Vision To be a leading provider of financial products and services for current and future generations Mission We will earn the trust of our customers and of our diverse distribution partners by always acting with integrity and fairness, and by working to exceed expectations. We are committed to teamwork and continuous improvement in all that we do. We will be prudent stewards of our assets, conservative navigators of risk, and steadfast in our resolve to preserve and enhance our reputation for enduring strength and success. difficult to balance the demands of life and struggle to keep L IFE IS COMPLICATED. More and more people are finding it themselves centered. At any point in time, one person can be expected to take on multiple roles with each one pulling in a coverage to individuals and a reasonable return to American National Other life insurance coverages are permanent, that is the and its shareholders. Following are descriptions of the general types insurance stays in force for the life of the insured as long as of insurance products offered by American National. premiums are paid. Permanent life insurance accumulates cash value that can be withdrawn or borrowed against. Whole life insurance provides permanent coverage in return for level different direction. LIFE INSURANCE Balance is the perfect state of still water. Let that be our model. It remains quiet within and is not disturbed on the surface. – C O N F U C I U S It is easy to blame many of these complications on modern Life insurance products pay benefits in the event of the insured’s premiums. In contrast, universal life insurance allows for developments such as more demanding jobs and advanced technology, but people have been striving for balance in their lives for centuries. Balance represents a state of equilibrium and stability where important elements in our lives are maintained in appropriate proportion. Individuals who are balanced feel calm, grounded, clear-headed and motivated. They have the ability to offset negative events in their lives with positive ones, allowing them to better cope with challenges. Some focus on maintaining internal balance. Others concentrate on balancing work and personal lives. The greatest benefit is achieved when we attempt to maintain balance in all aspects of our lives and minimize those things that drain our time and energy. Finances are one aspect of life that can throw individuals off balance. There are so many considerations – monthly expenses, costs for emergencies and future needs. Unfortunately, future needs are often ignored as individuals struggle to cover present-day bills. Still, these future needs and the risks associated with not preparing for them loom overhead. The risks increase as time passes without a plan. Fortunately, small steps taken today can greatly reduce the risk of not meeting future needs. While it is difficult for many to face, mortality is a fact of life that we cannot change or predict. Still, with a little effort, we can prepare for its eventuality and then put it behind us as we live today without the worry of what our loved ones may be asked to endure tomorrow. American National Insurance Company either directly or through its subsidiaries (collectively “American National”) offers many financial products and services to address certain financial risks. These products are designed to balance the needs of the enterprise with those of our policyholders and agents. Additionally, corporate growth strategies strike a balance between providing relevant death, with variations to address individual needs. Term insurance flexibility with premiums, payment schedules and the amount of typically represents the most affordable insurance at the time of coverage. Most permanent products provide a minimum level of purchase. It provides coverage for a specified period of time. Credit accumulation. Variable universal life is the exception as Life Insurance is a special form of term insurance, whereby the the consumer participates fully in the returns of the chosen insurance proceeds pay off debt in the event of the insured’s death. separate accounts. Life Insurance Term Credit Life Description Simplest form of life insurance that provides pure death benefit coverage for a limited term at a fixed rate. Specialized term insurance established to pay all or a portion of borrower’s debt in the event of death during the term of the loan. Whole Life (Fixed or Interest Sensitive Life) Permanent life insurance with level premiums. A savings component accumulates cash value that can be withdrawn or borrowed against. Universal Life (UL) (Interest Sensitive Life) Indexed UL (Interest Sensitive Life) Variable UL (Interest Sensitive Life) Permanent life insurance that allows for flexible premiums, payment schedules and coverage. Premium payments in excess of current cost of insurance rates and fees accumulate cash value based on a declared rate, subject to a minimum for the duration of the policy. Universal