AMERICAN NATIONAL INSURANCE COMPANY

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AMERICAN NATIONAL INSURANCE COMPANY

• Nearly 1.5 Billion in Annuity Premium in 04
• Over 18 Billion in Assets
• Over 3 Billion in Capital Surplus
• 125 in Assets for every 100 of Liabilities
• Thanks for your business!

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American National

• Value-Lock Equity Indexed Annuities

AMERICAN NATIONAL INSURANCE COMPANY GALVESTON,
TEXAS
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• Equity Index Annuity Terminology

Hedging
Index Period
High Water Mark
Averaging
Cap Rate
Vested Benefits
Margin Charge
SP 500
Monthly Design
Participation Rate
Spread Fee
Options
Point to Point
Annual Reset
NASDAQ
Guaranteed Rate
"Standard Poor's", "SP", "Standard Poors
500" and "500" are trademarks of The McGraw-Hill
Companies, Inc. and have been licensed for use by
American National. The product is not sponsored,
endorsed, sold or promoted by Standard Poors
and Standard Poors makes no representation
regarding the advisability of purchasing the
annuity.
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ANICO VALUE-LOCK
Equity Indexed Annuity
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What is The Best Design?
Replicate the Index
End Term Design
Return
High Water Mark
Annual Reset
Fixed Annuities
Volatility of Return (Risk)
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What is The Best Design?

• Fixed Annuities Low Rate Environment
• Annual Reset Caps, Fees, Spreads, Etc.
• High Water Mark Complicated Formulas
• End Term No Credits Mid-Term
• Replicate the Index Risk of Principal Loss

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Point to Point / End of Term Design
• 100 Participation SP 500 (Guaranteed _at_
  issue for the length of the contract)
• No Cap on Earnings
• No Spread or Margin Fee
• Based on the monthly average performance of the
  SP 500

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Issue Ages 0-80
• Ten Year or Seven Year Chassis
• Current Premium Bonus on 10-yr of 5
• Potential for 1-5 Premium Enhancement on the 10
  Yr
• Effective thru 10/31/05 declared monthly

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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design

SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design

SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design

SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design Value Lock 7
• Buy and Hold for 7-Years
• Starting Index Value 500
• Average of 84 Months 1050
• Total Percentage Increase 110
• Interest Credit (100 Participation) 110
• Effective Annual Rate of Return 11.18

In This Hypothetical Example
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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design Value Lock 10
• By and Hold for 10-Years
• Starting Index Value 500
• Average of 120 Months 1021
• Total Percentage Increase 104
• Interest Credit (100) 104
• Effective Annual Rate 7.4

In This Hypothetical Example Interest Has Been
Earned at an Effective Annual Rate of 7.4
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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature
• Locks in Interest Related to Index Gain
• Prorated Share Credited at Lock-In
• Remaining Interest Credited Daily
• Ten Year - Lock at Any Time
• Seven Year Lock After Two Years

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature Value Lock 10

7th
SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature Value Lock 10
• Starting Index Value 500
• Average of 84 Months 1050
• Total Percentage Increase 110
• Interest Credit (70 at Lock-In) 77
• Interest Credit After Lock-In 7.98

(Hypothetical Example)
In This Hypothetical Example Interest Has Been
Earned at an Effective Annual Rate of 8.34 Over
Ten Years
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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature How it works
• Value of Index Gain is determined at time of
  lock-in
• Interest (currently 2) is compounded on gains
  for the
• remaining 3 years of surrender is added to
  the gains
• Total Value of Index Gains Interest is then
  pro-rated based on time theyve been in the
  policy since inception
• 7 out of 10 yrs 70 so 70 of the gains
  interest is credited to the AV at lock-in.
• The remaining 30 of gains interest is credited
  over the remaining 3 yrs on policy anniversary

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Guaranteed Minimum Surrender Value
• Ten Year Chassis
• 90 of premium at 1.75
• or the NAIC index
• Seven Year Chassis
• 88.75 of premium at 1.75
• or the NAIC index
• If NAIC Minimum Guarantee Rate is Greater, we
  follow that..currently it is 2.85

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Surrender Charges
• Ten Year Chassis
• 12,12,11,10,9,8,7,6,5,3 (/- MVA)
• Seven Year Chassis
• 8,8,7,6,5,4,2 (No MVA)
• Depending on the issue state.

