AMERICAN NATIONAL INSURANCE COMPANY

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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 96!

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Fixed Annuities - Whats New?

• Our ANICO Strategy Indexed Annuity or
  ASIA
• Weve come up with a truly winning formula
• Annual Reset! Riders Galore!

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

• Want to learn about what is
• the next best indexed annuity?
• Clean Simple Design
• Strong Guarantees
• 3. Innovative Riders Not Available on any fixed
  or indexed annuities!

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ANICO Strategy Indexed AnnuityIndexed to the SP
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 SP 500 Performance
• Fixed Interest declared annually
• Can reallocate funds between the two accounts on
  policy anniversary no restrictions on
  allocation

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ANICO Strategy Indexed AnnuityIndexed to the SP
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)
• 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

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ANICO Strategy Indexed AnnuityIndexed to the SP
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

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 Upgrades.

• Innovative (Optional) Riders Lifetime Income
  Rider
• Payments can begin anytime after age 60
• No Minimum Waiting Period
• Income is based 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

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 Upgrades.

• Innovative (Optional) Riders Lifetime Income
  Rider
• Income Benefit is treated like a free partial
  withdrawal
• IT CAN BE STOPPED AT ANYTIME!
• Thats right the guarantees of a lifetime
  annuitization with the flexibility of systematic
  withdrawals You Cant Beat That!
• Payments can be re-started after having been
  stopped
• Can 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 .40 of the account value per year
• Much lower than competing variable products!
• Only deducted in years when theres positive AV
  Growth
• Past amounts not deducted for will be debited in
  future years when AV growth is sufficient to
  accommodate such cost

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 Lifetime Income Rider How Does It Work?

• Assume a 100,000 policy issued to 60 yr. old, w/
  income taken at age 61.
• Above values based on hypothetical for the
  period of 8/28/96 8/28/06

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 Lifetime Income Rider How Does It Work?

• Above values based on hypothetical for the
  period of 8/28/96 8/28/06
• Note the increase in the lifetime income in years
  when the AV grows
• Note how the income locks in and doesnt fall
  when the AV decreases
• If the markets perform, you have growth, but
  regardless, you have income!

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 Upgrades . . .

• Innovative (Optional) Riders Enhanced Death
  Benefit Rider
• Enhanced Death Benefit Rider Increases DB by a
  of AV gains
• Benefit Varies by Age Based on Issue Age
• Through age 69 45
• Ages 70 74 25
• Ages 75 80 20
• Ages 81 15
• Benefit is NOT reduced if you take systematic
  withdrawals!!!!
• NO UNDERWRITING!
• Rider Terminates at Age 95, 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 year

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 Enhanced Death Benefit Rider How Does it
Work?

• Assume our same 100,000 policy initially issued
  to a policy Owner, age 60
• Death Benefit 45 of the cumulative growth in
  the Annuity Value _at_ death
• Assume policy withdrawals of 6,000 after the
  first policy year and another 1,000 after the
  second policy year. Assume after these
  withdrawals that our ending AV is 102,400.
  Death subsequently occurs in a later year after
  the AV has grown to 109, 750.
• Initial Deposit Amount (i.e. initial deposit of
  100,000) is reduced by the 7,000 of withdrawals
  taken resulting in an adjusted initial premium of
  93,327
• If we take the AV at death, of 109,750 and
  subtract the adjusted premium of 93,327, we come
  up with a cumulative gain of 16,423
• 45 of the cumulative gain is the death benefit
  enhancement 7,390.35
• Add this additional amount of 7,390.35 to the AV
  of 109,750 and we arrive at the total Death
  Benefit of 117,140.35.

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ANICO Strategy Indexed AnnuityIndexed to the SP
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
  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

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ANICO Strategy Indexed AnnuityIndexed to the SP
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

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ANICO Strategy Indexed AnnuityIndexed to the SP
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 .40 to the General Agent

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 - As of 8/1/06 . . .

• Minimum Guaranteed Surrender Value is based on a
  Minimum Guaranteed Interest Rate (MGIR) based on
  90 of premium
• Indexed Interest Account
• ASIA 10 _at_ 3.00
• ASIA 7 _at_ 2.75
• Fixed Interest Account
• ASIA 10 _at_ 3.00
• ASIA 7 _at_ 3.00

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 As 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
• 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

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ANICO Strategy Indexed AnnuityIndexed to the SP
500 State Approvals

• ASIA Both the 7 and the 10
• Available in all states except the following
• MD TX
• MA UT
• MN VT
• MT WA
• ND
• OK
• OR
• PA

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So, be on the look-out for ASIA, the next BEST
Equity Indexed Annuity
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Other Winning Annuities . . .
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Is That It?
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Heck No, How About our

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

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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

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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.