life insurance with a potential for higher cash value, with the growth related to a market index return. Universal life insurance with a potential for higher cash value. However, there is more risk to the customer as cash value can also decrease. Cash value increases and decreases are based on allocations to subaccounts that invest in underlying mutual funds. American National’s life insurance products are issued and underwritten by one or more of the following companies: American National Insurance Company, American National Life Insurance Company of Texas, American National Life Insurance Company of New York, Standard Life and Accident Insurance Company and Farm Family Life Insurance Company. ANNUITIES payment guaranteed. Immediate annuity payments can also be set American National’s annuities and pension plan services can be up to provide income payments while at least one of two covered powerful tools for establishing a secure retirement income stream. persons is alive. Deferred annuities allow individuals to save money tax-deferred for Similar to life insurance, annuities can be fixed, indexed or retirement. At a later time, the accumulated funds can be converted variable. Fixed annuities accumulate interest based on a guaranteed to income payments to supplement other retirement income. interest rate over a set period, as established by the company. At Immediate annuities provide a guaranteed income stream. the end of the period, a new fixed rate is set based on then current Multiple payout options are available including payments over interest rates. The return on indexed annuities is tied to an outside a defined period of time, the remaining life of the client or the index return. remaining life of the client with a minimum number of years of The value of variable annuities is determined largely by the 3 performance of subaccounts, which are based on underlying mutual provide a guaranteed lifetime income and offer various guaranteed PROPERTY AND CASUALTY INSURANCE American National offers personal property and casualty funds that invest in various stocks, bonds and money market death benefits. Additionally, annuity eanings are tax-deferred until Our working years are often focused on accumulating assets, products that protect basic family assets. Specialty products to cover instruments, or some combination thereof. Variable annuities can the money is withdrawn. including homes, vehicles and businesses. These assets are personal interests, such as classic cars, motorcycles, boats and Annuity Fixed Deferred Annuity A long-term vehicle to accumulate retirement assets tax deferred. Accumulation is based on a set return for a period of time, subject to a minimum for the policy duration. Description Indexed Deferred Annuity A long-term vehicle to accumulate retirement assets tax deferred. Accumulation includes upside potential related to the performance of a market index. Variable Deferred Annuity A long-term vehicle to accumulate retirement assets tax deferred, with gains or losses in value based on the performance of sub-accounts that invest in underlying mutual funds. Group Unallocated Variable Deferred Annuities are the basis for our pension plans. Immediate Fixed Annuity An income annuity that pays a guaranteed income stream in exchange for a lump sum. American National’s annuities are issued and underwritten by one or more of the following companies: American National Insurance Company, American National Life Insurance Company of New York, Standard Life and Accident Insurance Company and Farm Family Life Insurance Company. HEALTH INSURANCE copayments, coinsurance, deductibles and services not covered Managing health insurance costs is critical. One major illness can by Original Medicare are the individual’s responsibility. American quickly draw down assets. The Patient Protection and Affordable National’s Medicare Supplement products can help pay some of Care Act, health reform legislation passed in 2010, provides these costs. Clients can choose one of the available plans that best individuals more uniform access to health insurance. However, for meets their needs and concerns. many, the coverage is not enough to provide peace of mind, as they American National also offers dental, cancer, critical illness and do not cover all medical events and costs. hospital indemnity, as well as accidental death and dismemberment American National offers a variety of supplemental insurance to individuals and employer groups. Additionally, self-funded products designed to complement healthcare benefits provided employers often turn to American National’s stop-loss insurance to by primary, basic health insurance coverages. As an example, minimize their risk on an individual or group. Health Insurance Supplemental Health Insurance: Cancer Dental Critical Illness Hospital Indemnity/Limited Medical Accident / Accidental Death & Dismemberment Medigap We offer the following standardized plans: A, B, C, D, F, F(hd), G, &N Stop