GALVESTON — The insurance industry rating firm A.M. Best recently downgraded by a notch its assessments of American National Insurance Co. and several subsidiaries primarily as a result of a decrease in the companies’ capital and surplus and reduced operating performance, according to the insurer.
The rating firm downgraded from A+ (Superior) to A (Excellent) and assigned stable outlooks to island-based American National (Nasdaq: ANAT.) and subsidiaries American National Property & Casualty Co., American National General Insurance Co., American National County Mutual Insurance Company, Farm Family Casualty Insurance Co. and United Farm Family Insurance Co.
A.M. Best reaffirmed A (Excellent) ratings with a stable outlooks for American National Life Insurance Co. of Texas, Garden State Life Insurance Co., Standard Life & Accident Insurance Company, Farm Family Life Insurance Company, Pacific Property & Casualty Co. and American National Lloyds Insurance Co.
ANPAC Louisiana Insurance Co. was affirmed at its A- (Excellent) rating with a stable outlook.
In their statement, American National officials noted that the rating change came during a severe global economic crisis.
“While American National largely invests in high-quality assets to support its insurance and annuity liabilities, some of these were among the hardest hit over the past year,” the company said.
“During 2008 and the first quarter of 2009, on a consolidated basis, American National took $435 million in other-than-temporary impairments on invested assets. This impacted our reported capital and subsequently our recent review by A.M. Best.”
