Texas-based US insurer American National Group Inc. up for sale

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Texas-based US insurer American National Group Inc. up for sale

American National Group Inc., the century-old American life insurance company headquartered on Galveston, Texas, had been brewing off options which could include a potential sale of the US insurer, people familiar with the subject-matter had unveiled late on Tuesday on condition of anonymity given the scale of sensitivity of the issue.

Although, it has not been immediately clear what had prodded the insurer to explore a potential sale, though analysts were quoted saying following reveal of the media topline that a cascade of corporate owners had accelerated efforts on potential divestitures of their assets following a proposed hike in taxations in inheritance and capital gains by the US President Joe Biden.

Founded back in the 1905 by a William Lewis Moody Jr., the founder’s family has still holding a controlling stake in the company through wide-ranging trust and holdings, making the insurer utterly vulnerable to a likely doubling up of taxations in capital gains and inheritance as proposed by the Biden Administration.

US insurer American National Group explores sale, shares snowball

On top of that, followed by the reveal of media headline late in the day as beforementioned, shares’ prices of American National mushroomed to their strongest level in more than two years, wrapping up the day 16.1 per cent higher to $142.28 per share which in effect had valued the company at an approximated $3.8 billion.

A press agency report, in tandem, had quoted sources familiar with the issue as saying late in the day that American National had already hired an investment bank to oversee a planned auction, while the Texas-based US insurer had also been in an advanced stage talk with a number of prospective buyers, said the sources.