A M E R I C A N N AT I O N A L I N S U R A N C E C O M PA N Y A M E R I C A N N AT I O N A L I N S U R A N C E C O M PA N Y American National Insurance Company Vision: To be a leading provider of fi nancial products and services for current and future generations. Who We Are • A diversifi ed insurance and fi nancial services company • Traded on the Nasdaq Stock Market; ticker symbol “ANAT” • Founded on March 17, 1905 • Headquartered in Galveston, TX • Additional locations include League City, TX; Springfield, MO; and Albany, NY • Assigned an ‘A’ rating by A.M. Best Company and an ‘A’ rating by Standard & Poor’s What We Do • Offer a broad spectrum of insurance products in all 50 states, the District of Columbia and Puerto Rico • Provide service to approximately 6 million policyholders • Have more than $118 billion of life insurance in force b | 2019 Annual Overview 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. Products and Services Life Annuities Life Insurance Description Annuity Description Permanent life insurance that allows for fl exible premiums and coverage. Premium payments A long-term product to accumulate tax-deferred Fixed Deferred retirement assets. Accumulation is based on a set in excess of current cost of insurance rates and Annuity return for a period of time, subject to a minimum Universal Life (UL) 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 Indexed UL higher cash value, related to the performance of a market index. Permanent life insurance with fi xed premiums. Whole Life A savings component accumulates cash value that can be withdrawn or borrowed against. Simplest form of life insurance that provides Term Life pure death benefi t coverage for a limited term at a fi xed rate. Specialized term insurance established to pay Credit Life all or a portion of a borrower’s debt in the event of death during the term of the loan. 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, and Standard Life and Accident Insurance Company. | American National Insurance Company is licensed in all states except New York. In New York, business is conducted through American National Life Insurance Company of New York and Garden State Life Insurance Company. Not all products are available through each company or in all states. | Companies not licensed in all states and do not offer all of the products that are described. Eligibility requirements will apply. Each company has fi nancial responsibility only for the products and services it issues. for the contract duration. Indexed Deferred Annuity A long-term product to accumulate tax-deferred retirement assets. Accumulation includes upside potential related to the performance of a market index. Immediate An annuity that pays a guaranteed income stream in Fixed Annuity exchange for a lump sum of money. Variable Deferred Annuity A long-term product to accumulate tax-deferred retirement assets, 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 the pension plans we sell. Variable products are distributed through ANICO Financial Services, Inc. (ANFS) located at One Moody Plaza, Galveston, Texas 77550 and sold through unaffi liated broker-dealers. ANFS is a wholly owned subsidiary of American National Insurance Company. 2019 Annual Overview | 1 2019 Annual Overview | 1 Products and Services Property & Casualty Health Insurance Coverage Description Health Coverages Description Medicare Supplement Supplemental product that Standardized plans complements Medicare. Supplemental Health Insurance • Cancer • Dental • Critical Illness • Short Term Disability • Hospital Indemnity/Limited Medical • Accident/Accidental Death and Dismemberment Employer Stop Loss Specifi c types of expenses not covered by basic health care policies. Reinsurance for self-insured employers to cover the cost of excess claims beyond a predetermined amount. Provides benefi t payments to the lender in the event of a borrower’s Credit Disability 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, Garden State Life Insurance Company and Standard Life and Accident Insurance Company. • Automobile policies that provide coverages for liabilities, bodily injuries and physical damage to personal vehicles. Personal Lines • Homeowners insurance policies cover the value of homes, which can include the structure, personal property and contents, as well as loss of use and personal liability. • Umbrella coverage for losses in excess of limits specifi ed in other