophe coverage was in place for losses up to $500.0 million.

American National remains primarily liable with respect to any reinsurance ceded and would bear the entire loss if the reinsurer does not meet their obligations under any reinsurance treaties. Coverage is placed with reinsurers that are at least A- rated by AM Best or S&P, and the contracts include downgrade triggers allowing for American National to terminate coverage if certain credit related events for a particular reinsurer take place. American National had the following recoverables from reinsurance, net of allowance for credit losses (in thousands):

	December 31,
	2023		2022
Reinsurance recoverables	$	426,911	$	444,170

None of the amount outstanding at December 31, 2023 is the subject of litigation or is in dispute with the reinsurers involved. Management believes the unfavorable resolution of any dispute that may arise likely would not have a material impact on American National’s consolidated financial statements.

The amounts in the consolidated financial statements include the impact of reinsurance. Premiums written and earned and Policyholder benefits and claims are shown below (in thousands):

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through			Year ended
	December 31, 2023			December 31, 2022			May 24, 2022			December 31, 2021
Written
Direct	$	3,923,761		$	1,632,191		$	1,158,793		$	2,650,696
Reinsurance assumed		848,017			492,710			308,648			644,858
Reinsurance ceded		(1,298,586	)		(661,744	)		(425,091	)		(944,194	)
Net	$	3,473,192		$	1,463,157		$	1,042,350		$	2,351,360

Earned
Direct	$	4,072,039		$	1,701,001		$	1,154,084		$	2,716,632
Reinsurance assumed		835,839			208,134			128,191			317,081
Reinsurance ceded		(1,386,431	)		(455,623	)		(302,943	)		(732,660	)
Net	$	3,521,447		$	1,453,512		$	979,332		$	2,301,053

	Successor						Predecessor
	Year ended			Period from May 25, 2022 through			Period from January 1, 2022 through
	December 31, 2023			December 31, 2022			May 24, 2022
Policyholder benefits and claims
Direct	$	3,676,141		$	1,291,218		$	909,782
Reinsurance assumed		398,557			272,136			179,701
Reinsurance ceded		(813,897	)		(375,134	)		(258,464	)
Net	$	3,260,801		$	1,188,220		$	831,019

Note 22 – Pension and Postretirement Benefits

Savings Plans

American National sponsors a qualified defined contribution (401(k) plan) for all employees, and non-qualified defined contribution plans for certain employees whose otherwise eligible earnings exceed the statutory limits under the qualified plans. The total expense associated with matching contributions to these plans was $11.8 million, $11.6 million and $10.8 million for 2023, 2022 and 2021, respectively.

Pension Benefits

American National sponsors qualified and non-qualified defined benefit pension plans, all of which have been frozen. As such, no additional benefits are accrued through these plans for additional years of service credit or future salary increase credit, and no new participants are added to the plans. Benefits earned by eligible employees prior to the plans being frozen have not been affected.

The qualified pension plans are noncontributory. The plans provide benefits for salaried and management employees and corporate clerical employees subject to a collective bargaining agreement based on years of service and employee compensation. The non-qualified pension plans cover key employees and restore benefits that would otherwise be curtailed by statutory limits on qualified plan benefits.

Amounts recognized in the consolidated statements of financial position consist of (in thousands):

	Qualified						Non-qualified

	December 31,
	2023			2022			2023			2022
Reconciliation of benefit obligation
Beginning obligation	$	308,895		$	343,098		$	51,829		$	54,840
Service cost		652			198			—			—
Interest cost on projected benefit obligation		14,598			8,601			2,444			1,195
Actuarial loss		(11,391	)		(25,325	)		(26,304	)		699
Benefits paid		(25,361	)		(17,677	)		(11,776	)		(4,905	)
Obligation at December 31,		287,393			308,895			16,193			51,829
Reconciliation of fair value of plan assets
Beginning fair value of plan assets		473,609			498,994			—			—
Actual return on plan assets		97,763			(7,749	)		—			—
Employer contributions		—			—			11,776			4,905
Benefits paid		(25,414	)		(17,636	)		(11,776	)		(4,905	)
Fair value of plan assets at December 31,		545,958			473,609			—			—
Funded status at December 31,	$	258,565		$	164,714		$	(16,193	)	$	(51,829	)

