American Nationwide Insurance coverage Co.had a disappointing 2018 as revenues slipped and income plunged by greater than two-thirds. It didn’t make the Houston Chronicle’s checklist of the area’s prime performing public corporations.
However the Galveston firm got here roaring again in 2019 to leap to the No. 1 spot on the Chronicle 100. The corporate’s revenues climbed greater than 20 % to $4.1 billion from $3.Three billion in 2018. Earnings almost quadrupled to $620 million from $159 million, as did earnings per share, a key metric within the Chronicle 100 rankings.
American Nationwide’s earnings per share jumped to $23.07 from $5.91 in 2018.
American Nationwide was based in 1905 and at the moment gives a broad array of insurance policies — auto, life, well being, householders, enterprise and farm and ranch insurance coverage in addition to annuities — in all 50 states and employs greater than 4,600.
The corporate is managed by the Libbie Shearn Moody Belief and the Moody Basis, which personal 36.9 % and 22.7 %, respectively, or almost 60 % mixed.
The Moody Basis is a charitable belief in Galveston, a legacy of William Lewis Moody Jr., a outstanding Galveston businessman who additionally based what’s now Moody Nationwide Bank. The Libbie Shearn Moody Belief is the belief established from the property of his spouse, Libbie Shearn Moody.
American Nationwide, together with Moody Bank and the Moody Basis, are headquartered at One Moody Plaza in Galveston. American Nationwide additionally maintains a big presence in League Metropolis, the place it has three buildings.
American Nationwide’s leap to the highest of the Chronicle 100 was partially resulting from its disappointing efficiency in 2018, which the corporate attributed largely to modifications in accounting steering. However 2019’s income had been nonetheless greater than 25 % above the $494 million earned in 2017, one other stellar yr aided by the company tax cuts enacted by a Republican Congress and signed into regulation by President Donald Trump.
The value of the corporate’s belongings hit a file $28.6 billion on the finish of 2019, up 6 % from the earlier years, based on American Nationwide’s annual report. Paid, lively life insurance coverage insurance policies additionally rose to file ranges, climbing by $7.7 billion, or about 7 %, to $118.1 billion
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Executives at American Nationwide didn’t reply to requests for interviews.
Like different private insurance coverage corporations, the coronavirus pandemic is buffeting American Nationwide as prospects search rebates on automotive insurance coverage as they drive much less, claims on life insurance coverage enhance as folks die from COVID-19, and financial situations deteriorate, inflicting prospects to drop protection in addition to hurting the value of investments.
American Nationwide Insurance coverage reported a steep lack of $220 million within the first quarter of 2020 in contrast with a $258 million revenue within the first quarter of 2019. In firm filings, executives blamed the poor first quarter efficiency on COVID-19, which executives famous, disrupted the economic system and monetary markets. Because the disaster progresses, executives wrote to shareholders, COVID-19 may additionally trigger a rise in claims whereas lowering gross sales.
In a submitting with the Securities and Trade Fee on the finish of 2019, the corporate warned stockholders that an financial downturn may “impair the ability of our customers to pay premiums as they come due.”
American Nationwide Insurance coverage, which relies in Galveston, merged with its sister firm American Nationwide Group in a deal that closed July 1. It doesn’t change a lot for shareholders; they maintain the identical quantity of stock in what’s now American Nationwide Group Inc., buying and selling on the NASDAQ underneath the identical ticker, “ANAT.”