policies. • Special Farm Package • Business Owners Policy • Commercial Automobile Commercial Lines • Umbrella coverage for losses in excess of specifi ed other policy limits • Credit products provide coverage to pay off all or a portion of debt related to personal property Specialty Markets • Renters Insurance • Guaranteed Asset Protection (GAP) • Collateral Protection and Mortgage Security Insurance coverages 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, Pacifi c Property and Casualty Company, American National Lloyd’s Insurance Company, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company (FFCIC) 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” (WYO), 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 fi nancial 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. | Credit-related Property & Casualty Insurance products are offered by the Specialty Markets Group of American National and are issued through multiple companies. 2 | 2019 Annual Overview 2 | 2019 Annual Overview Corporate and Other The Corporate & Other segment includes the non-insurance Earnings for Corporate & Other are from income earned related activities of American National. Additionally, Corporate & on assets not allocated to the Company’s other segments and Other manages American National’s entire portfolio of invested from non-insurance related businesses. All realized investment assets. The portfolio includes a diverse mix of assets; however, gains and losses, including other than temporary impairments, insurance products are generally supported by investment-grade are refl ected in this segment. These investments and activities, bonds and commercial mortgage loans. We invest in equity which generally provide higher potential returns but with options only as a hedge to our indexed life and annuity products. increased volatility, are possible because of American National’s Earned investment income is allocated to insurance segments strong capital position. consistent with the assets supporting the policies. Allocations as of December 31, 2019 on a combined statutory basis 51.1% Bonds 17.5% Affi liate Investments 17.3% Mortgage Loans 5.7% Stocks 2.6% Cash & Equivalents 1.9% Real Estate 1.7% Other 1.3% Policy Loans 0.9% Derivatives We will continue to follow our long- We will continue to follow our long- established investment management established investment management established investment management established investment management established investment management established investment management established investment management established investment management philosophies of adjusting allocations philosophies of adjusting allocations philosophies of adjusting allocations philosophies of adjusting allocations philosophies of adjusting allocations philosophies of adjusting allocations in response to products and capital in response to products and capital in response to products and capital in response to products and capital in response to products and capital market conditions. market conditions. market conditions. market conditions. market conditions. 2019 Annual Overview | 3 2019 Annual Overview | 3 Board Leadership Board of Directors ROSS R. MOODY, Chairman President and Chief Executive Offi cer National Western Life Group, Inc. Austin, Texas JAMES E. POZZI President and Chief Executive Offi cer American National Insurance Company Galveston, Texas WILLIAM C. ANSELL, CPA Partner Ham, Langston & Brezina, LLP Houston, Texas FRANCES A. MOODY-DAHLBERG Executive Director The Moody Foundation Dallas, Texas ARTHUR O. DUMMER President The Donner Company Salt Lake City, Utah IRWIN M. HERZ, JR. Partner Greer, Herz & Adams, LLP Galveston, Texas E. DOUGLAS MCLEOD Chairman of the Board Moody Gardens, Inc. Galveston, Texas JAMES P. PAYNE Retired Senior Vice President – Secretary National Western Life Insurance Company Austin, Texas Advisory Directors E. J. “JERE” PEDERSON Managing Director CitareTX Management, LLC Houston, Texas JAMES D. YARBROUGH Mayor Galveston, Texas R. EUGENE LUCAS President and Director Gal-Tex Hotel Corporation Galveston, Texas RUSSELL S. MOODY Investments League City, Texas 4 | 2019 Annual Overview 4 | 2019 Annual Overview President JAMES E. POZZI President and Chief Executive Offi cer Executive Vice Presidents DAVID A. BEHRENS Executive Vice President, Independent Marketing Group JOHNNY D. JOHNSON Executive Vice President, Corporate Business Process Offi cer, Chief