The components of net periodic benefit cost for the defined benefit pension plans are shown below (in thousands):

	Successor						Predecessor
	December 31, 2023			December 31, 2022			December 31, 2021
Service cost	$	652		$	198		$	589
Interest cost		17,042			9,796			11,207
Expected return on plan assets		(28,495	)		(15,561	)		(25,921	)
Amortization of net actuarial loss		249			—			7,628
Settlement Recognition		35			—			1,973
Net periodic benefit cost	$	(10,517	)	$	(5,567	)	$	(4,524	)

Note 22 – Pension and Postretirement Benefits - (Continued)

Amounts related to the defined benefit pension plans recognized as a component of AOCI are shown below (in thousands):

	Successor						Predecessor
	December 31, 2023			December 31, 2022			December 31, 2021
Actuarial gain	$	107,215		$	1,469		$	85,666
Deferred tax expense		(22,515	)		(308	)		(17,990	)
Other comprehensive income, net of tax	$	84,700		$	1,161		$	67,676

Amounts recognized as a component of AOCI that have not been recognized as a component of the combined net periodic benefit cost of the defined benefit pension plans, are shown below (in thousands):

	Successor						Predecessor
	December 31, 2023			December 31, 2022			December 31, 2021
Net actuarial gain	$	108,684		$	1,469		$	690
Deferred tax expense		(22,824	)		(308	)		(144	)
Amounts included in AOCI	$	85,860		$	1,161		$	546

The weighted average assumptions used are shown below:

	Qualified						Non-qualified
	Used for Net Benefit Cost for year ended December 31, 2023			Used for Benefit Obligations as of December 31, 2023			Used for Net Benefit Cost for year ended December 31, 2023			Used for Benefit Obligations as of December 31, 2023
Discount rate		5.44	%		5.18	%		5.32	%		5.07	%
Long-term rate of return		6.25	%		—	%		—	%		—	%

American National’s funding policy for the qualified pension plans is to make annual contributions to meet the minimum funding standards of the Pension Protection Act of 2006. American National and its affiliates did not contribute to its qualified plans in 2023 and 2022 due to the substantial contribution over minimum funding standards of $60.0 million made in 2018. The benefits paid from the non-qualified plans were $11.8 million and $4.9 million in 2023 and 2022, respectively. Future payments from the non-qualified pension benefit plans will be funded out of general corporate assets.

The following table shows pension benefit payments expected to be paid (in thousands):

2024	$	35,770
2025		25,884
2026		25,403
2027		25,007
2028		24,634
2029-2033		110,327

Note 22 – Pension and Postretirement Benefits - (Continued)

American National utilizes third-party pricing services to estimate fair value measurements of its pension plan assets. Refer to Note 9, Fair Value of Financial Instruments for further information concerning the valuation methodologies and related inputs utilized by the third-party pricing services. The fair values (hierarchy measurements) of the pension plan assets by asset category are shown below (in thousands):

	December 31, 2023
	Total		Level 1		Level 2		Level 3
Asset Category
Corporate debt securities	$	107,777	$	—	$	104,664	$	3,113
Collateralized debt securities		1,507		—		1,507		—
Residential mortgage-backed securities		—		—		—		—
Equity securities by sector
Communications Services		33,108		33,108		—		—
Consumer Discretionary		43,011		43,011		—		—
Consumer Staples		24,963		24,963		—		—
Energy		15,321		15,321
Finance		66,517		66,517		—		—
Healthcare		52,343		52,343		—		—
Industrials		37,956		37,956		—		—
Information Technology		117,821		117,821		—		—
Materials		11,957		11,957		—		—
Real Estate		18,932		18,932		—		—
Utilities		9,031		9,031		—		—
Other		3,834		3,834		—		—
Commercial paper		—		—		—		—
Unallocated group annuity contract		1,234		—		1,234		—
Other		646		646		—		—
Total	$	545,958	$	435,440	$	107,405	$	3,113

