AM Best Maintains Under Review With Developing Implications Status for Credit Ratings of American National Insurance Company and Subsidiaries

Rhea-AI Summary

AM Best has retained the under review with developing implications status for the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings of 'a+' (Excellent) for American National Insurance Company (ANICO) and its subsidiaries. The review status is due to ANICO's ongoing merger with Brookfield Asset Management Reinsurance Partners Ltd. in a $5.1 billion all-cash transaction, expected to close in Q2 2022. This status will remain until AM Best evaluates ANICO's post-acquisition fundamentals.

Positive

• Ratings of A (Excellent) for FSR and 'a+' for Long-Term ICR indicate strong financial health.
• The merger with Brookfield Asset Management can provide significant capital and strategic advantages.

Negative

• The ratings are under review, indicating uncertainty regarding future performance post-merger.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has maintained the under review with developing implications status for the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of American National Insurance Company (ANICO) and its life/health subsidiaries, American National Life Insurance Company of Texas, American National Life Insurance Company of New York (Glenmont, NY) and Standard Life and Accident Insurance Company. These companies are referred to collectively as the American National Group. Concurrently, AM Best has maintained the under review with developing implications status for the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Garden State Life Insurance Company.

In addition, AM Best has maintained the under review with developing implications status for the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of American National Property and Casualty Company (Springfield, MO), and its subsidiaries, American National General Insurance Company (Springfield, MO); ANPAC Louisiana Insurance Company (Baton Rouge, LA); American National Lloyds Insurance Company; Pacific Property and Casualty Company (Los Angeles, CA); and its affiliates, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company (both domiciled in Glenmont, NY). These entities are all considered part of American National Property & Casualty Group due to their strategic importance. These companies are property/casualty subsidiaries of ANICO, which is a subsidiary of American National Group, Inc. [NASDAQ: ANAT] (American National). All the above companies are headquartered in Galveston, TX, unless otherwise noted.

The Credit Ratings (ratings) were placed under review in August of 2021 after the public announcement that American National had entered into a definitive merger agreement for its sale to Brookfield Asset Management Reinsurance Partners Ltd. in an all-cash transaction of approximately $5.1 billion. The transaction is expected to close in the second quarter of 2022. The ratings will remain under review with developing implications pending completion of the acquisition, and until AM Best can complete its assessment of American National’s post-acquisition rating fundamentals.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Kate Steffanelli

Associate Director

+1 908 439 2200, ext. 5063

kate.steffanelli@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Robert Raber

Director

+1 908 439 2200, ext. 5696

robert.raber@ambest.com

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best

FAQ

What is the current Financial Strength Rating of American National Insurance Company (ANAT)?

The Financial Strength Rating is A (Excellent) as per AM Best.

Why is the rating of American National Insurance Company (ANAT) under review?

The rating is under review due to the pending acquisition by Brookfield Asset Management.

When is the expected closure date for the merger involving American National (ANAT)?

The merger is expected to close in the second quarter of 2022.

What implications does the merger have on American National's credit rating?

The credit ratings will remain under review until AM Best assesses the post-acquisition fundamentals.