American National Sees 39% Increase in Q3 Net Income

American National Insurance Company, based in Galveston, Texas, reported third quarter 2003 net income of $43,960,000 ($1.66 per share) compared to $31,436,000 ($1.19 per share) for the same period in 2002, an increase of 39 percent.

After tax net gain from operations for the third quarter was $43,636,000 ($1.65 per share) versus $39,823,000 ($1.50 per share) for the same period in 2002, an increase of 9.6 percent. After tax net gain from operations excludes after tax net realized investment gains and losses. After tax net realized investment gains were $324,000 for the third quarter of 2003 compared with net realized losses of $8,387,000 for the same period in 2002.

Net income for the first nine months of 2003 was $109,861,000 ($4.15 per share) compared to net income for the first nine months of 2002 of $79,655,000 ($3.01 per share). The after tax net gain from operations for the first nine months of 2003 was $111,999,000 ($4.23 per share) versus $103,929,000 ($3.93 per share) for the same period in 2002, an increase of 7.8 percent.

The consolidated operations continue to show growth. Premium for the first nine months of 2003 was $1,354,691,000, an increase of 10.7 percent over the same period in 2002. Policy account deposits received for the first nine months of 2003 were $2,035,307,000 versus $661,883,000 for the same period in 2002. Total revenues increased by 11.2 percent for the first nine months of 2003 to $1,919,700,000 versus $1,725,661,000 for the same period for 2002.

The improving trend in the Multiple Line Operation’s operating performance continued in the third quarter of 2003, and this operation was a major contributor to the overall increase in the net gain from operations. The Multiple Line Property and Casualty Operation before tax gain from operations increased $42,052,000 for the nine month period ended September 30, 2003 compared to the same period in 2002.

This improvement was achieved despite the impact of a record number of catastrophe level claims from storms in Missouri, Tennessee and Texas and hurricane Isabel on the east coast. The combined ratio for the Multiple Line Property and Casualty operations was 98.6 percent for the first nine months of 2003 compared to 104.5 percent for the same period in 2002.