	December 31, 2022
	Total		Level 1		Level 2		Level 3
Asset Category
Corporate debt securities	$	119,353	$	—	$	119,353	$	—
Collateralized debt securities		1,525		—		1,525		—
Residential mortgage-backed securities		30		—		30		—
Equity securities by sector
Communications Services		23,059		23,059		—		—
Consumer Discretionary		32,047		32,047		—		—
Consumer Staples		23,345		23,345		—		—
Energy		16,176		16,176		—		—
Finance		46,463		46,463		—		—
Healthcare		52,476		52,476		—		—
Industrials		30,721		30,721		—		—
Information Technology		87,616		87,616		—		—
Materials		9,564		9,564		—		—
Real Estate		14,352		14,352		—		—
Utilities		9,755		9,755		—		—
Other		2,951		2,951		—		—
Commercial paper		358		—		358		—
Unallocated group annuity contract		174		—		174		—
Other		3,644		3,644		—		—
Total	$	473,609	$	352,169	$	121,440	$	—

Note 22 – Pension and Postretirement Benefits - (Continued)

The investment policy for the retirement plan assets is designed to provide the highest return commensurate with sound and prudent underwriting practices. The investment diversification goals are to have investments in cash and cash equivalents as necessary for liquidity, debt securities up to 100% and equity securities up to 75% of the total invested plan assets. The amount invested in any particular investment is limited based on credit quality, and no single investment may at the time of purchase be more than 5% of the total invested assets.

The corporate debt securities category are investment grade bonds of U.S. and foreign issuers denominated and payable in U.S. dollars from diverse industries, with a maturity of 1 to 30 years. Foreign bonds in the aggregate shall not exceed 20% of the bond portfolio. Residential mortgage-backed securities represent asset-backed securities with a maturity date of 1 to 30 years with a Level 1 or 2 rating.

Equity portfolio managers have discretion to choose the degree of concentration in various issues and industry sectors for the equity securities. Permitted securities are those for which there is an active market providing liquidity for the specific security. Commercial paper investments generally have a credit rating of A2 by Moody’s or P2 by Standard & Poor’s with at least BBB rating on the issuer’s outstanding debt, or selected issuers with no outstanding debt.

Postretirement Life and Health Benefits

Under American National’s various group benefit plans for active employees, life insurance benefits are provided upon retirement for eligible participants who meet certain age and length of service requirements.

The accrued postretirement benefit obligation, included in the liability for retirement benefits, was $7.9 million and $7.4 million at December 31, 2023 and 2022, respectively. These amounts were approximately equal to the unfunded accumulated postretirement benefit obligation.

Note 23 – Segment Information

Management organizes the business into four operating segments:

•

Life—consists of whole, term, universal, indexed and variable life insurance. Products are primarily sold through career, multiple-line, and independent agents as well as direct marketing channels.

•

Annuity—consists of fixed, indexed, and variable annuity products. Products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents.

•

Property and Casualty—consists of personal, agricultural and targeted commercial coverages and credit-related property insurance. Products are primarily sold through multiple-line and independent agents or managing general agents. There are also small amounts of Health insurance, consisting of Medicare Supplement, stop-loss, other supplemental health products and credit disability insurance. Products are typically distributed through independent agents and managing general underwriters.

•

Corporate and Other—consists of net investment income from investments and certain expenses not allocated to the insurance segments and revenues and related expenses from non-insurance operations.

The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies and Practices, of the Notes to the Consolidated Financial Statements. All revenues and expenses specifically attributable to policy transactions are recorded directly to the appropriate operating segment. Revenues and expenses not specifically attributable to policy transactions are allocated to each segment as follows:

•

Recurring income from bonds and mortgage loans is allocated based on the assets allocated to each segment at the average yield available from these assets.

•

Net investment income from all other assets is allocated to the insurance segments in accordance with the amount of capital allocated to each segment, with the remainder recorded in the Corporate and Other segment.

•

Expenses are charged to segments through direct identification and allocations based upon various factors.

The key measure used by the CODM in assessing performance and in making resource allocation decisions is Income before federal income tax and other items.

