American National Notes Q3 Numbers

October 25, 2004

Texas-based American National Insurance Company announced third quarter 2004 net income of $46,989,000 ($1.77 per share) compared to $43,960,000 ($1.66 per share) for the same period in 2003.

After tax net gain from operations for the third quarter was $42,700,000 ($1.61 per share) compared with $42,831,000 ($1.62 per share) for the same period in 2003. After tax net gain from operations excludes after tax net realized investment gains and losses.

After tax net realized investment gains were $4,289,000 ($0.16 per share) for the third quarter of 2004 compared with net realized gains of $1,129,000 ($0.04 per share) for the same period in 2003.

Net income for the nine months ended Sept. 30, 2004 increased 60.1% totaling $175,847,000 ($6.64 per share) compared to $109,861,000 ($4.15 per share) for the first three quarters of 2003. The after tax net gain from operations for the first nine months totaled $155,076,000 ($5.86 per share) compared to $111,194,000 ($4.20 per share) for the same period in 2003. After tax net gain from operations excludes after tax net realized investment gains and losses which totaled a gain of $20,771,000 for the first three quarters of 2004 compared to a net realized loss of $1,333,000 in the same period of 2003.

Premium for the first nine months of 2004 was $1,559,463,000, an increase of 15.1% over the amount for the same period of 2003. Policy account deposits received were $1,137,057,000 versus $2,035,307,000 for the first nine months of 2003. The decrease in policy account deposits was primarily the result of reduced annuity sales consistent with the company’s 2004 business plan. Total revenues for the first nine months increased by 17.9% to $2,270,815,000 versus $1,925,387,000 for the same period in 2003.

The property and casualty business of the company’s Multiple Line operations was the largest contributor to the increase in operating earnings. After tax gain from the property and casualty business for the first nine months of 2004 was $59,369,000, which was a 60% increase over the results of the first nine months of 2003. This strong increase in earnings was achieved in spite of record catastrophe losses in 2004.

Total catastrophe losses net of reinsurance and net of tax increased 83.8% from 2003 to a total of $35,588,000. The primary contributors to the catastrophe losses were hurricanes Charlie, Frances, Ivan and Jeanne, which produced losses net of reinsurance and net of tax totaling $19,809,000. The Multiple Line results were industry leading in many components tracked and considered to be key performance indicators by the company with the property and casualty combined ratio improving from 98.6% to 95.8%.

Improved profit margins on the growing block of annuity business helped the company’s Independent Marketing operation contribute $11,864,000 to the after tax gain from operations for the first nine months of 2004 which was an improvement of 241.6% from the same period in 2003.

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