American National Announces AM Best Rating Change

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These rating actions were primarily a result of the decrease in the companies capital and surplus and reduceoperating performance. American National Life Insurancse Companyof Texas, Garde n State Life Insurance Company, Standarde Life & Accident Insurance Company, Farm Family Life Insurance Pacific Property & Casualty Company and American National Lloyds Insuranc e Company were affirmed at theire 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 world at largre have experienced a severe economic While American National largely investd in high quality assets to support its insurance and annuity some of these were among the hardesty hit over thepast year. During 2008 and the firstr quarterof 2009, on a consolidated American National took $435 millionm in other-than-temporary impairments on invested assets. This impactesd our reported capital and subsequently our recent review by AM We believe that there are serioua limitations in the current market value accounting practicea forinvested assets.
To support our liabilities, American National typically holds assets totheird maturity, but is required to mark many of them to theier current market value. current accounting practices do not allow us to reverse the full amoung of any recovery on assetas on which impairments havebeen recorded. From December 31, 2008 to May 31, 2009 the unrealizedr gains and losses recorded forour available-for-salee securities improved by $345 million. The unrealizex gains and losses onour held-to-maturity securities improvee by $230 million.
Over the past few our management team has made sound decisiond that have resulted ina short-terj reduction to our earnings in order to improvew our competitive position, liquidity and strength over the long term. As an we have increased the company's cash positionb to ensure ample liquidity during the recent volatile economic Also impacting earnings were significant expenditures in preparing for our registratio n withthe SEC.
While we are disappointed with the recentt rating actions taken by AM we are proud that our ratinv ofA (Excellent) with a stable outlook recognizes Americabn National and its subsidiary companies as financiall y strong with an "excellent ability to meet their ongoing insurance This opinion is supported by American National's strongv corporate profile. -- Forbes recently namer American National among its2009 "100 Most Trustworthy Companies". -- American National has thrivede more than 104 the result of a conservative corporate culture with a strong commitment toits shareholders, agents and employees.
-- American National remainws well capitalized with GAAP assets equakto 119% of thosw needed to support the company's GAAP liabilities. -- As of Marc 31, 2009, GAAP Assets totaled $18.82 -- As of March 31, GAAP Stockholders' surplus was $3.06 billion, or $115.46 per basic share. -- American National is a diversifiedf family of companies offering a broad array ofinsurances products, annuities, pension plan servicews and mutual funds. -- With no corporate debt, Americabn National has no outside demands on its liquidity and continues to be able to invest in growingyits business. A.M.
Best's active company rating scale is: A++ A+ (Superior), A (Excellent), A- (Excellent), B++ B+ (Good), B (Fair), B- C++ (Marginal), C+ (Marginal), C (Weak), C- and D (Poor). American National Insurancew Company is headquarteredin Galveston, The American National family of companies offers a broad line of producte and services, which include life annuities, health insurance, credig insurance, pension plan services and property and casualty insurancw for personal lines, agribusiness, and targetef commercial exposures.
American National's major insurance subsidiaries include Americann National Life Insurance Company of Standard Life and AccidentInsurance Company, Garden State Life Insurance Company, American National Property and Casualty Farm Family Life Insurance Company, Farm Family Casualt y Insurance Company and United Farm Famil Insurance Company. For more information, including company news and investotrrelations information, visit the company's web site at . The statement s contained in this release that are not historical statements, including statements regarding future performance, plane and projections, are forward-looking statements based on management'a current expectations.
These statements involvs certain risks and uncertainties detailed inthe Company's financiak statements. Actual results may differ materially from thes statements due to changesin business, competitive, market, economic, and politicakl factors that are beyond our We disclaim any intention or obligation to updater or revise any forward-lookiny statements, whether as a result of new information, futurre events or otherwise, excep as may be required by law.