10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2012

or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File No. 001- 34280

American National Insurance Company

(Exact name of registrant as specified in its charter)

Texas	74-0484030
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Moody Plaza Galveston, Texas	77550-7999
(Address of principal executive offices)	(Zip Code)

(409) 763-4661

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

As of October 31, 2012, there were 26,836,664 shares of the registrant’s voting common stock, $1.00 par value per share, outstanding.

AMERICAN NATIONAL INSURANCE COMPANY

TABLE OF CONTENTS

	PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited):
Consolidated Statements of Financial Position as of September 30, 2012 and December 31, 2011		3
Consolidated Statements of Operations for the three and nine months ended September 30, 2012 and 2011		4
Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2012 and 2011		5
Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2012 and 2011		5
Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2011		6
Notes to the Unaudited Consolidated Financial Statements		7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		35
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		56
ITEM 4. CONTROLS AND PROCEDURES		56
	PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS		57
ITEM 1A. RISK FACTORS		57
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		57
ITEM 3. DEFAULTS UPON SENIOR SECURITIES		57
ITEM 4. MINE SAFETY DISCLOSURES		57
ITEM 5. OTHER INFORMATION		57
ITEM 6. EXHIBIT INDEX		58

2

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AMERICAN NATIONAL INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited and in thousands, except for share and per share data)

	September 30,			December 31,
	2012			2011
				(As Adjusted)
ASSETS
Fixed maturity, bonds held-to-maturity, at amortized cost (Fair Value $10,061,217 and $9,857,691)	$	9,187,881		$	9,251,972
Fixed maturity, bonds available-for-sale, at fair value (Amortized cost $4,313,577 and $4,135,610)		4,668,577			4,381,607
Equity securities, at fair value (Cost $687,488 and $710,679)		1,094,387			1,006,080
Mortgage loans on real estate, net of allowance		3,058,663			2,925,482
Policy loans		393,774			393,195
Investment real estate, net of accumulated depreciation of $218,161 and $202,180		508,202			470,222
Short-term investments		321,512			345,330
Other invested assets		129,675			109,514
Total investments		19,362,671			18,883,402
Cash and cash equivalents		162,630			102,114
Investments in unconsolidated affiliates		240,676			241,625
Accrued investment income		217,861			213,984
Reinsurance recoverables		388,459			405,033
Prepaid reinsurance premiums		61,417			68,785
Premiums due and other receivables		308,459			280,031
Deferred policy acquisition costs		1,269,867			1,320,693
Property and equipment, net		85,335			77,909
Current tax receivable		—			17,150
Other assets		135,385			131,403
Separate account assets		817,057			747,867
Total assets	$	23,049,817		$	22,489,996
LIABILITIES
Future policy benefits:
Life	$	2,641,916		$	2,599,224
Annuity		801,839			748,675
Accident and health		71,176			74,829
Policyholders’ account balances		11,621,182			11,506,504
Policy and contract claims		1,330,715			1,340,651
Unearned premium reserve		804,288			797,398
Other policyholder funds		287,854			288,910
Liability for retirement benefits		248,728			257,602
Current portion of long-term notes payable		48,747			46,387
Long-term notes payable		112,500			12,507
Current federal income taxes		4,706			—
Deferred tax liabilities, net		88,217			21,851
Other liabilities		332,695			397,353
Separate account liabilities		817,057			747,867
Total liabilities		19,211,620			18,839,758
STOCKHOLDERS’ EQUITY
Common stock, $1.00 par value, - Authorized 50,000,000
Issued 30,832,449 and 30,832,449,
Outstanding 26,836,664 and 26,821,284 shares		30,832			30,832
Additional paid-in capital		5,004			—
Accumulated other comprehensive income		279,760			159,403
Retained earnings		3,608,459			3,545,546
Treasury stock, at cost		(98,286	)		(98,490	)
Total American National stockholders’ equity		3,825,769			3,637,291
Noncontrolling interest		12,428			12,947
Total stockholders’ equity		3,838,197			3,650,238
Total liabilities and stockholders’ equity	$	23,049,817		$	22,489,996

3

AMERICAN NATIONAL INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except for share and per share data)

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
				(As Adjusted)						(As Adjusted)
PREMIUMS AND OTHER REVENUE
Premiums
Life	$	72,203		$	71,926		$	209,353		$	207,786
Annuity		30,140			21,704			93,275			73,304
Accident and health		56,199			57,708			167,965			174,736
Property and casualty		272,903			289,796			814,503			856,958
Other policy revenues		49,343			46,350			146,406			141,860
Net investment income		258,190			225,942			754,449			715,186
Realized investments gains (losses)		26,905			17,531			46,852			62,488
Other-than-temporary impairments		(13,975	)		(4,851	)		(22,073	)		(4,851	)
Other income		8,160			6,604			22,975			18,896
Total premiums and other revenues		760,068			732,710			2,233,705			2,246,363
BENEFITS, LOSSES AND EXPENSES
Policyholder Benefits
Life		84,615			75,472			245,237			232,013
Annuity		37,964			29,960			120,931			102,770
Claims incurred
Accident and health		38,436			38,691			119,586			119,764
Property and casualty		187,944			215,226			620,462			685,168
Interest credited to policyholders’ account balances		108,069			82,813			323,952			288,343
Commissions for acquiring and servicing policies		92,253			109,346			283,295			337,747
Other operating expenses		114,234			111,451			336,378			346,823
Change in deferred policy acquisition costs		7,168			(5,466	)		12,468			(39,624	)
Total benefits, losses and expenses		670,683			657,493			2,062,309			2,073,004
Income (loss) before federal income tax and equity in earnings/losses of unconsolidated affiliates		89,385			75,217			171,396			173,359
Less: Provision (benefit) for federal income taxes
Current		19,900			12,610			43,384			40,127
Deferred		7,754			6,487			(1,131	)		(253	)
Total provision (benefit) for federal income taxes		27,654			19,097			42,253			39,874
Equity in earnings (losses) of unconsolidated affiliates, net of tax		(895	)		3,077			(2,462	)		2,839
Net income (loss)		60,836			59,197			126,681			136,324
Less: Net income (loss) attributable to noncontrolling interest, net of tax		1,650			1,547			1,773			1,906
Net income (loss) attributable to American National Insurance Company and Subsidiaries	$	59,186		$	57,650		$	124,908		$	134,418
Amounts available to American National Insurance Company common stockholders
Earnings per share:
Basic	$	2.21		$	2.17		$	4.68		$	5.06
Diluted		2.20			2.16			4.65			5.03
Weighted average common shares outstanding		26,736,464			26,559,950			26,699,211			26,559,865
Weighted average common shares outstanding and dilutive potential common shares		26,870,655			26,718,464			26,859,100			26,706,798

See accompanying notes to the unaudited consolidated financial statements.

4

AMERICAN NATIONAL INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited and in thousands)

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012		2011
				(As Adjusted)					(As Adjusted)
Net income (loss)	$	60,836		$	59,197		$	126,681	$	136,324
Other comprehensive income (loss), net of tax
Change in net unrealized gain (loss) on securities		53,446			(101,062	)		113,183		(61,348	)
Foreign currency transaction and translation adjustments		(300	)		(470	)		30		(277	)
Defined benefit plan adjustment		2,351			(120	)		7,144		(308	)
Other comprehensive income (loss)		55,497			(101,652	)		120,357		(61,933	)
Total comprehensive income (loss)		116,333			(42,455	)		247,038		74,391
Less: comprehensive income attributable to noncontrolling interest		1,650			1,547			1,773		1,906
Total comprehensive income (loss) attributable to American National Insurance Company and Subsidiaries	$	114,683		$	(44,002	)	$	245,265	$	72,485

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited and in thousands, except for per share data)

	Nine months ended September 30,
	2012			2011
				(As Adjusted)
Common Stock
Balance at beginning and end of the period	$	30,832		$	30,832
Additional Paid-In Capital
Balance as of January 1,		—			15,190
Issuance of treasury shares as restricted stock		(204	)		(4	)
Income tax effect from restricted stock arrangement		(610	)		(14	)
Amortization of restricted stock		7,710			3,354
Purchase of ownership interest from noncontrolling interest		(1,892	)		—
Balance at end of period		5,004			18,526
Accumulated Other Comprehensive Income (Loss)
Balance as of January 1,		159,403			225,212
Other comprehensive income (loss)		120,357			(61,933	)
Cumulative effect of accounting change - deferred policy acquisition costs		—			604
Balance at end of the period		279,760			163,883
Retained Earnings
Balance as of January 1,		3,545,546			3,459,911
Net income (loss) attributable to American National Insurance Company and Subsidiaries		124,908			134,418
Cash dividends to common stockholders ($2.31 per share)		(61,995	)		(61,957	)
Cumulative effect of accounting change - deferred policy acquisition costs		—			(19,195	)
Balance at end of the period		3,608,459			3,513,177
Treasury Stock
Balance as of January 1,		(98,490	)		(98,494	)
Issuance of treasury shares as restricted stock		204			4
Balance at end of the period		(98,286	)		(98,490	)
Noncontrolling Interest
Balance as of January 1,		12,947			4,042
Contributions		—			29
Distributions		(2,591	)		(15,278	)
Gain (loss) attributable to noncontrolling interest		1,773			1,906
Purchase of ownership interest from noncontrolling interest		299			—
Balance at end of the period		12,428			(9,301	)
Total Stockholders’ Equity	$	3,838,197		$	3,618,627

See accompanying notes to the unaudited consolidated financial statements.

5

AMERICAN NATIONAL INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

	Nine months ended September 30,
	2012			2011
				(As Adjusted)
OPERATING ACTIVITIES
Net income (loss)	$	126,681		$	136,324
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Realized investments (gains) losses		(46,852	)		(62,488	)
Other-than-temporary impairments		22,073			4,851
Accretion (amortization) of discounts, premiums and loan origination fees		(1,719	)		6,375
Net capitalized interest on policy loans and mortgage loans		(22,635	)		(21,412	)
Depreciation		27,697			30,168
Interest credited to policyholders’ account balances		323,952			288,343
Charges to policyholders’ account balances		(146,406	)		(141,860	)
Deferred federal income tax (benefit) expense		(1,131	)		(253	)
Deferral of policy acquisition costs		(291,941	)		(349,262	)
Amortization of deferred policy acquisition costs		304,409			309,638
Equity in (earnings) losses of unconsolidated affiliates		2,462			(2,839	)
Changes in:
Policyholder liabilities		79,909			122,514
Reinsurance recoverables		16,574			(56,811	)
Premiums due and other receivables		(30,021	)		(15,876	)
Accrued investment income		(3,877	)		(17,148	)
Current tax receivable/payable		21,856			6,621
Liability for retirement benefits		2,117			(3,897	)
Prepaid reinsurance premiums		7,368			2,314
Other, net		(85,008	)		17,178
Net cash provided by (used in) operating activities		305,508			252,480
INVESTING ACTIVITIES
Proceeds from sale/maturity/prepayment of:
Bonds - held-to-maturity		975,850			479,123
Bonds - available-for-sale		384,925			330,839
Equity securities		52,340			76,082
Investment real estate		—			91,679
Mortgage loans		226,527			322,949
Policy loans		50,928			39,317
Other invested assets		27,492			29,039
Disposals of property and equipment		1,323			1,358
Distributions from unconsolidated affiliates		30,820			22,612
Payment for the purchase/origination of:
Bonds - held-to-maturity		(916,538	)		(1,284,363	)
Bonds - available-for-sale		(549,914	)		(466,316	)
Equity securities		(18,266	)		(53,015	)
Investment real estate		(21,948	)		(9,531	)
Mortgage loans		(385,263	)		(447,627	)
Policy loans		(33,423	)		(31,727	)
Other invested assets		(29,862	)		(29,107	)
Additions to property and equipment		(19,733	)		(13,555	)
Contributions to unconsolidated affiliates		(29,099	)		(58,560	)
Change in short-term investments		23,818			135,776
Other, net		10,278			48,121
Net cash provided by (used in) investing activities		(219,745	)		(816,906	)
FINANCING ACTIVITIES
Policyholders’ account deposits		897,654			1,722,051
Policyholders’ account withdrawals		(960,668	)		(1,064,860	)
Change in notes payable		102,353			(1,659	)
Dividends to stockholders		(61,995	)		(61,957	)
Proceeds from (payments to) noncontrolling interest		(2,591	)		(30,498	)
Net cash provided by (used in) financing activities		(25,247	)		563,077
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		60,516			(1,349	)
Beginning of the year		102,114			101,449
End of year	$	162,630		$	100,100

6

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. NATURE OF OPERATIONS

American National Insurance Company and its consolidated subsidiaries (collectively “American National”) operate in the insurance industry. Operating on a multiple product line basis, American National offers a broad line of insurance coverage, including individual and group life insurance, health insurance, annuities, and property and casualty insurance. In addition, through non-insurance subsidiaries, American National invests in stocks and real estate. The majority of revenues are generated by the insurance business. Business is conducted in all states and the District of Columbia, as well as Puerto Rico, Guam and American Samoa. Various distribution systems are utilized, including multiple-line exclusive agents, independent agents, third-party marketing organizations, career agents, and direct sales to the public.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Form 10-Q. In addition to GAAP, specific SEC requirements applicable to insurance companies are applied to the consolidated financial statements.

The interim consolidated financial statements and notes herein are unaudited. These interim consolidated financial statements reflect all adjustments which management considers necessary for the fair presentation of the consolidated statements of financial position, operations, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the interim periods.

These interim consolidated financial statements and notes should be read in conjunction with the annual consolidated financial statements and notes thereto included in American National’s Annual Report on Form 10-K as of and for the year ended December 31, 2011. The consolidated results of operations for the interim periods should not be considered indicative of results to be expected for the full year.

American National consolidates all entities that are wholly-owned and those in which American National owns less than 100% but controls, as well as any variable interest entities in which American National is the primary beneficiary. Investments in unconsolidated affiliates are accounted for using the equity method of accounting.

Certain amounts in prior years have been reclassified to conform to current year presentation.

The preparation of the consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported consolidated financial statement balances. Actual results could differ from those estimates.

Effective January 1, 2012, American National adopted a new accounting standard that modified the accounting for deferred policy acquisition costs (“DAC”) associated with acquiring new and renewal insurance and annuity contracts. Previously, acquisition costs were deferred if the costs varied with and were related primarily to the acquisition of new and renewal insurance and annuity contracts. In accordance with the new standard of Accounting Standard Update (“ASU”) No. 2010-26, DAC is limited to those costs that are related directly to the successful acquisition of insurance and annuity contracts, costs that result directly from and are essential to the contract acquisition and costs that would have not been incurred had the contract acquisition not occurred. In addition, advertising costs are included in DAC only if the capitalization criteria for direct-response advertising are met. Refer to Note 3 for discussion of the effects of this accounting change.

7

As of September 30, 2012, all other American National significant accounting policies and practices remain materially unchanged from those disclosed in Note 2, Summary of Significant Accounting Policies and Practices, of the Notes to the Consolidated Financial Statements included in American National’s 2011 Annual Report on Form 10-K.

3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

ADOPTION OF NEW ACCOUNTING STANDARDS

In October 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. The new standard redefines the term “acquisition cost” and added the term “incremental direct cost of contract acquisition” to the master glossary. These changes limit the deferrable cost to those costs that are related directly to the successful acquisition of insurance contracts, and those that result directly from and are essential to the contract acquisition and costs that would have not been incurred had the contract acquisition not occurred. The new guidance also specifies that advertising costs should be deferred only if the capitalization criteria for direct-response advertising are met. ASU 2010-26 is effective for interim and annual periods, commencing after December 15, 2011. American National adopted this standard effective January 1, 2012, and applied the retrospective method of adoption to all prior periods presented in the consolidated financial statements. Accordingly, upon adoption, the DAC asset was reduced by approximately $34,260,000 as a result of acquisition costs previously deferred that are no longer eligible for deferral under the new guidance. The after-tax cumulative effect adjustment to the opening balance of stockholders’ equity was approximately $19,745,000.

In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in the U.S. GAAP and IFRSs. ASU 2011-04 clarifies the intent of the FASB about the application of existing fair value measurement and disclosure requirements such as: (1) the application of the highest and best use and valuation premise concepts; (2) a requirement specific to measuring the fair value of an instrument classified in a reporting entity’s shareholders’ equity; and (3) a requirement to disclose unobservable inputs used in the fair value of an instrument categorized within Level 3 of the fair value hierarchy. The new guidance also prohibits the use of block premiums and discounts for all fair value measurement, regardless of hierarchy. In addition, ASU 2011-04 expands the disclosures about fair value measurements. ASU 2011-04 is effective for interim and annual periods, beginning after December 15, 2011. American National’s adoption of this guidance on January 1, 2012 did not have a material effect on the consolidated financial statements.

In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income. ASU 2011-05 makes the presentation of other comprehensive income (“OCI”) more prominent by giving reporting entities two presentation options. Reporting entities can present the total net income and total OCI along with their respective components as one continuous statement or as two separate consecutive statements. The new guidance also eliminates the option to present OCI in the statement of changes in stockholders’ equity. In addition, the new guidance requires reporting entities to present reclassification adjustments from OCI to net income on the face of the financial statements. ASU 2011-05 is effective for interim and annual periods, beginning after December 15, 2011. American National’s adoption of this guidance on January 1, 2012 did not have a material effect on its consolidated financial statements.

In September 2011, the FASB issued ASU No. 2011-08, Testing Goodwill for Impairment. ASU 2011-08 allows an assessment of qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis to determining whether the two-step goodwill impairment test is necessary. ASU 2011-08 is effective for interim and annual periods beginning after December 15, 2011. American National’s adoption of this guidance on January 1, 2012 did not have a material effect on its consolidated financial statements.

8

In December 2011, the FASB issued ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05. The guidance defers the application of the reclassification adjustment provisions in ASU 2011-05. ASU 2011-12 is effective for interim and annual periods beginning after December15, 2011. American National’s adoption of this guidance on January 1, 2012 did not have a material effect on its consolidated financial statements.

Future Adoption of New Accounting Standards

In July 2011, the FASB issued ASU No. 2011-06, Fees Paid to the Federal Government by Health Insurers. ASU 2011-06 addresses questions about how health insurers should recognize and classify in their income statements fees mandated by the Patient Protection and Affordable Care Act, which imposes an annual fee on health insurers for each calendar year beginning on or after January 1, 2014. The new guidance specifies that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year. The corresponding deferred cost is then amortized to expense using a straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. ASU 2011-06 is effective for calendar years beginning after December 31, 2013. American National’s adoption of this guidance on January 1, 2014 is not expected to have a material effect on its consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-10, Derecognition of in Substance Real Estate. The new guidance clarifies that when a reporting entity ceases to have a controlling financial interest in a subsidiary that is in substance real estate because of a default on the subsidiary’s nonrecourse debt secured by the real estate, the reporting entity should apply the guidance for real estate sales when evaluating the subsidiary for deconsolidation. ASU 2011-10 is effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. American National’s adoption of this guidance on January 1, 2013 is not expected to have a material effect on its consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The new guidance requires an entity to disclose both gross and net information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for interim and annual periods beginning on or after January 1, 2013 and the new disclosure requirements should be applied retrospectively for all periods presented. American National’s adoption of this guidance on January 1, 2013 is not expected to have a material effect on its consolidated financial statements.

In October 2012, the FASB issued ASU No. 2012-04, Technical Amendments and Corrections. The updates to current guidance make the codification easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarification. ASU 2012-04 is effective for fiscal periods beginning after December 15, 2012. American National’s adoption of this guidance on January 1, 2013 is not expected to have a material effect on its consolidated financial statements.

9

4. INVESTMENTS IN SECURITIES

The cost or amortized cost and estimated fair value of investments in held-to-maturity and available-for-sale securities are shown below (in thousands):

	September 30, 2012
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,503	$	92	$	—		$	8,595
States of the U.S. and political subdivisions of the states		401,608		41,574		(1	)		443,181
Foreign governments		29,064		4,871		—			33,935
Corporate debt securities		8,105,733		780,685		(4,645	)		8,881,773
Residential mortgage-backed securities		602,449		48,272		(1,276	)		649,445
Collateralized debt securities		2,504		342		—			2,846
Other debt securities		38,020		3,422		—			41,442
Total bonds held-to-maturity		9,187,881		879,258		(5,922	)		10,061,217
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		16,293		1,214		—			17,507
States of the U.S. and political subdivisions of the states		578,800		47,140		(26	)		625,914
Foreign governments		5,000		2,409		—			7,409
Corporate debt securities		3,551,547		321,373		(16,160	)		3,856,760
Residential mortgage-backed securities		112,773		6,001		(388	)		118,386
Commercial mortgage-backed securities		20,934		376		(9,969	)		11,341
Collateralized debt securities		18,158		1,595		(30	)		19,723
Other debt securities		10,072		1,465		—			11,537
Total bonds available-for-sale		4,313,577		381,573		(26,573	)		4,668,577
Equity securities
Common stock		660,798		405,750		(7,386	)		1,059,162
Preferred stock		26,690		8,609		(74	)		35,225
Total equity securities		687,488		414,359		(7,460	)		1,094,387
Total investments in securities	$	14,188,946	$	1,675,190	$	(39,955	)	$	15,824,181

10

	December 31, 2011
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	13,704	$	193	$	—		$	13,897
States of the U.S. and political subdivisions of the states		405,526		32,272		(6	)		437,792
Foreign governments		29,044		4,978		—			34,022
Corporate debt securities		8,011,901		564,159		(25,316	)		8,550,744
Residential mortgage-backed securities		714,659		50,774		(3,986	)		761,447
Commercial mortgage-backed securities		31,341		—		(20,158	)		11,183
Collateralized debt securities		7,134		—		(1,018	)		6,116
Other debt securities		38,663		3,827		—			42,490
Total bonds held-to-maturity		9,251,972		656,203		(50,484	)		9,857,691
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		11,930		1,156		—			13,086
States of the U.S. and political subdivisions of the states		579,008		39,930		(90	)		618,848
Foreign governments		5,000		2,435		—			7,435
Corporate debt securities		3,316,083		221,079		(32,016	)		3,505,146
Residential mortgage-backed securities		191,832		11,898		(1,009	)		202,721
Collateralized debt securities		17,636		1,611		(170	)		19,077
Other debt securities		14,121		1,173		—			15,294
Total bonds available-for-sale		4,135,610		279,282		(33,285	)		4,381,607
Equity securities
Common stock		679,724		305,269		(16,086	)		968,907
Preferred stock		30,955		7,688		(1,470	)		37,173
Total equity securities		710,679		312,957		(17,556	)		1,006,080
Total investments in securities	$	14,098,261	$	1,248,442	$	(101,325	)	$	15,245,378

11

Actual maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential and commercial mortgage-backed securities, which are not due at a single maturity, have been allocated to their respective categories based on the year of final contractual maturity. The amortized cost and estimated fair value, by contractual maturity of fixed maturity securities, are shown below (in thousands):

	September 30, 2012
	Bonds Held-to-Maturity				Bonds Available-for-Sale
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,147,452	$	1,173,170	$	366,867	$	373,976
Due after one year through five years		2,779,703		3,043,367		1,690,520		1,820,346
Due after five years through ten years		4,471,977		4,989,079		1,827,871		2,006,695
Due after ten years		782,899		851,026		423,319		462,961
Without single maturity date		5,850		4,575		5,000		4,599
Total	$	9,187,881	$	10,061,217	$	4,313,577	$	4,668,577

Available-for-sale securities are sold throughout the year for various reasons. All gains and losses were determined using specific identification of the securities sold. Proceeds from the sales of these securities, with the realized gains and losses, are shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012			2011		2012			2011
Proceeds from sales of available-for-sale securities	$	85,400		$	23,224	$	123,705		$	122,574
Gross realized gains		15,742			11,702		27,769			32,679
Gross realized losses		(204	)		—		(374	)		(840	)

During the nine months ended September 30, 2012 bonds with a carrying value of $34,227,000 were transferred from held-to-maturity to available-for-sale due to evidence of a significant deterioration in the issuers’ creditworthiness. An other-than-temporary impairment of $11,358,000 was recorded following the transfers at fair value.