The following summarizes total assets by operating segments (in thousands):

	As of December 31,
	2023		2022
Total assets
Life	$	7,182,398	$	6,144,188
Annuity		20,186,149	$	17,268,259
Property and Casualty		4,881,396	$	4,092,530
Corporate and Other		3,635,103	$	2,039,230
Total	$	35,885,046	$	29,544,207

The results of operations measured as the income before federal income taxes and other items by operating segments are summarized below (in thousands):

	Successor
	Year ended December 31, 2023
	Life			Annuity			Property and Casualty			Corporate and Other			Total
PREMIUMS AND OTHER REVENUES
Premiums	$	428,230		$	1,027,725		$	2,065,492		$	—		$	3,521,447
Other policy revenues		372,025			42,224			—			—			414,249
Net investment income		368,209			875,002			165,897			92,052			1,501,160
Net realized investment gains		—			—			—			(73,311	)		(73,311	)
Decrease in investment credit loss		—			—			—			(26,648	)		(26,648	)
Net gains on equity securities		—			—			—			96,827			96,827
Other income		—			—			—			83,375			83,375
Total premiums and other revenues	$	1,168,464		$	1,944,951		$	2,231,389		$	172,295		$	5,517,099
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits and claims incurred	$	(664,031	)	$	(1,067,179	)	$	(1,529,591	)	$	—		$	(3,260,801	)
Change in fair value of market risk benefits		—			69,310			—			—			69,310
Interest credited to policyholders' account balances		(97,105	)		(530,738	)		—			—			(627,843	)
Future policy benefit remeasurement losses		16,449			(37,214	)		(7,612	)		—			(28,377	)
Other operating expenses		(227,234	)		(95,036	)		(189,985	)		(200,866	)		(713,121	)
Amortization of deferred policy acquisition costs		(38,504	)		(19,266	)		(462,905	)		—			(520,675	)
Total benefits, losses and expenses	$	(1,010,425	)	$	(1,680,123	)	$	(2,190,093	)	$	(200,866	)	$	(5,081,507	)
Income before federal income tax and other items	$	158,039		$	264,828		$	41,296		$	(28,571	)	$	435,592

	Successor
	Period from May 25, 2022 through December 31, 2022
	Life			Annuity			Property and Casualty			Corporate and Other			Total
PREMIUMS AND OTHER REVENUES
Premiums	$	253,508		$	15,723		$	1,184,281		$	—		$	1,453,512
Other policy revenues		210,211			15,529			—			—			225,740
Net investment income		79,021			387,521			75,229			120,745			662,516
Net realized investment gains		—			—			—			(22,889	)		(22,889	)
Decrease in investment credit loss		—			—			—			(65,298	)		(65,298	)
Net gains on equity securities		—			—			—			49,360			49,360
Other income		—			—			—			24,112			24,112
Total premiums and other revenues	$	542,740		$	418,773		$	1,259,510		$	106,030		$	2,327,053
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits and claims incurred	$	(361,256	)	$	(21,917	)	$	(805,047	)	$	—		$	(1,188,220	)
Change in fair value of market risk benefits		—			101,699			—			—			101,699
Interest credited to policyholders' account balances		(29,645	)		(126,301	)		—			—			(155,946	)
Future policy benefit remeasurement losses		359			(574	)		(1,275	)		—			(1,490	)
Other operating expenses		(105,047	)		(51,431	)		(101,331	)		(107,880	)		(365,689	)
Amortization of deferred policy acquisition costs		(41,916	)		(3,504	)		(276,212	)		—			(321,632	)
Total benefits, losses and expenses	$	(537,505	)	$	(102,028	)	$	(1,183,865	)	$	(107,880	)	$	(1,931,278	)
Income before federal income tax and other items	$	5,235		$	316,745		$	75,645		$	(1,850	)	$	395,775