Information Offi cer JAMES W. PANGBURN Executive Vice President, Specialty Markets Sales and Marketing JOHN F. SIMON Executive Vice President, Chief Life and Annuity Actuary SHANNON L. SMITH Executive Vice President, Chief Agencies Offi cer, Multiple Line JAMES P. STELLING Executive Vice President, Health and Specialty Markets Operations HOYT J. STRICKLAND Executive Vice President, Career Sales & Service Division TIMOTHY A. WALSH Executive Vice President, Chief Financial Offi cer, Treasurer, Multiple Line & P&C Operations 2019 Annual Overview | 5 Senior Management Senior Vice Presidents DWAIN A. AKINS Senior Vice President, Corporate Relations, Chief Corporate Compliance Offi cer MICHELE M. BARTKOWSKI Senior Vice President, Finance SCOTT F. BRAST Senior Vice President, Chief Mortgage Loan and Real Estate Investment Offi cer BRIAN N. BRIGHT Senior Vice President, Computing Services SCOTT C. CAMPBELL Senior Vice President, Chief Client Offi cer L. CHAD FERRELL Senior Vice President, IMG Marketing Operations JAMES L. FLINN Senior Vice President, Chief Risk Offi cer and P&C Actuarial BERNARD S. GERWEL Senior Vice President, Chief Innovation Offi cer In American National’s earliest days, a small force of agents sold life insurance policies door-to-door in Texas. Once the policies were sold, the tireless agents returned, often weekly, to collect the premiums in person. Some agents were such a regular presence in customers’ lives, they told of being invited to stay for dinner with the family. The company’s first home office building was built in 1912 in Galveston, Texas. The 11-story structure was state-of-the-art for its time and boasted mail chutes, circulating ice water, electric lights, electric fans and a rooftop garden for employees to enjoy during their lunch hour. Outside tenants could rent offices in the building for $52.50 per month. 6 | 2019 Annual Overview 6 | 2019 Annual Overview DEBORAH K. JANSON Senior Vice President, Corporate Offi ce and Chief Business Planning Offi cer S. LIANE LATHAM Senior Vice President and Actuary ANNE M. LEMIRE Senior Vice President, Chief Securities Investment Offi cer BRUCE M. LEPARD Senior Vice President, Chief Human Resources Offi cer BRAD W. MANNING Senior Vice President, Life Claims and Customer Service Center M. SCOTT MARQUIS Senior Vice President, Life Underwriting JEFFREY A. MILLS Senior Vice President, Chief P&C Claims Offi cer MEREDITH M. MITCHELL Senior Vice President, Application Development and Support Always on the lookout for ways to increase efficiency, in 1963 American National purchased the newest data processing machine available to the industry: the IBM 7080. Weighing in at more than 9 tons, the 7080 required 1,200 square feet of floor space. In 1971, the company completed construction of its most ambitious home office yet: a 20-story high-rise that towered over all other structures on Galveston Island. The construction process took three years and, at the time of its completion, American National president Glendon E. Johnson said, “The tower symbolizes our company’s faith in the future of the insurance industry and in the future of America.” 2019 Annual Overview | 7 2019 Annual Overview | 7 Senior Management Senior Vice Presidents MICHAEL S. NIMMONS Senior Vice President, Internal Audit Services MATTHEW R. OSTIGUY Senior Vice President, P&C Product and Pricing E. BRUCE PAVELKA Senior Vice President, Life New Business and Administration RONALD C. PRICE Senior Vice President, Career Life Agencies PATRICK A. SMITH Senior Vice President, Multiple Line Field Operations WAYNE A. SMITH Senior Vice President, Career Sales & Service CLARENCE E. TIPTON Senior Vice President, Chief Health Actuary DR. JOHN WHITE III Senior Vice President, Medical Director (Life, Health and Group) On Jan. 16, 1997, American National’s first website went live, and the company officially entered the digital era. Originally envisioned as a simple “welcome mat” laid out to attract browsing consumers, the company’s website now allows customers to pay bills, file claims, find forms and get insurance quotes. Looking to 2020 and beyond, we will expand the use of artificial intelligence and other technologies to improve both our business process and the experiences of our customers, distribution partners and employees. 8 | 2019 Annual Overview A M E R I C A N N A T I O N A L I N S U R A N C E C O M P A N Y One Moody Plaza | Galveston, Texas 77550 | AmericanNational.com