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MERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIO ANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN OMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERIC NCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY A SURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMP ONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURAN AN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL IN MERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIO ANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN OMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERIC NCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY A SURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMP ONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURAN AN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL IN MERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIO ANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN OMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERIC NCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY A SURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMP ONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURAN AN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL IN MERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIO ANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN OMPANY AMERICAN NATIONAL 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AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSU CAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NAT PANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICA CE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY A NSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COM ONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANC NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSU CAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NAT PANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICA CE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY A NSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COM ONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANC NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSU CAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NAT PANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICA CE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY A NSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COM ONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANC NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSU CAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NAT PANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICA CE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY A NSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COM ONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANCE COMPANY AMERICAN NATIONAL INSURANC Moody Building, Strand and 22nd Street, Galveston, c. 1900 KEY RESULTS 2004 Assets reached $16,570,827,000, an increase of 9.4% over year-end 2003. Stockholders’ equity reached $3,295,758,000, or $124.46 per share. Net income for 2004 Looking Back •Moving T-orward totaled $255,593,000, or $9.65 per share, an increase of 40.3% over 2003. Life insurance in force totaled $61,402,527,000, an increase of 4.5% over year-end 2003. The ANICO Tower, 2004 The W.L. Moody Building, c. 1905 W.L. Moody Jr., Founder ANICO Building, 21st and Market, c. 1912 For one hundred years, American National has been a leader and innovator in the insurance industry, a driving force in the economic growth of the communities in which it operates, and a steady and sure source of financial protection. The 2004 Annual Report celebrates American National’s first century of existence with photos of the people and events that have shaped the company through the years. The operational results related in this year’s report exemplify the conservative stewardship that has fueled the company’s, growth from a beginning capitalization of $100,000 to over $16 billion in assets today. American National continues to seek profitable growth opportunities throughout North America and beyond. It is a proven strategy that has served the financial protection needs of scores of families and businesses for one hundred years and counting. 4 MANAGEMENT MESSAGE 8 RISK MANAGEMENT 10 INVESTMENTS 12 SEGMENT REPORTS Shearn Moody Sr. Medical Arts Building, c. 1973 Robert L. Moody One Moody Plaza 29 FINANCIAL STATEMENTS 58 AUDITOR’S REPORT 59 TEN-YEAR HIGHLIGHTS 60 BOARD OF DIRECTORS 62 OFFICERS AND DIRECTORS 66 FAMILY OF COMPANIES 68 RATINGS Management Message ROBERT L. MOODY Chairman of the Board Chief Executive Officer G. RICHARD FERDINANDTSEN President and Chief Operating Officer W.L. Moody Jr., Founder 4 As American National Insurance Company celebrates the American National is rated A+ (Superior) by A.M. Best centennial of its 1905 founding, we are especially gratified to Company. The rating carries a stable outlook. A.M. Best report that the company achieved its highest-ever operating Company cites a superior level of capital on both an absolute earnings in 2004.