AM Best Removes From Under Review with Developing Implications and Takes Various Credit Rating Actions on American National Insurance Company and Most of Its Affiliates

AM Best has removed from under review with developing implications and downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "a" (Excellent) from "a+" (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of American National Insurance Company (ANICO) and its affiliates, American National Life Insurance Company of Texas and American National Life Insurance Company of New York (Glenmont, NY). These companies are referred to collectively as the American National Group (ANG).

In addition, AM Best has removed from under review with developing implications and downgraded the Long-Term ICR to "a" (Excellent) from "a+" (Excellent) and affirmed the FSR of A (Excellent) of American National Property and Casualty Company (Springfield, MO), and its subsidiaries, American National General Insurance Company (Springfield, MO), American National Lloyds Insurance Company, and its affiliates, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company (both domiciled in Glenmont, NY). These entities are all considered part of American National Property & Casualty Group (ANPAC Group) due to their strategic importance. These companies are property/casualty subsidiaries of American National Group, Inc. (American National), which is a new intermediate holding company. All the above companies are headquartered in Galveston, TX, unless otherwise noted. The outlook assigned to these ratings is stable.

Concurrently, AM Best has removed from under review with developing implications and upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICR to "a" (Excellent) from "a-" (Excellent) of American Equity Investment Life Insurance Company and its subsidiaries, American Equity Investment Life Insurance Company of New York (Lake Success, NY) and Eagle Life Insurance Company, collectively referred to as American Equity. The outlook assigned to these ratings is stable.

Concurrently, AM Best has maintained the under review with developing implications status for the FSR of A (Excellent) and the Long-Term ICR of "a" (Excellent) of Garden State Life Insurance Company (Galveston, TX) (GSL). Lastly, AM Best has withdrawn the Long-Term ICR of "bbb-" (Good) of American Equity Investment Life Holding Company (AEL) (NYSE:AEL). At the time of withdrawal these ratings were under review with developing implications. AEL has merged into the newly formed intermediate holding company American National. In addition, AM Best has maintained the under review with developing implication status for the Long-Term Issue Credit Ratings (Long-Term IRs) of AEL. All companies are domiciled in West Des Moines, IA, unless otherwise specified. (Please see below for detailed listing of the Long-Term IRs).

The ratings of ANG reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). During the under review period, the company's operating performance trends remained consistent. Despite divestiture from some major lines of business, such as accident & health related products, the group's business profile remains favorable through scale and distribution. Offsetting this is ANG's quality of capital, which AM Best views as negative.

The ratings of GSL reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate ERM.

The ratings of ANPAC Group reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Similarly to GSL, the quality and overall capitalization of the lead rating unit, American Equity Investment Group, suggests that lift is no longer warranted. The removal of this lift resulted in a downgrade of the Long-Term ICR for ANPAC.

The ratings of American Equity reflect its balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, favorable business profile and appropriate ERM. Given American Equity's scale and quality of capital, AM Best feels that the lift previously afforded to other rating units is no longer warranted. This also suggests that American Equity should receive the benefit of the diverse business profile of Brookfield Wealth Solutions, which includes, life, annuity, property/casualty and reinsurance business. This benefit was the primary reason for the upgrade of American Equity's business profile assessment.

The following Long-Term IRs have maintained the under review with developing implications:

American Equity Investment Life Holding Company—

— "bbb-" (Good) on $500 million 5% senior unsecured notes due 2027

— "bb" (Fair) on $300 million 6.625% perpetual, non-cumulative preferred stock

— "bb" (Fair) on $400 million 5.95% perpetual, non-cumulative preferred stock

The following indicative Long-Term IRs under the shelf registration have been withdrawn:

American Equity Investment Life Holding Company—

— "bbb-" (Good) on senior unsecured debt

— "bb+" (Fair) on subordinated debt

— "bb" (Fair) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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