A M E R I C A N N A T I O N A L From Small Beginnings hen a small pebble drops into a Founded in 1905, American National Insurance pond, it barely makes a splash. But Company was a fledgling business with just 10 not all actions need to be large to employees and 500 square feet of office space in make an impact. The ripples from that tiny pebble Galveston, Texas. But over the course of the keep moving outward, through rivers and across ensuing century, through world wars and rapidly bays, until they are part of great waves in a vast evolving technologies, American National has ocean. Given enough time and momentum, even grown in size and strength to an impressive degree. the smallest beginnings can grow to impressive There are now more than 3,000 employees in Texas, size and strength New York and Missouri and a network of agents in all 50 states and Puerto Rico serving our more than 5 million policyholders. “We see no reason why each year should not record a greater success than the preceding one.” W. L . M O O DY A Strong Foundation Making A Difference A Chinese proverb says leadership is “planting trees under At American National, we strive to make a difference every whose shade you will never sit.” More than a century ago, day – to our customers and to our community. We believe that American National’s founder, W.L. Moody Jr., knew the seeds success is about having a purpose and making an impact on he was planting wouldn’t fully flower until long after he was the world around us. Our corporate values include service. We gone, but he continued anyway, securing a 500-year charter. are committed to not only understanding our customers’ needs He trusted that his efforts would make a difference to many and expectations, but striving to exceed them with outstanding future generations. service. We work to ensure that interactions our customers have The early years of American National were lean and, like with American National are positive and productive, from start most start-up businesses, required sacrifices and disciplined to finish. We accomplish this by working together as a team; action from those at the top. During the company’s first seven another important aspect of our values. years in operation, Mr. Moody drew no salary for himself and In addition to serving customers, our employees have a added substantial amounts of his own money to the company tradition of being active in service to their communities. We in order to keep the business going. partner with a number of institutions to offer our employees In American National’s very first annual report issued in opportunities to participate in charitable activities such as toy 1910, W.L. Moody laid out his business philosophy – one that drives, canned food collections and charitable fun runs. still guides the company to this day, “Care and economy have been our watchwords in the management of the business … Poised For The Future We see no reason why each year should not record a greater success than the preceding one.” Over time, his efforts were rewarded with profitability and steady growth. In fact, by 1920, American National had 500 employees at the home office in Galveston and had purchased 27 other insurance companies. For more than a century, American National has been providing financial products and services that offer security and peace of mind to our customers. Our commitment to the founding principles of strong management, prudent investment and financial strength has enabled us to successfully navigate some of the most turbulent times of the past century and grow into a thriving enterprise. 1 While we have a strong sense of tradition, American peace of mind – providing the ability to rest easy knowing that, National is also deeply committed to finding newer, more should the unexpected occur, loved ones will be financially efficient ways to do business. An increased focus on cared for. For the beneficiaries, life insurance is security. It may technology – from mobile apps to state-of-the-art data mean that the family gets to stay in their home, that all of the storage and security – is allowing us to better support both family’s financial obligations can be met and that children will our customers and our agents, while providing increased be able to attend college when the time comes. Life insurance protection for sensitive data. Embracing change has allowed can mean the difference between surviving and thriving. us to stretch and grow into a thriving enterprise. Because no two individuals are the same, American By focusing on fundamentals, including sound National offers a wide range of life insurance options, including investment and careful, considered growth, American Term, Whole Life, Universal Life, Indexed Universal Life, Variable National has earned an “A” rating from both Standard & Universal Life and Credit Life – each designed to ease the financial Poor’s® and A.M. Best Company. burdens a family may face during an already difficult time. As we look toward the future, we remain confident Term life, which provides coverage for a specified period that American National is financially strong and prepared to of time, is generally the most affordable life insurance to meet the needs of our policyholders. Products and Services LIFE Few purchases have the potential to make a greater impact purchase. Credit life is a specialized form of term insurance which uses the proceeds to pay off debt in the event of the insured’s death. Our other life insurance coverages – whole, universal and indexed universal – are permanent. In addition to staying in force for the life of the insured (as long as certain conditions are met), permanent life insurance may accumulate than life insurance. For the insured, it’s an investment in cash value that can be withdrawn or borrowed against. LIFE INSURANCE DESCRIPTION Term Credit Life Whole Life Universal Life (UL) Indexed UL Variable UL 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 Permanent life insurance with level premiums. A savings component accumulates cash value that can be withdrawn or borrowed against. 