American National Group Inc. (ANGI) reported significant financial developments in its 10-Q filing for the three and nine months ended September 30, 2024, following its merger with American Equity Investment Life Holding Company (AEL) on May 2, 2024. The merger has substantially impacted the company's financial metrics, leading to a notable increase in total assets and revenues.

For the third quarter of 2024, net premiums reached $888 million, up from $784 million in the same period of 2023. For the nine months, net premiums totaled $3,037 million, compared to $2,567 million in the prior year. This growth is primarily attributed to the expansion of the Pension Risk Transfer (PRT) business, which saw premiums rise to $285 million in Q3 2024 from $149 million in Q3 2023, and $1.2 billion for the nine months, up from $700 million.

Total revenues for Q3 2024 were reported at $2,004 million, a significant increase from $1,264 million in Q3 2023. For the nine months, total revenues reached $5,789 million, compared to $3,893 million in the same period last year. The increase in revenues was bolstered by net investment income, which surged to $1,024 million in Q3 2024 from $375 million in Q3 2023, and $2,396 million for the nine months, up from $1,020 million.

Despite the revenue growth, the company reported a net loss of $(288) million for Q3 2024, contrasting with a net income of $54 million in Q3 2023. For the nine months, net income was $29 million, down from $166 million in the previous year. The losses were attributed to increased policyholder benefits and claims, which rose to $846 million in Q3 2024 from $717 million in Q3 2023, and total benefits and expenses for the quarter increased to $2,413 million from $1,200 million.

The merger with AEL also resulted in a substantial increase in total assets, which reached $123,659 million as of September 30, 2024, compared to $34,876 million a year earlier. This increase was primarily due to the acquisition of $81,200 million in assets from AEL. Additionally, cash and cash equivalents rose significantly to $13,873 million from $2,264 million, reflecting the cash influx from the merger.

The company’s operating expenses increased to $228 million in Q3 2024, up from $147 million in Q3 2023, largely due to the inclusion of AEL's operating expenses. The effective tax rate for the quarter was 18.8%, compared to 14.1% in the previous year.

Overall, the merger has positioned American National Group Inc. for growth, although it faces challenges in managing increased claims and expenses in the wake of its expanded operations.