Net unrealized gains (losses) on securities

The components of the net unrealized gains (losses) on securities during the periods indicated are shown below (in thousands):

	Nine months ended September 30,
	2012			2011
Bonds available-for-sale	$	109,003		$	51,205
Equity securities		111,498			(140,014	)
Net unrealized gains (losses) on securities during the year		220,501			(88,809	)
Adjustments for:
Deferred policy acquisition costs		(38,358	)		(7,240	)
Participating policyholders’ interest		(8,192	)		1,718
Deferred federal income tax benefit (expense)		(60,768	)		32,983
Net unrealized gains (losses) on securities, net of tax	$	113,183		$	(61,348	)

12

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are shown below (in thousands):

	September 30, 2012
	Less than 12 months					12 Months or more					Total
	Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
States of the U.S. and political subdivisions of the states	$	—		$	—	$	(1	)	$	80	$	(1	)	$	80
Corporate debt securities		(1,102	)		103,810		(3,543	)		43,768		(4,645	)		147,578
Residential mortgage-backed securities		(162	)		16,290		(1,114	)		25,752		(1,276	)		42,042
Total bonds held-to-maturity		(1,264	)		120,100		(4,658	)		69,600		(5,922	)		189,700
Fixed maturity securities, bonds available-for-sale
States of the U.S. and political subdivisions of the states		(26	)		1,978		—			—		(26	)		1,978
Corporate debt securities		(746	)		123,044		(15,414	)		76,570		(16,160	)		199,614
Residential mortgage-backed securities		(88	)		6,381		(300	)		10,317		(388	)		16,698
Commercial mortgage-backed securities		—			—		(9,969	)		5,768		(9,969	)		5,768
Collateralized debt securities		(1	)		224		(29	)		940		(30	)		1,164
Total bonds available-for-sale		(861	)		131,627		(25,712	)		93,595		(26,573	)		225,222
Equity securities
Common stock		(7,386	)		56,165		—			—		(7,386	)		56,165
Preferred stock		(74	)		5,780		—			—		(74	)		5,780
Total equity securities		(7,460	)		61,945		—			—		(7,460	)		61,945
Total investments in securities	$	(9,585	)	$	313,672	$	(30,370	)	$	163,195	$	(39,955	)	$	476,867

	December 31, 2011
	Less than 12 months					12 Months or more					Total
	Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
States of the U.S. and political subdivisions of the states	$	—		$	—	$	(6	)	$	264	$	(6	)	$	264
Corporate debt securities		(20,204	)		680,202		(5,112	)		39,280		(25,316	)		719,482
Residential mortgage-backed securities		(227	)		19,398		(3,759	)		32,653		(3,986	)		52,051
Commercial mortgage-backed securities		—			—		(20,158	)		11,183		(20,158	)		11,183
Collateralized debt securities		(8	)		1,605		(1,010	)		4,511		(1,018	)		6,116
Total bonds held-to-maturity		(20,439	)		701,205		(30,045	)		87,891		(50,484	)		789,096
Fixed maturity securities, bonds available-for-sale
States of the U.S. and political subdivisions of the states		(10	)		762		(80	)		1,971		(90	)		2,733
Corporate debt securities		(12,142	)		396,761		(19,874	)		85,623		(32,016	)		482,384
Residential mortgage-backed securities		(202	)		25,943		(807	)		9,047		(1,009	)		34,990
Collateralized debt securities		(6	)		704		(164	)		2,770		(170	)		3,474
Total bonds available-for-sale		(12,360	)		424,170		(20,925	)		99,411		(33,285	)		523,581
Equity securities
Common stock		(16,086	)		98,731		—			—		(16,086	)		98,731
Preferred stock		(1,470	)		6,481		—			—		(1,470	)		6,481
Total equity securities		(17,556	)		105,212		—			—		(17,556	)		105,212
Total investments in securities	$	(50,355	)	$	1,230,587	$	(50,970	)	$	187,302	$	(101,325	)	$	1,417,889

13

For all investment securities with an unrealized loss, including those in an unrealized loss position for 12 months or more, American National performs a quarterly analysis to determine if an other-than-temporary impairment (“OTTI”) loss should be recorded. As of September 30, 2012, the investment securities with unrealized losses were not deemed to be other-than-temporarily impaired. Even though the duration of the unrealized losses on some of the securities exceeds one year, American National has no intent to sell. Further, it is not more-likely-than-not that American National will be required to sell these securities prior to recovery, and recovery is expected in a reasonable period of time.

Credit Risk Management

Management believes American National’s bond portfolio is diversified and of investment grade. The bond portfolio distributed by credit quality rating, using both S&P and Moody’s ratings, is shown below:

	September 30, 2012			December 31, 2011
AAA		6.2	%		8.1	%
AA		10.8			10.5
A		38.0			38.3
BBB		40.6			38.6
BB and below		4.4			4.5
Total		100.0	%		100.0	%

American National’s equity securities by market sector distribution are shown below:

	September 30, 2012			December 31, 2011
Consumer goods		20.8	%		21.5	%
Financials		18.0			17.2
Information technology		17.8			16.9
Energy and utilities		16.3			17.3
Healthcare		12.3			11.7
Industrials		8.7			9.0
Communications		3.5			4.2
Materials		2.5			2.1
Other		0.1			0.1
Total		100.0	%		100.0	%

5. MORTGAGE LOANS

American National makes commercial mortgage loans in areas that offer the potential for property value appreciation. Generally, mortgage loans are secured by first liens on income-producing real estate. American National attempts to maintain a diversified portfolio of mortgage loans by considering the property-type as well as the geographic distribution of the property, which is the underlying mortgage collateral. Mortgage loans by property-type distribution are as follows:

	September 30, 2012			December 31, 2011
Office		31.5	%		30.2	%
Industrial		24.8			24.6
Retail		19.7			19.1
Hotel and motel		14.4			13.4
Other		9.6			12.7
Total		100.0	%		100.0	%

14

Mortgage loans by geographic distribution are as follows:

	September 30, 2012			December 31, 2011
South Atlantic		23.6	%		22.9	%
West South Central		22.7			23.1
East North Central		18.1			18.8
Pacific		12.1			11.4
Mountain		7.1			6.7
East South Central		7.0			5.7
Middle Atlantic		4.0			5.4
West North Central		2.7			2.9
New England		2.1			2.5
Other		0.6			0.6
Total		100.0	%		100.0	%

During the nine months ended September 30, 2012, American National sold one commercial loan with a recorded investment of $19,665,000 and a realized gain of $2,607,000. During the year ended December 31, 2011, American National sold one industrial loan with a recorded investment of $27,532,000 and a realized gain of $4,968,000. During the nine months ended September 30, 2012, American National foreclosed on four loans with a recorded investment of $34,562,000. There were no foreclosures during the year ended December 31, 2011.

Credit Quality

The amounts of commercial mortgage loans placed on nonaccrual status and classified as non-performing are shown in the table below (in thousands):

	September 30, 2012		December 31, 2011
Commercial mortgages
Office	$	—	$	8,436
Retail		493		23,997
Total	$	493	$	32,433

The credit quality of the mortgage loan portfolio is assessed by evaluating the credit risk of each borrower. A loan is classified as performing or non-performing based on whether all of the contractual terms of the loan have been met.

The age analysis of past due commercial mortgage loans is shown in the table below (in thousands):

	September 30, 2012
	30-59 Days		60-89 Days		Greater Than		Total Past				Total
	Past Due		Past Due		90 Days		Due		Current		Mortgage Loans
Commerical mortgages
Office	$	6,220	$	—	$	—	$	6,220	$	961,586	$	967,806
Industrial		—		—		—		—		760,480		760,480
Retail		13,950		—		493		14,443		590,795		605,238
Other		10,299		—		—		10,299		727,681		737,980
Total	$	30,469	$	—	$	493	$	30,962	$	3,040,542		3,071,504
Allowance for loan losses												12,841
Mortgage loans on real estate, net of allowance											$	3,058,663

	December 31, 2011
	30-59 Days		60-89 Days		Greater Than		Total Past				Total
	Past Due		Past Due		90 Days		Due		Current		Mortgage Loans
Commerical mortgages
Office	$	—	$	—	$	8,436	$	8,436	$	879,923	$	888,359
Industrial		—		—		—		—		721,704		721,704
Retail		13,140		—		10,857		23,997		537,665		561,662
Other		—		—		—		—		765,078		765,078
Total	$	13,140	$	—	$	19,293	$	32,433	$	2,904,370		2,936,803
Allowance for loan losses												11,321
Mortgage loans on real estate, net of allowance											$	2,925,482

15

The amounts shown above are net of unamortized discounts of $4,872,000 and $10,189,000 and unamortized origination fees of $12,801,000 and $12,683,000 at September 30, 2012 and December 31, 2011, respectively. No other unearned income is included in these amounts.

Allowance for Credit Losses

Loans not evaluated individually for collectibility are segregated by collateral property-type and location, and allowance factors are applied. These factors are developed annually and reviewed quarterly based on our historical loss experience adjusted for the expected trend in the rate of foreclosure losses. Allowance factors are higher for loans of certain property types and in certain regions based on loss experience or a blended historical loss factor.

The allowance for credit losses and unpaid principal balance in commercial mortgage loans are shown in the table below (in thousands):

	Collectively		Individually
	Evaluated		Evaluated
	for Impairment		for Impairment			Total
Allowance for credit losses
December 31, 2011	$	10,828	$	493		$	11,321
Write down		—		(2,277	)		(2,277	)
Change in allowance		1,520		2,277			3,797
September 30, 2012	$	12,348	$	493		$	12,841
Unpaid principal balance
September 30, 2012	$	3,016,837	$	72,340		$	3,089,177
December 31, 2011	$	2,725,930	$	233,745		$	2,959,675

The detail of loans individually evaluated for impairment with and without an allowance recorded by collateral property-type is shown in the tables below (in thousands):

	Nine months ended September 30, 2012
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With an allowance recorded
Retail	$	—	$	493	$	493	$	—	$	—
Without an allowance recorded
Office	$	13,022	$	13,022	$	—	$	13,050	$	635
Retail		13,626		13,626		—		13,992		604
Other		45,199		45,199		—		45,283		2,276
Total without an allowance recorded	$	71,847	$	71,847	$	—	$	72,325	$	3,515

	Year ended December 31, 2011
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With an allowance recorded
Retail	$	—	$	493	$	493	$	—	$	—
Without an allowance recorded
Office	$	48,833	$	48,833	$	—	$	49,088	$	3,506
Industrial		57,261		57,261		—		57,514		3,628
Retail		15,477		15,477		—		15,535		1,514
Other		111,681		111,681		—		111,407		7,546
Total without an allowance recorded	$	233,252	$	233,252	$	—	$	233,544	$	16,194

16

Troubled Debt Restructurings

American National has a high quality mortgage loan portfolio that management believes is well performing. For a very small portion of the portfolio, classified as troubled debt restructurings, American National has granted concessions related to the borrowers’ ability to pay the loans. The types of concessions granted are generally one of, or a combination of, a delay in payment of principal or interest, a reduction of the contractual interest rate or an extension of the maturity date. American National considers the amount, timing and extent of concessions granted in determining any impairment or changes in the specific allowance for loan losses recorded in connection with a troubled debt restructuring. The carrying value after specific allowance, before and after modification in a troubled debt restructuring, may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment.

Six loans as of September 30, 2012 and three loans as of December 31, 2011, which were part of the mortgage loan portfolio had been modified in troubled debt restructurings. The outstanding recorded investment was $80,081,000 and $45,366,000 for 2012 and 2011, respectively, both before and after the modifications. There are no commitments to lend additional funds to debtors whose loans have been modified in troubled debt restructurings and there have been no defaults on modified loans during the period.

6. INVESTMENT REAL ESTATE

Investment real estate by property-type distribution is as follows:

	September 30, 2012			December 31, 2011
Shopping centers		40.9	%		41.1	%
Office buildings		22.0			22.0
Industrial		18.2			16.3
Hotels and motels		1.9			2.1
Other		17.0			18.5
Total		100.0	%		100.0	%

Investment real estate by geographic distribution is as follows:

	September 30, 2012			December 31, 2011
West South Central		60.9	%		66.1	%
South Atlantic		11.3			11.6
East North Central		10.3			5.2
Mountain		6.3			6.9
East South Central		5.4			5.2
West North Central		3.2			2.7
Pacific		2.6			2.3
Total		100.0	%		100.0	%

In the normal course of investment activities, American National and its wholly-owned subsidiaries enter into real estate partnership and joint venture agreements. Generally, opportunities are presented by a sponsor, with the significant activities being conducted on behalf of the sponsor. American National participates in the design of these entities, but in most cases, its involvement is limited to financing. Through analysis performed by American National, some of these partnerships and joint ventures have been determined to be variable interest entities (“VIEs”). In certain instances, in addition to an economic interest in the entity, American National holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary or consolidator of the entity. The assets of the consolidated VIEs are restricted and must be used first to settle the liabilities of the VIE. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of American National, as American National’s obligation is limited to the amount of its committed investment. Financial or other support was not provided to investees designated as VIEs in the form of liquidity arrangements, guarantees, or other commitments to third parties that may affect the fair value or risk of American National’s variable interest in the investees designated as VIEs as of September 30, 2012 and December 31, 2011.

17

The total assets and liabilities relating to VIEs in which American National is the primary beneficiary and which are consolidated in its financial statements for the periods indicated are as follows (in thousands):

	September 30, 2012		December 31, 2011
Investment real estate	$	160,288	$	154,878
Short-term investments		1,260		3,364
Cash and cash equivalents		3,515		5,777
Accrued investment income		2,346		2,299
Other receivables		11,599		11,816
Other assets		5,647		3,870
Total assets of consolidated VIEs	$	184,655	$	182,004
Notes payable	$	161,247	$	58,894
Other liabilities		5,593		5,354
Total liabilities of consolidated VIEs	$	166,840	$	64,248

For other real estate partnerships and joint ventures in which American National is a partner, the major decisions that most significantly impact the economic activities of the partnership and joint venture require unanimous consent of all partners. American National is not the primary beneficiary and these entities were not consolidated. The following table presents the carrying amount and maximum exposure to loss relating to VIEs for which American National holds significant variable interests but is not the primary beneficiary and which have not been consolidated (in thousands):

	September 30, 2012				December 31, 2011
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
Investment in unconsolidated affiliates	$	73,871	$	73,871	$	85,509	$	85,509

7. DERIVATIVE INSTRUMENTS

American National purchases derivative contracts (equity-indexed options) that serve as economic hedges against fluctuations in the equity markets to which equity-indexed annuity products are exposed. Equity-indexed annuities include a fixed host annuity contract and an equity-indexed embedded derivative. These derivative instruments are not designated as accounting hedges. The following tables detail the volume, estimated fair value and the gains or losses on derivative instruments (in thousands):

Derivatives Not Designated as Hedging Instruments	Location in the Consolidated Statements of Financial Position	September 30, 2012							December 31, 2011
		Number of Instruments		Notional Amounts		Estimated Fair Value			Number of Instruments		Notional Amounts		Estimated Fair Value
Equity-indexed options	Other invested assets		355	$	839,100	$	88,476			332	$	791,900	$	65,188
Equity-indexed annuity embedded derivative	Future policy benefits - Annuity		19,760		702,000		(80,324	)		16,727		661,300		(63,275	)

Derivatives Not Designated as Hedging Instruments	Location Reported in the Consolidated Statements of Operations	Gains (Losses) Recognized in Income on Derivatives
		Three months ended September 30,						Nine months ended September 30,
		2012			2011			2012	2011
Equity-indexed options	Net investment income	$	10,448		$	(23,492	)	$21,947	$	(18,195	)
Equity-indexed annuity embedded derivative	Interest credited to policyholders’ account balances		(7,711	)		25,193		(16,779)		21,585

18

8. NET INVESTMENT INCOME AND REALIZED INVESTMENT GAINS (LOSSES)

Net investment income, before federal income taxes, is shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012		2011
Bonds	$	171,515	$	173,737		$	514,237	$	514,856
Equity securities		6,965		6,230			20,718		19,392
Mortgage loans		52,501		48,521			153,008		149,329
Real estate		8,173		9,838			16,456		20,154
Options		10,448		(23,492	)		21,947		(18,195	)
Other invested assets		8,588		11,108			28,083		29,650
Total	$	258,190	$	225,942		$	754,449	$	715,186

Realized investments gains (losses), before federal income taxes, are shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012			2011
Bonds	$	8,393	$	788		$	21,813		$	13,895
Equity securities		12,172		11,975			22,386			30,789
Mortgage loans		2,132		5,518			(1,190	)		5,518
Real estate		3,386		(338	)		3,134			12,775
Other invested assets		822		(412	)		709			(489	)
Total	$	26,905	$	17,531		$	46,852		$	62,488

The OTTI, which are not included in the realized investments gains (losses) above, are shown below (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Bonds	$	(12,659	)	$	—		$	(12,659	)	$	—
Equity securities		(1,316	)		(4,851	)		(9,414	)		(4,851	)
Total	$	(13,975	)	$	(4,851	)	$	(22,073	)	$	(4,851	)

19

9. FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amount and estimated fair value of financial instruments are shown below (in thousands):

	September 30, 2012				December 31, 2011
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,503	$	8,595	$	13,704	$	13,897
States of the U.S. and political subdivisions of the states		401,608		443,181		405,526		437,792
Foreign governments		29,064		33,935		29,044		34,022
Corporate debt securities		8,105,733		8,881,773		8,011,901		8,550,744
Residential mortgage-backed securities		602,449		649,445		714,659		761,447
Commercial mortgage-backed securities		—		—		31,341		11,183
Collateralized debt securities		2,504		2,846		7,134		6,116
Other debt securities		38,020		41,442		38,663		42,490
Total bonds held-to-maturity		9,187,881		10,061,217		9,251,972		9,857,691
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		17,507		17,507		13,086		13,086
States of the U.S. and political subdivisions of the states		625,914		625,914		618,848		618,848
Foreign governments		7,409		7,409		7,435		7,435
Corporate debt securities		3,856,760		3,856,760		3,505,146		3,505,146
Residential mortgage-backed securities		118,386		118,386		202,721		202,721
Commercial mortgage-backed securities		11,341		11,341		—		—
Collateralized debt securities		19,723		19,723		19,077		19,077
Other debt securities		11,537		11,537		15,294		15,294
Total bonds available-for-sale		4,668,577		4,668,577		4,381,607		4,381,607
Equity securities
Common stock		1,059,162		1,059,162		968,907		968,907
Preferred stock		35,225		35,225		37,173		37,173
Total equity securities		1,094,387		1,094,387		1,006,080		1,006,080
Options		88,476		88,476		65,188		65,188
Mortgage loans on real estate, net of allowance		3,058,663		3,297,046		2,925,482		3,178,205
Policy loans		393,774		393,774		393,195		393,195
Short-term investments		321,512		321,512		345,330		345,330
Separate account assets		817,057		817,057		747,867		747,867
Total financial assets	$	19,630,327	$	20,742,046	$	19,116,721	$	19,975,163
Financial liabilities
Investment contracts	$	10,066,103	$	10,066,103	$	9,993,804	$	9,993,804
Embedded derivative liability for equity-indexed annuities		80,324		80,324		63,275		63,275
Notes payable		161,247		161,247		58,894		58,894
Separate account liabilities		817,057		817,057		747,867		747,867
Total financial liabilities	$	11,124,731	$	11,124,731	$	10,863,840	$	10,863,840

20

Summary

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. A fair value hierarchy is used to determine fair value based on a hypothetical transaction at the measurement date from the perspective of a market participant. The classification of assets or liabilities within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are defined as follows:

Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities. American National defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities.
Level 2	Quoted prices in markets that are not active or inputs that are observable directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3	Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect American National’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and third-party evaluation, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

American National has evaluated the types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Based on the results of this evaluation and investment class analysis, each financial instrument was classified into Level 1, 2, or 3 measurements.

Fixed Maturity Securities and Equity Options

American National utilizes a pricing service to estimate fair value measurements for approximately 99.0% of fixed maturity securities. The pricing service utilizes market quotations for fixed maturity securities that have quoted prices in active markets. Since fixed maturity securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, the pricing service uses an option adjusted spread model to develop prepayment and interest rate scenarios.

The pricing service evaluates each asset class based on relevant market information, relevant credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and economic events. The extent of the use of each market input depends on the asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary.

American National has reviewed the inputs and methodology used by the pricing service and the techniques applied by the pricing service to produce quotes that represent the fair value of a specific security. The review of the pricing services’ methodology confirms the service is utilizing information from organized transactions or a technique that represents a market participant’s assumptions. American National does not adjust quotes received from the pricing service. The pricing service utilized by American National has indicated that they will only produce an estimate of fair value if there is objectively verifiable information available.

21

The fair value estimates of most fixed maturity investments including municipal bonds are based on observable market information rather than market quotes. Accordingly, the estimates of fair value for such fixed maturity securities provided by the pricing service are disclosed as Level 2 measurements.

Additionally, American National holds a small amount of fixed maturity securities that have characteristics that make them unsuitable for matrix pricing. For these fixed maturity securities, a quote from an independent broker (typically a market maker) is obtained. Due to the disclaimers on the quotes that indicate that the price is indicative only, American National includes these fair value estimates in Level 3. The pricing of certain private placement debt also includes significant non-observable inputs, the internally determined credit rating of the security, and an externally provided credit spread, and these securities are classified as Level 3 measurements.

For securities priced using a quote from an independent broker, such as the equity options and certain fixed maturity securities, American National uses a market-based fair value analysis to validate the reasonableness of prices received from an independent broker. Price variances above a certain threshold are analyzed further to determine if any pricing issue exists. This analysis is generally performed on a weekly basis, but no less frequently than on a monthly basis.

Equity Securities

For publicly-traded equity securities, American National receives prices from a nationally recognized pricing service that are based on observable market transactions and these securities are classified as Level 1 measurements. For certain preferred stock, current market quotes in active markets are unavailable. In these instances, American National receives an estimate of fair value from the pricing service. The service utilizes similar methodologies to price preferred stocks as it does for fixed maturity securities. These estimates for equity securities are disclosed as Level 2 measurements.

Mortgage Loans

The fair value of mortgage loans is estimated using discounted cash flow analyses. Fair value is calculated on a loan by loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. Factors used to arrive at the discount rate include inputs from spreads based on U.S. Treasury notes and the loan’s credit rating, region, property type, lien number, payment type and current status.

Embedded Derivative

The embedded derivative liability for equity-indexed annuities is measured at fair value. The embedded derivative liability is recalculated each reporting period using equity option pricing models. To validate the assumptions used to price the embedded derivative, American National measures and compares embedded derivative returns against the returns of equity options held to hedge the liability cash flows.

The significant unobservable input used to calculate the fair value of the embedded derivatives is equity option implied volatility. This volatility assumption is the range of implied volatilities that American National has determined market participants would use to price equity options that match the current derivative characteristics of our in-force equity-indexed annuities. Implied volatility can vary by term and strike price. An increase in implied volatility will result in an increase in the value of the equity-indexed annuity embedded derivatives, all other things being equal. At September 30, 2012, the implied volatility used to estimate embedded derivative value ranges from 13.0% to 30.5%.

22

Other Financial Instruments

For other financial instruments discussed below, American National believes that their carrying value approximates fair value. This assumption is supported by the qualitative information discussed below. These financial instruments are classified as level 3 measurements.

Policy loans – The carrying value of policy loans is equivalent to outstanding balance plus any accrued interest. Due to the collateralized nature of policy loans, unpredictable timing of repayments and the fact that it cannot be separated from the policy contract, American National believes that the carrying value of policy loans approximates fair value.

Investment contracts liability – The carrying value of investment contracts liability is equivalent to the accrued account balance. The accrued account balance consists of deposits, net of withdrawals, plus or minus interest credited, fees and charges assessed and other adjustments. American National believes that the carrying value of investment contracts liability approximates fair value because the majority of these contracts’ interest rates reset to current rates offered at anniversary.

Notes payable – Notes payable are carried at outstanding principal balance. The carrying value of the notes payable approximates fair value because the underlying interest rates approximate market rates at the balance sheet date.

