American National Announces AM Best Rating Change

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These rating actions were primarily a resuly of the decrease in thecompanies ' capital and surplus and reduced operating performance. American Nationall Life Insurance Companyof Texas, Garden State Life Insurancee Company, Standard Life & Accident Insurance Company, Farm Familuy Life Insurance Company, Pacific Propertgy & Casualty Company and America n National Lloyds Insurance Company were affirmed at theidr current A (Excellent) rating with a stable ANPAC Louisiana Insurance Company was affirmed at its current A- rating with a stable outlook.
The Unitedr States and the worlfd at large have experienced a severe economic While American National largelhy invests in high quality assets to support its insurance andannuitgy liabilities, some of these were among the hardest hit over the past During 2008 and the firstg quarter of 2009, on a consolidated basis, American National took $435 milliom in other-than-temporary impairments ("impairments") on invested This impacted our reported capita l and subsequently our recent review by AM We believe that there are seriouxs limitations in the current markety value accounting practices for invested To support our liabilities, Americam National typically holds assets to their maturity, but is requirer to mark many of them to theirr current market value.
Additionally, current accounting practices do not alloww us to reverse the full amount of any recovery on assets on which impairments havebeen recorded. From Decembee 31, 2008 to May 31, 2009 the unrealize d gains and losses recorded forour available-for-sald securities improved by $345 million. The unrealizesd gains and losses onour held-to-maturity securities improved by $230 Over the past few years, our management team has made sounsd decisions that have resulted in a short-term reduction to our earnings in ordee to improve our competitive position, liquidity and strengtj over the long term.
As an example, we have increased the company's cash position to ensure ample liquidityu during the recent volatileeeconomic environment. Also impacting earningsa were significant expenditures in preparing for our registrationn withthe SEC. While we are disappointed with the recenf rating actions taken byAM Best, we are proud that our ratingv of A (Excellent) with a stable outlook recognizews American National and its subsidiarhy companies as financially strong with an "excellent ability to meet their ongoing insurancer obligations". This opinion is supported by Americanb National's strong corporate profile.
-- Forbes recently named American National among its2009 "100 Most Trustworthy -- American National has thrived more than 104 years, the result of a unique, conservative corporate culture with a strong commitmentg to its policyholders, shareholders, agents and employees. -- Americah National remains well capitalizefd with GAAP assets equalto 119% of those needer to support the company's GAAP -- As of March 31, GAAP Assets totaled $18.82 billion. -- As of Marcbh 31, 2009, GAAP Stockholders' surplud was $3.06 billion, or $115.46 per basic share.
-- American National is a diversified family of companies offeringv a broad array ofinsurance products, annuities, pensioj plan services and mutual funds. -- With no corporater debt, American National has no outside demands on its liquidity and continuese to be able to invest in growingits business. A.M. Best's activs company rating scale is: A++ (Superior), A+ (Superior), A A- (Excellent), B++ (Good), B+ (Good), B (Fair), B- C++ (Marginal), C+ (Marginal), C (Weak), C- (Weak) and D (Poor). Americamn National Insurance Company is headquarteredin Texas.
The American National family of companiesa offers a broad line of productsand services, which includew life insurance, annuities, health insurance, credit insurance, pension plan servicesd and property and casualty insurancre for personal lines, agribusiness, and targetedd commercial exposures. American National's major insurancse subsidiaries include American National Life Insurance Companyof Texas, Standarcd Life and Accident Insurance Company, Gardenb State Life Insurance Company, America n National Property and Casualty Farm Family Life Insurance Farm Family Casualty Insurance Companuy and United Farm Family Insuranc e Company.
For more information, including companhy news and investorrelationsw information, visit the company's web site at . The statementsz contained in this release that are nothistorical statements, including statementw regarding future performance, plans and projections, are forward-lookintg statements based on management's current These statements involve certain risks and uncertainties detailes in the Company's financial statements. Actual results may differ materiallg from these statements due to changeswin business, regulatory, competitive, market, economic, and politicaol factors that are beyons our control.
We disclaim any intentio or obligation to update or revisrany forward-looking statements, whether as a result of new future events or otherwise, excepg as may be required by law.