	Predecessor
	Period from January 1, 2022 through May 24, 2022
	Life			Annuity			Property and Casualty			Corporate and Other			Total
PREMIUMS AND OTHER REVENUES
Premiums	$	174,290		$	10,221		$	794,821		$	—		$	979,332
Other policy revenues		148,690			9,825			—			—			158,515
Net investment income		45,898			225,083			43,695			70,132			384,808
Net realized investment gains		—			—			—			21,073			21,073
Decrease in investment credit loss		—			—			—			(14,857	)		(14,857	)
Net gains on equity securities		—			—			—			(13,082	)		(13,082	)
Other income		—			—			—			18,887			18,887
Total premiums and other revenues	$	368,878		$	245,129		$	838,516		$	82,153		$	1,534,676
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits and claims incurred	$	(255,482	)	$	(35,847	)	$	(539,690	)	$	—		$	(831,019	)
Interest credited to policyholders' account balances		(4,798	)		(48,027	)		—			—			(52,825	)
Other operating expenses		(83,527	)		(32,231	)		(69,798	)		(70,662	)		(256,218	)
Amortization of deferred policy acquisition costs		(51,399	)		(9,301	)		(166,708	)		—			(227,408	)
Total benefits, losses and expenses	$	(395,206	)	$	(125,406	)	$	(776,196	)	$	(70,662	)	$	(1,367,470	)
Income before federal income tax and other items	$	(26,328	)	$	119,723		$	62,320		$	11,491		$	167,206

	Predecessor
	Year ended December 31, 2021
	Life			Annuity			Property and Casualty			Corporate and Other			Total
PREMIUMS AND OTHER REVENUES
Premiums	$	412,769		$	74,925		$	1,813,359		$	—		$	2,301,053
Other policy revenues		336,136			23,571			—			—			359,707
Net investment income		277,962			629,417			70,293			193,982			1,171,654
Net realized investment gains		—			—			—			64,628			64,628
Decrease in investment credit loss		—			—			—			28,778			28,778
Net gains on equity securities		—			—			—			420,283			420,283
Other income		1,577			3,282			37,550			3,279			45,688
Total premiums and other revenues	$	1,028,444		$	731,195		$	1,921,202		$	710,950		$	4,391,791
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits and claims incurred		(605,724	)		(149,931	)		(1,192,155	)	$	—		$	(1,947,810	)
Interest credited to policyholders' account balances		(84,005	)		(364,649	)		—			—			(448,654	)
Other operating expenses		(219,699	)		(52,250	)		(230,019	)		(67,593	)		(569,561	)
Amortization of deferred policy acquisition costs		(111,764	)		(77,133	)		(373,876	)		—			(562,773	)
Total benefits, losses and expenses	$	(1,021,192	)	$	(643,963	)	$	(1,796,050	)	$	(67,593	)	$	(3,528,798	)
Income before federal income tax and other items	$	7,252		$	87,232		$	125,152		$	643,357		$	862,993

Note 24 - Subsequent Events

The Company evaluated all events and transactions through July 31, 2024, the date the accompanying consolidated financial statements were available to be issued.

On March 1, 2024, certain insurance company subsidiaries of the Company entered into a series of transactions with Core Specialty Insurance Holdings, Inc. ("Core Specialty") for the transfer of American National's Specialty Markets Group "SMG" to Core Specialty. Under prospective quota share reinsurance agreements with Core Specialty, Core Specialty will reinsure 100% of the SMG business (net of applicable reinsurance) commencing January 1, 2024 until such time that necessary product filings have been approved and Core Specialty is writing SMG new and renewal business.

In January 2024, the Company announced a Retirement Incentive Offer to certain eligible employees who have reached age 60 and are pension-eligible under the frozen pension plan. Employees who elect to accept the offer will receive a pension benefit that was enhanced by an additional 1% for each year of service and continued health insurance coverage or medical cash benefits subject to conditions. For employees accepting the offer, final date of employment generally was February 29, 2024.