23

Quantitative Disclosures

The quantitative disclosures regarding fair value hierarchy measurements of the financial instruments are shown below (in thousands):

	Fair Value Measurement as of September 30, 2012 Using:
	Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,595	$	—	$	8,595	$	—
States of the U.S. and political subdivisions of the states		443,181		—		443,181		—
Foreign governments		33,935		—		33,935		—
Corporate debt securities		8,881,773		—		8,811,273		70,500
Residential mortgage-backed securities		649,445		—		649,443		2
Collateralized debt securities		2,846		—		1		2,845
Other debt securities		41,442		—		34,961		6,481
Total bonds held-to-maturity		10,061,217		—		9,981,389		79,828
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		17,507		—		17,507		—
States of the U.S. and political subdivisions of the states		625,914		—		623,389		2,525
Foreign governments		7,409		—		7,409		—
Corporate debt securities		3,856,760		—		3,811,608		45,152
Residential mortgage-backed securities		118,386		—		118,382		4
Commercial mortgage-backed securities		11,341		—		—		11,341
Collateralized debt securities		19,723		—		17,788		1,935
Other debt securities		11,537		—		11,537		—
Total bonds available-for-sale		4,668,577		—		4,607,620		60,957
Equity securities
Common stock		1,059,162		1,059,162		—		—
Preferred stock		35,225		35,197		—		28
Total equity securities		1,094,387		1,094,359		—		28
Options		88,476		—		—		88,476
Mortgage loans on real estate		3,297,046		—		3,297,046		—
Policy loans		393,774		—		—		393,774
Short-term investments		321,512		—		321,512		—
Separate account assets		817,057		—		817,057		—
Total financial assets	$	20,742,046	$	1,094,359	$	19,024,624	$	623,063
Financial liabilities
Investment contracts	$	10,066,103	$	—	$	—	$	10,066,103
Embedded derivative liability for equity-indexed annuities		80,324		—		—		80,324
Notes payable		161,247		—		—		161,247
Separate account liabilities		817,057		—		817,057		—
Total financial liabilities	$	11,124,731	$	—	$	817,057	$	10,307,674

24

	Fair Value Measurement as of December 31, 2011 Using:
	Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	13,897	$	—	$	13,897	$	—
States of the U.S. and political subdivisions of the states		437,792		—		437,792		—
Foreign governments		34,022		—		34,022		—
Corporate debt securities		8,550,744		—		8,492,957		57,787
Residential mortgage-backed securities		761,447		—		759,773		1,674
Commercial mortgage-backed securities		11,183		—		—		11,183
Collateralized debt securities		6,116		—		—		6,116
Other debt securities		42,490		—		35,147		7,343
Total bonds held-to-maturity		9,857,691		—		9,773,588		84,103
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		13,086		—		13,086		—
States of the U.S. and political subdivisions of the states		618,848		—		616,323		2,525
Foreign governments		7,435		—		7,435		—
Corporate debt securities		3,505,146		—		3,492,113		13,033
Residential mortgage-backed securities		202,721		—		202,715		6
Collateralized debt securities		19,077		—		18,826		251
Other debt securities		15,294		—		15,294		—
Total bonds available-for-sale		4,381,607		—		4,365,792		15,815
Equity securities
Common stock		968,907		968,907		—		—
Preferred stock		37,173		37,173		—		—
Total equity securities		1,006,080		1,006,080		—		—
Options		65,188		—		—		65,188
Mortgage loans on real estate		3,178,205		—		3,178,205		—
Policy loans		393,195		—		—		393,195
Short-term investments		345,330		—		345,330		—
Separate account assets		747,867		—		747,867		—
Total financial assets	$	19,975,163	$	1,006,080	$	18,410,782	$	558,301
Financial liabilities
Investment contracts	$	9,993,804	$	—	$	—	$	9,993,804
Embedded derivative liability for equity-indexed annuities		63,275		—		—		63,275
Notes payable		58,894		—		—		58,894
Separate account liabilities		747,867		—		747,867		—
Total financial liabilities	$	10,863,840	$	—	$	747,867	$	10,115,973

25

For financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period, a reconciliation of the beginning and ending balances is shown below at estimated fair value (in thousands):

	Three months ended September 30,												Nine months ended September 30,
				Equity-			Embedded									Equity-			Embedded
	Investment			Indexed			Derivative						Investment			Indexed			Derivative
	Securities			Options			Liability			Total			Securities			Options			Liability			Total
Beginning balance, 2011	$	76,886		$	71,525		$	(65,025	)	$	83,386		$	90,477		$	66,716		$	(59,644	)	$	97,549
Total realized and unrealized investment gains/losses
Included in other comprehensive income		1,606			—			—			1,606			1,348			—			—			1,348
Net fair value change included in realized gains/losses		—			—			—			—			168			—			—			168
Net gain (loss) for derivatives included in net investment income		—			(23,449	)		—			(23,449	)		—			(18,152	)		—			(18,152	)
Net change included in interest credited		—			—			25,193			25,193			—			—			21,585			21,585
Purchases, sales and settlements or maturities
Purchases		1			5,350			—			5,351			13			14,226			—			14,239
Sales		(257	)		—			—			(257	)		(10,438	)		—			—			(10,438	)
Settlements or maturities		(123	)		(3,719	)		—			(3,842	)		(3,455	)		(13,083	)		—			(16,538	)
Premiums less benefits		—			—			(3,066	)		(3,066	)		—			—			(4,839	)		(4,839	)
Gross transfers into Level 3		—			—			—			—			—			—			—			—
Ending balance, 2011	$	78,113		$	49,707		$	(42,898	)	$	84,922		$	78,113		$	49,707		$	(42,898	)	$	84,922
Beginning balance, 2012	$	141,026		$	77,136		$	(72,194	)	$	145,968		$	99,918		$	65,188		$	(63,275	)	$	101,831
Total realized and unrealized investment gains/losses
Included in other comprehensive income		11,811			—			—			11,811			13,909			—			—			13,909
Net fair value change included in realized gains/losses		(11,431	)		—			—			(11,431	)		(11,449	)		—			—			(11,449	)
Net gain (loss) for derivatives included in net investment income		—			9,708			—			9,708			—			17,878			—			17,878
Net change included in interest credited		—			—			(7,711	)		(7,711	)		—			—			(16,779	)		(16,779	)
Purchases, sales and settlements or maturities
Purchases		(19	)		2,991			—			2,972			504			11,472			—			11,976
Sales		(192	)		(6,062	)		—			(6,254	)		(3,073	)		(6,062	)		—			(9,135	)
Settlements or maturities		(382	)		4,703			—			4,321			(725	)		—			—			(725	)
Premiums less benefits		—			—			(419	)		(419	)		—			—			(270	)		(270	)
Gross transfers into Level 3		—			—			—			—			41,729			—			—			41,729
Ending balance, 2012	$	140,813		$	88,476		$	(80,324	)	$	148,965		$	140,813		$	88,476		$	(80,324	)	$	148,965

Within the net gain (loss) for derivatives included in net investment income were an unrealized gain of $16,334,000 and an unrealized loss of $12,613,000 relating to assets still held at September 30, 2012 and December 31, 2011, respectively.

The transfers into Level 3 were the result of existing securities no longer being priced by the third-party pricing service at the end of the period. American National’s valuation of these securities involves judgment regarding assumptions market participants would use including quotes from independent brokers. The transfers out of Level 3 were securities being priced by a third-party service at the end of the period, using inputs that are observable or derived from market data, which resulted in classification of these assets as Level 2.

There were no transfers between Level 1 and Level 2 fair value hierarchies.

26

10. DEFERRED POLICY ACQUISITION COSTS

Deferred policy acquisition costs are shown below (in thousands):

							Accident			Property &
	Life			Annuity			& Health			Casualty			Total
Balance at December 31, 2011 (As Adjusted)	$	651,579		$	463,030		$	55,100		$	150,984		$	1,320,693
Additions		62,162			54,015			8,311			167,453			291,941
Amortization		(56,276	)		(64,333	)		(12,958	)		(170,842	)		(304,409	)
Effect of change in unrealized gains on available-for-sale securities		(7,250	)		(31,108	)		—			—			(38,358	)
Net change		(1,364	)		(41,426	)		(4,647	)		(3,389	)		(50,826	)
Balance at September 30, 2012	$	650,215		$	421,604		$	50,453		$	147,595		$	1,269,867

Commissions comprise the majority of the additions to DAC during the period. Effective January 1, 2012, American National retrospectively adopted a new accounting standard that modified the accounting for DAC. Refer to Notes 2 and 3 for additional discussion.

11. LIABILITY FOR UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES

The liability for unpaid claims and claim adjustment expenses (“CAE”) for accident and health, and property and casualty insurance is included in the liability for policy and contract claims in the consolidated statements of financial position and represents the amount estimated for claims that have been reported but not settled and claims incurred but not reported. Liability for unpaid claims and CAE are estimated based upon American National’s historical experience and actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation. The effects of changes in such estimated liability are included in the consolidated results of operations in the period in which the changes occur.

Activities in the liability for unpaid claims and CAE (“claims”) included in policy and contract claims in the consolidated statements of financial position are shown below (in thousands):

	Nine Months Ended September 30,
	2012			2011
Unpaid claims balance, beginning	$	1,180,259		$	1,210,126
Less reinsurance recoverables		235,174			222,635
Net beginning balance		945,085			987,491
Incurred related to:
Current		779,602			869,549
Prior years		(46,037	)		(59,753	)
Total incurred claims		733,565			809,796
Paid claims related to:
Current		454,183			536,834
Prior years		284,025			290,279
Total paid claims		738,208			827,113
Net balance		940,442			970,174
Plus reinsurance recoverables		238,268			253,178
Unpaid claims balance, ending	$	1,178,710		$	1,223,352

The net and gross reserve calculations have shown favorable development for the last several years as a result of favorable loss emergence compared to what was implied by the loss development patterns used in the original estimation of losses in prior years. Estimates for ultimate incurred claims and CAE attributable to insured events of prior years decreased by approximately $46,037,000 during the first nine months of 2012 and $59,753,000 during the same period in 2011.

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12. NOTES PAYABLE

American National’s real estate holding subsidiaries are partners in certain joint ventures determined to be VIEs that are consolidated in American National’s consolidated financial statements. The real estate owned through the respective ventures secures notes payable. The liability of American National Insurance Company is limited to the amount of its direct or indirect investment in the respective ventures, which totaled $14,196,000 and $17,959,000 at September 30, 2012 and December 31, 2011, respectively. At September 30, 2012, the current portion and the long-term portion of the notes payable to third-party lenders associated with these consolidated VIEs were $48,747,000 and $112,500,000, respectively. At December 31, 2011, the current portion and long-term portion of the notes payable to third-party lenders associated with these consolidated VIEs were $46,387,000 and $12,507,000, respectively. The average interest rate on the current portion of the notes payable was 2.86% during the nine months ended September 30, 2012. The interest rates of the long-term portion of notes payable are 4.00% and adjusted LIBOR plus 1.00% and 2.50% margins. The long-term notes payable will mature in 2016, 2022 and 2049.

13. FEDERAL INCOME TAXES

The federal income tax provisions vary from the amounts computed when applying the statutory federal income tax rate. A reconciliation of the effective tax rate to the statutory federal income tax rate is shown below (in thousands, except percentages):

	Three months ended September 30,												Nine months ended September 30,
	2012						2011						2012						2011
	Amount			Rate			Amount			Rate			Amount			Rate			Amount			Rate
							(As Adjusted)												(As Adjusted)
Income tax expense on pre-tax income	$	31,285			35.0	%	$	26,326			35.0	%	$	59,989			35.0	%	$	60,676			35.0	%
Tax-exempt investment income		(1,827	)		(2.0	)		(1,968	)		(2.6	)		(5,569	)		(3.2	)		(6,035	)		(3.5	)
Dividend exclusion		(1,501	)		(1.7	)		(1,342	)		(1.8	)		(4,453	)		(2.6	)		(4,046	)		(2.3	)
Miscellaneous tax credits, net		(2,206	)		(2.5	)		(1,515	)		(2.0	)		(6,669	)		(3.9	)		(5,644	)		(3.3	)
Other items, net		1,903			2.1			(2,404	)		(3.2	)		(1,045	)		(0.6	)		(5,077	)		(2.9	)
Total	$	27,654			30.9	%	$	19,097			25.4	%	$	42,253			24.7	%	$	39,874			23.0	%

The tax effects of temporary differences that gave rise to the deferred tax assets and liabilities are shown below (in thousands):

	September 30, 2012			December 31, 2011
				(As Adjusted)
DEFERRED TAX ASSETS:
Investments, principally due to impairment losses	$	87,523		$	87,518
Investment in real estate and other invested assets principally due to investment valuation allowances		7,812			8,620
Policyholder funds, principally due to policy reserve discount		235,845			235,827
Policyholder funds, principally due to unearned premium reserve		32,240			31,230
Non-qualified pension		28,424			28,503
Participating policyholders’ surplus		35,691			33,677
Pension		60,590			63,597
Commissions and other expenses		7,582			8,165
Tax carryforwards		27,870			32,220
Other assets		793			79
Gross deferred tax assets		524,370			529,436
DEFERRED TAX LIABILITIES:
Available-for-sale securities, principally due to net unrealized gains		(266,254	)		(189,194	)
Investment in bonds, principally due to accrual of discount on bonds		(11,361	)		(11,774	)
Deferred policy acquisition costs, due to difference between GAAP and tax amortization methods		(334,972	)		(350,319	)
Gross deferred tax liabilities		(612,587	)		(551,287	)
Total net deferred tax liability	$	(88,217	)	$	(21,851	)

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Management believes that a sufficient level of taxable income will be achieved over time to utilize the deferred tax assets in the consolidated federal tax return; therefore, no valuation allowance was recorded as of September 30, 2012 and December 31, 2011. However, if not utilized beforehand, approximately $27,870,000 in ordinary loss tax carryforwards will expire at the end of tax year 2032.

American National recognizes, when applicable, interest and penalties related to uncertain tax positions. Interest and penalties are included in the “Other operating expenses” line in the consolidated statements of operations. No such interest expense was incurred for the nine months ended September 30, 2012 and for the year ended December 31, 2011. In addition, no provision for penalties was established for uncertain tax positions. Management does not believe that there are any uncertain tax benefits that could be recognized within the next twelve months that would decrease American National’s effective tax rate.

The statute of limitations for the examination of federal income tax returns by the Internal Revenue Service (“IRS”) for years 2006 to 2011 either has been extended or has not expired. In the opinion of management, all prior year deficiencies have been paid or adequate provisions have been made for any tax deficiencies that may be upheld.

A total of $20,293,000 and $34,441,000 was paid to the IRS during the nine months ended September 30, 2012 and 2011, respectively.

14. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in the accumulated balances of each component of other comprehensive income (loss), and the related tax effects thereon, are shown below (in thousands):

	Net Unrealized Gains /  (Losses) on Securities			Defined Benefit Pension Plan Adjustments			Foreign Currency Transaction and Translation Adjustments			Accumulated  Other Comprehensive Income
Balance at December 31, 2010	$	290,489		$	(65,533	)	$	256		$	225,212
Unrealized holding gains (losses) arising during the period (net of tax $21,498)		(39,924	)								(39,924	)
Reclassification adjustment for (gains) losses realized in net income/loss (net of tax $9,494)		(17,893	)								(17,893	)
Unrealized adjustment to deferred policy acquisition costs (net of tax $2,592)		(4,648	)								(4,648	)
Unrealized (gains) losses on investments attributable to participating policyholders’ interest (net of tax $601)		1,117									1,117
Cumulative effect of accounting change - deferred policy acquisition costs (net of tax $325)		604									604
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost (net of tax $166)					(308	)					(308	)
Foreign exchange adjustment (net of tax $149)								(277	)		(277	)
Balance at September 30, 2011	$	229,745		$	(65,841	)	$	(21	)	$	163,883
Balance at December 31, 2011	$	274,837		$	(115,485	)	$	51		$	159,403
Unrealized holding gains (losses) arising during the period (net of tax $80,337)		149,198									149,198
Reclassification adjustment for (gains) losses realized in net income/loss (net of tax $3,277)		(5,757	)								(5,757	)
Unrealized adjustment to deferred policy acquisition costs (net of tax $13,425)		(24,933	)								(24,933	)
Unrealized (gains) losses on investments attributable to participating policyholders’ interest (net of tax $2,867)		(5,325	)								(5,325	)
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost (net of tax $3,847)					7,144						7,144
Foreign exchange adjustment (net of tax $16)								30			30
Balance at September 30, 2012	$	388,020		$	(108,341	)	$	81		$	279,760

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15. STOCKHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS

American National has one class of common stock with a par value of $1.00 per share and 50,000,000 authorized shares. The amounts outstanding at the dates indicated are shown below:

	September 30,			December 31,
	2012			2011
Common stock
Shares issued		30,832,449			30,832,449
Treasury shares		(3,995,785	)		(4,011,165	)
Outstanding shares		26,836,664			26,821,284
Restricted shares		(185,334	)		(261,334	)
Unrestricted outstanding shares		26,651,330			26,559,950

Stock-based compensation

American National has one stock-based compensation plan, which allows for grants of Non-Qualified Stock Options, Stock Appreciation Rights (“SAR”), Restricted Stock (“RS”) Awards, Restricted Stock Units (“RSU”), Performance Awards, Incentive Awards or any combination of these. The number of shares available for grants under the plan cannot exceed 2,900,000 shares, and no more than 200,000 shares may be granted to any one individual in any calendar year.

RS Awards entitle the participant to full dividend and voting rights. Unvested shares are restricted as to disposition, and are subject to forfeiture under certain circumstances. Compensation expense is recognized over the vesting period. The restrictions on these awards lapse after 10 years, and these awards feature a graded vesting schedule in the case of the retirement of an award holder. Restricted stock has been granted, with a total of 340,334 shares granted at an exercise price of zero, of which 185,334 shares are unvested. For the three months ended September 30, 2012, a credit to compensation expense was recorded totaling $766,000, while a charge to compensation expense of $573,000 was recorded for the nine months ended September 30, 2012. The compensation expense recorded for the three and nine months ended September 30, 2011 was $678,000 and $2,011,000, respectively.

The SARs give the holder the right to cash compensation based on the difference between the price of a share of stock on the grant date and the price on the exercise date. The SARs vest at a rate of 20% per year for 5 years and expire 5 years after vesting. American National uses the Black-Scholes option pricing model to calculate the fair value and compensation expense for SARs. The fair value of the SARs was $9,000 and $10,000 at September 30, 2012 and December 31, 2011, respectively. For the three months ended September 30, 2012, a charge to compensation expense was recorded totaling $2,000, while a credit to compensation expense of $1,000 was recorded for the nine months ended September 30, 2012. Compensation income was recorded totaling $9,000 and $13,000 for the three and nine months ended September 30, 2011, respectively.

RSUs are awarded as part of American National’s incentive compensation plan. In 2011, RSUs were also awarded as part of the Board of Directors compensation. The RSUs are converted to American National’s common stock on a one-for-one basis, generally after a two-year cliff or three-year graded vesting requirement, depending on the terms of the grant. These awards result in compensation expense to American National over the vesting period or a shorter period as a result of retirement provisions. For the three months ended September 30, 2012, a credit to compensation expense was recorded totaling $175,000 while a charge to compensation expense of $7,137,000 was recorded for the nine months ended September 30, 2012. Compensation expense was recorded totaling $530,000 and $1,343,000 for the three and nine months ended September 30, 2011, respectively.

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SAR, RS and RSU information for the periods indicated is shown below:

	SAR Shares			SAR Weighted- Average Grant Date Fair Value		RS Shares			RS Weighted- Average Grant Date Fair Value			RS Units			RSU Weighted- Average Grant Date Fair Value
Outstanding at December 31, 2011		126,769		$	110.08		261,334		$	102.98			69,566		$	83.56
Granted		—			—		—			—			75,355			71.69
Exercised		(200	)		—		(76,000	)		(88.00	)		(17,380	)		94.47
Forfeited		(3,510	)		114.02		—			—			(482	)		74.85
Expired		(14,108	)		100.14		—			—			—			—
Outstanding at September 30, 2012		108,951		$	111.31		185,334		$	109.13			127,059		$	75.06

The weighted-average contractual remaining life for the 108,951 SAR shares outstanding as of September 30, 2012, is 1.2 years. The weighted-average exercise price, which is the same as the weighted-average grant date fair value above, for these shares, is $111.31 per share. Of the shares outstanding, 92,976 are exercisable at a weighted-average exercise price of $111.24 per share.

The weighted-average contractual remaining life for the 185,334 RS shares outstanding as of September 30, 2012, is 4.7 years. The weighted-average price at the date of grant for these shares is $109.13 per share. None of the shares outstanding were exercisable.

The weighted-average contractual remaining life for the 127,059 RSUs authorized as of September 30, 2012, is 2.1 years. The weighted-average price at the date of grant for these units is $75.06 per share. None of the authorized units were exercisable.

Earnings (loss) per share

Basic earnings (losses) per share were calculated using a weighted-average number of shares outstanding. The Restricted Stock resulted in diluted earnings per share as follows (in thousands, except share and per share data):

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
			(As Adjusted)				(As Adjusted)
Weighted average shares outstanding		26,736,464		26,559,950		26,699,211		26,559,865
Incremental shares from restricted stock		134,191		158,514		159,889		146,933
Total shares for diluted calculations		26,870,655		26,718,464		26,859,100		26,706,798
Net income (loss) attributable to American National Insurance Company and Subsidiaries	$	59,186	$	57,650	$	124,908	$	134,418
Basic earnings (loss) per share	$	2.21	$	2.17	$	4.68	$	5.06
Diluted earnings (loss) per share		2.20		2.16		4.65		5.03

Dividends

American National Insurance Company’s payment of dividends to stockholders is restricted by statutory regulations. The restrictions require life insurance companies to maintain minimum amounts of capital and surplus, and in the absence of special approval, limit the payment of dividends to the greater of statutory net gain from operations on an annual, non-cumulative basis, or 10% of statutory surplus. Additionally, insurance companies are not permitted to distribute the excess of stockholders’ equity, as determined on a GAAP basis over that determined on a statutory basis. At September 30, 2012 and December 31, 2011, American National Insurance Company’s statutory capital and surplus was $2,137,986,000 and $2,000,551,000, respectively.

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The same restrictions on amounts that can transfer in the form of dividends, loans, or advances to the parent company apply to American National’s insurance subsidiaries. Dividends received by the parent company from its insurance subsidiaries amounted to zero for the nine months ended September 30, 2012 and 2011. At September 30, 2012, approximately $1,509,980,000 of American National’s consolidated stockholders’ equity represents net assets of its insurance subsidiaries, compared to approximately $1,436,489,000 at December 31, 2011. Any transfer of these net assets to American National Insurance Company would be subject to statutory restrictions and approval.

Noncontrolling interests

American National County Mutual Insurance Company (“County Mutual”) is a mutual insurance company that is owned by its policyholders. County Mutual has a management agreement that effectively gives complete control of County Mutual to American National. As a result, County Mutual is included in the consolidated financial statements of American National. The interests that the policyholders of County Mutual have in the financial position of County Mutual are reflected as noncontrolling interest totaling $6,750,000 at September 30, 2012 and December 31, 2011.

American National Insurance Company and its subsidiaries are partners in various joint ventures. They exercise significant control or ownership of certain of these joint ventures, resulting in their consolidation into American National’s consolidated financial statements. As a result of the consolidation, the interest of the other partners of the joint ventures is shown as noncontrolling interests. Noncontrolling interests were a net liability of $5,678,000 and $6,197,000 at September 30, 2012 and December 31, 2011, respectively.

16. SEGMENT INFORMATION

American National is engaged principally in the insurance business. Management organizes the business into five operating segments which are discussed in Note 18, Segment Information, of the notes to the consolidated financial statements in our 2011 Annual Report on Form 10-K filed with the SEC on March 6, 2012:

• The Life segment markets whole, term, universal, indexed and variable life insurance on a national basis primarily through career and multiple-line agents, as well as through direct marketing channels.

• The Annuity segment offers fixed, indexed, and variable annuity products. These products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents.

• The Health segment’s primary lines of business are Medicare Supplement, stop loss, other supplemental health products and credit disability insurance. Health products are typically distributed through independent agents and managing general underwriters.

• The Property and Casualty segment writes personal, commercial and credit-related property insurance. These products are primarily sold through multiple-line agents and independent agents.

• The Corporate and Other business segment consists of net investment income on the investments not allocated to the insurance segments and the operations of non-insurance lines of business.

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The accounting policies of the segments are the same as those referred to in Note 2. Many of the principal factors that drive the profitability of each operating segment are separate and distinct. All income and expense amounts specifically attributable to policy transactions are recorded directly to the appropriate operating segment. Income and expenses not specifically attributable to policy transactions are allocated to each segment as follows:

• Recurring income from bonds and mortgage loans is allocated based on the funds accumulated by each line of business at the average yield available from these assets.

• Net investment income from all other assets is allocated to the insurance segments in accordance with the amount of equity allocated to each segment, with the remainder recorded in the Corporate and Other business segment.

• Expenses are allocated based upon various factors, including premium and commission ratios within the respective operating segments.

The following tables summarize results of operations by operating segments (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
			(As Adjusted)				(As Adjusted)
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Life	$	9,212	$	17,050	$	36,025	$	47,345
Annuity		25,384		14,323		72,998		45,972
Health		6,179		5,254		10,989		13,303
Property and casualty		25,021		12,488		13,173		(18,343	)
Corporate and other		23,589		26,102		38,211		85,082
Total	$	89,385	$	75,217	$	171,396	$	173,359

17. COMMITMENTS AND CONTINGENCIES

Commitments

In the ordinary course of operations, American National had commitments outstanding at September 30, 2012, to purchase, expand or improve real estate, to fund mortgage loans, and to purchase other invested assets aggregating to $322,317,000, of which $255,497,000 is expected to be funded in 2012. The remaining balance of $66,820,000 will be funded in 2013 and beyond. As of September 30, 2012, all of the mortgage loan commitments have fixed interest rates.

In September 2012, American National renewed an existing $100,000,000 short-term variable rate borrowing facility containing a $55,000,000 sub-feature for the issuance of letters of credit. Borrowings under the facility are at the discretion of the lender and would be used only for funding American National’s working capital requirements. The combination of borrowings and outstanding letters of credit cannot exceed $100,000,000 at any time. As of September 30, 2012 and December 31, 2011, the outstanding letters of credit were $33,695,000 and $31,716,000, respectively, and there were no borrowings on this facility to meet liquidity requirements. This facility expires on September 30, 2013. American National expects it will be renewed on substantially equivalent terms upon expiration.

Guarantees

In the normal course of business, American National has guaranteed bank loans for customers of a third-party marketing operation. The bank loans are used to fund premium payments on life insurance policies issued by American National. The loans are secured by the cash values of the life insurance policies. If the customer were to default on the bank loan, American National would be obligated to pay off the loans. As the cash values of the life insurance policies always equals or exceeds the balance of the loans, management does not foresee any loss on these guarantees. The total amount of the guarantees outstanding as of September 30, 2012, was approximately $206,513,000, while the total cash values of the related life insurance policies was approximately $208,762,000.

33

Litigation

American National and certain subsidiaries are defendants in various lawsuits concerning alleged failure to honor certain loan commitments, alleged breach of certain agency and real estate contracts, various employment matters, allegedly deceptive insurance sales and marketing practices, and other litigation arising in the ordinary course of operations. Certain of these lawsuits include claims for compensatory and punitive damages. We provide accruals for these items to the extent we deem the losses probable and reasonably estimable. After reviewing these matters with legal counsel, management is of the opinion that the ultimate resultant liability, if any, would not have a material adverse effect on American National’s consolidated financial position or results of operations. However, these lawsuits are in various stages of development, and future facts and circumstances could result in management’s changing its conclusions.

In addition, it should be noted that the frequency of large damage awards, which bear little or no relation to the economic damages incurred by plaintiffs in some jurisdictions, continue to create the potential for an unpredictable judgment in any given lawsuit. It is possible that, if the defenses in these lawsuits are not successful, and the judgments are greater than management can anticipate, the resulting liability could have a material impact on the consolidated financial results.

