EduInvesting.in | May 9, 2025
When you think of multibagger stocks, you probably picture rocket ships. You know, the kind of stocks that go straight up, fueled by hype and memers. But sometimes, the biggest winners don’t get the Instagram filters they deserve.
Enter American National Group (NASDAQ: ANAT) — an insurance company that somehow turned into one of the most lucrative stocks of the past year, despite barely making a peep in the media.
Up 300% from the lows in 2023, this $3 stock is now cruising near the $12 mark, and it’s doing it without much noise.
How did this once-forgotten insurance player end up surprising the entire market?
💼 What Does American National Actually Do?
First off, let’s clarify — American National isn’t exactly a fresh new tech company or an AI wizard. It’s an insurance firm.
And while insurance may not seem like the most exciting sector (unless you’re the person staring at your car insurance premium every six months), ANAT has quietly positioned itself in a way that’s worked wonders for its shareholders.
Their services cover:
- Life insurance
- Health insurance
- Annuities
- Property and casualty insurance
Basically, they protect you from life’s disasters — from your car to your health, all the way to your mortgage.
And everyone needs insurance — even when the market’s chaotic, and AI robots haven’t yet replaced every insurance agent.
📈 The Shocking 300% Gain
| Metric | Value (2024/25) |
|---|---|
| Market Cap | ~$3 Billion |
| Revenue (2024) | ~$8 Billion |
| Stock Price (2023 Low) | $3.10 |
| Stock Price (Now) | $12.50 |
| 1-Year Stock Gain | 300% |
| Dividend Yield | 3.2% |
What’s behind this 300% rise? A cocktail of factors that might surprise you.
🧠 The Secret Sauce
✅ 1. The Low-Key Buyout Deal
Back in 2024, Brookfield Asset Management quietly made an offer to take American National private. While the deal is still pending (and may still happen), the rumors were enough to send the stock skyrocketing.
Brookfield, a giant in the financial and real estate space, saw something in ANAT that many others missed — they were undervalued, but with steady, consistent profits, they were a perfect fit for acquisition.
The speculation that an acquisition could happen led to a flood of buying.
✅ 2. Solid Growth in Insurance Premiums
They aren’t just playing the “hold and hope” game. American National has been growing its premiums, especially in life and annuity sectors, which are relatively recession-proof. That means more stable revenue even in tough economic conditions.
In fact, life insurance premiums grew 8% YoY in 2024, while their annuity business surged by 10%. So, despite the doom-and-gloom headlines, people are still thinking about their futures — and that’s been great for American National’s bottom line.
✅ 3. The Stock Was Ridiculously Undervalued
Sometimes, a stock’s “boring” fundamentals hide a hidden gem. For a long time, American National was priced as if it were a small-time insurance company. But when investors looked closer, they realized:
- They had solid cash flow
- They were debt-free
- Their management team had a steady hand
A big portion of this 300% gain came from investors realizing the stock was undervalued by traditional metrics. Even in a slow-growth sector like insurance, these factors matter.
🚨 Why the Hype Might Be Overblown
Before you rush out to buy a truckload of American National, let’s pump the brakes.
- Acquisition Risk: While a buyout is on the horizon, there’s always the risk that the deal won’t go through. And if that happens, the stock could drop back to its low of $3.
- Low Growth: While steady, the insurance industry doesn’t exactly scream “moonshot.” Don’t expect these kinds of 300% gains year-over-year.
📊 Financials: The Numbers That Don’t Lie
| Metric | 2024 Value |
|---|---|
| Revenue | $8 Billion |
| Operating Income | $300 Million |
| Free Cash Flow | $100 Million |
| Dividend Yield | 3.2% |
| Book Value (Per Share) | $30.50 |
The balance sheet looks stable — but this is an insurance stock, not a tech stock. It’s built on steady profits, dividends, and long-term growth.
💸 Can This Stock Keep Rising?
In short:
Maybe.
But not like it did in 2024.
American National is undervalued relative to its peers, and its business is strong. But with insurance premiums already growing at a solid clip, the next big spike will likely come from something external — like that buyout. Without a major catalyst, expect moderate growth from here on out.
📉 Risk Factor:
The market is always pricing in new information. So, once the buyout rumor fades or the acquisition gets finalized, the stock may plateau or even drop.
🧠 Final Verdict
| 👍 Buy If… | 👎 Avoid If… |
|---|---|
| You love solid, steady growth | You need high-octane growth |
| You want a safe, boring dividend | You’re scared of market uncertainty |
| You believe in undervalued stocks | You don’t want to wait for an acquisition |
| You like companies with cash flow | You need tech industry-level excitement |
Our Take:
American National isn’t the flashiest stock in your portfolio, but it’s the kind of reliable, solid performer you don’t regret owning when the market’s on fire or freezing cold. If you’re looking for a stock that combines safe dividends with growth potential, this insurance underdog might just surprise you.
If you’re after the biggest returns, though, you might want to stay focused on those tech rockets. But if you like boring money, this one’s a sleeper.