On May 7, 2024, pursuant to an Agreement and Plan of Merger by and between the Company and American Equity Investment Life Holding Company, an Iowa corporation (“AEL”), the Company merged with and into AEL, with AEL as the surviving entity (the “AEL Merger”). Previously, on May 2, 2024, AEL became an indirect, wholly-owned subsidiary of Brookfield Reinsurance, pursuant to an Agreement and Plan of Merger by and among AEL, Brookfield Reinsurance, and Arches Merger Sub Inc., an Iowa corporation and an indirect, wholly-owned subsidiary of Brookfield Reinsurance. In connection with the AEL Merger, AEL expressly assumed all of the Company’s obligations with respect to the $500 million aggregate principal amount of 6.144% unsecured Senior Notes issued by the Company due June 13, 2032. Following the AEL Merger, and pursuant to a Plan of Domestication dated as of May 7, 2024, AEL discontinued its existence as an Iowa corporation and continued its existence as a Delaware corporation, pursuant to applicable Iowa and Delaware laws, and changed its name to American National Group Inc. (“ANG”). ANGI will file periodic reports as required with the U.S. Securities and Exchange Commission with respect to its Series A Preferred Stock and Series B Preferred Stock, listed on the New York Stock Exchange under the ticker symbols “ANGPRA” and “ANGPRB”, respectively.

AMERICAN NATIONAL GROUP, LLC AND SUBSIDIARIES
SCHEDULE I – SUMMARY OF INVESTMENTS, OTHER THAN INVESTMENTS IN RELATED PARTIES
December 31, 2023

The financial information required under Schedule I is included within the Company’s statement of financial position and notes 4, 5, 6, 9, and 17 within the notes to the consolidated financial statements.

AMERICAN NATIONAL GROUP, LLC (Parent Company Only)

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF FINANCIAL POSITION

(In thousands)

	December 31,
	2023			2022
ASSETS
Equity securities	$	903,347		$	—
Short-term investments		—			14,979
Cash and cash equivalents		303,497			634,694
Investment in subsidiaries		6,080,964			4,555,326
Other assets		19,705			178
Total assets		7,307,513			5,205,177
LIABILITIES
Long-term debt		1,498,696			1,503,400
Other liabilities		17,495			20,592
Total liabilities		1,516,191			1,523,992
EQUITY
Additional paid-in capital		5,184,682			3,805,072
Accumulated other comprehensive income		(109,196	)		(447,707	)
Retained earnings		715,836			323,820
Total equity		5,791,322			3,681,185
Total liabilities and equity	$	7,307,513		$	5,205,177

AMERICAN NATIONAL GROUP, LLC (Parent Company Only)

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF OPERATIONS

(In thousands)

	Successor						Predecessor
	Year ended December 31, 2023			Period from May 25, 2022 through December 31, 2022			Period from January 1, 2022 through May 24, 2022			Year ended December 31, 2021
PREMIUMS AND OTHER REVENUES
Net investment income	$	22,637		$	8,516		$	72		$	—
Net gains on equity securities		1,080			—			—			—
Total premiums and other revenues		23,717			8,516			72			—
BENEFITS, LOSSES AND EXPENSES
Other operating expenses		113,636			59,718			39,096			25,802
Total benefits, losses and expenses		113,636			59,718			39,096			25,802
Income (loss) before federal income tax and other items		(89,919	)		(51,202	)		(39,024	)		(25,802	)
Provision (benefit) for federal income taxes		(25,353	)		(8,127	)		(5,575	)		(2,972	)
Income from subsidiaries, net of tax		456,582			366,895			164,499			722,155
Net income	$	392,016		$	323,820		$	131,050		$	699,325

AMERICAN NATIONAL GROUP, LLC (Parent Company Only)

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

	Successor					Predecessor
	Year ended December 31, 2023		Period from May 25, 2022 through December 31, 2022			Period from January 1, 2022 through May 24, 2022			Year ended December 31, 2021
Net income	$	392,016	$	323,820		$	131,050		$	699,325
Other comprehensive income (loss), net of tax
Other comprehensive income (loss) from subsidiaries		338,511		(447,707	)		(615,598	)		(75,116	)
Total other comprehensive income (loss), net of tax		338,511		(447,707	)		(615,598	)		(75,116	)
Total comprehensive income (loss)	$	730,527	$	(123,887	)	$	(484,548	)	$	624,209

AMERICAN NATIONAL GROUP, LLC (Parent Company Only)
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF CASH FLOWS
(In thousands)