18. RELATED PARTY TRANSACTIONS

American National has entered into recurring transactions and agreements with certain related parties as a part of its ongoing operations. These include mortgage loans, management contracts, agency commission contracts, marketing agreements, accident and health insurance contracts and legal services. The impact on the consolidated financial statements of the significant related party transactions for the periods indicated is shown below (in thousands):

		Dollar Amount of Transactions				Amount due to/(from)
		Nine months ended September 30,				American National
Related Party	Financial Statement Line Impacted	2012		2011		September 30, 2012			December 31, 2011
Gal-Tex Hotel Corporation	Mortgage loans on real estate	$	794	$	738	$	9,164		$	9,957
Gal-Tex Hotel Corporation	Net investment income		522		578		55			60
Greer, Herz and Adams, LLP	Other operating costs and expenses		5,689		5,830		(307	)		(198	)

Mortgage Loans to Gal-Tex Hotel Corporation (“Gal-Tex”): The Moody Foundation and the Libbie Shearn Moody Trust own 34.0% and 50.2%, respectively, of Gal-Tex Hotel Corporation. The Moody Foundation and the Libbie Shearn Moody Trust also own approximately 22.9% and 37.1%, respectively, of American National. American National held a first mortgage loan issued to Gal-Tex secured by hotel property in San Antonio, Texas. This loan was originated in 1999, had a balance of $9,164,000 as of September 30, 2012, has a current interest rate of 7.30%, and has a final maturity date of April 1, 2019. This loan is current as to principal and interest payments.

Transactions with Greer, Herz & Adams, L.L.P.: Irwin M. Herz, Jr. is one of American National’s advisory directors and a Partner with Greer, Herz Adams, L.L.P., which serves as American National’s General Counsel.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Set forth on the following pages is management’s discussion and analysis (“MD&A”) of financial condition and results of operations for the three and nine months ended September 30, 2012 and 2011 of American National Insurance Company and its subsidiaries (referred to in this document as “we”, “our”, “us”, or the “Company”). This information should be read in conjunction with our consolidated financial statements included in Item 1, Financial Statements (unaudited), of this Form 10-Q.

INDEX

Forward-Looking Statements	36
Overview	37
General Trends	37
Critical Accounting Estimates	37
Recently Issued Accounting Pronouncements	37
Consolidated Results of Operations	38
Life	39
Annuity	41
Health	44
Property and Casualty	46
Corporate and Other	50
Investments	50
Liquidity	53
Capital Resources	54
Contractual Obligations	54
Off-Balance Sheet Arrangements	55
Related Party Transactions	55

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Forward-Looking Statements

Certain statements contained herein are forward-looking statements. The forward-looking statements are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, and include estimates and assumptions related to economic, competitive and legislative developments. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “estimates,” “will” or words of similar meaning; and include, but are not limited to, statements regarding the outlook of our business and financial performance. These forward-looking statements are subject to changes and uncertainties, which are, in many instances, beyond our control and have been made based upon our expectations and beliefs concerning future developments and their potential effect upon us. There can be no assurance that future developments will be in accordance with our expectations, or that the effect of future developments on us will be as anticipated. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties. There are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. These factors include among others:

• general economic conditions and financial factors, including the performance and fluctuations of fixed income, equity, real estate, credit capital and other financial markets;

• differences between actual experience regarding mortality, morbidity, persistency, surrenders, investment returns, and our pricing assumptions for establishing liabilities and reserves or for other purposes;

• the effect of increased claims activity from natural or man-made catastrophes, pandemic disease, or other events resulting in catastrophic loss of life or property;

• adverse determinations in litigation or regulatory matters and our exposure to contingent liabilities, including and in connection with our divestiture or winding down of businesses;

• inherent uncertainties in the determination of investment allowances and impairments and in the determination of the valuation allowance on the deferred income tax asset;

• investment losses and defaults;

• competition in our product lines;

• attraction and retention of qualified employees and agents;

• potential ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks;

• the availability, affordability and adequacy of reinsurance protection;

• the effects of emerging claim and coverage issues;

• the cyclical nature of the insurance business;

• the effects of inflation on claim payments in our property and casualty and health lines;

• interest rate fluctuations;

• changes in our experiences related to deferred policy acquisition costs;

• the ability and willingness of counterparties to our reinsurance arrangements and derivative instruments to pay balances due to us;

• rating agencies’ actions;

• domestic or international military actions;

• the effects of extensive government regulation of the insurance industry;

• changes in tax and securities law;

• changes in statutory or U.S. generally accepted accounting principles (“GAAP”), practices or policies;

• regulatory or legislative changes or developments;

• the effects of unanticipated events on our disaster recovery and business continuity planning;

• failures or limitations of our computer, data security and administration systems;

• risks of employee error or misconduct;

• the introduction of alternative healthcare solutions; and

• changes in assumptions for retirement expense.

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We describe these risks and uncertainties in greater detail in Item IA, Risk Factors, in our 2011 Annual Report on Form 10-K filed with the SEC on March 6, 2012. It is not our corporate policy to make specific projections relating to future earnings, and we do not endorse any projections regarding future performance made by others. Additionally, we do not publicly update or revise forward-looking statements based on the outcome of various foreseeable or unforeseeable events.

Overview

We are a diversified insurance and financial services company, offering a broad spectrum of life, annuity, health, and property and casualty insurance products. Chartered in 1905, we are headquartered in Galveston, Texas. We operate in all 50 states, the District of Columbia, Guam, American Samoa and Puerto Rico.

General Trends

There were no material changes to the general trends we are experiencing, as discussed in the MD&A included in our 2011 Annual Report on Form 10-K filed with the SEC on March 6, 2012.

Critical Accounting Estimates

The unaudited interim consolidated financial statements have been prepared in conformity with GAAP. In addition to GAAP, insurance companies apply specific SEC regulations when preparing the consolidated financial statements. The preparation of the consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes. Actual results could differ from results reported using those estimates and assumptions.

Our accounting policies inherently require the use of judgments relating to a variety of assumptions and estimates, particularly expectations of current and future mortality, morbidity, persistency, expenses, interest rates, and property and casualty loss frequency, severity, claim reporting and settlement patterns. Due to the inherent uncertainty when using the assumptions and estimates, the effect of certain accounting policies under different conditions or assumptions could vary from those reported in the consolidated financial statements.

For a discussion of our critical accounting estimates, see the MD&A in our 2011 Annual Report on Form 10-K filed with the SEC on March 6, 2012. Effective January 1, 2012, we retrospectively adopted a new accounting policy on the capitalization of deferred policy acquisition costs (“DAC”). Upon adoption of this change in accounting policy, prior period amounts have been adjusted and are indicated “As Adjusted” where applicable. Refer to Note 2, Summary of Significant Accounting Policies and Practices, of the Notes to the Unaudited Consolidated Financial Statements for additional information. There were no other material changes in accounting policies since December 31, 2011.

Recently Issued Accounting Pronouncements

Refer to Note 3, Recently Issued Accounting Pronouncements, of the Notes to the Unaudited Consolidated Financial Statements.

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Consolidated Results of Operations

The following is a discussion of our consolidated results of operations. For discussions of our segment results, see the “Results of Operations and Related Information by Segment” section. The following table sets forth the consolidated results of operations (in thousands):

	Three months ended								Nine months ended
	September 30,								September 30,
	2012		2011			Change			2012		2011			Change
	(As Adjusted)								(As Adjusted)
Premiums and other revenues
Premiums	$	431,445	$	441,134		$	(9,689	)	$	1,285,096	$	1,312,784		$	(27,688	)
Other policy revenues		49,343		46,350			2,993			146,406		141,860			4,546
Net investment income		258,190		225,942			32,248			754,449		715,186			39,263
Realized investments gains (losses), net		12,930		12,680			250			24,779		57,637			(32,858	)
Other income		8,160		6,604			1,556			22,975		18,896			4,079
Total premiums and other revenues		760,068		732,710			27,358			2,233,705		2,246,363			(12,658	)
Benefits, losses and expenses
Policyholder benefits		122,579		105,432			17,147			366,168		334,783			31,385
Claims incurred		226,380		253,917			(27,537	)		740,048		804,932			(64,884	)
Interest credited to policyholders’ account balances		108,069		82,813			25,256			323,952		288,343			35,609
Commissions for acquiring and servicing policies		92,253		109,346			(17,093	)		283,295		337,747			(54,452	)
Other operating expenses		114,234		111,451			2,783			336,378		346,823			(10,445	)
Change in deferred policy acquisition costs (1)		7,168		(5,466	)		12,634			12,468		(39,624	)		52,092
Total benefits and expenses		670,683		657,493			13,190			2,062,309		2,073,004			(10,695	)
Income (loss) before other items and federal income taxes	$	89,385	$	75,217		$	14,168		$	171,396	$	173,359		$	(1,963	)

(1) A positive amount of net change indicates less expense was deferred than amortized and represents an increase to expenses in the periods indicated.

Consolidated earnings increased during the quarter ended September 30, 2012 compared to the same period in 2011 primarily as a result of

• a decrease in claims incurred in our property and casualty segment,

• an increase in net investment income that was $7.0 million greater than the increase in related interest credited to policyholders’ account balances and

• a decrease in commissions that was $4.5 million greater than the increase in expense related to change in DAC,

• these increases in earnings were partially offset by an increase in life policyholder benefits and a decrease in property and casualty premiums.

Consolidated earnings decreased slightly during the year-to-date ended September 30, 2012 compared to the same period in 2011 primarily as a result of

• decreases in realized investment gains,

• an increase in life policyholder benefits and

• a decrease in property and casualty premiums,

• almost entirely offset by a decrease in property and casualty claims incurred.

In the Consolidated Results of Operations above and in the segment discussions that follow, certain amounts in the prior year have been reclassified to conform to the current year presentation. Additionally, certain prior year amounts were adjusted to reflect the effect of the retrospective adoption of a new accounting standard relating to DAC, which impacted reported income before other items and federal income taxes by an increase of $0.1 million and a decrease of $2.6 million for the quarter and year-to-date ended September 30, 2011, respectively.

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Results of Operations and Related Information by Segment

Life

The Life segment includes traditional life insurance products such as whole life and term life, and interest-sensitive life insurance products such as fixed, variable and indexed universal life. We market these products on a nationwide basis through employee agents, multiple-line agents, independent agents, brokers and direct marketing channels. Life segment financial results for the periods indicated were as follows (in thousands):

	Three months ended								Nine months ended
	September 30,								September 30,
	2012			2011		Change			2012			2011			Change
	(As Adjusted)								(As Adjusted)
Premiums and other revenues:
Premiums	$	72,203		$	71,926	$	277		$	209,353		$	207,786		$	1,567
Other policy revenues		46,401			42,831		3,570			136,764			129,742			7,022
Net investment income		58,650			59,496		(846	)		176,935			178,989			(2,054	)
Other income		802			808		(6	)		2,354			2,506			(152	)
Total premiums and other revenues		178,056			175,061		2,995			525,406			519,023			6,383
Benefits, losses and expenses:
Policyholder benefits		84,615			75,472		9,143			245,237			232,013			13,224
Interest credited to policyholders’ account balances		15,026			15,476		(450	)		44,010			45,612			(1,602	)
Commissions for acquiring and servicing policies		25,193			22,897		2,296			71,624			66,680			4,944
Other operating expenses		45,923			43,013		2,910			134,396			129,623			4,773
Change in deferred policy acquisition costs (1)		(1,913	)		1,153		(3,066	)		(5,886	)		(2,250	)		(3,636	)
Total benefits and expenses		168,844			158,011		10,833			489,381			471,678			17,703
Income before other items and federal income taxes	$	9,212		$	17,050	$	(7,838	)	$	36,025		$	47,345		$	(11,320	)

(1) A positive amount of net change indicates less expense was deferred than amortized and represents an increase to expenses in the periods indicated.

Earnings decreased for the quarter and year-to-date ended September 30, 2012, primarily due to an increase in policyholder benefits in addition to an increase in other operating expenses, partially offset by an increase in other policy revenues.

Premiums and other revenues

Revenues from traditional life insurance products include scheduled premium payments from policyholders on whole life and term life products. These premiums are in exchange for financial protection from a specific insurable event, such as death or disability. The change in these premiums is impacted by new sales during the period and the persistency of in-force policies.

Other policy revenues include mortality charges, earned policy service fees and surrender charges on interest-sensitive life insurance policies. The increases during the quarter and year-to-date ended September 30, 2012 were primarily driven by increases in mortality charges and related fees due to growth in our universal life block of business.

Benefits, losses and expenses

Benefits increased for the quarter and year-to-date ended September 30, 2012 primarily resulting from higher mortality costs and a decrease in net reinsurance recoveries from fewer ceded claims.

Commissions increased for the quarter and year-to-date ended September 30, 2012 primarily due to increases in our interest-sensitive business.

Other operating expenses during 2011 benefitted from a reduction of an accrual for litigation contingencies during 2011.

39

The following table presents the components of the change in DAC (in thousands):

	Three months ended September 30,								Nine months ended September 30,
	2012			2011			Change		2012			2011			Change
				(As Adjusted)								(As Adjusted)
Acquisition cost capitalized	$	21,847		$	19,736		$	2,111	$	62,162		$	57,279		$	4,883
Amortization of DAC		(19,934	)		(20,889	)		955		(56,276	)		(55,029	)		(1,247	)
Change in deferred policy acquisition costs (1)	$	1,913		$	(1,153	)	$	3,066	$	5,886		$	2,250		$	3,636

(1) A positive amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the periods indicated.

Acquisition costs capitalized increased during the quarter and year-to-date ended September 30, 2012 compared to the same periods in 2011 primarily as a result of an increase in commissions.

Policy In-Force Information

The following table summarizes changes in the Life segment’s insurance in-force amounts (in thousands):

	Nine months ended September 30,
	2012		2011		Change
Life insurance in-force:
Traditional life	$	47,680,732	$	46,652,702	$	315,757
Interest-sensitive life		23,804,977		23,640,651		150,119
Total life insurance in-force	$	71,485,709	$	70,293,353	$	465,876

The following table summarizes changes in the Life segment’s number of policies in-force:

	Nine months ended September 30,
	2012		2011		Change
Number of policies in-force
Traditional life		2,163,246		2,220,085		(56,839	)
Interest-sensitive life		181,581		177,734		3,847
Total number of policies		2,344,827		2,397,819		(52,992	)

Our new business activity during the first nine months of 2012 was comprised of fewer, but larger face-value policies.

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Annuity

We develop, sell and support a variety of immediate and deferred annuities, including fixed, equity-indexed and variable products. We sell these products through independent agents, brokers, financial institutions, multiple-line and employee agents. Annuity segment financial results for the periods indicated were as follows (in thousands):

	Three months ended								Nine months ended
	September 30,								September 30,
	2012		2011			Change			2012		2011			Change
			(As Adjusted)								(As Adjusted)
Premiums and other revenues:
Premiums	$	30,140	$	21,704		$	8,436		$	93,275	$	73,304		$	19,971
Other policy revenues		2,942		3,519			(577	)		9,642		12,118			(2,476	)
Net investment income		156,082		121,359			34,723			460,779		413,683			47,096
Other income		50		64			(14	)		143		185			(42	)
Total premiums and other revenues		189,214		146,646			42,568			563,839		499,290			64,549
Benefits, losses and expenses:
Policyholder benefits		37,964		29,960			8,004			120,931		102,770			18,161
Interest credited to policyholders’ account balances		93,043		67,337			25,706			279,942		242,731			37,211
Commissions for acquiring and servicing policies		15,212		21,093			(5,881	)		44,983		80,642			(35,659	)
Other operating expenses		14,100		16,212			(2,112	)		34,667		57,228			(22,561	)
Change in deferred policy acquisition costs (1)		3,511		(2,279	)		5,790			10,318		(30,053	)		40,371
Total benefits, losses and expenses		163,830		132,323			31,507			490,841		453,318			37,523
Income before other items and federal income taxes	$	25,384	$	14,323		$	11,061		$	72,998	$	45,972		$	27,026

(1) A positive amount of net change indicates less expense was deferred than amortized and represents an increase to expenses in the periods indicated.

Earnings increased for the quarter and year-to-date ended September 30, 2012 compared to 2011 primarily due to a decrease in other operating expenses. In addition the increase in net investment income outpaced the related increase in interest credited to policyholders’ account balances. Other operating expenses were higher during 2011 primarily as a result of the settlement of litigation in 2011 for $12.0 million.

Premiums and other revenues

Annuity premium and deposit amounts received are shown in the table below (in thousands):

	Three months ended September 30,							Nine months ended September 30,
	2012		2011		Change			2012		2011		Change
Fixed deferred annuity	$	153,318	$	265,606	$	(112,288	)	$	486,835	$	1,297,211	$	(810,376	)
Single premium immediate annuity		51,595		44,021		7,574			155,521		120,674		34,847
Equity-indexed deferred annuity		31,506		35,193		(3,687	)		89,549		117,800		(28,251	)
Variable deferred annuity		25,242		29,367		(4,125	)		76,560		75,481		1,079
Total		261,661		374,187		(112,526	)		808,465		1,611,166		(802,701	)
Less: policy deposits		231,521		352,483		(120,962	)		715,190		1,537,862		(822,672	)
Total earned premiums	$	30,140	$	21,704	$	8,436		$	93,275	$	73,304	$	19,971

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We monitor account values and changes in those values as a key indicator of performance in our Annuity segment. Changes in account values are mainly the result of net inflows, surrenders, policy fees, interest credited and market value changes. Shown below are the changes in account values (in thousands):

	Nine months ended September 30,
	2012			2011
Fixed deferred and equity-indexed annuity
Account value, beginning of period	$	9,824,416		$	9,006,692
Net inflows		374,025			1,212,531
Surrenders		(579,908	)		(669,048	)
Fees		(6,075	)		(8,395	)
Interest credited		275,072			240,826
Account value, end of period	$	9,887,530		$	9,782,606
Single premium immediate annuity
Reserve, beginning of period	$	978,722		$	903,126
Net inflows		47,751			26,485
Interest and mortality		31,523			31,593
Reserve, end of period	$	1,057,996		$	961,204
Variable deferred annuity
Account value, beginning of period	$	380,129		$	415,757
Net inflows		72,925			68,429
Surrenders		(78,651	)		(81,452	)
Fees		(3,509	)		(3,644	)
Change in market value and other		40,711			(29,702	)
Account value, end of period	$	411,605		$	369,388

Fixed deferred annuity net inflows decreased significantly for the year-to-date ended September 30, 2012. We are managing these products to lower sales during 2012, to mitigate risks associated with investing in the persistently low interest rate environment.

Equity-indexed annuities allow policyholders to participate in equity returns while also having certain downside protection from the guaranteed minimum returns defined in the product. Deposits for this product decreased during the year-to-date ended September 30, 2012. This decrease was primarily attributed to lower indexed crediting terms resulting from lower fixed investment yields in 2012.

Single premium immediate annuities (“SPIA”) increased for the year-to-date ended September 30, 2012. This was driven primarily by new retirees entering the market for guaranteed monthly payouts on a portion of their retirement dollars.

Net investment income increased for the quarter and year-to-date ended September 30, 2012 compared to 2011 primarily as a result of $33.9 million and $40.1 million increases in realized gains, respectively, from marking our option portfolio to fair value at September 30, 2012, in addition to a 5.1% increase in the assets attributable to annuity account balances.

Benefits, losses and expenses

Policyholder benefits consist of annuity payments and reserve increases for SPIA contracts. Benefits increased for the quarter and year-to-date ended September 30, 2012 compared to 2011 due to an increase in reserves associated with SPIA sales during the period.

Commissions decreased for the quarter and year-to-date ended September 30, 2012 compared to 2011 primarily due to reduced fixed deferred annuity production as well as decreases in commission rates on certain annuities.

Other operating expenses decreased during the year-to-date ended September 30, 2012 compared to 2011 primarily as a result of an accrual during 2011 related to the settlement of certain litigation.

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Additionally, a decrease in producer compensation linked to annuity production reduced other operating expenses further.

The change in DAC represents acquisition costs capitalized, net of amortization of existing DAC. The amortization of DAC is calculated in proportion to gross profits. The following table presents the components of change in DAC (in thousands):

	Three months ended September 30,									Nine months ended September 30,
	2012			2011			Change			2012			2011			Change
				(As Adjusted)									(As Adjusted)
Acquisition cost capitalized	$	17,398		$	26,973		$	(9,575	)	$	54,015		$	96,921		$	(42,906	)
Amortization of DAC		(20,909	)		(24,694	)		3,785			(64,333	)		(66,868	)		2,535
Change in deferred policy acquisition costs (1)	$	(3,511	)	$	2,279		$	(5,790	)	$	(10,318	)	$	30,053		$	(40,371	)

(1) A negative amount of net change indicates less expense was deferred than amortized and represents an increase to expenses in the periods indicated.

The decrease in acquisition costs capitalized during the quarter and year-to-date ended September 30, 2012 compared to 2011 was the result of lower commissions incurred with the decrease in fixed deferred annuity production.

An important measure of the Annuity segment is amortization of DAC as a percentage of gross profits. The amortization of DAC as a percentage of gross profits for the year-to-date ended September 30, 2012 and 2011 was 39.5%, and 43.5%, respectively. The improvement in the ratio was primarily driven by improvement in persistency during the nine months ended September 30, 2012 compared to 2011.

Options and derivatives

Shown below is an analysis of the impact to net investment income of the option return, along with the impact to interest credited of the equity-indexed annuity embedded derivative (in thousands):

	Three months  ended September 30,								Nine months  ended September 30,
	2012		2011			Change			2012		2011			Change
Net investment income
Without option return	$	145,634	$	144,851		$	783		$	438,832	$	431,878		$	6,954
Option return		10,448		(23,492	)		33,940			21,947		(18,195	)		40,142
Interest credited to policy account balances
Without embedded derivative		85,332		92,530			(7,198	)		263,163		264,316			(1,153	)
Equity-indexed annuity embedded derivative		7,711		(25,193	)		32,904			16,779		(21,585	)		38,364

Net investment income without option return, increased during the quarter and year-to-date ended September 30, 2012 compared to 2011 primarily due to increases in aggregate annuity account values. The related interest credited to policyholders’ account balances without equity-indexed return, decreased during the quarter and year-to-date periods resulting from lower crediting rates.

The option return, as well as the related equity-indexed annuity embedded derivative return, during the quarter and year-to-date ended September 30, 2012 increased as a result of the change in the S&P 500 Index during the respective periods. These option returns correlate to the 5.8% and 14.6% three and nine month gains of the S&P 500 Index for the periods ended September 30, 2012, respectively, compared to losses of 14.3% and 10.0% for the same periods ended September 30, 2011, respectively.

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Health

The Health segment primarily focuses on supplemental and limited benefit coverage products including Medicare Supplement insurance as well as hospital surgical and cancer policies. For the first nine months of 2012, premium volume was concentrated in our Medicare Supplement and group lines. Our other health products include credit accident and health policies, stop loss, and dental coverages. Health products are distributed through our network of independent agents and Managing General Underwriters (“MGU”). Health segment results for the periods indicated were as follows (in thousands):

	Three months ended							Nine months ended
	September 30,							September 30,
	2012		2011		Change			2012		2011		Change
			(As Adjusted)							(As Adjusted)
Premiums and other revenues:
Premiums	$	56,199	$	57,708	$	(1,509	)	$	167,965	$	174,736	$	(6,771	)
Net investment income		2,938		3,331		(393	)		8,872		10,172		(1,300	)
Other income		3,900		3,354		546			11,760		9,874		1,886
Total premiums and other revenues		63,037		64,393		(1,356	)		188,597		194,782		(6,185	)
Benefits, losses and expenses:
Claims incurred		38,436		38,691		(255	)		119,586		119,764		(178	)
Commissions for acquiring and servicing policies		6,735		6,636		99			19,651		20,202		(551	)
Other operating expenses		10,669		11,086		(417	)		33,724		35,080		(1,356	)
Change in deferred policy acquisition costs (1)		1,018		2,726		(1,708	)		4,647		6,433		(1,786	)
Total benefits and expenses		56,858		59,139		(2,281	)		177,608		181,479		(3,871	)
Income (loss) before other items and federal income taxes	$	6,179	$	5,254	$	925		$	10,989	$	13,303	$	(2,314	)

(1) A positive amount of net change indicates less expense was deferred than amortized and represents an increase to expenses in the periods indicated

Earnings for the quarter ended September 30, 2012 were relatively flat. Earnings decreased for the year-to-date ended September 30, 2012, driven primarily by a decrease in premiums.

Premiums and other revenues

Health premiums for the periods indicated are as follows (in thousands, except percentages):

	Three months ended September 30,										Nine months ended September 30,
	2012					2011					2012					2011
	dollars		percentage			dollars		percentage			dollars		percentage			dollars		percentage
Medicare Supplement	$	24,066		42.9	%	$	25,030		43.4	%	$	71,688		42.7	%	$	76,361		43.7	%
Group		10,914		19.4			8,820		15.3			30,384		18.1			24,535		14.0
Medical expense		9,065		16.1			11,355		19.6			28,592		17.0			36,594		20.9
MGU		4,277		7.6			3,438		6.0			12,887		7.7			9,911		5.7
Credit accident and health		4,102		7.3			5,027		8.7			12,749		7.6			15,184		8.7
All other		3,775		6.7			4,038		7.0			11,665		6.9			12,151		7.0
Total	$	56,199		100.0	%	$	57,708		100.0	%	$	167,965		100.0	%	$	174,736		100.0	%

Earned premiums decreased during the quarter and year-to-date ended September 30, 2012, primarily resulting from the run-off of our closed medical expense block of insurance plans, which will continue decreasing. In addition Medicare Supplement premiums declined primarily resulting from lower policy lapses. These decreases were partially offset by an increase in revenues of our group and MGU lines.

