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A.M. Best Upgrades Credit Ratings of ANPAC Louisiana Insurance Company; Affirms Credit Ratings of American National Insurance Company and Other Subsidiaries
[December 13, 2017]

A.M. Best Upgrades Credit Ratings of ANPAC Louisiana Insurance Company; Affirms Credit Ratings of American National Insurance Company and Other Subsidiaries


A.M. Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "a" from "a-" of ANPAC Louisiana Insurance Company (ANPAC Louisiana) (Mandeville, LA). Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the 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 ratings reflect ANICO's balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

ANICO has strong risk-adjusted capitalization, enhanced by positive earnings, and a diverse business profile. Invested assets are generally of good credit quality, although the group has increased allocations in more volatile and/or less liquid asset classes, such as commercial mortgages. Partially offsetting these positive rating factors are the elevated percentage of holdings in annuity liabilities, decreased earnings trends due to new business strain from ordinary life sales and spread compression from its annuity blocks of business.

The ratings for ANICO's life insurance subsidiaries reflect their sufficient risk-adjusted capitalization and contributions to the consolidated results of the enterprise. Partially offsetting these rating factors are fluctuating premium and earnings trends, relatively limited business profiles and challenges of growing their respective blocks of business due to economic factors and competition.

In addition, A.M. Best has affirme the FSRs of A (Excellent) and the Long-Term ICRs of "a" of American National Property and Casualty Company (ANPAC) (Springfield, MO), its subsidiaries, American National General Insurance Company (Springfield, MO), American National Lloyds Insurance Company (Galveston, TX), Pacific Property & Casualty Company (San Jose, CA (News - Alert)) and its affiliate, American National County Mutual Insurance Company (Galveston, TX). Including ANPAC Louisiana, these entities are all considered part of American National Property and Casualty Group (ANPAC Group) due to their strategic importance. At the same time, 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 (Farm Family) (both domiciled in Glenmont, NY). The outlook of these ratings is stable. These companies are property/casualty subsidiaries of their ultimate parent, ANICO.

ANPAC Louisiana's ratings upgrade is based on the company's strategic role and overall importance within the ANPAC Group. It is fully integrated with the parent (ANPAC), and is supported by corporate reinsurance protection. ANPAC Louisiana's rating is further supported by solid risk-adjusted capitalization and generally favorable operating performance.

The ratings reflect ANPAC Group's balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate ERM.


The ratings reflect Farm Family's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.

Furthermore, the ratings reflect these groups' 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 these groups and their parent. Partially offsetting these rating factors are the competitive market conditions and the potential impact on capitalization from significant catastrophic losses, which is somewhat mitigated by comprehensive reinsurance protection.

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. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

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

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.


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