	Successor						Predecessor
	Year ended December 31, 2023			Period from May 25, 2022 through December 31, 2022			Period from January 1, 2022 through May 24, 2022			Year ended December 31, 2021
OPERATING ACTIVITIES
Net income	$	392,016		$	323,820		$	131,050		$	699,325
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net gains on equity securities		(1,080	)		—			—			—
Deferred federal income tax expense (benefit)		(11,322	)		(155	)		(1,553	)		(1,439	)
Equity in earnings of subsidiaries		(456,582	)		(366,895	)		(164,499	)		(722,155	)
Dividends from subsidiaries		557,100			641,300			46,525			150,000
Changes in:
Current tax receivable/payable		—			—			—			9,195
Other, net		1,492			1,674			(37,634	)		(3,913	)
Net cash provided by (used in) operating activities		481,624			599,744			(26,111	)		131,013
INVESTING ACTIVITIES
Investment in subsidiaries		(77,800	)		—			—			—
Change in short-term investments		14,979			(14,979	)		—			—
Net cash provided by (used in) investing activities		(62,821	)		(14,979	)		—			—
FINANCING ACTIVITIES
Issuance of equity		—			45,000			—			—
Borrowings from related parties		—			5,371			—			—
Borrowings from external parties		—			500,000			—			—
Repayment of borrowings to external parties		—			(507,579	)		—			—
Debt issuance costs		—			(5,146	)		—			—
Dividends to stockholders		(750,000	)		—			(22,048	)		(88,190	)
Net cash provided by (used in) financing activities		(750,000	)		37,646			(22,048	)		(88,190	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(331,197	)		622,411			(48,159	)		42,823
Beginning of the period		634,694			12,283			60,442			17,619
End of the period	$	303,497		$	634,694		$	12,283		$	60,442

Supplemental cash flow information:
Equity contribution and invested assets received	$	2,129,610		$	—		$	—		$	—
Investment in subsidiaries contribution	$	(1,230,541	)	$	—		$	—		$	—

AMERICAN NATIONAL GROUP, LLC (Parent Company Only)

SCHEDULE II - NOTES TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Basis of presentation

The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes therein.

In the parent company only condensed financial statements, ANAT’s investments in subsidiaries are accounted for using the equity method of accounting. Intercompany balances and transactions with subsidiaries have been eliminated.

AMERICAN NATIONAL GROUP, LLC AND SUBSIDIARIES

SCHEDULE III – SUPPLEMENTARY INSURANCE INFORMATION

The supplemental insurance information presented below (in thousands):

Segment	DAC, including VOBA		FPB, PAB, MRB, Policy and Contract Claims and Other Policyholder Funds		Unearned premiums		Premium revenue		Net Investment Income ⁽¹⁾		Policyholder benefits and claims incurred and interest credited to policyholders’ account balances		Amortization of DAC and VOBA		Other Operating Expenses ⁽²⁾		Net premiums written
2023
Life	$	519,153	$	5,872,230	$	—	$	428,230	$	368,209	$	744,687	$	38,504	$	227,234	$	—
Annuity		236,980		17,874,431		—		1,027,725		875,002		1,635,131		19,266		95,036		—
Property and casualty		188,336		1,777,208		1,138,937		2,065,492		165,897		1,537,203		462,905		189,985		2,057,292
Corporate and Other		—		—		—		—		92,052		—		—		200,866		—
Total	$	944,469	$	25,523,869	$	1,138,937	$	3,521,447	$	1,501,160	$	3,917,021	$	520,675	$	713,121	$	2,057,292

Period from May 25, 2022 through December 31, 2022
Life	$	417,323	$	5,479,707	$	—	$	253,508	$	79,021	$	390,542	$	41,916	$	105,047	$	—
Annuity		89,805		14,209,236		—		15,723		387,521		148,792		3,504		51,431		—
Property and casualty		192,024		1,642,981		1,085,882		1,184,281		75,229		806,322		276,212		101,331		1,122,515
Corporate and Other		—		—		—		—		120,745		—		—		107,880		—
Total	$	699,152	$	21,331,924	$	1,085,882	$	1,453,512	$	662,516	$	1,345,656	$	321,632	$	365,689	$	1,122,515

