For Agent Use Only

AMERICAN NATIONAL AMERICAN NATIONAL INSURANCE COMPANYINSURANCE COMPANY

A+A+ by AM Best & Co.

AAAA 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 96!96!

For Agent Use Only

Fixed Annuities - What’s New?

Our ANICO Strategy Indexed Annuity or – “ASIA”“ASIA”

We’ve come up with a truly winning formulaWe’ve come up with a truly winning formula

Annual Reset!Annual Reset! Riders Galore!Riders Galore!

For Agent Use Only

The ANICO Strategy Indexed AnnuityANICO Strategy Indexed Annuity is Coming Your Way . . .

Want to learn about what is

the next best indexed annuity?

1.1. Clean Clean SimpleSimple DesignDesign

2.2. Strong GuaranteesStrong Guarantees

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

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500

Annual Reset/Point-to-Point, No AveragingNo Averaging 100% Participation Locked inLocked in at Issue Annually Declared Cap Rate (Only Moving Part)(Only Moving Part) Both an Index Interest & Fixed Interest Acct.

– Index interest based on S&P 500 PerformanceIndex interest based on S&P 500 Performance

– Fixed Interest declared annuallyFixed Interest declared annually

– Can reallocate funds between the two accounts on Can reallocate funds between the two accounts on policy anniversary – policy anniversary – no restrictions on allocation %no restrictions on allocation %

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed 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 1st Yr

Both a 7 and a 10-yr Surrender (No MVA)(No MVA)• 7-yr: 7,7,6,5,4,3,2,07-yr: 7,7,6,5,4,3,2,0• 10 Yr: 9,9,8,7,6,5,4,3,2,1,010 Yr: 9,9,8,7,6,5,4,3,2,1,0• Walk-away at end of termWalk-away at end of term

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500

Waiver of Surrender Charges– 10% Partials after yr 1

• Based on full Account Value as of beginning of contract yearBased on full Account Value as of beginning of contract year• Includes Indexed Interest CreditsIncludes Indexed Interest Credits

– Required Minimum Distributions ((ALLALL Yrs) Yrs)– Disability or Confinement in a:

• HospitalHospital• Hospice FacilityHospice Facility• Convalescent Care FacilityConvalescent 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 OROR– Surrender Value

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 – Upgrades….Upgrades….

Innovative (Optional)(Optional) Riders: Lifetime Income RiderLifetime Income Rider

– Payments can begin anytime after age 60• No Minimum Waiting Period

• Income % is based on age at time of commencementbased on age at time of commencement– Age 60-69 = 5%

– Age 70-79 = 6%

– Age 80+ = 7%

– 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 – but the payment cannot go down

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 – Upgrades….Upgrades….

Innovative (Optional)(Optional) Riders: Lifetime Income RiderLifetime Income Rider– Income Benefit is treated like a free partial withdrawal

• IT CAN BE STOPPED AT ANYTIME!IT CAN BE STOPPED AT ANYTIME!• That’s right – the guarantees of a lifetime annuitization with the That’s right – the guarantees of a lifetime annuitization with the

flexibility of systematic withdrawals – flexibility of systematic withdrawals – You Can’t Beat That!You Can’t Beat That! • Payments can be re-started after having been stoppedPayments can be re-started after having been stopped• Can take less than the full amount available and increase it laterCan take less than the full amount available and increase it later

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

• It is It is .40%.40% of the account value per year of the account value per year• Much lower than competing variable products!Much lower than competing variable products!• Only deducted in years when there’s positive AV GrowthOnly deducted in years when there’s positive AV Growth

– Past amounts not deducted for will be debited in future years when Past amounts not deducted for will be debited in future years when AV growth is sufficient to accommodate such costAV growth is sufficient to accommodate such cost

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 – Upgrades . . .Upgrades . . .

Innovative (Optional)(Optional) Riders: Enhanced Death Benefit RiderEnhanced Death Benefit Rider– Enhanced Death Benefit Rider – Increases DB by a % of AV gains

– Benefit Varies by Age Based on Issue AgeBased on Issue Age• Through age 69 = 45%

• Ages 70 – 74 = 25%

• Ages 75 – 80 = 20%

• Ages 81+ = 15%

– NO UNDERWRITING!

– Rider Terminates at Age 95, BUT . . .BUT . . .

– At age 95, the EDB Amount is added to the AV!

– 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 yearIs anticipated to be .25% of the account value per year

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 – Upgrades . . .Upgrades . . .