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Our in-force certificates or policies as of the dates indicated are as follows:

	September 30,
	2012					2011
	number		percentage			number		percentage
Medicare Supplement		41,160		6.6	%		42,991		6.8	%
Group		19,887		3.2			15,666		2.5
Medical expense		6,056		1.1			8,515		1.4
MGU		188,123		30.7			141,770		22.5
Credit accident and health		251,793		41.0			281,685		44.7
All other		106,592		17.4			139,582		22.1
Total		613,611		100.0	%		630,209		100.0	%

Our total in-force policies decreased during the year-to-date ended September 30, 2012 compared to 2011. The increases in the MGU and group lines were more than offset by decreases in credit accident and health, Medicare Supplement, medical expense and other lines.

Benefits, losses and expenses

Other operating expenses decreased slightly during the year-to-date ended September 30, 2012 compared to 2011 as a result of the aggregate decrease in the health block of business.

The following table presents the components of the change in DAC (in thousands):

	Three months ended September 30,								Nine months ended September 30,
	2012			2011			Change		2012			2011			Change
				(As Adjusted)								(As Adjusted)
Acquisition cost capitalized	$	2,840		$	2,838		$	2	$	8,311		$	9,540		$	(1,229	)
Amortization of DAC		(3,858	)		(5,564	)		1,706		(12,958	)		(15,973	)		3,015
Change in deferred policy acquisition costs (1)	$	(1,018	)	$	(2,726	)	$	1,708	$	(4,647	)	$	(6,433	)	$	1,786

(1) A positive amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the periods indicated.

Expenses due to the change in DAC decreased for the quarter and year-to-date ended September 30, 2012 compared to the same periods in 2011 primarily due to the decreases in amortization outpacing costs capitalized due to the aggregate decrease in the health block of business.

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Property and Casualty

Property and Casualty business is written through our Multiple-Line and Credit Insurance Division agents. Property and Casualty segment results for the periods indicated were as follows (in thousands, except percentages):

	Three months ended									Nine months ended
	September 30,									September 30,
	2012			2011			Change			2012			2011			Change
				(As Adjusted)									(As Adjusted)
Premiums and other revenues:
Net premiums written	$	265,886		$	293,228		$	(27,342	)	$	825,912		$	878,015		$	(52,103	)
Net premiums earned		272,903			289,796			(16,893	)		814,503			856,958			(42,455	)
Net investment income		17,536			17,852			(316	)		53,016			54,230			(1,214	)
Other income		1,619			1,870			(251	)		5,065			4,148			917
Total premiums and other revenues		292,058			309,518			(17,460	)		872,584			915,336			(42,752	)
Benefits, losses and expenses:
Claims incurred		187,944			215,226			(27,282	)		620,462			685,168			(64,706	)
Commissions for acquiring and servicing policies		45,113			58,720			(13,607	)		147,037			170,223			(23,186	)
Other operating expenses		29,428			30,150			(722	)		88,523			92,042			(3,519	)
Change in deferred policy acquisition costs (1)		4,552			(7,066	)		11,618			3,389			(13,754	)		17,143
Total benefits and expenses		267,037			297,030			(29,993	)		859,411			933,679			(74,268	)
Income before other items and federal income taxes	$	25,021		$	12,488		$	12,533		$	13,173		$	(18,343	)	$	31,516
Loss and claim adjustment expense ratio		68.9	%		74.3	%		(5.4	)		76.2	%		80.0	%		(3.8	)
Underwriting expense ratio		29.0			28.5			0.5			29.3			29.0			0.3
Combined ratio		97.9	%		102.8	%		(4.9	)		105.5	%		109.0	%		(3.5	)
Impact of catastrophe events on combined ratio		3.8			7.5			(3.7	)		10.7			14.6			(3.9	)
Combined ratio without impact of catastrophe events		94.1	%		95.3	%		(1.2	)		94.8	%		94.4	%		0.4
Gross catastrophe losses	$	9,240		$	17,130		$	(7,890	)	$	90,981		$	207,084		$	(116,103	)
Net catastrophe losses		10,365			22,789			(12,424	)		87,367			113,619			(26,252	)

(1) A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the periods indicated.

The Property and Casualty segment results improved during the quarter and year-to-date ended September 30, 2012, primarily due to a significant decrease in claims incurred and to a lesser extent a reduction in commissions, partially offset by a decrease in premiums.

Premiums and other revenues

Net premiums written and earned decreased during the quarter and year-to-date ended September 30, 2012 from a decline of policies in force due to attrition and risk mitigation actions in our Personal lines, in addition to product alterations in our Credit Insurance Division.

Benefits, losses and expenses

Claims incurred decreased during the quarter and year-to-date ended September 30, 2012 as a result of a decrease in catastrophe losses during both periods. The lower catastrophe losses, together with improved rate adequacy, caused the decrease in the loss ratio. Commissions decreased primarily due to a shift from commission to non-commission products in our Credit Insurance Division.

The combined ratio, excluding net catastrophe impact, declined for the quarter ended and remained relatively level for the year-to-date ended September 30, 2012 compared with the same periods in 2011. The third quarter decrease was primarily driven by better rate adequacy.

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For the quarter and year-to-date ended September 30, 2012, the net favorable prior year loss and CAE development was $4.6 million and $30.8 million, compared to $10.2 million and $38.1 million favorable development for the quarter and year-to-date ended September 30, 2011. This favorable development is primarily in our workers’ compensation, personal auto liability and commercial liability lines, which are demonstrating better than expected loss emergence compared to what was implied by our historical development patterns.

Products

Our Property and Casualty segment consists of three product lines: (i) Personal Lines, which we market primarily to individuals, was 60.9% of net premiums written, (ii) Commercial Lines, which focus primarily on businesses engaged in agricultural and other targeted markets, was 30.2% of net premiums written, and (iii) Credit-related property insurance products which are marketed to financial institutions and retailers and was 8.9% of net premiums written. We frequently sell both personal and commercial lines products to the same individuals.

Personal Lines

Property and Casualty segment results for Personal Lines for the periods indicated were as follows (in thousands, except percentages):

	Three months ended									Nine months ended
	September 30,									September 30,
	2012			2011			Change			2012			2011			Change
Net premiums written
Auto	$	105,226		$	111,701		$	(6,475	)	$	317,237		$	340,111		$	(22,874	)
Homeowner		57,573			61,483			(3,910	)		157,738			161,484			(3,746	)
Other Personal		9,318			9,675			(357	)		27,965			27,699			266
Total net premiums written	$	172,117		$	182,859		$	(10,742	)	$	502,940		$	529,294		$	(26,354	)
Net premiums earned
Auto	$	106,019		$	114,730		$	(8,711	)	$	318,806		$	349,542		$	(30,736	)
Homeowner		52,028			56,612			(4,584	)		154,185			160,112			(5,927	)
Other Personal		8,974			9,537			(563	)		26,639			27,392			(753	)
Total net premiums earned	$	167,021		$	180,879		$	(13,858	)	$	499,630		$	537,046		$	(37,416	)
Loss and claim adjustment expense ratio
Auto		79.9	%		77.3	%		2.6			77.8	%		74.3	%		3.5
Homeowner		71.5			95.3			(23.8	)		105.5			123.5			(18.0	)
Other Personal		67.7			56.9			10.8			56.1			74.2			(18.1	)
Personal lines loss ratio		76.7	%		81.8	%		(5.1	)		85.2	%		89.0	%		(3.8	)
Combined Ratio
Auto		100.7	%		96.3	%		4.4			98.8	%		94.9	%		3.9
Homeowner		98.4			115.0			(16.6	)		129.7			147.6			(17.9	)
Other Personal		89.9			106.0			(16.1	)		78.9			95.8			(16.9	)
Personal lines combined ratio		98.5	%		102.6	%		(4.1	)		107.3	%		110.6	%		(3.3	)

Personal Automobile: Net premiums written and earned decreased in our personal automobile line during the quarter and year-to-date ended September 30, 2012. This was primarily due to a decline in policies in-force resulting from a combination of the decreases in homeowner policies in-force, which decreased cross-sell opportunities, and new business sales not keeping pace with attrition. The loss and combined ratios increased during the periods consistent with our pricing strategy and expected seasonal variances.

Homeowners: Net premiums written and earned decreased during the quarter and year-to-date ended September 30, 2012 compared to 2011 primarily due to fewer policies in-force. The decrease in homeowner policies in-force was primarily driven by improved rate adequacy and our catastrophe risk mitigation actions. The loss and combined ratios decreased during the three and nine months ended September 30, 2012 due primarily to improved catastrophe experience and improved rate adequacy.

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Other Personal: This product line is comprised primarily of watercraft, rental-owner and umbrella coverages for individuals seeking to protect their personal property and liability not covered within their homeowner and auto policies. Net premiums written and earned remained substantially unchanged during the quarter and year-to-date ended September 30, 2012. The loss ratio increased while the combined ratio decreased during the quarter ended September 30, 2012, and both ratios decreased year-to-date. As this is currently our smallest line of business in our Personal Products line, minor fluctuations in results can cause greater volatility in these ratios.

Commercial Lines

Property and Casualty segment results for Commercial Lines for the periods indicated were as follows (in thousands, except percentages):

	Three months ended September 30,									Nine months ended September 30,
	2012			2011			Change			2012			2011			Change
Net premiums written
Other Commercial	$	29,618		$	27,357		$	2,261		$	105,698		$	101,527		$	4,171
Agribusiness		26,240			25,702			538			78,863			75,758			3,105
Auto		16,961			17,235			(274	)		64,537			67,394			(2,857	)
Total net premiums written	$	72,819		$	70,294		$	2,525		$	249,098		$	244,679		$	4,419
Net premiums earned
Other Commercial	$	31,642		$	30,310		$	1,332		$	92,853		$	90,073		$	2,780
Agribusiness		26,848			26,174			674			79,067			75,981			3,086
Auto		20,084			20,698			(614	)		59,937			63,571			(3,634	)
Total net premiums earned	$	78,574		$	77,182		$	1,392		$	231,857		$	229,625		$	2,232
Loss and claim adjustment expense ratio
Other Commercial		70.8	%		63.4	%		7.4			78.5	%		59.5	%		19.0
Agribusiness		72.6			109.4			(36.8	)		86.2			132.0			(45.8	)
Auto		66.9			64.9			2.0			64.0			57.9			6.1
Commercial lines loss ratio		70.4	%		79.4	%		(9.0	)		77.4	%		83.1	%		(5.7	)
Combined ratio
Other Commercial		98.0	%		92.1	%		5.9			106.8	%		88.3	%		18.5
Agribusiness		109.5			146.1			(36.6	)		122.6			169.0			(46.4	)
Auto		87.8			86.1			1.7			86.6			80.3			6.3
Commercial lines combined ratio		99.0	%		108.8	%		(9.8	)		106.9	%		112.8	%		(5.9	)

Other Commercial: Net premiums written and earned increased during the quarter and year-to-date ended September 30, 2012 compared to 2011 primarily as a result of an increase in workers’ compensation premiums due to rate increases and premium assumed from involuntary pools. The loss and combined ratios increased during the quarter and year-to-date ended September 30, 2012 primarily due to an increase in the severity of workers’ compensation and business owners claims.

Agribusiness Product: Our agribusiness product allows policyholders to customize and combine their coverage for residences and household contents, farm buildings and building contents, personal property and liability. Net premiums written and earned increased during the quarter and year-to-date ended September 30, 2012, primarily as a result of a decrease in reinsurance reinstatement premiums from those in 2011. The loss and combined ratios decreased significantly during the nine months ended September 30, 2012, primarily as the result of a reduction in net catastrophe losses during the nine month period.

Commercial Automobile: Net premiums written and earned decreased during the quarter and year-to-date ended September 30, 2012 compared to 2011 primarily as a result of lower new business writings in our small commercial business as well as underwriting intended to improve risk selection.

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Credit Products

Credit-related property product results for the periods indicated were as follows (in thousands, except percentages):

	Three months ended September 30,									Nine months ended September 30,
	2012			2011			Change			2012			2011			Change
Net premiums written	$	20,950		$	40,075		$	(19,125	)	$	73,874		$	104,042		$	(30,168	)
Net premiums earned		27,308			31,735			(4,427	)		83,016			90,287			(7,271	)
Loss and claim adjustment expenses ratio		16.9	%		18.7	%		(1.8	)		18.3	%		18.5	%		(0.2	)
Combined ratio		93.9			89.0			4.9			94.2			90.6			3.6

Credit-related property insurance products are offered on automobiles, furniture and appliances in connection with the financing of those items. These policies pay an amount if the insured property is lost or damaged and is not directly related to an event affecting the consumer’s ability to pay the debt. The primary distribution channel for credit-related property insurance is general agents who market to auto dealers, furniture stores and financial institutions.

Net premiums written and earned decreased for the quarter and year-to-date ended September 30, 2012 compared to 2011. The primary driver for the decrease in premiums is a shift from Guaranteed Auto Protection (“GAP”) Insurance to GAP Waiver, a lower premium debt protection product. The loss ratios decreased somewhat in the most recent quarter and remained substantially unchanged year-to-date. The combined ratios increased during the three and nine month periods due primarily to the decrease in premiums.

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Corporate and Other

Our Corporate and Other segment primarily includes the capital not allocated to support our insurance business segments. Our corporate investments include publicly traded equities, real estate, commercial mortgage loans, high-yield bonds, venture capital partnerships, mineral interests and tax-advantaged instruments. Corporate and Other segment financial results for the periods indicated were as follows (in thousands):

	Three months ended September 30,							Nine months ended September 30,
	2012		2011		Change			2012		2011		Change
Premiums and other revenues:
Net investment income	$	22,984	$	23,904	$	(920	)	$	54,847	$	58,112	$	(3,265	)
Realized investments gains, net		12,930		12,680		250			24,779		57,637		(32,858	)
Other Income		1,789		508		1,281			3,653		2,183		1,470
Total premiums and other revenues		37,703		37,092		611			83,279		117,932		(34,653	)
Benefits, losses and expenses:
Other operating expenses		14,114		10,990		3,124			45,068		32,850		12,218
Total benefits, losses and expenses		14,114		10,990		3,124			45,068		32,850		12,218
Income before other items and federal income taxes	$	23,589	$	26,102	$	(2,513	)	$	38,211	$	85,082	$	(46,871	)

Earnings for the quarter ended September 30, 2012 decreased compared to the same period in 2011 due to increased other operating expenses. Earnings for the year-to-date ended September 30, 2012 decreased substantially due to the decrease in realized gains, primarily as a result of other-than-temporary impairments related to bond and equity investments of $22.1 million for nine months ended September 30, 2012. Additionally, there was a $13.1 million gain in 2011 from the sale of investment real estate with no comparable sale in 2012. Other operating costs increased during 2012 as a result of an increase in expenses for share-based compensation under the stock and incentive plan.

Investments

General

We manage our investment portfolio to optimize the rate of return that is commensurate with sound and prudent underwriting practices and to maintain a well-diversified portfolio. Our investment operations are governed by various regulatory authorities, primarily the state insurance departments where we or our insurance subsidiaries are domiciled. Investment activities, including the setting of investment policies and defining acceptable risk levels, are subject to review and approval by our Board of Directors, which is assisted by our Finance Committee.

Our insurance and annuity products are primarily supported by investment-grade bonds, and to a lesser extent collateralized mortgage obligations and commercial mortgage loans. We purchase fixed maturity securities and designate them as either held-to-maturity or available-for-sale considering our estimated future cash flow needs. We also monitor the composition of our fixed maturity securities classified as held-to-maturity and available-for-sale and adjust the mix within the portfolio as investments mature or new investments are purchased.

We invest in commercial mortgage loans when the yield and credit risk compare favorably with fixed maturity securities, which are primarily investment-grade bonds. Investments in individual residential mortgage loans have not been part of our investment portfolio, and we do not anticipate investing in them in the future. We invest in real estate and equity securities based on a risk and reward analysis where we believe there are opportunities for enhanced returns.

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Composition of Invested Assets

The following summarizes the carrying values of our invested assets by asset class (other than investments in unconsolidated affiliates) (in thousands, except percentages):

	September 30, 2012					December 31, 2011
	Amount		Percent			Amount		Percent
Bonds held-to-maturity, at amortized cost	$	9,187,881		47.4	%	$	9,251,972		49.0	%
Bonds available-for-sale, at fair value		4,668,577		24.1			4,381,607		23.2
Equity securities, at fair value		1,094,387		5.7			1,006,080		5.3
Mortgage loans on real estate, net of allowance		3,058,663		15.8			2,925,482		15.5
Policy loans		393,774		2.0			393,195		2.1
Investment real estate, net of accumulated depreciation		508,202		2.6			470,222		2.5
Short-term investments		321,512		1.7			345,330		1.8
Other invested assets		129,975		0.7			109,514		0.6
Total Investments	$	19,362,971		100.0	%	$	18,883,402		100.0	%

Each of the components of our invested assets is described further in the Notes to the Unaudited Consolidated Financial Statements. Additionally, Note 2, Summary of Significant Accounting Policies and Practices, of the Notes to the Consolidated Financial Statements within our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC on March 6, 2012 contains a detailed description of the Company’s methodology for evaluating other-than-temporary impairment losses on its investments.

Investments to Support Our Insurance Business

Bonds- We allocate most of our fixed maturity securities to support our insurance business.

At September 30, 2012, our fixed maturity securities had an estimated fair market value of $14.7 billion, which was $1.2 billion, or 9.1%, above amortized cost. At December 31, 2011, our fixed maturity securities had an estimated fair value of $14.2 billion, which was $851.7 million, or 6.4%, above amortized cost.

Fixed maturity securities’ estimated fair value, due in one year or less, increased to $1.5 billion as of September 30, 2012 from $961.2 million as of December 31, 2011, primarily as a result of approaching maturity dates of long-term bonds.

The following table identifies the total bonds by credit quality rating, using both Standard & Poor’s and Moody’s ratings (in thousands, except percentages):

	September 30, 2012							December 31, 2011
	Amortized		Estimated		% of Fair			Amortized		Estimated		% of Fair
	Cost		Fair Value		Value			Cost		Fair Value		Value
AAA	$	834,560	$	908,706		6.2	%	$	1,074,744	$	1,153,696		8.1	%
AA		1,457,652		1,591,582		10.8			1,391,092		1,490,600		10.5
A		5,066,565		5,600,980		38.0			5,058,242		5,448,851		38.3
BBB		5,505,313		5,978,618		40.6			5,204,214		5,499,958		38.6
BB and below		637,368		649,908		4.4			659,290		646,193		4.5
Total	$	13,501,458	$	14,729,794		100.0	%	$	13,387,582	$	14,239,298		100.0	%

The slight shifts in our credit quality diversification, including exposure to below investment grade securities, at September 30, 2012 compared to December 31, 2011, was primarily the result of purchases of AAA through BBB bonds, and maturities of bonds rated AAA through BB and below as we continue to manage a diverse portfolio. At 4.4% of our total bond portfolio, the exposure to below investment grade securities is acceptable to management, and we expect this portion of our bond portfolio to decrease as these bonds approach maturity.

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Mortgage Loans- We invest in commercial mortgage loans that are diversified by property-type and geography. We do not make individual residential mortgage loans. Therefore, we have no direct exposure to sub-prime or Alt A mortgage loans in the mortgage loan portfolio. Generally, mortgage loans are secured by first liens on income-producing real estate with a loan-to-value ratio of up to 75%. Mortgage loans are used to support our insurance liabilities. Mortgage loans held-for-investment are carried at outstanding principal balances, adjusted for any unamortized premium or discount, deferred fees or expenses, and net of allowances.

The weighted average coupon yield on the principal funded for mortgage loans was 5.8% and 6.0% at September 30, 2012 and December 31, 2011, respectively. It is likely that the weighted average coupon yield on funded mortgage loans will decline as loans mature and new loans are originated with lower rates in the current interest rate environment.

Equity Securities- As of September 30, 2012, our equity securities were invested 96.7% in publicly traded (on a national U.S. stock exchange) common stock and 3.3% was invested in publicly traded preferred stock. As of December 31, 2011, 96.3% of our equity securities were invested in publicly traded common stock, and the remaining 3.7% were invested in publicly traded preferred stock. The increase in the fair value of our equity securities during the first nine months of 2012 primarily reflects market value increases within the portfolio.

We carry our equity portfolio at fair value based on quoted estimated fair value prices obtained from external pricing services. The cost and estimated market value of the equity portfolio are as follows (in thousands):

	September 30, 2012
			Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Common stock	$	660,798	$	405,750	$	(7,386	)	$	1,059,162
Preferred stock		26,690		8,609		(74	)		35,225
Total	$	687,488	$	414,359	$	(7,460	)	$	1,094,387
	December 31, 2011
			Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Common stock	$	679,724	$	305,269	$	(16,086	)	$	968,907
Preferred stock		30,955		7,688		(1,470	)		37,173
Total	$	710,679	$	312,957	$	(17,556	)	$	1,006,080

Investment Real Estate- We invest in commercial real estate with positive cash flows or where appreciation in value is expected. Real estate may be owned directly by our insurance companies, non-insurance affiliates or joint ventures. The carrying value of real estate is stated at cost, less accumulated depreciation and valuation allowances, if any. Depreciation is provided over the estimated useful lives of the properties.

Short-Term Investments- Short-term investments are composed primarily of commercial paper rated A2/P2 or better by Standard & Poor’s and Moody’s, respectively. The amount fluctuates depending on the available long-term investment opportunities and our liquidity needs, including investment-funding commitments.

Policy Loans- For certain life insurance products, policyholders may borrow funds using their policy’s cash value as collateral. The maximum amount of the policy loan depends upon the policy’s surrender value and the number of years since policy origination. As of September 30, 2012 we had $393.8 million in policy loans with a loan to surrender value of 59.4%, and at December 31, 2011, we had $393.2 million in policy loans with a loan to surrender value of 59.2%. Interest rates on policy loans primarily range from 3.0 % to 12.0% per annum. Policy loans may be repaid at any time by the policyholder and have priority to any claims on the policy. If the policyholder fails to repay the policy loan, funds are withdrawn from the policy’s benefits.

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Net Investment Income

Net investment income from bonds and mortgage loans used to support our insurance products increased $3.1 million over the period as assets increased with annuity sales and growth in policyholder’s account balances. Net investment income in other asset classes (equities, real estate, options and other) increased $36.2 million as a result of realized gains from marking our option portfolio to fair value at September 30, 2012.

Mortgage loan interest income is accrued on the principal amount of the loan based on the loan’s contractual interest rate. Accretion of discounts is recorded using the effective yield method. Interest income, accretion of discounts and prepayment fees are reported in net investment income. Interest income earned on impaired loans is accrued on the principal amount of the loan based on the loan’s contractual interest rate. However, interest ceases to be accrued for loans on which interest is generally more than 90 days past due or when the collection of interest is not considered probable. Loans in foreclosure are placed on non-accrual status. Interest received on non-accrual status mortgage loans is included in net investment income in the period received.

Unrealized Gains and Losses

The net change in unrealized gains (losses) on available-for-sale securities, included in the accumulated other comprehensive income in the consolidated statements of financial position, had a net gain increase of $113.2 million for the nine months ended September 30, 2012. The net unrealized gains on available-for-sale securities at September 30, 2012 and December 31, 2011 were $761.9 million and $541.4 million, respectively.

Liquidity

Our liquidity requirements have been and are expected to continue to be met by funds from operations, resulting from premiums received from our customers and investment income. The primary use of cash has been and is expected to continue to be policy benefits and claims incurred during the regular course of business. Current and expected patterns of claim frequency and severity may change from period to period but continue to be within historical norms. Management considers our current liquidity position to be sufficient to meet anticipated demands over the next twelve months. Our contractual obligations are not expected to have a significant impact to cash flow from operations.

There are no known trends or uncertainties regarding product pricing, changes in product lines or rising costs, which would have a significant impact to cash flows from operations. Continued low-interest rate environments are expected to require higher than historical contributions to our defined benefit plans in the near future. Management does not expect these demands to have a significant impact to our cash flows from operations. Additionally, we have paid dividends to stockholders for over 100 consecutive years and expect to continue this trend. No significant capital expenditures are expected in the near future.

Further information regarding additional sources or uses of cash is described in Note 17, Commitments and Contingencies, of the Notes to the Unaudited Consolidated Financial Statements.

To ensure we will be able to continue to pay future commitments, the funds received as premium payments and deposits are invested in high quality investments, primarily fixed maturity securities and commercial mortgages. Funds are invested with the intent that income from the investments and proceeds from the maturities will meet our ongoing cash flow needs. We historically have not had to liquidate invested assets in order to cover cash flow needs; moreover, our portfolio of highly liquid available-for-sale fixed maturity and equity securities are available to meet future liquidity needs as necessary.

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Capital Resources

Our capital resources consisted of American National stockholders’ equity, summarized as follows (in thousands):

	September 30, 2012		December 31, 2011
American National stockholders’ equity, excluding accumulated other comprehensive income (loss), net of tax (“AOCI”)	$	3,546,009	$	3,477,888
AOCI		279,760		159,403
Total American National stockholders’ equity	$	3,825,769	$	3,637,291

We have notes payable in our consolidated statements of financial position that are not part of our capital resources. These notes payable represent amounts borrowed by real estate joint ventures that we consolidate into our financial statements. During the quarter ended September 30, 2012, one real estate joint venture, which the company consolidates, borrowed $100.0 million from a third party using the real estate owned by the joint venture as collateral. The debt service on the ten year loan is intended to be met by the earnings and cash flow of the joint venture. The lenders for the notes payable have no recourse against us in the event of default by the joint ventures. Therefore, the only amount of liability we have for these notes payable is limited to our investment in the respective venture, which totaled $14.2 million and $18.0 million at September 30, 2012 and December 31, 2011, respectively.