Loss Credit Disability Description Cover specific types of expenses not covered by basic health care policies Gap product that complements Original Medicare policies. Primarily for self-funded employers, to cover the cost of employee medical bills beyond a predetermined amount Provides benefit payments to the lender in the event of total disability due to a covered illness or injury during the term of coverage Health insurance products are issued and underwritten by one or more of the following companies: American National Insurance Company, American National Life Insurance Company of Texas, Standard Life and Accident Insurance Company and Farm Family Life Insurance Company. regularly subject to perils. American National’s property and recreational vehicles are also available. casualty insurance products protect such valued possessions. American National is well known for insurance products that Property insurance protects against the loss of physical property or cover certain commercial exposures, particularly agriculture related its income producing abilities. Casualty insurance protects against insurance products that provide peace of mind for small farms and the legal liability that can result from injury to other people or wineries as well as other niche markets. • Commercial Auto • Motorcycle • Renters • Condos damage to their property. Insurance Coverage Auto Insurance (Personal and Commercial Property) • Personal Auto • Collector Car • Recreational Vehicles Homeowners Insurance (Personal Property & Casualty) • Personal Dwelling • Tenants Boatowners (Personal Property & Casualty) Business Owners (BOP) (Commercial Property & Casualty) Commercial Package Policy (Commercial Property & Casualty) Flood insurance (Personal Property) General Liability (Commercial Casualty) Special Farm Package (Commercial Property & Casualty) Umbrella policy (Personal & Commercial Property & Casualty) Workers Compensation (Commercial Casualty) Credit Products (Personal Property & Casualty) Description Covers bodily injury and property damage liability plus physical damage to the vehicle Protects the value of homes, including the structure, personal property, contents, loss of use, and some forms of personal liability Coverage for physical damage to boats as well as liability coverage for the boat owner Provides coverage for small and medium-sized businesses. Provides both general liability and property insurance. Includes Liability, Property, Inland Marine, and Crime coverages Protects home or business against damage from flooding Protects insured from legal liabilities imposed by lawsuits and/or similar third party claims resulting from various business pursuits Provides customized coverage for farming operations to include personal dwelling, farming operation buildings, machinery, contents Additional protection in excess of specified other policy limits and potentially primary coverage for losses not covered by other policies. Replaces all or part of a worker’s wages lost and accompanying medical expenses incurred because of a job-related injury. Provides coverage to pay off all or a portion of debt associated with personal property Property and Casualty products are issued and underwritten by one or more of the following companies: American National Property and Casualty Company (ANPAC), ANPAC Louisiana Insurance Company, American National General Insurance Company, Pacific Property and Casualty Company, American National Lloyd’s Insurance Company, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company. The companies that are listed that write life and health insurance and annuities are not licensed in all states and do not offer all of the products that are described. Similarly, the companies that write property and casualty insurance are not licensed in all states and do not offer all of the products that are described. Products may not be available in all states and eligibility requirements will apply. Each company has financial responsibility only for the products and services it issues. While contemplating insurance and annuity needs can be challenging, spending a little time to review and provide for basic needs can offset the impact of risks faced daily. This effort is often rewarded by a sense of peace that can lead to a more fulfilled life. It’s time to strike a balance. Live today with the future in mind! 4 5 5 FRANK P. WILLIAMSON, In-Memoriam Thank you for many years of service to American National. Your integrity and experience while serving on board committees including the Nominating; Compensation; and Audit Committees, helped strengthen the governance of the company. BOARD OF DIRECTORS ROBERT L. MOODY, SR. Chairman of the Board, Chief Executive Officer American National Insurance Company | Galveston, Texas JAMES E. POZZI President, Chief Operating Officer American National Insurance Company | Galveston, Texas ARTHUR O. DUMMER President The Donner Company | Salt Lake City, Utah DR. SHELBY M. ELLIOTT