AMERICAN NATIONAL INSURANCE COMPANY

A+ by AM Best & Co.

AA by Standard & Poor Over $3 Billion in Capital Surplus $125 in Assets for every $100 of Liabilities Consolidated Assets of over $17 Billion And a Comdex Score of 95!

Fixed Annuities - What’s Next?

Our Newest EIA

– June 15, 2006 We’ve come up with a truly winning formula

Annual Reset!

Riders Galore!

The

ANICO Strategy Indexed Annuity

is Coming Your Way . . .

Want to learn about what’s sure to be the next best indexed annuity?

1.

Clean Simple Design 2.

Strong Guarantees 3. Innovative Riders Not Available on any fixed or indexed annuities!

ANICO Strategy Indexed Annuity

Indexed to the S&P 500

 Annual Reset/Point-to-Point,

No Averaging

 100% Participation Locked in at Issue  Annually Declared Cap Rate (Only Moving Part)  Both an Index Interest & Fixed Interest Acct.

– Index interest based on S&P 500 Performance – Fixed Interest declared annually – Can reallocate funds between the two accounts on policy anniversary

ANICO Strategy Indexed Annuity

Indexed to the S&P 500

   Issued to ages 0-85 Owner/Annuitant Single Premium Product – $5,000 Minimum Premium for Non-Qualified – $4,000 Minimum Premium for Qualified  10% Penalty-Free Withdrawals of Annuity Value after 1 st Yr Both a 7 and a 10-yr Surrender • 7-yr: 7,7,6,5,4,3,2,0 • 10 Yr: 9,9,8,7,6,5,4,3,2,1,0 • Walk-away at end of term (No MVA)

ANICO Strategy Indexed Annuity

Indexed to the S&P 500

  Waiver of Surrender Charges – 10% Partials after yr 1 • Based on full Account Value as of beginning of contract year • Includes Indexed Interest Credits – Required Minimum Distributions (ALL Yrs) – Disability or Confinement in a: • Hospital • Hospice Facility • Convalescent Care Facility Death Benefit – Paid at the death of the Owner – Greater of Full Annuity (Account) Value, including indexed earnings up to the date of death OR – Surrender Value

ANICO Strategy Indexed Annuity

Indexed to the S&P 500 – Upgrades….

 Innovative

(Optional)

Riders: Lifetime Income Rider – Payments can begin anytime after age 60 – Guarantees Income for Life Even if the Annuity Value Declines to

0

!

– It must be added at issue, but can be dropped anytime!

– Payment based on highest AV from date payments start – Income Benefit is treated like a free partial withdrawal •

IT CAN BE STOPPED AT ANYTIME!

•

That’s right – the guarantees of a lifetime annuitization with the flexibility of systematic withdrawals – You Can’t Beat That!

– The Cost for the rider is guaranteed at issue for the life of the contract • •

Is expected to be .40% of the account value per year Much lower than competing variable products!

ANICO Strategy Indexed Annuity

Indexed to the S&P 500 – Upgrades . . .

 Innovative

(Optional)

Riders: Enhanced Death Benefit Rider – Enhanced Death Benefit Rider

– Increases DB by a % of index gains

– Benefit Varies by Age • Through age 69 = 45% • Ages 70 – 74 = 25% • Ages 75 – 80 = 20% • Ages 81+ = 15% – NO UNDERWRITING!

– Must be added at issue, but can be dropped at anytime – Cost is guaranteed for the life of the contract • Is anticipated to be .25% of the account value per year

ANICO Strategy Indexed Annuity

Indexed to the S&P 500 – Upgrades . . .

 Totally Innovative Riders: Return of Premium Rider – Gtd. Min. SV = Initial Premium – Withdrawals – Must be added at issue – Cannot be Dropped – Cost will be a reduction in the declared cap rate • Current reduction is .50%

ANICO Strategy Indexed Annuity

Indexed to the S&P 500 – Commissions

 Commissions WITHOUT Trails: – ‘ASIA’ 10 • 8%, Ages 0-75 • 6.5%, Ages 76-80 • 5%, Ages 81-85 – ‘ASIA’ 7 • 5%, Ages 0-75 • 4%, Ages 76-80 • 3%, Ages 81-85

ANICO Strategy Indexed Annuity

Indexed to the S&P 500 – Commissions

 Commissions WITH Trails: – ‘ASIA’ 10 • 5.5%, Ages 0-75 • 4.0%, Ages 76-80 • 2.5%, Ages 81-85 – ‘ASIA’ 7 • 3%, Ages 0-75 • 2%, Ages 76-80 • 1%, Ages 81-85 – TRAILS = .35% to the writing agent

ANICO Strategy Indexed Annuity

Indexed to the S&P 500 -

As of 6/15/06 . . .

 Minimum Guaranteed Surrender Value is based on a Minimum Guaranteed Interest Rate (MGIR) based on 90% of premium –

Indexed Interest Account

•

ASIA 10: @ 3.00%

•

ASIA 7: @ 2.65%

–

Fixed Interest Account

• •

ASIA 10: @ 3.00% ASIA 7: @ 3.00%

ANICO Strategy Indexed Annuity

Indexed to the S&P 500 –

As of 6/15/06 . . .

 Annually Declared Cap Rates Are: – ASIA 10 = 7% – ASIA 7 = 7.5%  Fixed Interest Bucket is Crediting: – ASIA 10 = 3.75% – ASIA 7 = 4.05%

ANICO Strategy Indexed Annuity

Indexed to the S&P 500 –

State Approvals

 ASIA

Both

the 7 and the 10: AL, AK, AZ, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KY, LA, ME, MI, MS, MO, NE, NH, NJ, NM, OH, RI, SC, SD, VA, WV, WY

So, be on the look-out for “ASIA” , the next BEST

So Why Do Business with American National

Why Do Your Business with American National?

      Agent Focused Company:

Knowledgeable/Friendly Staff

Additional Support thru Field Support Ctr.

Innovative ‘Market-Driven’ Approach One of the Industry’s Financially Strongest Dedicated 1035 Exchange Unit Reciprocal Non-Resident Appointments in all but 10 states for overrides  Great annuity and life products

OUR SUSTAINABLE COMPETITIVE ADVANTAGE: SERVICE

American National Insurance Company  Thanks for your interest in American National and especially your business!

 We look forward to a long and profitable relationship with you.