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Confinement Waiver
• 60 Days
• Free Withdrawal
• 10 (Amounts withdrawn prior to lock-in do not
  earn any interest related to index gains)
• Death Benefit Pre Lock-In
• Greater of Account Value, Full Lock-In Value,
  Surrender Value.

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Premium Enhancement
• Ten Year Chassis
• Currently at 5
• Seven Year Chassis
• Not Available
• May change on a monthly basis.

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Policy Issue Dates
• Weekly 1st, 8th, 16th, 24th
• (Of each month)

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ANICO VALUE-LOCK
Equity Indexed Annuity

• General Agent Compensation
• Ten Year Chassis
• 10
• Seven Year Chassis
• 6

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Value-Lock State Approvals as of 9/30/05

• Value-Lock 10
• AL, AK, AZ, AR, CA, CO, DC, FL, GA, HI, ID, KS,
  KY, LA, ME, MI, MS, MO, MT, NE, NV, NH, NM, OH,
  OK, RI, SC, SD, TN, TX,VA, WV, WI, WY
• Value-Lock 7
• AL, AK, AZ, AR, CA, CO, DC, FL, GA, HI, ID, KS,
  KY, LA, ME, MI, MS, MO, MT, NE, NV, NH, NM, OH,
  OK, RI, SC, SD, TN, TX,VA, WV, WI, WY
• Effective 9/1/05

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. . . In Review, We Have

• Unlimited up-side potential of a long-term
• point-to-point
• No Caps, No Spreads, No Margin Costs
• Vs. Annual or Bi-annual Resets
• 100 Participation Locked-in at issue
• Monthly averaging ONE TIME at end point
  (simple)
• Vs. 12 mos, then 24 mos, re-averaging the first
  12, etc.
• Built-in Indexing Bail-out Option
• Unique Lock-in Feature (only one in the industry)
• Mitigates the threat of losing previous gains due
  to a market decline in the later years
• Common w/ traditional long-term point-to-points
  high water marks

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ANICO VALUE-LOCK
Equity Indexed Annuity
So how does it compete?
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NEW VALUE-LOCK 10 EIAHow strong is American
Nationals Equity Index Annuity?
Consider the SP 500 Index over the last ten
years had the following products been available
and been in effect from 3/1/1995 through
3/1/2005, the interest credited on a single
premium payment of 100,000 would be as follows
Information compiled by American National,
Independent Marketing Group as of 5/15/05.
Performance listed above should be verified with
each issuing company. Please see carrier product
reference guide and disclosures for more complete
information. Past Performance Does Not Guarantee
Future Results.
Policy Form PIA 10A-NQ, PQ, or PIA10B-NQ, PQ is
issued by American National Insurance Company and
is not available in all states. Standard
Poors?, SP?, Standard Poors 500 and
500 are trademarks of the McGraw-Hill
Companies, Inc. and have been licensed for use by
American National. This product is not endorsed,
sold or promoted by Standard Poors?.
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ANICO VALUE-LOCK
Equity Indexed Annuity
The Value-Lock is easy to explain for you and
your client no moving parts vs. the trust me
of annual reset designs!
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Other Products in our Arsenal . . .Check-out our

• MYGs ranging from 4 6 yrs
• MYG 6 at 4.25 is best of class!
• Citadel 5 7 Diamond Series
• Owner Any Age on NQ Business
• Full AV on Death No Chargeback!
• Principal Guarantee 10 p/f in yr 1!
• Palladium SPIA
• Full Liquidity after 3 years!!!
• Very Competitive Life/Life Cont Payouts

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American National Insurance Company

• Thanks you for your interest in American National
  and especially your business!
• We look forward to a long and profitable
  relationship with you.