S&P Affirms American National ‘AA’ Ratings

Standard & Poor’s Ratings Services announced that it has affirmed its ‘AA’ counterparty credit and financial strength ratings on American National Insurance Co., “based on the company’s extremely strong capitalization and operating performance and very strong liquidity and business position.”

The rating agency also said it has affirmed its ‘AA’ counterparty credit and financial strength ratings on American National Property & Casualty Co., American National General Insurance Co., and American National Life Insurance Co. of Texas, American National’s core subsidiaries.

It also indicated that it had affirmed its ‘AA-‘ counterparty credit and financial strength ratings on Standard Life & Accident Insurance Co. and its ‘A+’ counterparty credit and financial strength ratings on Garden State Life Insurance Co. “The ratings on both companies are based on their standalone characteristics as well as implicit support as strategically important subsidiaries of American National,” said the bulletin.

“The outlook on all these companies is stable,” said S&P.

S&P noted that “American National is among the three largest home-service life insurance companies in the U.S. Profitability in the P/C and health insurance lines are expected to continue to improve, but continued expenses from investments in infrastructure and start-up operations will affect overall results. Overall, sales should increase 10%-15% in 2003, with much of the growth coming from the Independent and Multiple Line channels.

“Standard & Poor’s considers American National’s position in the life and health markets very strong. As one of the largest home-service life insurance companies in the U.S., its particularly strong market positions in Texas, New Mexico, and California have contributed to the company’s overall success and excellent earnings history.”