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 interest rate, subject to a minimum for the duration of the policy. Universal life insurance with a potential for higher cash value, related to the performance of market index. 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. 22 PROPERTY AND CASUALTY A home is often an individual’s greatest asset – but it can be so home and auto insurance, American National offers specialty property insurance for items such as classic cars, motorcycles, much more than that. It’s a family nest, a home base, a place boats and recreational vehicles. of comfort and a shelter in the storm. Because our homes and American National’s commercial line products cater other valuable assets occupy such important places in our to small business owners, particularly those with agriculture- lives, American National offers property and casualty insurance related businesses. Our signature farm product provides to protect treasured possessions. the opportunity to combine personal, farm, business Property insurance protects against the loss of physical and property and liability coverage all under one policy. property or its income-producing abilities. Casualty insurance Products are also available to fit the specific needs of protects against the legal liability that can result from injury small business owners, contractors and horse enthusiasts, to other people or damage to their property. In addition to among others. INSURANCE COVERAGE DESCRIPTION Auto Insurance • Personal Auto • Collector Car • Recreational Vehicles • Commercial Auto • Motorcycle Homeowners Insurance • Personal Dwelling • Tenants • Renters • Condos 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 Boatowners Coverage for physical damage to boats as well as liability coverage for the boat owner Business Owners Policy (BOP) Provides coverage for small and medium-sized businesses. Provides both general liability and property insurance. Commercial Package Policy Includes Liability, Property, Inland Marine, and Crime coverages Flood Insurance General Liability Special Farm Package Umbrella Policy Workers Compensation Credit Products 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. ANPAC and Farm Family Casualty Insurance Company offer the Standard Flood Insurance Policy through the “Write Your Own Program,” a cooperative undertaking between FEMA and participating property and casualty insurance companies that allows the companies to write and service the Standard Flood Insurance Policy. National Flood Services is the full service vendor for the WYO Flood Program for both ANPAC and FFCIC. Companies 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. In New York, business is conducted through Farm Family Casualty Insurance Company and United Farm Family Insurance Company. 33 ANNUITIES In today’s rapidly changing landscape, more people are finding an unexpected event occur. However, taxes are incurred upon funds being withdrawn and penalty taxes may apply. it necessary to plan for their retirement years by establishing American National offers a range of options to choose savings plans as opposed to relying on company pensions or from, including Fixed Deferred, Indexed Deferred and Variable government-funded programs. Deferred annuities can play a Deferred annuities for Pension Plans. Immediate annuities vital part in a long-term savings plan, allowing individuals to convert a lump sum into a guaranteed income stream approach their retirement years confident in the knowledge with multiple payout options to choose from. Similarly, that they’ll be able to maintain a comfortable standard of accumulated funds in a deferred annuity can be converted living. Deferred annuities allow individuals to save money, tax into an income stream when it’s needed most. For example, deferred. They also offer the ability to withdraw a portion of payout options can be set up over a pre-determined period of the funds early without incurring a surrender charge, should time or over the life of an individual (or couple). ANNUITY DESCRIPTION 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. 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 Insurance Company is licensed in all states except New York. In New York, business is conducted through Farm Family Life Insurance Company and American National Life Insurance Company of New York. Not all products are available through each company or in all states. Variable insurance products are distributed through Securities Management and Research, Inc. (SM&R); Member FINRA/SIPC. The Company is independent is independent of the American National companies. SM&R’s address is 701 Tama Street, Building B, Box 868, Marion, Iowa 52302-0868. 