Totally Innovative Riders: Return of Premium RiderReturn 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 and/or

the fixed interest rate• Current reduction is .50% from the current cap rate or• Current reduction is .20% from the fixed interest rate

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 – CommissionsCommissions

Commissions WITHOUTWITHOUT Trails:– ‘‘ASIA’ 10ASIA’ 10

• 8%, Ages 0-758%, Ages 0-75• 6.5%, Ages 76-806.5%, Ages 76-80• 5%, Ages 81-855%, Ages 81-85

– ‘‘ASIA’ 7ASIA’ 7• 5%, Ages 0-755%, Ages 0-75• 4%, Ages 76-804%, Ages 76-80• 3%, Ages 81-853%, Ages 81-85

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 – CommissionsCommissions

Commissions WITHWITH Trails:– ‘‘ASIA’ 10ASIA’ 10

• 5.5%, Ages 0-755.5%, Ages 0-75• 4.0%, Ages 76-804.0%, Ages 76-80• 2.5%, Ages 81-852.5%, Ages 81-85

– ‘‘ASIA’ 7ASIA’ 7• 3%, Ages 0-753%, Ages 0-75• 2%, Ages 76-802%, Ages 76-80• 1%, Ages 81-851%, Ages 81-85

– TRAILS = .40% to the General AgentTRAILS = .40% to the General Agent

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 - As of 8/1/06As of 8/1/06 . . . . . .

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

• ASIA 10: @ 3.00%ASIA 10: @ 3.00%• ASIA 7: @ 2.75%ASIA 7: @ 2.75%

– Fixed Interest AccountFixed Interest Account• ASIA 10: @ 3.00%ASIA 10: @ 3.00%• ASIA 7: @ 3.00%ASIA 7: @ 3.00%

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 – As of 8/1/06As of 8/1/06 . . . . . .

Annually Declared Cap Rates Are:– ASIA 10 = 7.4%– ASIA 7 = 8%– Minimum Guarantee for contract yrs 2-10 is 4%Minimum Guarantee for contract yrs 2-10 is 4%

Fixed Interest Bucket is Crediting:– ASIA 10 = 3.85%– ASIA 7 = 4.15%

Client Notification at Renewal/Anniversary– Policyholder receives a letter 5 weeks prior to anniversary notifying them of

renewal rates

For Agent Use Only

ANICO Strategy Indexed AnnuityIndexed to the S&P 500 – State ApprovalsState Approvals

ASIA BothBoth the 7 and the 10– Available in all states except the following:Available in all states except the following:

MDMD TXTXMAMA UTUTMNMN VTVTMTMT WAWANDNDOKOKORORPAPA

For Agent Use Only

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

For Agent Use Only

Other Winning Annuities . . .

MYGMYG

Multi-Yr GteesMulti-Yr Gtees– 3 to 10 Yrs3 to 10 Yrs

Great RatesGreat Rates– 4, 5 & 6 are 4, 5 & 6 are the sweet spotthe sweet spot

Non-renewing Non-renewing Surrender ChargeSurrender ChargeFull AV @ DeathFull AV @ Death10% P/F after Yr110% P/F after Yr1We are the We are the ‘PLAYER’ in the ‘PLAYER’ in the Multi-Year Multi-Year Guarantee Guarantee Market!Market!

Citadel 5 & 7Citadel 5 & 7

5 or 7 Yr 5 or 7 Yr Surrender ChargeSurrender Charge5 is SPDA5 is SPDA7 is FPDA7 is FPDAPrincipal GtdPrincipal Gtd10% P/F 10% P/F All YrsAll YrsNo Max Issue No Max Issue Age for OwnerAge for OwnerFull AV @ 1Full AV @ 1stst Death- owner/AnntDeath- owner/Annt1% Bonus (Cit 5)1% Bonus (Cit 5)2% Bonus (Cit 7)2% Bonus (Cit 7)

– 11stst 3 Yrs! 3 Yrs!

Century Century

10 Yr Surrender10 Yr SurrenderSPDASPDAChoice of a 1%, Choice of a 1%, 3%, 5%, 7% first 3%, 5%, 7% first Yr. Interest BonusYr. Interest Bonus10% P/F 10% P/F All YrsAll YrsFull AV @ Death Full AV @ Death of Ownerof Owner5%-8% Comp5%-8% CompTrails AvailableTrails AvailableGreat Bonus Great Bonus Annuity SeriesAnnuity Series

SPIASPIA

Issued up to 90Issued up to 905-yr Minimum 5-yr Minimum Pay-out Pay-out Very Competitive Very Competitive on 10-yr Certains on 10-yr Certains or longeror longerBest Pay-outs on Best Pay-outs on Life ContingenciesLife Contingencies

–Sgl or JointSgl or Joint

10% Partials or 10% Partials or Full Surrender of Full Surrender of Commuted Value Commuted Value After 3 Yrs or Even After 3 Yrs or Even at Death!at Death!BY CONTRACTBY CONTRACT

For Agent Use Only

Is That It?

For Agent Use Only

Heck No, How About our

“Cash Is King Contest for Your Agents . . . ?

For Agent Use Only

Cash Bonus for Writing Agents: 7/1/06 – 9/30/06 on EIA Sales

$250,000 - $500,000 = $250 $500,001 - $750,000 = $500 $750,001 - $1,000,000 = $1,000 $1,000,001 + = $2,000 Based on cumulative premium written & paid

during contest period

For Agent Use Only

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.