Total stockholders’ equity in the first nine months of 2012 increased primarily due to the $124.9 million net income earned during the period and $113.2 million unrealized gains on available-for-sale securities, offset by $62.0 million in dividends paid to stockholders.

Statutory Surplus and Risk-based Capital

Statutory surplus represents the capital of our insurance companies reported in accordance with accounting practices prescribed or permitted by the applicable state insurance departments. Risk-based capital (“RBC”) is a minimum capital requirement calculated using formulas and instructions from the National Association of Insurance Commissioners (“NAIC”). State laws specify regulatory actions if an insurer’s ratio of statutory surplus to RBC, a measure of an insurer’s solvency, falls below certain levels. The RBC formula for life companies establishes minimum capital requirements for asset, interest rate, market, insurance and business risks. The RBC formula for property and casualty companies establishes minimum capital requirements for asset and underwriting risks including reserve risk.

The achievement of long-term growth will require growth in American National Insurance Company’s and our insurance subsidiaries’ statutory capital. Our subsidiaries may obtain additional statutory capital through various sources, such as retained statutory earnings or equity contributions from us. As of December 31, 2011, the levels of our and our insurance subsidiaries’ capital exceeded the NAIC’s minimum RBC requirements.

Contractual Obligations

Our future cash payments associated with claims and claims adjustment expenses, life, annuity and disability obligations, contractual obligations pursuant to operating leases for office space and equipment, and notes payable have not materially changed since December 31, 2011. We expect to have the capacity to repay or refinance these obligations as they come due.

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Off-Balance Sheet Arrangements

We have off-balance sheet arrangements relating to third-party marketing operation bank loans discussed within Note 17, Commitments and Contingencies, of the Notes to the Unaudited Consolidated Financial Statements. We could be exposed to a liability for these loans, which are supported by the cash value of the underlying insurance contracts. However, since the cash value of the life insurance policies is designed to always equal or exceed the balance of the loans, management does not foresee any loss related to these arrangements.

Related-Party Transactions

We have various agency, consulting and service arrangements with individuals and corporations that are considered to be related parties. Each of these arrangements has been reviewed and approved by our Audit Committee. The total amount involved in these arrangements, both individually and in the aggregate, is not material to any segment or to our overall operations. For additional details see Note 18, Related Party Transactions, of the Notes to the Unaudited Consolidated Financial Statements.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our market risks have not changed materially from those disclosed in our 2011 Annual Report on Form 10-K filed with the SEC on March 6, 2012.

ITEM 4. CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in

the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Corporate Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The Company’s management, with the participation of the Company’s Chief Executive Officer and Corporate Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of September 30, 2012. Based upon that evaluation and subject to the foregoing, the Company’s Chief Executive Officer and Corporate Chief Financial Officer concluded that, as of September 30, 2012, the design and operation of the Company’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Management has monitored the internal controls over financial reporting, including any material changes to the internal control over financial reporting. There were no changes in the Company’s internal control over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended September 30, 2012 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Information required for Item 1 is incorporated by reference to the discussion under the heading “Litigation” in Note 17, Commitments and Contingencies, of the Notes to the Unaudited Consolidated Financial Statements.

ITEM 1A. RISK FACTORS

There have been no material changes with respect to the risk factors as previously disclosed in our 2011 Annual Report on Form 10-K filed with the SEC on March 6, 2012.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibit Number	Basic Documents
3.1	Articles of Incorporation (incorporated by reference to Exhibit No. 3.1 to the registrant’s Registration Statement on Form 10-12B filed April 10, 2009)
3.2	Bylaws (incorporated by reference to Exhibit No. 3.2 to the registrant’s Current Report on Form 8-K filed May 2, 2012)
31.1	Certification of the principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of the principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from American National Insurance Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 formatted in eXtensible Business Reporting Language (“XBRL”): (i) Consolidated Statements of Financial Position (unaudited) at September 30, 2012 and December 31, 2011; (ii) Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2012 and 2011; (iii) Consolidated Statements of Comprehensive Income (loss) (unaudited) for the three and nine months ended September 30, 2012 and 2011; (iv) Consolidated Statements of Changes in Stockholders’ Equity (unaudited) for the three and nine months ended September 30, 2012 and 2011; (v) Consolidated Statements of Cash Flows (unaudited) for the three and nine months ended September 30, 2012 and 2011, and (vi) related Notes to the Unaudited Consolidated Financial Statements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

By:	/s/ Robert L. Moody
	Name: Robert L. Moody
	Title: Chairman of the Board & Chief Executive Officer
By:	/s/ John J. Dunn, Jr.
	Name: John J. Dunn, Jr.,
	Title: Corporate Chief Financial Officer

Date: November 5, 2012

58

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Robert L. Moody, certify that:

1. I have reviewed this Quarterly Report of American National Insurance Company on Form 10-Q;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with the generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

/s/ Robert L. Moody

Robert L. Moody,

Chairman and Chief Executive Officer

(Principal Executive Officer)

Date: November 5, 2012

EX-31.2

Exhibit 31.2

CERTIFICATION

I, John J. Dunn, Jr., certify that:

1. I have reviewed this Quarterly Report of American National Insurance Company on Form 10-Q;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with the generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

/s/ John J. Dunn, Jr.

John J. Dunn, Jr.,

Corporate Chief Financial Officer

(Principal Financial Officer)

Date: November 5, 2012

EX-32

Exhibit 32

SECTION 906 CERTIFICATION PURSUANT TO

18.U.S.C. SECTION 1350 OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

AMERICAN NATIONAL INSURANCE COMPANY

In connection with the Quarterly Report of American National Insurance Company (the “Company”) on Form 10-Q for the three months ended September 30, 2012, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), each of the undersigned certifies, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robert L. Moody

Robert L. Moody

Chairman and Chief Executive Officer

(Principal Executive Officer)

/s/ John J. Dunn, Jr.

John J. Dunn, Jr.

Corporate Chief Financial Officer

(Principal Financial Officer)

Date: November 5, 2012

The foregoing certifications are being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, are not being filed as part of the Report for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2012

Summary of results of operations by operating segments

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
			(As Adjusted)				(As Adjusted)
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Life	$	9,212	$	17,050	$	36,025	$	47,345
Annuity		25,384		14,323		72,998		45,972
Health		6,179		5,254		10,989		13,303
Property and casualty		25,021		12,488		13,173		(18,343	)
Corporate and other		23,589		26,102		38,211		85,082
Total	$	89,385	$	75,217	$	171,396	$	173,359

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Mortgage Loans (Age Analysis Of Past Due Commercial Mortgage Loans) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
Allowance for loan losses	$ 12,841	$ 11,321
Mortgage loans on real estate, net of allowance	3,058,663	2,925,482
30-59 Days Past Due	30,469	13,140
60-89 Days Past Due
Greater than 90 Days	493	19,293
Total Past Due	30,962	32,433
Current	3,040,542	2,904,370
Mortgage loans on real estate, gross	3,071,504	2,936,803
Office [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	6,220
60-89 Days Past Due
Greater than 90 Days		8,436
Total Past Due	6,220	8,436
Current	961,586	879,923
Mortgage loans on real estate, gross	967,806	888,359
Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
60-89 Days Past Due
Current	760,480	721,704
Mortgage loans on real estate, gross	760,480	721,704
Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	13,950	13,140
60-89 Days Past Due
Greater than 90 Days	493	10,857
Total Past Due	14,443	23,997
Current	590,795	537,665
Mortgage loans on real estate, gross	605,238	561,662
Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	10,299
60-89 Days Past Due
Total Past Due	10,299
Current	727,681	765,078
Mortgage loans on real estate, gross	$ 737,980	$ 765,078

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Investments In Securities (Bond Portfolio Distributed With Quality Rating) (Detail) (Bonds Available-For-Sale [Member])	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Portfolio of investment by credit quality	100.00%	100.00%
AAA [Member]
Concentration Risk [Line Items]
Portfolio of investment by credit quality	6.20%	8.10%
AA [Member]
Concentration Risk [Line Items]
Portfolio of investment by credit quality	10.80%	10.50%
A [Member]
Concentration Risk [Line Items]
Portfolio of investment by credit quality	38.00%	38.30%
BBB [Member]
Concentration Risk [Line Items]
Portfolio of investment by credit quality	40.60%	38.60%
BB And Below [Member]
Concentration Risk [Line Items]
Portfolio of investment by credit quality	4.40%	4.50%

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Liability For Unpaid Claims And Claim Adjustment Expenses (Liability For Unpaid Claims And Claim Adjustment Expenses) (Detail) (USD $) In Thousands, unless otherwise specified			9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Property And Casualty Accident And Health [Member]	Sep. 30, 2011 Property And Casualty Accident And Health [Member]
Liability For Unpaid Claims And Claims Adjustment Expense Net
Unpaid claims balance, beginning			$ 1,180,259	$ 1,210,126
Less reinsurance recoverables	(388,459)	(405,033)	235,174	222,635
Net beginning balance			945,085	987,491
Incurred related to:
Current			779,602	869,549
Prior years			(46,037)	(59,753)
Total incurred claims			733,565	809,796
Paid claims related to:
Current			454,183	536,834
Prior years			284,025	290,279
Total paid claims			738,208	827,113
Net balance			940,442	970,174
Plus reinsurance recoverables	(388,459)	(405,033)	238,268	253,178
Unpaid claims balance, ending			$ 1,178,710	$ 1,223,352

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Mortgage Loans (Allowance For Credit Losses And Unpaid Balance In Commercial Mortgage Loans) (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for Credit Losses, Beginning Balance	$ 11,321
Write down	(2,277)
Change in allowance	3,797
Allowance for Credit Losses, Ending Balance	12,841
Unpaid principal balance	3,089,177	2,959,675
Allowance for credit losses, Individually Evaluated for Impairment, Beginning Balance	493
Write down, Individually Evaluated for Impairment	(2,277)
Change in allowance, Individually Evaluated for Impairment	2,277
Allowance for credit losses, Individually Evaluated for Impairment, Ending Balance	493
Unpaid principal balance individually evaluated for impairment	72,340	233,745
Allowance for credit losses, Collectively Evaluated for Impairment, Beginning Balance	10,828
Write down
Change in allowance, Collectively Evaluated for Impairment	1,520
Allowance for credit losses, Collectively Evaluated for Impairment, Ending Balance	12,348
Unpaid principal balance, collectively evaluated for impairment	$ 3,016,837	$ 2,725,930

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Stockholders' Equity And Noncontrolling Interests (Narrative) (Detail) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value	$ 1.00		$ 1.00		$ 1.00
Common stock, shares authorized	50,000,000		50,000,000		50,000,000
Maximum limit of shares available for grants under stock-based compensation plan	2,900,000		2,900,000
Maximum limit of shares granted to any one individual in any calendar year			200,000
Description of Regulatory Capital Requirement			American National Insurance Company's payment of dividends to stockholders is restricted by statutory regulations. The restrictions require life insurance companies to maintain minimum amounts of capital and surplus, and in the absence of special approval, limit the payment of dividends to the greater of statutory net gain from operations on an annual, non-cumulative basis, or 10% of statutory surplus. Additionally, insurance companies are not permitted to distribute the excess of stockholders' equity, as determined on a GAAP basis over that determined on a statutory basis
Company's statutory capital	$ 2,137,986,000	$ 2,000,551,000	$ 2,137,986,000	$ 2,000,551,000
Dividends received by the parent company from its insurance subsidiaries			0	0
Net assets of insurance subsidiaries	1,509,980,000		1,509,980,000		1,436,489,000
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation Expense	(175,000)	530,000	7,137,000	1,343,000
Shares outstanding	127,059		127,059		69,566
Shares Exercisable	0		0
Weighted-average contractual remaining life			2 years 1 month 6 days
Weighted Average Exercise Price per share			$ 75.06
Restricted Stock Units [Member] | Cliff Vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Period			2 years
Restricted Stock Units [Member] | Graded Vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Period			3 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant	340,334		340,334
Compensation Expense	(766,000)	678,000	573,000	2,011,000
Number of shares unvested	185,334		185,334
Shares outstanding	185,334		185,334		261,334
Shares Exercisable	0		0
Exercise price of Restricted Shares granted			$ 0
Lapse restrictions on restricted stock awards			10 years
Weighted-average contractual remaining life			4 years 8 months 12 days
Weighted Average Exercise Price per share			$ 109.13
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation Expense	$ 2,000	$ 9,000	$ (1,000)	$ 13,000
Shares outstanding	108,951		108,951		126,769
Shares Exercisable	92,976		92,976
Fair value of stock appreciation rights			$ 9,000		$ 10,000
Vesting rate per year			20.00%
Vesting Period			5 years
Expiration of vesting period			5 years
Weighted-average contractual remaining life			1 year 2 months 12 days
Stock Appreciation Rights [Member] | Outstanding Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price per share			$ 111.31
Stock Appreciation Rights [Member] | Exercisable Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Price per share	$ 111.24		$ 111.24

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Investments In Securities (Change In Net Unrealized Gains (Losses) On Available-For-Sale Securities) (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Net unrealized gains (losses) on securities during the year	$ 220,501	$ (88,809)
Adjustments for:
Deferred policy acquisition costs	(38,358)	(7,240)
Participating policyholders' interest	(8,192)	1,718
Deferred federal income tax benefit (expense)	(60,768)	32,983
Net unrealized gains (losses) on securities, net of tax	113,183	(61,348)
Bonds Available-For-Sale [Member]
Schedule of Available-for-sale Securities [Line Items]
Net unrealized gains (losses) on securities during the year	109,003	51,205
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Net unrealized gains (losses) on securities during the year	$ 111,498	$ (140,014)

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2012

Carrying Amount and Estimated Fair Value of Financial Instruments

The carrying amount and estimated fair value of financial instruments are shown below (in thousands):

	September 30, 2012				December 31, 2011
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,503	$	8,595	$	13,704	$	13,897
States of the U.S. and political subdivisions of the states		401,608		443,181		405,526		437,792
Foreign governments		29,064		33,935		29,044		34,022
Corporate debt securities		8,105,733		8,881,773		8,011,901		8,550,744
Residential mortgage-backed securities		602,449		649,445		714,659		761,447
Commercial mortgage-backed securities		—		—		31,341		11,183
Collateralized debt securities		2,504		2,846		7,134		6,116
Other debt securities		38,020		41,442		38,663		42,490
Total bonds held-to-maturity		9,187,881		10,061,217		9,251,972		9,857,691
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		17,507		17,507		13,086		13,086
States of the U.S. and political subdivisions of the states		625,914		625,914		618,848		618,848
Foreign governments		7,409		7,409		7,435		7,435
Corporate debt securities		3,856,760		3,856,760		3,505,146		3,505,146
Residential mortgage-backed securities		118,386		118,386		202,721		202,721
Commercial mortgage-backed securities		11,341		11,341		—		—
Collateralized debt securities		19,723		19,723		19,077		19,077
Other debt securities		11,537		11,537		15,294		15,294
Total bonds available-for-sale		4,668,577		4,668,577		4,381,607		4,381,607
Equity securities
Common stock		1,059,162		1,059,162		968,907		968,907
Preferred stock		35,225		35,225		37,173		37,173
Total equity securities		1,094,387		1,094,387		1,006,080		1,006,080
Options		88,476		88,476		65,188		65,188
Mortgage loans on real estate, net of allowance		3,058,663		3,297,046		2,925,482		3,178,205
Policy loans		393,774		393,774		393,195		393,195
Short-term investments		321,512		321,512		345,330		345,330
Separate account assets		817,057		817,057		747,867		747,867
Total financial assets	$	19,630,327	$	20,742,046	$	19,116,721	$	19,975,163
Financial liabilities
Investment contracts	$	10,066,103	$	10,066,103	$	9,993,804	$	9,993,804
Embedded derivative liability for equity-indexed annuities		80,324		80,324		63,275		63,275
Notes payable		161,247		161,247		58,894		58,894
Separate account liabilities		817,057		817,057		747,867		747,867
Total financial liabilities	$	11,124,731	$	11,124,731	$	10,863,840	$	10,863,840

Quantitative Disclosures Regarding Fair Value Hierarchy Measurements

The quantitative disclosures regarding fair value hierarchy measurements of the financial instruments are shown below (in thousands):

	Fair Value Measurement as of September 30, 2012 Using:
	Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,595	$	—	$	8,595	$	—
States of the U.S. and political subdivisions of the states		443,181		—		443,181		—
Foreign governments		33,935		—		33,935		—
Corporate debt securities		8,881,773		—		8,811,273		70,500
Residential mortgage-backed securities		649,445		—		649,443		2
Collateralized debt securities		2,846		—		1		2,845
Other debt securities		41,442		—		34,961		6,481
Total bonds held-to-maturity		10,061,217		—		9,981,389		79,828
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		17,507		—		17,507		—
States of the U.S. and political subdivisions of the states		625,914		—		623,389		2,525
Foreign governments		7,409		—		7,409		—
Corporate debt securities		3,856,760		—		3,811,608		45,152
Residential mortgage-backed securities		118,386		—		118,382		4
Commercial mortgage-backed securities		11,341		—		—		11,341
Collateralized debt securities		19,723		—		17,788		1,935
Other debt securities		11,537		—		11,537		—
Total bonds available-for-sale		4,668,577		—		4,607,620		60,957
Equity securities
Common stock		1,059,162		1,059,162		—		—
Preferred stock		35,225		35,197		—		28
Total equity securities		1,094,387		1,094,359		—		28
Options		88,476		—		—		88,476
Mortgage loans on real estate		3,297,046		—		3,297,046		—
Policy loans		393,774		—		—		393,774
Short-term investments		321,512		—		321,512		—
Separate account assets		817,057		—		817,057		—
Total financial assets	$	20,742,046	$	1,094,359	$	19,024,624	$	623,063
Financial liabilities
Investment contracts	$	10,066,103	$	—	$	—	$	10,066,103
Embedded derivative liability for equity-indexed annuities		80,324		—		—		80,324
Notes payable		161,247		—		—		161,247
Separate account liabilities		817,057		—		817,057		—
Total financial liabilities	$	11,124,731	$	—	$	817,057	$	10,307,674

	Fair Value Measurement as of December 31, 2011 Using:
	Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	13,897	$	—	$	13,897	$	—
States of the U.S. and political subdivisions of the states		437,792		—		437,792		—
Foreign governments		34,022		—		34,022		—
Corporate debt securities		8,550,744		—		8,492,957		57,787
Residential mortgage-backed securities		761,447		—		759,773		1,674
Commercial mortgage-backed securities		11,183		—		—		11,183
Collateralized debt securities		6,116		—		—		6,116
Other debt securities		42,490		—		35,147		7,343
Total bonds held-to-maturity		9,857,691		—		9,773,588		84,103
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		13,086		—		13,086		—
States of the U.S. and political subdivisions of the states		618,848		—		616,323		2,525
Foreign governments		7,435		—		7,435		—
Corporate debt securities		3,505,146		—		3,492,113		13,033
Residential mortgage-backed securities		202,721		—		202,715		6
Collateralized debt securities		19,077		—		18,826		251
Other debt securities		15,294		—		15,294		—
Total bonds available-for-sale		4,381,607		—		4,365,792		15,815
Equity securities
Common stock		968,907		968,907		—		—
Preferred stock		37,173		37,173		—		—
Total equity securities		1,006,080		1,006,080		—		—
Options		65,188		—		—		65,188
Mortgage loans on real estate		3,178,205		—		3,178,205		—
Policy loans		393,195		—		—		393,195
Short-term investments		345,330		—		345,330		—
Separate account assets		747,867		—		747,867		—
Total financial assets	$	19,975,163	$	1,006,080	$	18,410,782	$	558,301
Financial liabilities
Investment contracts	$	9,993,804	$	—	$	—	$	9,993,804
Embedded derivative liability for equity-indexed annuities		63,275		—		—		63,275
Notes payable		58,894		—		—		58,894
Separate account liabilities		747,867		—		747,867		—
Total financial liabilities	$	10,863,840	$	—	$	747,867	$	10,115,973

Financial Instruments Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

For financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period, a reconciliation of the beginning and ending balances is shown below at estimated fair value (in thousands):

	Three months ended September 30,												Nine months ended September 30,
				Equity-			Embedded									Equity-			Embedded
	Investment			Indexed			Derivative						Investment			Indexed			Derivative
	Securities			Options			Liability			Total			Securities			Options			Liability			Total
Beginning balance, 2011	$	76,886		$	71,525		$	(65,025	)	$	83,386		$	90,477		$	66,716		$	(59,644	)	$	97,549
Total realized and unrealized investment gains/losses
Included in other comprehensive income		1,606			—			—			1,606			1,348			—			—			1,348
Net fair value change included in realized gains/losses		—			—			—			—			168			—			—			168
Net gain (loss) for derivatives included in net investment income		—			(23,449	)		—			(23,449	)		—			(18,152	)		—			(18,152	)
Net change included in interest credited		—			—			25,193			25,193			—			—			21,585			21,585
Purchases, sales and settlements or maturities
Purchases		1			5,350			—			5,351			13			14,226			—			14,239
Sales		(257	)		—			—			(257	)		(10,438	)		—			—			(10,438	)
Settlements or maturities		(123	)		(3,719	)		—			(3,842	)		(3,455	)		(13,083	)		—			(16,538	)
Premiums less benefits		—			—			(3,066	)		(3,066	)		—			—			(4,839	)		(4,839	)
Gross transfers into Level 3		—			—			—			—			—			—			—			—
Ending balance, 2011	$	78,113		$	49,707		$	(42,898	)	$	84,922		$	78,113		$	49,707		$	(42,898	)	$	84,922
Beginning balance, 2012	$	141,026		$	77,136		$	(72,194	)	$	145,968		$	99,918		$	65,188		$	(63,275	)	$	101,831
Total realized and unrealized investment gains/losses
Included in other comprehensive income		11,811			—			—			11,811			13,909			—			—			13,909
Net fair value change included in realized gains/losses		(11,431	)		—			—			(11,431	)		(11,449	)		—			—			(11,449	)
Net gain (loss) for derivatives included in net investment income		—			9,708			—			9,708			—			17,878			—			17,878
Net change included in interest credited		—			—			(7,711	)		(7,711	)		—			—			(16,779	)		(16,779	)
Purchases, sales and settlements or maturities
Purchases		(19	)		2,991			—			2,972			504			11,472			—			11,976
Sales		(192	)		(6,062	)		—			(6,254	)		(3,073	)		(6,062	)		—			(9,135	)
Settlements or maturities		(382	)		4,703			—			4,321			(725	)		—			—			(725	)
Premiums less benefits		—			—			(419	)		(419	)		—			—			(270	)		(270	)
Gross transfers into Level 3		—			—			—			—			41,729			—			—			41,729
Ending balance, 2012	$	140,813		$	88,476		$	(80,324	)	$	148,965		$	140,813		$	88,476		$	(80,324	)	$	148,965

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Stockholders' Equity And Noncontrolling Interests (Common Stock, Amounts Outstanding) (Detail)	Sep. 30, 2012	Dec. 31, 2011
Authorized Classes Of Cumulative Preferred And Preference Stocks [Line Items]
Shares issued	30,832,449	30,832,449
Treasury shares	(3,995,785)	(4,011,165)
Outstanding shares	26,836,664	26,821,284
Restricted shares	(185,334)	(261,334)
Unrestricted outstanding shares	26,651,330	26,559,950

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Federal Income Taxes (Effective Income Tax Reconciliation) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Income Tax Reconciliation [Line Items]
Income tax expense on pre-tax income	$ 31,285	$ 26,326	$ 59,989	$ 60,676
Tax-exempt investment income	(1,827)	(1,968)	(5,569)	(6,035)
Dividend exclusion	(1,501)	(1,342)	(4,453)	(4,046)
Miscellaneous tax credits, net	(2,206)	(1,515)	(6,669)	(5,644)
Other items, net	1,903	(2,404)	(1,045)	(5,077)
Total provision (benefit) for federal income taxes	$ 27,654	$ 19,097	$ 42,253	$ 39,874
Income tax expense on pre-tax income	35.00%	35.00%	35.00%	35.00%
Tax-exempt investment income	(2.00%)	(2.60%)	(3.20%)	(3.50%)
Dividend exclusion	(1.70%)	(1.80%)	(2.60%)	(2.30%)
Miscellaneous tax credits, net	(2.50%)	(2.00%)	(3.90%)	(3.30%)
Other items, net	2.10%	(3.20%)	(0.60%)	(2.90%)
Total	30.90%	25.40%	24.70%	23.00%

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Investment Real Estate (Investment Real Estate By Property Type) (Detail) (Real Estate Investment [Member])	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Investment Real Estate	100.00%	100.00%
Shopping centers [Member]
Concentration Risk [Line Items]
Investment Real Estate	40.90%	41.10%
Office building [Member]
Concentration Risk [Line Items]
Investment Real Estate	22.00%	22.00%
Industrial [Member]
Concentration Risk [Line Items]
Investment Real Estate	18.20%	16.30%
Hotel and motel [Member]
Concentration Risk [Line Items]
Investment Real Estate	1.90%	2.10%
Other [Member]
Concentration Risk [Line Items]
Investment Real Estate	17.00%	18.50%

