AMERICAN NATIONAL INSURANCE COMPANY (Parent Company Only)

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(In thousands)



	December 31,
Condensed Statements of Financial Position	2018			2017
ASSETS
Fixed maturity securities	$	9,660,562		$	9,093,442
Equity securities	6,252			4,976
Mortgage loans on real estate, net of allowance	4,772,085			4,533,620
Other invested assets	1,487,383			1,961,343
Investment in subsidiaries	3,121,901			3,090,883
Deferred policy acquisition costs	1,224,752			1,116,862
Separate account assets	918,369			969,764
Prepaid pension	57,117			—
Other assets	763,458			873,470
Total assets	$	22,011,879		$	21,644,360
LIABILITIES
Policy liabilities	$	4,373,398		$	4,207,467
Policyholders’ account balances	10,943,189			10,690,282
Separate account liabilities	918,369			969,764
Other liabilities	519,675			530,088
Total liabilities	$	16,754,631		$	16,397,601
EQUITY
Common stock	30,832			30,832
Additional paid-in capital	20,694			19,193
Accumulated other comprehensive income	(99,738		)	642,216
Retained earnings	5,413,952			4,656,134
Treasury stock, at cost	(108,492		)	(101,616		)
Total equity	5,257,248			5,246,759
Total liabilities and equity	$	22,011,879		$	21,644,360

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes therein.

See accompanying Report of Independent Registered Public Accounting Firm.

AMERICAN NATIONAL INSURANCE COMPANY (Parent Company Only)

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(In thousands)



	Years ended December 31,
Condensed Statements of Operations	2018			2017			2016
PREMIUMS AND OTHER REVENUES
Premiums and other policy revenues	$	943,071		$	889,346		$	987,994
Net investment income	686,569			794,277			713,589
Net realized investment gains	2,053			21,052			16,111
Other-than-temporary impairments	(1,243		)	(6,105		)	(10		)
Net losses on equity securities	(208		)	—			—
Other income	19,028			17,558			15,944
Total premiums and other revenues	1,649,270			1,716,128			1,733,628
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits	716,959			682,707			749,179
Other operating expenses	773,329			871,935			843,500
Total benefits, losses and expenses	1,490,288			1,554,642			1,592,679
Income before federal income tax and other items	158,982			161,486			140,949
Provision (benefit) for federal income taxes	28,308			(53,728		)	52,336
Equity in earnings of subsidiaries, net of tax	24,789			286,579			95,356
Other components of net periodic pension costs, net of tax	3,532			(8,142		)	(2,966		)
Net income attributable to American National	$	158,995		$	493,651		$	181,003

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes therein.

See accompanying Report of Independent Registered Public Accounting Firm.

AMERICAN NATIONAL INSURANCE COMPANY (Parent Company Only)

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(In thousands)



	Years ended December 31,
Condensed Statements of Cash Flows	2018			2017			2016
OPERATING ACTIVITIES
Net income	$	158,995		$	493,651		$	181,003
Adjustments to reconcile net income to net cash provided by operating activities
Net realized investments gains	(2,053		)	(21,052		)	(16,111		)
Other-than-temporary impairments	1,243			6,105			10
Accretion of premiums, discounts and loan origination fees	(11,236		)	(6,615		)	(7,675		)
Net capitalized interest on policy loans and mortgage loans	(36,784		)	(31,853		)	(28,943		)
Depreciation	30,492			32,991			28,510
Interest credited to policyholders’ account balances	269,933			370,270			297,526
Charges to policyholders’ account balances	(272,638		)	(236,336		)	(295,000		)
Deferred federal income tax expense (benefit)	10,564			(57,337		)	89,089
Equity in earnings of affiliates	(8,323		)	(10,840		)	(5,985		)
Net income of subsidiaries	(16,466		)	(275,739		)	(89,371		)
Distributions from equity method investments	5,319			—			—
Changes in
Policyholder liabilities	165,931			179,497			186,472
Deferred policy acquisition costs	(61,881		)	(66,219		)	8,684
Reinsurance recoverables	(9,855		)	584			11,545
Premiums due and other receivables	(1,302		)	12,343			(8,427		)
Prepaid reinsurance premiums	3,213			3,392			88
Accrued investment income	2,306			(3,138		)	351
Current tax receivable/payable	79,168			1,725			(24,833		)
Liability for retirement benefits	(64,824		)	(31,830		)	(29,678		)
Fair value of option securities	50,299			(86,259		)	(27,534		)
Fair value of equity securities	208			—			—
Other, net	(17,943		)	20,437			(48,112		)
Net cash provided by operating activities	274,366			293,777			221,609
INVESTING ACTIVITIES
Proceeds from sale/maturity/prepayment of
Held-to-maturity securities	514,393			730,143			382,390
Available-for-sale securities	296,545			315,030			282,834
Equity securities	—			5,635			—
Investment real estate	3,782			58,840			6,651
Mortgage loans	799,413			794,011			547,553
Policy loans	42,407			44,253			49,260
Other invested assets	110,415			76,521			28,155
Disposals of property and equipment	—			158			13,171
Distributions from affiliates and subsidiaries	17,795			20,038			9,909
Payment for the purchase/origination of
Held-to-maturity securities	(971,396		)	(824,831		)	(60,639		)
Available-for-sale securities	(535,233		)	(345,677		)	(159,534		)
Equity securities	(1,485		)	(128		)	(2,000		)
Investment real estate	(23,790		)	(26,936		)	(31,234		)
Mortgage loans	(1,021,303		)	(1,117,320		)	(1,327,395		)
Policy loans	(23,014		)	(22,978		)	(21,526		)
Other invested assets	(67,914		)	(42,849		)	(65,965		)
Additions to property and equipment	(10,767		)	(20,441		)	(39,856		)
Contributions to unconsolidated affiliates	(95,091		)	(26,056		)	(40,404		)
Change in short-term investments	360,837			(401,110		)	207,546
Change in investment in subsidiaries	100,000			—			20,044
Change in collateral held for derivatives	(63,069		)	84,325			22,789
Other, net	191			15,751			17,167
Net cash used in investing activities	(567,284		)	(683,621		)	(161,084		)
FINANCING ACTIVITIES
Policyholders’ account deposits	1,513,478			1,732,494			1,287,366
Policyholders’ account withdrawals	(1,243,641		)	(1,182,754		)	(1,229,039		)
Dividends to stockholders	(88,228		)	(88,335		)	(87,741		)
Net cash provided by (used in) financing activities	181,609			461,405			(29,414		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(111,309		)	71,561			31,111
Beginning of the period	262,901			191,340			160,229
End of the period	$	151,592		$	262,901		$	191,340

The condensed financial statements should be read in conjunction with the consolidated financial statements and notes therein.

See accompanying Report of Independent Registered Public Accounting Firm.