President-Emeritus Texas Chiropractic College | Pasadena, Texas FRANCES A. MOODY-DAHLBERG Executive Director The Moody Foundation | Dallas, Texas RUSSELL S. MOODY Investments | League City, Texas W. L. MOODY IV Investments and Ranching Oil and Gas | Galveston, Texas JAMES D. YARBROUGH Owner and Consultant James D. Yarbrough & Co. | Galveston, Texas ADVISORY DIRECTORS G. RICHARD FERDINANDTSEN Vice Chairman of the Board American National Insurance Company | Galveston, Texas IRWIN M. HERZ, JR. Attorney Greer, Herz & Adams, LLP | Galveston, Texas R. EUGENE LUCAS President Gal-Tex Hotel Corporation | Galveston, Texas E. DOUGLAS McLEOD Chairman of the Board Moody Gardens, Inc. | Galveston, Texas Retired Director of Development The Moody Foundation (1982–2013) ROBERT L. MOODY, JR. President Moody Insurance Group | Galveston, Texas SENIOR MANAGEMENT C O R P O R A T E O F F I C E R S ROBERT L. MOODY, SR. Chairman of the Board, Chief Executive Officer American National Insurance Company JAMES E. POZZI President, Chief Operating Officer American National Insurance Company RONALD J. WELCH Senior Executive Vice President, Corporate Risk Officer, Chief Actuary American National Insurance Company JOHN J. DUNN, JR. Executive Vice President, Corporate Chief Financial Officer, Treasurer American National Insurance Company JOHNNY D. JOHNSON Executive Vice President, Corporate Business Process Officer, Chief Information Officer American National Insurance Company S H A R E D S E R V I C E S DWAIN A. AKINS Senior Vice President, Corporate Relations, Chief Corporate Compliance Officer American National Insurance Company ALBERT L. AMATO, JR. Senior Vice President, Life Insurance Administration American National Insurance Company M A R K E T I N G DAVID A. BEHRENS Executive Vice President–Independent Marketing Group American National Insurance Company President, Chief Operating Officer American National Life Insurance Company of New York GREGORY V. OSTERGREN Executive Vice President, Director of Multiple Line American National Insurance Company Chairman, President, Chief Executive Officer American National Property And Casualty Companies STEVEN H. SCHOUWEILER Executive Vice President, Health Insurance Operations American National Insurance Company President, Chief Operating Officer Standard Life and Accident Insurance Company American National Life Insurance Company of Texas HOYT J. STRICKLAND Executive Vice President, Career Sales & Service Division American National Insurance Company TIMOTHY A. WALSH President, Chief Executive Officer Farm Family Companies SCOTT C. CAMPBELL Senior Vice President, Multiple Line Chief Marketing Officer American National Insurance Company SCOTT F. BRAST Senior Vice President, Real Estate/Mortgage Loan Investments American National Insurance Company BERNARD S. GERWEL Senior Vice President, Chief Information and Innovation Officer, Multiple Line American National Insurance Company FRANK V. BROLL, JR. Senior Vice President, Actuary American National Insurance Company WILLIAM F. CARLTON Senior Vice President, Corporate Controller American National Insurance Company GORDON D. DIXON Senior Vice President, Stock/Bond Investments American National Insurance Company JAMES W. PANGBURN Senior Vice President, Credit Insurance American National Insurance Company RONALD C. PRICE Senior Vice President, Chief Marketing Officer, Career Life Agencies American National Insurance Company SHANNON L. SMITH Senior Vice President, Chief Multiple Line Agency Officer American National Insurance Company BRUCE M. LEPARD Senior Vice President, Corporate Human Resources Officer American National Insurance Company JOHN F. SIMON Senior Vice President, Actuary American National Insurance Company 7 V A L U E S We place our values “FIRST” in all we do. FINANCIAL STRENGTH – We are dedicated to financial stability and profitable growth to honor our promises to our insured, to create opportunities for our employees and business partners, and to provide a fair return to our shareholders. INTEGRITY – Do what’s right! Always! We adhere to and place great importance on ethics, integrity and compliance. We are individually accountable for demonstrating the highest standards of each to earn our client’s trust. RESPECT – The golden rule! We will treat all people with empathy, compassion and dignity. We view our business as one of relationships, not transactions. We are committed to making a meaningful difference in the lives of our clients and our team. SERVICE – We have the ability and responsibility to live a life of significance through service and commitment to our values. We are committed to understanding our customer’s expectations and striving to exceed them with our outstanding service. TEAMWORK – We’re all in this together. Our success depends on the unique contributions of all employees and business partners. We do this by meeting commitments, being accountable and making continuous improvement. We are committed to the success of our team. 8