A.M. Best believes ANICO is well positioned at its current ratings. Key rating factors that could result in negative rating actions include a decrease in risk-adjusted capitalization, profitability below A.M. Best's expectations and further concentration in interest-sensitive products.In addition, A.M. Best has affirmed the FSRs of A (Excellent) and ICR of “a” of American National Property and Casualty Company (ANPAC) (Springfield, MO), its subsidiaries, American National General Insurance Company (Springfield, MO) and American National County Mutual Insurance Company (Galveston, TX) and its separately-rated subsidiaries, American National Lloyds Insurance Company (Galveston, TX) and Pacific Property and Casualty Company (San Jose, CA). A.M. Best has also affirmed the FSR of A- (Excellent) and ICR of “a-” of ANPAC’s separately-rated subsidiary, ANPAC Louisiana Insurance Company (Mandeville, LA). The outlook for the ratings is stable. Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of Farm Family Casualty Insurance Company (Farm Family) and United Farm Family Insurance Company. The outlook for the ratings is stable. These companies are domiciled in Glenmont, NY. The members of the ANPAC and Farm Family groups of companies are all property/casualty subsidiaries of ultimate parent ANICO. The ratings also consider the support provided by ANICO, as well as the synergies generated amongst and between the groups and their parent. Negative rating actions for the property and casualty subsidiaries could occur if there were a sudden unexpected and material decline in risk-adjusted capitalization, a sustained deterioration in operating performance or diminished liquidity measures. The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Additional key criteria utilized include: “Catastrophe Analysis in A.M. Best Ratings”; “Rating Members of Insurance Groups”; “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Understanding BCAR for Life/Health Insurers.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.