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Changes In Accumulated Other Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Accumulated Other Comprehensive Income Loss [Line Items]
Net Unrealized Gains/(Losses) on Securities, Beginning Balance			$ 274,837	$ 290,489
Unrealized holding gains (losses) arising during the period, Net Unrealized Gains/(Losses) on Securities	149,198	(39,924)	149,198	(39,924)
Reclassification adjustment for (gains) losses realized in net income/loss, Net Unrealized Gains/(Losses) on Securities			(5,757)	(17,893)
Unrealized adjustment to deferred policy acquisition costs, Net Unrealized Gains/(Losses) on Securities			(24,933)	(4,648)
Unrealized (gains) losses on investments attributable to participating policyholders' interest, Net Unrealized Gains/(Losses) on Securities			(5,325)	1,117
Cumulative effect of accounting change - deferred policy acquisition costs, Net Unrealized Gains/(Losses) on Securities				604
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost, Net Unrealized Gains/(Losses) on Securities
Foreign exchange adjustment, Net Unrealized Gains/(Losses) on Securities
Net Unrealized Gains/(Losses) on Securities, Ending Balance	388,020	229,745	388,020	229,745
Defined Benefit Pension Plan Adjustments, Beginning Balance			(115,485)	(65,533)
Unrealized holding gains (losses) arising during the period, Defined Benefit Pension Plan Adjustments
Reclassification adjustment for (gains) losses realized in net income/loss, Defined Benefit Pension Plan Adjustments
Unrealized adjustment to deferred policy acquisition costs, Defined Benefit Pension Plan Adjustments
Unrealized (gains) losses on investments attributable to participating policyholders' interest, Defined Benefit Pension Plan Adjustments
Cumulative effect of accounting change - deferred policy acquisition costs, Defined Benefit Pension Plan Adjustments
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost, Defined Benefit Pension Plan Adjustments			7,144	(308)
Foreign exchange adjustment, Defined Benefit Pension Plan Adjustments
Defined Benefit Pension Plan Adjustments, Ending Balance	(108,341)	(65,841)	(108,341)	(65,841)
Foreign Currency Transaction and Translation Adjustments, Beginning Balance			51	256
Unrealized holding gains (losses) arising during the period, Foreign Currency Transaction and Translation Adjustments
Reclassification adjustment for (gains) losses realized in net income/loss, Foreign Currency Transaction and Translation Adjustments
Unrealized adjustment to deferred policy acquisition costs, Foreign Currency Transaction and Translation Adjustments
Unrealized (gains) losses on investments attributable to participating policyholders' interest, Foreign Currency Transaction and Translation Adjustments
Cumulative effect of accounting change - deferred policy acquisition costs, Foreign Currency Transaction and Translation Adjustments
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost, Foreign Currency Transaction and Translation Adjustments
Foreign exchange adjustment, Foreign Currency Transaction and Translation Adjustments			30	(277)
Foreign Currency Transaction and Translation Adjustments, Ending Balance	81	(21)	81	(21)
Accumulated Other Comprehensive Income, Beginning Balance			159,403	225,212
Unrealized holding gains (losses) arising during the period			149,198	(39,924)
Reclassification adjustment for (gains) losses realized in net income/loss			(5,757)	(17,893)
Unrealized adjustment to deferred policy acquisition costs			(24,933)	(4,648)
Unrealized (gains) losses on investments attributable to participating policyholders' interest			(5,325)	1,117
Cumulative effect of accounting change - deferred policy acquisition costs				604
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost			7,144	(308)
Foreign exchange adjustment	(300)	(470)	30	(277)
Accumulated Other Comprehensive Income, Ending Balance	$ 279,760	$ 163,883	$ 279,760	$ 163,883

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Related Party Transactions (Related Party Transactions) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Related Party Transaction [Line Items]
Amount due to/from) American National	$ 9,164,000
Mortgage Loans On Real Estate [Member] | Gal Tex Hotel Corporation [Member]
Related Party Transaction [Line Items]
Dollar Amount of Transactions	794,000	738,000
Amount due to/from) American National	9,164,000		9,957,000
Net Investment Income [Member] | Gal Tex Hotel Corporation [Member]
Related Party Transaction [Line Items]
Dollar Amount of Transactions	522,000	578,000
Amount due to/from) American National	55,000		60,000
Other Operating Costs And Expenses [Member] | Greer, Herz And Adams, LLP [Member]
Related Party Transaction [Line Items]
Dollar Amount of Transactions	5,689,000	5,830,000
Amount due to/from) American National	$ (307,000)		$ (198,000)

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Stockholders' Equity And Noncontrolling Interests (Summary Of Basic And Diluted Earnings Per Share) (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average shares outstanding	26,736,464	26,559,950	26,699,211	26,559,865
Incremental shares from restricted stock	134,191	158,514	159,889	146,933
Total shares for diluted calculations	26,870,655	26,718,464	26,859,100	26,706,798
Net income (loss) attributable to American National Insurance Company and Subsidiaries	$ 59,186	$ 57,650	$ 124,908	$ 134,418
Basic earnings (loss) per share	$ 2.21	$ 2.17	$ 4.68	$ 5.06
Diluted earnings (loss) per share	$ 2.20	$ 2.16	$ 4.65	$ 5.03

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Related Party Transactions (Narrative) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012
Related Party Transaction [Line Items]
Interest rate on mortgage loans	7.30%
Related party transactions, balance of loan amount	$ 9,164,000
Due date of mortgage loans receivable	Apr. 01, 2019
Moody Foundation [Member]
Related Party Transaction [Line Items]
Percentage ownership of parent owned by related party	22.90%
Moody Foundation [Member] | Gal Tex Hotel Corporation [Member]
Related Party Transaction [Line Items]
Percentage ownership owned by related party	34.00%
Libbie Shearn Moody Trust [Member]
Related Party Transaction [Line Items]
Percentage ownership of parent owned by related party	37.10%
Libbie Shearn Moody Trust [Member] | Gal Tex Hotel Corporation [Member]
Related Party Transaction [Line Items]
Percentage ownership owned by related party	50.20%

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Changes In Accumulated Other Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Accumulated Other Comprehensive Income Loss [Line Items]
Unrealized holding gains (losses) arising during the period, tax	$ 80,337	$ 21,498
Reclassification adjustment for (gains) losses realized in net income/loss, tax	3,277	9,494
Unrealized adjustment to deferred policy acquisition costs, tax	13,425	2,592
Unrealized (gains) losses on investments attributable to participating policyholders' interest, tax	2,867	601
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost, tax	3,847	166
Foreign exchange adjustment, tax	16	149
Cumulative effect of accounting change - deferred policy acquisition costs, tax	$ 0	$ 325

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Liability for Unpaid Claims and Claim Adjustment Expenses (Narrative) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Description of increase (decrease) in claims and claim adjustments expenses	The net and gross reserve calculations have shown favorable development for the last several years as a result of favorable loss emergence compared to what was implied by the loss development patterns used in the original estimation	The net and gross reserve calculations have shown favorable development for the last several years as a result of favorable loss emergence compared to what was implied by the loss development patterns used in the original estimation
Increase (decrease) in claims and claim adjustments expenses amount	$ 46,037,000	$ 59,753,000

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2012

COMMITMENTS AND CONTINGENCIES

17. COMMITMENTS AND CONTINGENCIES

Commitments

In the ordinary course of operations, American National had commitments outstanding at September 30, 2012, to purchase, expand or improve real estate, to fund mortgage loans, and to purchase other invested assets aggregating to $322,317,000, of which $255,497,000 is expected to be funded in 2012. The remaining balance of $66,820,000 will be funded in 2013 and beyond. As of September 30, 2012, all of the mortgage loan commitments have fixed interest rates.

In September 2012, American National renewed an existing $100,000,000 short-term variable rate borrowing facility containing a $55,000,000 sub-feature for the issuance of letters of credit. Borrowings under the facility are at the discretion of the lender and would be used only for funding American National’s working capital requirements. The combination of borrowings and outstanding letters of credit cannot exceed $100,000,000 at any time. As of September 30, 2012 and December 31, 2011, the outstanding letters of credit were $33,695,000 and $31,716,000, respectively, and there were no borrowings on this facility to meet liquidity requirements. This facility expires on September 30, 2013. American National expects it will be renewed on substantially equivalent terms upon expiration.

Guarantees

In the normal course of business, American National has guaranteed bank loans for customers of a third-party marketing operation. The bank loans are used to fund premium payments on life insurance policies issued by American National. The loans are secured by the cash values of the life insurance policies. If the customer were to default on the bank loan, American National would be obligated to pay off the loans. As the cash values of the life insurance policies always equals or exceeds the balance of the loans, management does not foresee any loss on these guarantees. The total amount of the guarantees outstanding as of September 30, 2012, was approximately $206,513,000, while the total cash values of the related life insurance policies was approximately $208,762,000.

Litigation

American National and certain subsidiaries are defendants in various lawsuits concerning alleged failure to honor certain loan commitments, alleged breach of certain agency and real estate contracts, various employment matters, allegedly deceptive insurance sales and marketing practices, and other litigation arising in the ordinary course of operations. Certain of these lawsuits include claims for compensatory and punitive damages. We provide accruals for these items to the extent we deem the losses probable and reasonably estimable. After reviewing these matters with legal counsel, management is of the opinion that the ultimate resultant liability, if any, would not have a material adverse effect on American National’s consolidated financial position or results of operations. However, these lawsuits are in various stages of development, and future facts and circumstances could result in management’s changing its conclusions.

In addition, it should be noted that the frequency of large damage awards, which bear little or no relation to the economic damages incurred by plaintiffs in some jurisdictions, continue to create the potential for an unpredictable judgment in any given lawsuit. It is possible that, if the defenses in these lawsuits are not successful, and the judgments are greater than management can anticipate, the resulting liability could have a material impact on the consolidated financial results.

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Mortgage Loans (Mortgage Loans By Property Type) (Detail) (Mortgage Loans On Real Estate [Member])	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Mortgage Loans	100.00%	100.00%
Office building [Member]
Concentration Risk [Line Items]
Mortgage Loans	31.50%	30.20%
Industrial [Member]
Concentration Risk [Line Items]
Mortgage Loans	24.80%	24.60%
Shopping centers [Member]
Concentration Risk [Line Items]
Mortgage Loans	19.70%	19.10%
Hotel and motel [Member]
Concentration Risk [Line Items]
Mortgage Loans	14.40%	13.40%
Other [Member]
Concentration Risk [Line Items]
Mortgage Loans	9.60%	12.70%

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Investments In Securities (Investments In Securities) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost	$ 9,187,881	$ 9,251,972
Held-to-maturity securities, Gross Unrealized Gains	879,258	656,203
Held-to-maturity Securities, Gross Unrealized (Losses)	(5,922)	(50,484)
Held-to-maturity, Estimated Fair value	10,061,217	9,857,691
Equity securities, Estimated Fair Value	1,094,387	1,006,080
Available-for-sale Securities, Cost or Amortized Cost	4,313,577	4,135,610
Available-for-sale Securities, Estimated Fair value	4,668,577	4,381,607
Equity securities, Cost or Amortized Cost	687,488	710,679
Investments in securities, Cost or Amortized cost	14,188,946	14,098,261
Investments in securities, Gross Unrealized Gains	1,675,190	1,248,442
Investments in securities, Gross Unrealized Loss	(39,955)	(101,325)
Investments in securities, Estimated fair value	15,824,181	15,245,378
Equity securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Gross Unrealized Gains	414,359	312,957
Available-for-sale Securities, Gross Unrealized (Losses)	(7,460)	(17,556)
Common Stock [Member]
Marketable Securities [Line Items]
Equity securities, Cost or amortized cost	660,798	679,724
Available-for-sale Securities, Gross Unrealized Gains	405,750	305,269
Available-for-sale Securities, Gross Unrealized (Losses)	(7,386)	(16,086)
Equity securities, Estimated Fair Value	1,059,162	968,907
Preferred stock [Member]
Marketable Securities [Line Items]
Equity securities, Cost or amortized cost	26,690	30,955
Available-for-sale Securities, Gross Unrealized Gains	8,609	7,688
Available-for-sale Securities, Gross Unrealized (Losses)	(74)	(1,470)
Equity securities, Estimated Fair Value	35,225	37,173
U.S. Treasury And Other U.S. Government Corporations And Agencies [Member]
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost	8,503	13,704
Held-to-maturity securities, Gross Unrealized Gains	92	193
Held-to-maturity, Estimated Fair value	8,595	13,897
Available-for-sale Securities, Cost or Amortized Cost	16,293	11,930
Available-for-sale Securities, Gross Unrealized Gains	1,214	1,156
Available-for-sale Securities, Estimated Fair value	17,507	13,086
States of the U.S. and political subdivisions of the states [Member]
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost	401,608	405,526
Held-to-maturity securities, Gross Unrealized Gains	41,574	32,272
Held-to-maturity Securities, Gross Unrealized (Losses)	(1)	(6)
Held-to-maturity, Estimated Fair value	443,181	437,792
Available-for-sale Securities, Cost or Amortized Cost	578,800	579,008
Available-for-sale Securities, Gross Unrealized Gains	47,140	39,930
Available-for-sale Securities, Gross Unrealized (Losses)	(26)	(90)
Available-for-sale Securities, Estimated Fair value	625,914	618,848
Foreign governments [Member]
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost	29,064	29,044
Held-to-maturity securities, Gross Unrealized Gains	4,871	4,978
Held-to-maturity, Estimated Fair value	33,935	34,022
Available-for-sale Securities, Cost or Amortized Cost	5,000	5,000
Available-for-sale Securities, Gross Unrealized Gains	2,409	2,435
Available-for-sale Securities, Estimated Fair value	7,409	7,435
Corporate debt securities [Member]
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost	8,105,733	8,011,901
Held-to-maturity securities, Gross Unrealized Gains	780,685	564,159
Held-to-maturity Securities, Gross Unrealized (Losses)	(4,645)	(25,316)
Held-to-maturity, Estimated Fair value	8,881,773	8,550,744
Available-for-sale Securities, Cost or Amortized Cost	3,551,547	3,316,083
Available-for-sale Securities, Gross Unrealized Gains	321,373	221,079
Available-for-sale Securities, Gross Unrealized (Losses)	(16,160)	(32,016)
Available-for-sale Securities, Estimated Fair value	3,856,760	3,505,146
Residential mortgage-backed securities [Member]
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost	602,449	714,659
Held-to-maturity securities, Gross Unrealized Gains	48,272	50,774
Held-to-maturity Securities, Gross Unrealized (Losses)	(1,276)	(3,986)
Held-to-maturity, Estimated Fair value	649,445	761,447
Available-for-sale Securities, Cost or Amortized Cost	112,773	191,832
Available-for-sale Securities, Gross Unrealized Gains	6,001	11,898
Available-for-sale Securities, Gross Unrealized (Losses)	(388)	(1,009)
Available-for-sale Securities, Estimated Fair value	118,386	202,721
Commercial mortgage-backed securities [Member]
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost		31,341
Held-to-maturity Securities, Gross Unrealized (Losses)		(20,158)
Held-to-maturity, Estimated Fair value		11,183
Available-for-sale Securities, Cost or Amortized Cost	20,934
Available-for-sale Securities, Gross Unrealized Gains	376
Available-for-sale Securities, Gross Unrealized (Losses)	(9,969)
Available-for-sale Securities, Estimated Fair value	11,341
Collateralized debt securities [Member]
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost	2,504	7,134
Held-to-maturity securities, Gross Unrealized Gains	342
Held-to-maturity Securities, Gross Unrealized (Losses)		(1,018)
Held-to-maturity, Estimated Fair value	2,846	6,116
Available-for-sale Securities, Cost or Amortized Cost	18,158	17,636
Available-for-sale Securities, Gross Unrealized Gains	1,595	1,611
Available-for-sale Securities, Gross Unrealized (Losses)	(30)	(170)
Available-for-sale Securities, Estimated Fair value	19,723	19,077
Other debt securities [Member]
Marketable Securities [Line Items]
Held-to-maturity Securities, Cost or Amortized Cost	38,020	38,663
Held-to-maturity securities, Gross Unrealized Gains	3,422	3,827
Held-to-maturity, Estimated Fair value	41,442	42,490
Available-for-sale Securities, Cost or Amortized Cost	10,072	14,121
Available-for-sale Securities, Gross Unrealized Gains	1,465	1,173
Available-for-sale Securities, Estimated Fair value	11,537	15,294
Bonds Available-For-Sale [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Cost or Amortized Cost	4,313,577	4,135,610
Available-for-sale Securities, Gross Unrealized Gains	381,573	279,282
Available-for-sale Securities, Gross Unrealized (Losses)	(26,573)	(33,285)
Available-for-sale Securities, Estimated Fair value	$ 4,668,577	$ 4,381,607

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Federal Income Taxes (Narrative) (Detail) (USD $)	9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Schedule Of Income Taxes [Line Items]
Valuation allowance	$ 0		$ 0
Ordinary loss tax carryforwards	27,870,000		32,220,000
Operating loss carryforwards expiration dates	Ordinary loss tax carryforwards will expire at the end of tax year 2032.
Interest or penalties recognized	0		0
Income taxes paid or refunded, net	$ 20,293,000	$ 34,441,000

XML

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2012

Components of Other Comprehensive Income (Loss)

The changes in the accumulated balances of each component of other comprehensive income (loss), and the related tax effects thereon, are shown below (in thousands):

	Net Unrealized Gains/(Losses) on Securities			Defined Benefit Pension Plan Adjustments			Foreign Currency Transaction and Translation Adjustments			Accumulated Other Comprehensive Income
Balance at December 31, 2010	$	290,489		$	(65,533	)	$	256		$	225,212
Unrealized holding gains (losses) arising during the period (net of tax $21,498)		(39,924	)								(39,924	)
Reclassification adjustment for (gains) losses realized in net income/loss (net of tax $9,494)		(17,893	)								(17,893	)
Unrealized adjustment to deferred policy acquisition costs (net of tax $2,592)		(4,648	)								(4,648	)
Unrealized (gains) losses on investments attributable to participating policyholders’ interest (net of tax $601)		1,117									1,117
Cumulative effect of accounting change - deferred policy acquisition costs (net of tax $325)		604									604
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost (net of tax $166)					(308	)					(308	)
Foreign exchange adjustment (net of tax $149)								(277	)		(277	)
Balance at September 30, 2011	$	229,745		$	(65,841	)	$	(21	)	$	163,883
Balance at December 31, 2011	$	274,837		$	(115,485	)	$	51		$	159,403
Unrealized holding gains (losses) arising during the period (net of tax $80,337)		149,198									149,198
Reclassification adjustment for (gains) losses realized in net income/loss (net of tax $3,277)		(5,757	)								(5,757	)
Unrealized adjustment to deferred policy acquisition costs (net of tax $13,425)		(24,933	)								(24,933	)
Unrealized (gains) losses on investments attributable to participating policyholders’ interest (net of tax $2,867)		(5,325	)								(5,325	)
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost (net of tax $3,847)					7,144						7,144
Foreign exchange adjustment (net of tax $16)								30			30
Balance at September 30, 2012	$	388,020		$	(108,341	)	$	81		$	279,760

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Mortgage Loans (Narrative) (Detail) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2012 SecurityLoan MortgageLoan	Dec. 31, 2011 MortgageLoan SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans foreclosed	$ 34,562,000
Number of mortgage loan foreclosed	4	0
Unamortized discounts	4,872,000	10,189,000
Unamortized origination fees	12,801,000	12,683,000
Number of troubled debt restructurings	6	3
Pre-modification outstanding recorded investment	80,081,000	45,366,000
Post-modification outstanding recorded investment	80,081,000	45,366,000
Commercial loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of mortgage loans sold	1
Industrial loan sold with recorded investment	19,665,000
Realized gain on sale of industrial loan	2,607,000
Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of mortgage loans sold		1
Industrial loan sold with recorded investment		27,532,000
Realized gain on sale of industrial loan		$ 4,968,000

XML

Fair Value Of Financial Instruments (Quantitative Disclosures Regarding Fair Value Hierarchy Measurements) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments, fair value disclosure	$ 321,512	$ 345,330
Separate account assets, fair value disclosure	817,057	747,867
Separate account liabilities, fair value disclosure	817,057	747,867
Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	10,061,217	9,857,691
Option fair value disclosure	88,476	65,188
Short-term investments, fair value disclosure	321,512	345,330
Separate account assets, fair value disclosure	817,057	747,867
Total financial assets, fair value disclosure	20,742,046	19,975,163
Liabilities related to investment contracts, fair value disclosure	10,066,103	9,993,804
Embedded derivative liability for equity-indexed annuity, fair value disclosure	80,324	63,275
Notes payable, fair value disclosure	161,247	58,894
Separate account liabilities, fair value disclosure	817,057	747,867
Total financial liabilities, fair value disclosure	11,124,731	10,863,840
Estimate Fair Value [Member] | Mortgage Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable fair value disclosure	3,297,046	3,178,205
Estimate Fair Value [Member] | Policy Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable fair value disclosure	393,774	393,195
U.S. Treasury And Other U.S. Government Corporations And Agencies [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	8,595	13,897
Available-for-sale securities fair value disclosure	17,507	13,086
States of the U.S. and political subdivisions of the states [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	443,181	437,792
Available-for-sale securities fair value disclosure	625,914	618,848
Foreign governments [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	33,935	34,022
Available-for-sale securities fair value disclosure	7,409	7,435
Corporate debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	8,881,773	8,550,744
Available-for-sale securities fair value disclosure	3,856,760	3,505,146
Residential mortgage-backed securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	649,445	761,447
Available-for-sale securities fair value disclosure	118,386	202,721
Collateralized debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	2,846	6,116
Available-for-sale securities fair value disclosure	19,723	19,077
Other debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	41,442	42,490
Available-for-sale securities fair value disclosure	11,537	15,294
Commercial mortgage-backed securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure		11,183
Available-for-sale securities fair value disclosure	11,341
Bonds Available-For-Sale [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	4,668,577	4,381,607
Common Stock [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	1,059,162	968,907
Preferred stock [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	35,225	37,173
Equity securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	1,094,387	1,006,080
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets, fair value disclosure	1,094,359	1,006,080
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Stock [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	1,059,162	968,907
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Preferred stock [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	35,197	37,173
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	1,094,359	1,006,080
Significant Other Observable Inputs (Level 2) [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	9,981,389	9,773,588
Short-term investments, fair value disclosure	321,512	345,330
Separate account assets, fair value disclosure	817,057	747,867
Total financial assets, fair value disclosure	19,024,624	18,410,782
Separate account liabilities, fair value disclosure	817,057	747,867
Total financial liabilities, fair value disclosure	817,057	747,867
Significant Other Observable Inputs (Level 2) [Member] | Estimate Fair Value [Member] | Mortgage Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable fair value disclosure	3,297,046	3,178,205
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury And Other U.S. Government Corporations And Agencies [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	8,595	13,897
Available-for-sale securities fair value disclosure	17,507	13,086
Significant Other Observable Inputs (Level 2) [Member] | States of the U.S. and political subdivisions of the states [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	443,181	437,792
Available-for-sale securities fair value disclosure	623,389	616,323
Significant Other Observable Inputs (Level 2) [Member] | Foreign governments [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	33,935	34,022
Available-for-sale securities fair value disclosure	7,409	7,435
Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	8,811,273	8,492,957
Available-for-sale securities fair value disclosure	3,811,608	3,492,113
Significant Other Observable Inputs (Level 2) [Member] | Residential mortgage-backed securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	649,443	759,773
Available-for-sale securities fair value disclosure	118,382	202,715
Significant Other Observable Inputs (Level 2) [Member] | Collateralized debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	1
Available-for-sale securities fair value disclosure	17,788	18,826
Significant Other Observable Inputs (Level 2) [Member] | Other debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	34,961	35,147
Available-for-sale securities fair value disclosure	11,537	15,294
Significant Other Observable Inputs (Level 2) [Member] | Bonds Available-For-Sale [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	4,607,620	4,365,792
Significant Unobservable Inputs (Level 3) [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	79,828	84,103
Option fair value disclosure	88,476	65,188
Total financial assets, fair value disclosure	623,063	558,301
Liabilities related to investment contracts, fair value disclosure	10,066,103	9,993,804
Embedded derivative liability for equity-indexed annuity, fair value disclosure	80,324	63,275
Notes payable, fair value disclosure	161,247	58,894
Total financial liabilities, fair value disclosure	10,307,674	10,115,973
Significant Unobservable Inputs (Level 3) [Member] | Estimate Fair Value [Member] | Policy Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable fair value disclosure	393,774	393,195
Significant Unobservable Inputs (Level 3) [Member] | States of the U.S. and political subdivisions of the states [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	2,525	2,525
Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	70,500	57,787
Available-for-sale securities fair value disclosure	45,152	13,033
Significant Unobservable Inputs (Level 3) [Member] | Residential mortgage-backed securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	2	1,674
Available-for-sale securities fair value disclosure	4	6
Significant Unobservable Inputs (Level 3) [Member] | Collateralized debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	2,845	6,116
Available-for-sale securities fair value disclosure	1,935	251
Significant Unobservable Inputs (Level 3) [Member] | Other debt securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure	6,481	7,343
Significant Unobservable Inputs (Level 3) [Member] | Commercial mortgage-backed securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities fair value disclosure		11,183
Available-for-sale securities fair value disclosure	11,341
Significant Unobservable Inputs (Level 3) [Member] | Bonds Available-For-Sale [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	60,957	15,815
Significant Unobservable Inputs (Level 3) [Member] | Preferred stock [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	28
Significant Unobservable Inputs (Level 3) [Member] | Equity securities [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities fair value disclosure	$ 28

