A.M. Best Affirms Credit Ratings of American National Insurance Company and Its Subsidiaries

A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of American National Insurance Company (ANICO) [NASDAQ:ANAT] and ANICO’s subsidiary, American National Life Insurance Company of New York (ANICONY) (Glenmont, NY). The Credit Ratings (ratings) of ANICO have been extended to ANICONY based on its strategic role as the New York marketing arm of its ultimate parent. A.M. Best also has affirmed the FSRs of A (Excellent) and the Long-Term ICRs of “a” of the following life insurance subsidiaries of ANICO: Garden State Life Insurance Company (League City, TX), Standard Life and Accident Insurance Company and Farm Family Life Insurance Company (Glenmont, NY). In addition, A.M. Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of American National Life Insurance Company of Texas. The outlook of these ratings is stable. All the above companies are headquartered in Galveston, TX, unless otherwise specified.

The rating affirmations of ANICO are based on its strong level of consolidated risk-adjusted capitalization, growth in statutory capital and surplus, continued profitable earnings and diverse product offerings. ANICO benefits from revenue and income from diverse sources, which include its life/health and property/casualty affiliates. A.M. Best also notes that the financial leverage at ANICO remains low relative to its consolidated equity level.

Partially offsetting these positive rating factors are ANICO’s high exposure to interest-sensitive liabilities and the size of the annuity block relative to the life insurance block, as well as the challenges of optimizing its returns on a sustained basis.

The ratings of ANICO’s life insurance subsidiaries acknowledge their strong risk-adjusted capitalization and continuing contribution to ANICO’s consolidated results. Partially offsetting these positive rating factors are the life subsidiaries’ somewhat fluctuating premiums and earnings trends, more limited business profiles and the challenges to grow their business lines.

In addition, A.M. Best has affirmed the FSRs of A (Excellent) and the Long-Term ICRs of “a” of American National Property and Casualty Company (ANPAC) (Springfield, MO), its subsidiary, American National General Insurance Company (Springfield, MO) and its affiliate, American National County Mutual Insurance Company (Galveston, TX), as well as its separately rated subsidiaries, American National Lloyds Insurance Company (Galveston, TX) and Pacific Property & Casualty Company (Campbell, CA). At the same time, A.M. Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of ANPAC’s separately rated subsidiary, ANPAC Louisiana Insurance Company (Mandeville, LA). Concurrently, A.M. Best has affirmed the FSRs of A (Excellent) and the Long-Term ICRs of “a” of Farm Family Casualty Insurance Company and United Farm Family Insurance Company (both domiciled in Glenmont, NY). The outlook of these ratings is stable. These companies are property/casualty subsidiaries of their ultimate parent, ANICO.

The ratings reflect solid risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio, generally favorable operating earnings and extensive market knowledge as a national writer. The ratings also reflect the continued support provided by the ultimate parent, ANICO, and the synergies generated amongst and between the groups and their parent. Partially offsetting these rating factors are the competitive market conditions, and the potential for significant catastrophic losses, however, somewhat mitigated by comprehensive reinsurance protection, which could have an impact on capitalization.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. BestSteve Vincent, FSA, MAAA, CLU, ChFC, +1 908-439-2200, ext. 5802Senior Financial Analyst-L/Hsteve.vincent@ambest.comorChristopher Sharkey, +1 908-439-2200, ext. 5159Manager, Public Relationschristopher.sharkey@ambest.comorMichael Venezia, +1 908-439-2200, ext. 5034Senior Financial Analyst-P/Cmichael.venezia@ambest.comorJim Peavy, +1 908-439-2200, ext. 5644Director, Public Relationsjames.peavy@ambest.com