4 4 HEALTH Recovering from an illness or accident is challenging enough the difference between the payment for health care or the loss of savings and creation of long-term debt. on its own. But the enormity of medical bills – even with Our supplemental offerings include Medicare standard health insurance or Medicare – can be staggering. Supplement, cancer, critical illness, hospital indemnity, American National offers supplemental insurance options that accidental death and dismemberment and credit disability. can augment the coverage of an individual’s primary health In addition, self-insured employers often rely on American insurance policy. For many, supplemental insurance can mean National’s stop-loss coverage to minimize their risk. HEALTH COVERAGES DESCRIPTION Medicare Supplement Standardized plans: A, B, C, D, F, F(hd), G, and N Supplemental Health Insurance Cancer Dental Critical Illness Group Term Life Short Term Disability Hospital Indemnity/Limited Medical Accident / Accidental Death and Dismemberment Employer Stop Loss Credit Disability Supplemental product that complements Original Medicare policies Cover specific types of expenses not covered by basic health care policies Reinsurance for self-insured employers to cover cost of excess claims 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. 55 Board of Directors ROBERT L. MOODY, SR. Chairman Emeritus American National Insurance Company | Galveston, Texas JAMES E. POZZI Chairman of the Board, President and Chief Executive Officer American National Insurance Company | Galveston, Texas WILLIAM C. ANSELL, CPA Vice President and Shareholder DRDA, PLLC | Galveston, TX ARTHUR O. DUMMER President The Donner Company | Salt Lake City, Utah FRANCES A. MOODY-DAHLBERG Executive Director The Moody Foundation | Dallas, Texas RUSSELL S. MOODY Investments League City, Texas JAMES P. PAYNE Retired Vice President – Secretary National Western Life Insurance Company | Austin, TX E. J. “JERE” PEDERSON Managing Director CitareTx Management, LLC | Galveston, TX JAMES D. YARBROUGH Mayor Galveston, Texas Advisory Directors G. RICHARD FERDINANDTSEN Retired President American National Insurance Company | Galveston, Texas IRWIN M. HERZ, JR. Partner Greer, Herz & Adams, LLP | Galveston, Texas R. EUGENE LUCAS President and Director Gal-Tex Hotel Corporation | Galveston, Texas E. DOUGLAS McLEOD Chairman and Director Moody Gardens, Inc. | Galveston, Texas ROBERT L. MOODY, JR. President and Director Moody Insurance Group, Inc. | Galveston, Texas 6 Senior Management C O R P O R AT E O F F I C E R S JAMES E. POZZI Chairman of the Board, President and Chief Executive Officer American National Insurance Company JOHN J. DUNN, JR. Executive Vice President, 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 GREGORY V. OSTERGREN Executive Vice President, Director of Multiple Line and Chief Corporate Risk Officer American National Insurance Company JOHN F. SIMON Senior Vice President, Actuary American National Insurance Company E. BRUCE PAVELKA Senior Vice President, Life Policy Administration American National Insurance Company DR. JOHN WHITE, III Senior Vice President and Medical Director (Life, Health and Group) 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 Chairman of the Board, President, Director of Multiple Line American National Property And Casualty Companies President, Chief Operating Officer American National Life Insurance Company of New York S H A R E D S E R V I C E S DWAIN A. AKINS Senior Vice President, Corporate Relations, Corporate Chief Compliance Officer American National Insurance Company ALBERT L. AMATO, JR. Senior Vice President, Life New Business and Pension Administration American National Insurance Company SCOTT F. BRAST Senior Vice President, Real Estate/Mortgage Loan Investments American National Insurance Company BRIAN N. BRIGHT Senior Vice President, Computing Services 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 BERNARD S. GERWEL Senior Vice President, Corporate Digital Officer American National Insurance Company ANNE M. LEMIRE Senior Vice President, Fixed Income and Equity Investments American National Insurance Company BRUCE M. LEPARD Senior Vice President, Chief Human Resources Officer American National Insurance Company MEREDITH M. MITCHELL Senior Vice President, Application Development and Support American National Insurance Company JAMES W. PANGBURN Executive Vice President, Credit Insurance American National Insurance Company JAMES P. STELLING Senior Vice President, Health Insurance Operations American National Insurance Company HOYT J. STRICKLAND Executive Vice President, Career Sales & Service Division American National Insurance Company TIMOTHY A. WALSH Senior Vice President, Chief Operating Officer, Multiple Line American National Insurance Company Senior Executive Vice President, Chief Operating Officer, Multiple Line American National Property and Casualty President, Chief Executive Officer Farm Family Companies SCOTT C. CAMPBELL Senior Vice President, Chief Multiple Line Marketing Officer American National Insurance Company Executive Vice President, Chief Marketing Officer, Multiple Line American National Property and Casualty LEE C. FERRELL Senior Vice President, Independent Marketing Group Operations 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 Agencies Officer American National Insurance Company Executive Vice President, Chief Agencies Officer, Multiple Line American National Property and Casualty 7 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. 8 Form AO2015 | 3-16