Period from January 1, 2022 through May 24, 2022
Life							$	174,290	$	45,898	$	260,280	$	51,399	$	83,527	$	—
Annuity								10,221		225,083		83,874		9,301		32,231		—
Property and casualty								794,821		43,695		539,690		166,708		69,798		805,751
Corporate and Other								—		70,132		—		—		70,662		—
Total							$	979,332	$	384,808	$	883,844	$	227,408	$	256,218	$	805,751

2021
Life	$	956,045	$	5,662,057	$	22,152	$	412,769	$	277,962	$	605,724	$	111,764	$	219,699	$	—
Annuity		380,472		13,643,790		—		74,925		629,417		149,931		77,133		52,250		—
Property and Casualty		161,607		1,505,897		991,678		1,813,359		70,293		1,192,155		373,876		230,019		1,726,151
Corporate and Other		—		—		—		—		193,982		—		—		67,593		—
Total	$	1,498,124	$	20,811,744	$	1,013,830	$	2,301,053	$	1,171,654	$	1,947,810	$	562,773	$	569,561	$	1,726,151

⁽¹⁾

Net investment income from fixed income assets (bonds and mortgage loans on real estate) is allocated to insurance lines based on the funds generated by each line at the average yield available from these fixed income assets at the time such funds become available. Net investment income from policy loans is allocated to the insurance lines according to the amount of loans made by each line. Net investment income from all other assets is allocated to the insurance lines as necessary to support the equity assigned to that line with the remainder allocated to capital and surplus.

⁽²⁾	Expenses are charged to segments through direct identification and allocations based on various factors.

AMERICAN NATIONAL GROUP, LLC AND SUBSIDIARIES

SCHEDULE IV - REINSURANCE INFORMATION

(In thousands)

	Direct Amount		Ceded to Other Companies		Assumed from Other Companies		Net Amount		Percentage of Amount Assumed to Net
Year ended December 31, 2023
Life insurance in-force	$	139,898,739	$	20,019,833	$	120,496	$	119,999,402		0.1	%
Premiums earned
Life	$	507,407	$	84,348	$	5,171	$	428,230		1.2	%
Annuity		1,027,725		—		—		1,027,725		—	%
Property and Casualty		2,337,896		1,302,162		1,029,758		2,065,492		49.9	%
Total premiums	$	3,873,028	$	1,386,510	$	1,034,929	$	3,521,447		29.4	%

Period from May 25, 2022 through December 31, 2022
Life insurance in-force	$	142,903,807	$	22,026,691	$	222,104	$	121,099,220		0.2	%
Premiums earned
Life	$	299,332	$	48,807	$	2,983	$	253,508		1.2	%
Annuity		15,723		—		—		15,723		—	%
Property and Casualty		1,307,239		599,917		476,959		1,184,281		40.3	%
Total premiums	$	1,622,294	$	648,724	$	479,942	$	1,453,512		33.0	%

Period from January 1, 2022 through May 24, 2022
Premiums earned
Life	$	212,020	$	39,760	$	2,030	$	174,290		1.2	%
Annuity		10,221		—		—		10,221		—	%
Property and Casualty		875,502		363,401		282,720		794,821		35.6	%
Total premiums	$	1,097,743	$	403,161	$	284,750	$	979,332		29.1	%

Year ended December 31, 2021
Life insurance in-force	$	136,710,529	$	22,835,954	$	221,023	$	114,095,598		0.2	%
Premiums earned
Life	$	495,950	$	88,264	$	5,083	$	412,769		1.2	%
Annuity		74,925		—		—		74,925		—	%
Property and Casualty		2,145,757		644,396		311,998		1,813,359		17.2	%
Total premiums	$	2,716,632	$	732,660	$	317,081	$	2,301,053		13.8	%

Cover	Jul. 31, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 31, 2024
Entity File Number	001-31911
Entity Registrant Name	AMERICAN NATIONAL GROUP INC.
Entity Central Index Key	0001039828
Entity Tax Identification Number	42-1447959
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	6000 Westown Parkway
Entity Address, City or Town	West Des Moines
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	50266
City Area Code	515
Local Phone Number	221-0002
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Series A Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A
Trading Symbol	ANGpA
Security Exchange Name	NYSE
Series B Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B
Trading Symbol	ANGpB
Security Exchange Name	NYSE

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