XML

Derivative Instruments (Schedule Of Estimated Fair Value And Gain And Losses On Derivative Instrument Reported In Financial Position) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012 Derivative	Dec. 31, 2011 Derivative
Future Policy Benefits - Annuity [Member] | Equity Indexed Annuity Embedded Derivative [Member]
Derivatives, Fair Value [Line Items]
Number of Instruments	19,760	16,727
Derivative Notional Amount, Liability	$ 702,000	$ 661,300
Derivative Financial Instruments, Estimated fair value	(80,324)	(63,275)
Other Invested Assets [Member] | Equity-Indexed Options [Member]
Derivatives, Fair Value [Line Items]
Number of Instruments	355	332
Derivative Notional Amount, Asset	839,100	791,900
Estimated fair value of other invested assets	$ 88,476	$ 65,188

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Investments In Securities (Gross Unrealized Losses On Investment Securities And Estimated Fair Value Securities) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Marketable Securities [Line Items]
Investment in securities, Less than 12 months, Unrealized Losses	$ (9,585)	$ (50,355)
Investment in securities, Less than 12 months, Estimated Fair Value	313,672	1,230,587
Investment in securities, More than 12 months, Unrealized Losses	(30,370)	(50,970)
Investment in securities, More than 12 months, Fair Value	163,195	187,302
Investment in securities, Total, Unrealized Losses	(39,955)	(101,325)
Investment in securities, Total, Estimated Fair Value	476,867	1,417,889
Bonds held-to-maturity, Less than 12 months, Unrealized Losses	(1,264)	(20,439)
Bonds held-to-maturity, less than 12 months, Estimated Fair Value	120,100	701,205
Bonds held-to-maturity, 12 months or more, Unrealized Losses	(4,658)	(30,045)
Bonds held-to-maturity, 12 months or more, Estimated Fair Value	69,600	87,891
Bonds held-to-maturity, Total, Unrealized Losses	(5,922)	(50,484)
Bonds held-to-maturity, Total, Estimated Fair Value	189,700	789,096
States of the U.S. and political subdivisions of the states [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses	(26)	(10)
Available-for-sale securities, Less than 12 months, Estimated Fair Value	1,978	762
Available-for-sale securities, 12 months or more, Unrealized Losses		(80)
Available-for-sale securities, 12 months or more, Estimated Fair Value		1,971
Available-for-sale securities, Total, Unrealized Losses	(26)	(90)
Available-for-sale securities, Total, Estimated Fair Value	1,978	2,733
Bonds held-to-maturity, Less than 12 months, Unrealized Losses
Bonds held-to-maturity, less than 12 months, Estimated Fair Value
Bonds held-to-maturity, 12 months or more, Unrealized Losses	(1)	(6)
Bonds held-to-maturity, 12 months or more, Estimated Fair Value	80	264
Bonds held-to-maturity, Total, Unrealized Losses	(1)	(6)
Bonds held-to-maturity, Total, Estimated Fair Value	80	264
Corporate debt securities [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses	(746)	(12,142)
Available-for-sale securities, Less than 12 months, Estimated Fair Value	123,044	396,761
Available-for-sale securities, 12 months or more, Unrealized Losses	(15,414)	(19,874)
Available-for-sale securities, 12 months or more, Estimated Fair Value	76,570	85,623
Available-for-sale securities, Total, Unrealized Losses	(16,160)	(32,016)
Available-for-sale securities, Total, Estimated Fair Value	199,614	482,384
Bonds held-to-maturity, Less than 12 months, Unrealized Losses	(1,102)	(20,204)
Bonds held-to-maturity, less than 12 months, Estimated Fair Value	103,810	680,202
Bonds held-to-maturity, 12 months or more, Unrealized Losses	(3,543)	(5,112)
Bonds held-to-maturity, 12 months or more, Estimated Fair Value	43,768	39,280
Bonds held-to-maturity, Total, Unrealized Losses	(4,645)	(25,316)
Bonds held-to-maturity, Total, Estimated Fair Value	147,578	719,482
Residential mortgage-backed securities [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses	(88)	(202)
Available-for-sale securities, Less than 12 months, Estimated Fair Value	6,381	25,943
Available-for-sale securities, 12 months or more, Unrealized Losses	(300)	(807)
Available-for-sale securities, 12 months or more, Estimated Fair Value	10,317	9,047
Available-for-sale securities, Total, Unrealized Losses	(388)	(1,009)
Available-for-sale securities, Total, Estimated Fair Value	16,698	34,990
Bonds held-to-maturity, Less than 12 months, Unrealized Losses	(162)	(227)
Bonds held-to-maturity, less than 12 months, Estimated Fair Value	16,290	19,398
Bonds held-to-maturity, 12 months or more, Unrealized Losses	(1,114)	(3,759)
Bonds held-to-maturity, 12 months or more, Estimated Fair Value	25,752	32,653
Bonds held-to-maturity, Total, Unrealized Losses	(1,276)	(3,986)
Bonds held-to-maturity, Total, Estimated Fair Value	42,042	52,051
Commercial mortgage-backed securities [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses
Available-for-sale securities, Less than 12 months, Estimated Fair Value
Available-for-sale securities, 12 months or more, Unrealized Losses	(9,969)
Available-for-sale securities, 12 months or more, Estimated Fair Value	5,768
Available-for-sale securities, Total, Unrealized Losses	(9,969)
Available-for-sale securities, Total, Estimated Fair Value	5,768
Bonds held-to-maturity, Less than 12 months, Unrealized Losses
Bonds held-to-maturity, less than 12 months, Estimated Fair Value
Bonds held-to-maturity, 12 months or more, Unrealized Losses		(20,158)
Bonds held-to-maturity, 12 months or more, Estimated Fair Value		11,183
Bonds held-to-maturity, Total, Unrealized Losses		(20,158)
Bonds held-to-maturity, Total, Estimated Fair Value		11,183
Collateralized debt securities [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses	(1)	(6)
Available-for-sale securities, Less than 12 months, Estimated Fair Value	224	704
Available-for-sale securities, 12 months or more, Unrealized Losses	(29)	(164)
Available-for-sale securities, 12 months or more, Estimated Fair Value	940	2,770
Available-for-sale securities, Total, Unrealized Losses	(30)	(170)
Available-for-sale securities, Total, Estimated Fair Value	1,164	3,474
Bonds held-to-maturity, Less than 12 months, Unrealized Losses		(8)
Bonds held-to-maturity, less than 12 months, Estimated Fair Value		1,605
Bonds held-to-maturity, 12 months or more, Unrealized Losses		(1,010)
Bonds held-to-maturity, 12 months or more, Estimated Fair Value		4,511
Bonds held-to-maturity, Total, Unrealized Losses		(1,018)
Bonds held-to-maturity, Total, Estimated Fair Value		6,116
Bonds Available-For-Sale [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses	(861)	(12,360)
Available-for-sale securities, Less than 12 months, Estimated Fair Value	131,627	424,170
Available-for-sale securities, 12 months or more, Unrealized Losses	(25,712)	(20,925)
Available-for-sale securities, 12 months or more, Estimated Fair Value	93,595	99,411
Available-for-sale securities, Total, Unrealized Losses	(26,573)	(33,285)
Available-for-sale securities, Total, Estimated Fair Value	225,222	523,581
Common Stock [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses	(7,386)	(16,086)
Available-for-sale securities, Less than 12 months, Estimated Fair Value	56,165	98,731
Available-for-sale securities, 12 months or more, Unrealized Losses
Available-for-sale securities, 12 months or more, Estimated Fair Value
Equity securities, Total, Unrealized Losses	(7,386)	(16,086)
Available-for-sale securities, Total, Unrealized Losses	(7,386)	(16,086)
Available-for-sale securities, Total, Estimated Fair Value	56,165	98,731
Preferred stock [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses	(74)	(1,470)
Available-for-sale securities, Less than 12 months, Estimated Fair Value	5,780	6,481
Available-for-sale securities, 12 months or more, Unrealized Losses
Available-for-sale securities, 12 months or more, Estimated Fair Value
Equity securities, Total, Unrealized Losses	(74)	(1,470)
Available-for-sale securities, Total, Unrealized Losses	(74)	(1,470)
Available-for-sale securities, Total, Estimated Fair Value	5,780	6,481
Equity securities [Member]
Marketable Securities [Line Items]
Available-for-sale securities, Less than 12 months, Unrealized Losses	(7,460)	(17,556)
Available-for-sale securities, Less than 12 months, Estimated Fair Value	61,945	105,212
Available-for-sale securities, 12 months or more, Unrealized Losses
Available-for-sale securities, 12 months or more, Estimated Fair Value
Equity securities, Total, Unrealized Losses	(7,460)	(17,556)
Available-for-sale securities, Total, Unrealized Losses	(7,460)	(17,556)
Available-for-sale securities, Total, Estimated Fair Value	$ 61,945	$ 105,212

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NATURE OF OPERATIONS

9 Months Ended

Sep. 30, 2012

NATURE OF OPERATIONS

1. NATURE OF OPERATIONS

American National Insurance Company and its consolidated subsidiaries (collectively “American National”) operate in the insurance industry. Operating on a multiple product line basis, American National offers a broad line of insurance coverage, including individual and group life insurance, health insurance, annuities, and property and casualty insurance. In addition, through non-insurance subsidiaries, American National invests in stocks and real estate. The majority of revenues are generated by the insurance business. Business is conducted in all states and the District of Columbia, as well as Puerto Rico, Guam and American Samoa. Various distribution systems are utilized, including multiple-line exclusive agents, independent agents, third-party marketing organizations, career agents, and direct sales to the public.

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Derivative Instruments (Schedule Of Estimated Fair Value And Gains And Losses On Derivative Instrument Reported in Statements Of Operations) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Equity-Indexed Options [Member] | Net Investment Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (losses) recognized in income on derivatives	$ 10,448	$ (23,492)	$ 21,947	$ (18,195)
Equity Indexed Annuity Embedded Derivative [Member] | Interest Credited To Policyholders' Account Balances [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (losses) recognized in income on derivatives	$ (7,711)	$ 25,193	$ (16,779)	$ 21,585

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Investments In Securities (Maturities Of Investments) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Investment Securities [Line Items]
Bonds Held-to-Maturity, Amortized Cost, Due in one year or less	$ 1,147,452
Bonds Held-to-Maturity, Amortized Cost, Due after one year through five years	2,779,703
Bonds Held-to-Maturity, Amortized Cost, Due after five years through ten years	4,471,977
Bonds Held-to-Maturity, Amortized Cost, Due after ten years	782,899
Bonds Held-to-Maturity, Amortized Cost, Without single maturity date	5,850
Bonds Held-to-Maturity, Amortized Cost	9,187,881	9,251,972
Bonds Held-to-Maturity, Estimated Fair Value, Due in one year or less	1,173,170
Bonds Held-to-Maturity, Estimated Fair Value, Due after one year through five years	3,043,367
Bonds Held-to-Maturity, Estimated Fair Value, Due after five years through ten years	4,989,079
Bonds Held-to-Maturity, Estimated Fair Value, Due after ten years	851,026
Bonds Held-to-Maturity, Estimated Fair Value, Without single maturity date	4,575
Held-to-maturity, Estimated Fair value	10,061,217	9,857,691
Bonds Available-for-Sale, Amortized Cost, Due in one year or less	366,867
Bonds Available-for-Sale, Amortized Cost, Due after one year through five years	1,690,520
Bonds Available-for-Sale, Amortized Cost, Due after five years through ten years	1,827,871
Bonds Available-for-Sale, Amortized Cost, Due after ten years	423,319
Bonds Available-for-Sale, Amortized Cost, Without single maturity date	5,000
Bonds Available-for-Sale, Amortized Cost	4,313,577	4,135,610
Bonds Available-for-Sale, Estimated Fair Value, Due in one year or less	373,976
Bonds Available-for-Sale, Estimated Fair Value, Due after one year through five years	1,820,346
Bonds Available-for-Sale, Estimated Fair Value, Due after five years through ten years	2,006,695
Bonds Available-for-Sale, Estimated Fair Value, Due after ten years	462,961
Bonds Available-for-Sale, Estimated Fair Value, Without single maturity date	4,599
Available-for-sale Securities, Estimated Fair value	$ 4,668,577	$ 4,381,607

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MORTGAGE LOANS (Tables)

9 Months Ended

Sep. 30, 2012

Mortgage Loans by Property Type

Mortgage loans by property-type distribution are as follows:

	September 30, 2012			December 31, 2011
Office		31.5	%		30.2	%
Industrial		24.8			24.6
Retail		19.7			19.1
Hotel and motel		14.4			13.4
Other		9.6			12.7
Total		100.0	%		100.0	%

Mortgage Loans by Geographic Distribution

Mortgage loans by geographic distribution are as follows:

	September 30, 2012			December 31, 2011
South Atlantic		23.6	%		22.9	%
West South Central		22.7			23.1
East North Central		18.1			18.8
Pacific		12.1			11.4
Mountain		7.1			6.7
East South Central		7.0			5.7
Middle Atlantic		4.0			5.4
West North Central		2.7			2.9
New England		2.1			2.5
Other		0.6			0.6
Total		100.0	%		100.0	%

Commercial Mortgage Loans Placed on Nonaccrual Status

The amounts of commercial mortgage loans placed on nonaccrual status and classified as non-performing are shown in the table below (in thousands):

	September 30, 2012		December 31, 2011
Commercial mortgages
Office	$	—	$	8,436
Retail		493		23,997
Total	$	493	$	32,433

Age Analysis of Past Due Commercial Mortgage Loans

The age analysis of past due commercial mortgage loans is shown in the table below (in thousands):

	September 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Mortgage Loans
Commerical mortgages
Office	$	6,220	$	—	$	—	$	6,220	$	961,586	$	967,806
Industrial		—		—		—		—		760,480		760,480
Retail		13,950		—		493		14,443		590,795		605,238
Other		10,299		—		—		10,299		727,681		737,980
Total	$	30,469	$	—	$	493	$	30,962	$	3,040,542		3,071,504
Allowance for loan losses												12,841
Mortgage loans on real estate, net of allowance											$	3,058,663

	December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Mortgage Loans
Commerical mortgages
Office	$	—	$	—	$	8,436	$	8,436	$	879,923	$	888,359
Industrial		—		—		—		—		721,704		721,704
Retail		13,140		—		10,857		23,997		537,665		561,662
Other		—		—		—		—		765,078		765,078
Total	$	13,140	$	—	$	19,293	$	32,433	$	2,904,370		2,936,803
Allowance for loan losses												11,321
Mortgage loans on real estate, net of allowance											$	2,925,482

Allowance for Credit Losses and Unpaid Principal Balance in Commercial Mortgage Loans

The allowance for credit losses and unpaid principal balance in commercial mortgage loans are shown in the table below (in thousands):

	Collectively Evaluated for Impairment		Individually Evaluated for Impairment			Total
Allowance for credit losses
December 31, 2011	$	10,828	$	493		$	11,321
Write down		—		(2,277	)		(2,277	)
Change in allowance		1,520		2,277			3,797
September 30, 2012	$	12,348	$	493		$	12,841
Unpaid principal balance
September 30, 2012	$	3,016,837	$	72,340		$	3,089,177
December 31, 2011	$	2,725,930	$	233,745		$	2,959,675

Loans Individually Evaluated for Impairment With and Without an Allowance

The detail of loans individually evaluated for impairment with and without an allowance recorded by collateral property-type is shown in the tables below (in thousands):

	Nine months ended September 30, 2012
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With an allowance recorded
Retail	$	—	$	493	$	493	$	—	$	—
Without an allowance recorded
Office	$	13,022	$	13,022	$	—	$	13,050	$	635
Retail		13,626		13,626		—		13,992		604
Other		45,199		45,199		—		45,283		2,276
Total without an allowance recorded	$	71,847	$	71,847	$	—	$	72,325	$	3,515

	Year ended December 31, 2011
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With an allowance recorded
Retail	$	—	$	493	$	493	$	—	$	—
Without an allowance recorded
Office	$	48,833	$	48,833	$	—	$	49,088	$	3,506
Industrial		57,261		57,261		—		57,514		3,628
Retail		15,477		15,477		—		15,535		1,514
Other		111,681		111,681		—		111,407		7,546
Total without an allowance recorded	$	233,252	$	233,252	$	—	$	233,544	$	16,194

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INVESTMENTS IN SECURITIES (Tables)

9 Months Ended

Sep. 30, 2012

Investment In Securities

The cost or amortized cost and estimated fair value of investments in held-to-maturity and available-for-sale securities are shown below (in thousands):

	September 30, 2012
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,503	$	92	$	—		$	8,595
States of the U.S. and political subdivisions of the states		401,608		41,574		(1	)		443,181
Foreign governments		29,064		4,871		—			33,935
Corporate debt securities		8,105,733		780,685		(4,645	)		8,881,773
Residential mortgage-backed securities		602,449		48,272		(1,276	)		649,445
Collateralized debt securities		2,504		342		—			2,846
Other debt securities		38,020		3,422		—			41,442
Total bonds held-to-maturity		9,187,881		879,258		(5,922	)		10,061,217
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		16,293		1,214		—			17,507
States of the U.S. and political subdivisions of the states		578,800		47,140		(26	)		625,914
Foreign governments		5,000		2,409		—			7,409
Corporate debt securities		3,551,547		321,373		(16,160	)		3,856,760
Residential mortgage-backed securities		112,773		6,001		(388	)		118,386
Commercial mortgage-backed securities		20,934		376		(9,969	)		11,341
Collateralized debt securities		18,158		1,595		(30	)		19,723
Other debt securities		10,072		1,465		—			11,537
Total bonds available-for-sale		4,313,577		381,573		(26,573	)		4,668,577
Equity securities
Common stock		660,798		405,750		(7,386	)		1,059,162
Preferred stock		26,690		8,609		(74	)		35,225
Total equity securities		687,488		414,359		(7,460	)		1,094,387
Total investments in securities	$	14,188,946	$	1,675,190	$	(39,955	)	$	15,824,181

	December 31, 2011
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	13,704	$	193	$	—		$	13,897
States of the U.S. and political subdivisions of the states		405,526		32,272		(6	)		437,792
Foreign governments		29,044		4,978		—			34,022
Corporate debt securities		8,011,901		564,159		(25,316	)		8,550,744
Residential mortgage-backed securities		714,659		50,774		(3,986	)		761,447
Commercial mortgage-backed securities		31,341		—		(20,158	)		11,183
Collateralized debt securities		7,134		—		(1,018	)		6,116
Other debt securities		38,663		3,827		—			42,490
Total bonds held-to-maturity		9,251,972		656,203		(50,484	)		9,857,691
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		11,930		1,156		—			13,086
States of the U.S. and political subdivisions of the states		579,008		39,930		(90	)		618,848
Foreign governments		5,000		2,435		—			7,435
Corporate debt securities		3,316,083		221,079		(32,016	)		3,505,146
Residential mortgage-backed securities		191,832		11,898		(1,009	)		202,721
Collateralized debt securities		17,636		1,611		(170	)		19,077
Other debt securities		14,121		1,173		—			15,294
Total bonds available-for-sale		4,135,610		279,282		(33,285	)		4,381,607
Equity securities
Common stock		679,724		305,269		(16,086	)		968,907
Preferred stock		30,955		7,688		(1,470	)		37,173
Total equity securities		710,679		312,957		(17,556	)		1,006,080
Total investments in securities	$	14,098,261	$	1,248,442	$	(101,325	)	$	15,245,378

Maturities Of Investments

The amortized cost and estimated fair value, by contractual maturity of fixed maturity securities, are shown below (in thousands):

	September 30, 2012
	Bonds Held-to-Maturity				Bonds Available-for-Sale
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,147,452	$	1,173,170	$	366,867	$	373,976
Due after one year through five years		2,779,703		3,043,367		1,690,520		1,820,346
Due after five years through ten years		4,471,977		4,989,079		1,827,871		2,006,695
Due after ten years		782,899		851,026		423,319		462,961
Without single maturity date		5,850		4,575		5,000		4,599
Total	$	9,187,881	$	10,061,217	$	4,313,577	$	4,668,577

Proceeds From Available For Sale Securities And Realized Gain Loss

Proceeds from the sales of these securities, with the realized gains and losses, are shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012			2011		2012			2011
Proceeds from sales of available-for-sale securities	$	85,400		$	23,224	$	123,705		$	122,574
Gross realized gains		15,742			11,702		27,769			32,679
Gross realized losses		(204	)		—		(374	)		(840	)

Change In Net Unrealized Gains (Losses) On Available-For-Sale Securities

The components of the net unrealized gains (losses) on securities during the periods indicated are shown below (in thousands):

	Nine months ended September 30,
	2012			2011
Bonds available-for-sale	$	109,003		$	51,205
Equity securities		111,498			(140,014	)
Net unrealized gains (losses) on securities during the year		220,501			(88,809	)
Adjustments for:
Deferred policy acquisition costs		(38,358	)		(7,240	)
Participating policyholders' interest		(8,192	)		1,718
Deferred federal income tax benefit (expense)		(60,768	)		32,983
Net unrealized gains (losses) on securities, net of tax	$	113,183		$	(61,348	)

Gross Unrealized Losses On Investment Securities And Estimated Fair Value Securities

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are shown below (in thousands):

	September 30, 2012
	Less than 12 months					12 Months or more					Total
	Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
States of the U.S. and political subdivisions of the states	$	—		$	—	$	(1	)	$	80	$	(1	)	$	80
Corporate debt securities		(1,102	)		103,810		(3,543	)		43,768		(4,645	)		147,578
Residential mortgage-backed securities		(162	)		16,290		(1,114	)		25,752		(1,276	)		42,042
Total bonds held-to-maturity		(1,264	)		120,100		(4,658	)		69,600		(5,922	)		189,700
Fixed maturity securities, bonds available-for-sale
States of the U.S. and political subdivisions of the states		(26	)		1,978		—			—		(26	)		1,978
Corporate debt securities		(746	)		123,044		(15,414	)		76,570		(16,160	)		199,614
Residential mortgage-backed securities		(88	)		6,381		(300	)		10,317		(388	)		16,698
Commericial mortgage-backed securities		—			—		(9,969	)		5,768		(9,969	)		5,768
Collateralized debt securities		(1	)		224		(29	)		940		(30	)		1,164
Total bonds available-for-sale		(861	)		131,627		(25,712	)		93,595		(26,573	)		225,222
Equity securities
Common stock		(7,386	)		56,165		—			—		(7,386	)		56,165
Preferred stock		(74	)		5,780		—			—		(74	)		5,780
Total equity securities		(7,460	)		61,945		—			—		(7,460	)		61,945
Total investments in securities	$	(9,585	)	$	313,672	$	(30,370	)	$	163,195	$	(39,955	)	$	476,867

	December 31, 2011
	Less than 12 months					12 Months or more					Total
	Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
States of the U.S. and political subdivisions of the states	$	—		$	—	$	(6	)	$	264	$	(6	)	$	264
Corporate debt securities		(20,204	)		680,202		(5,112	)		39,280		(25,316	)		719,482
Residential mortgage-backed securities		(227	)		19,398		(3,759	)		32,653		(3,986	)		52,051
Commercial mortgage-backed securities		—			—		(20,158	)		11,183		(20,158	)		11,183
Collateralized debt securities		(8	)		1,605		(1,010	)		4,511		(1,018	)		6,116
Total bonds held-to-maturity		(20,439	)		701,205		(30,045	)		87,891		(50,484	)		789,096
Fixed maturity securities, bonds available-for-sale
States of the U.S. and political subdivisions of the states		(10	)		762		(80	)		1,971		(90	)		2,733
Corporate debt securities		(12,142	)		396,761		(19,874	)		85,623		(32,016	)		482,384
Residential mortgage-backed securities		(202	)		25,943		(807	)		9,047		(1,009	)		34,990
Collateralized debt securities		(6	)		704		(164	)		2,770		(170	)		3,474
Total bonds available-for-sale		(12,360	)		424,170		(20,925	)		99,411		(33,285	)		523,581
Equity securities
Common stock		(16,086	)		98,731		—			—		(16,086	)		98,731
Preferred stock		(1,470	)		6,481		—			—		(1,470	)		6,481
Total equity securities		(17,556	)		105,212		—			—		(17,556	)		105,212
Total investments in securities	$	(50,355	)	$	1,230,587	$	(50,970	)	$	187,302	$	(101,325	)	$	1,417,889

Bond Portfolio Distributed With Quality Rating

Management believes American National’s bond portfolio is diversified and of investment grade. The bond portfolio distributed by credit quality rating, using both S&P and Moody’s ratings, is shown below:

	September 30, 2012			December 31, 2011
AAA		6.2	%		8.1	%
AA		10.8			10.5
A		38.0			38.3
BBB		40.6			38.6
BB and below		4.4			4.5
Total		100.0	%		100.0	%

Equity Securities With Market Sector Distribution

American National’s equity securities by market sector distribution are shown below:

	September 30, 2012			December 31, 2011
Consumer goods		20.8	%		21.5	%
Financials		18.0			17.2
Information technology		17.8			16.9
Energy and utilities		16.3			17.3
Healthcare		12.3			11.7
Industrials		8.7			9.0
Communications		3.5			4.2
Materials		2.5			2.1
Other		0.1			0.1
Total		100.0	%		100.0	%

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Mortgage Loans (Loans Individually Evaluated For Impairment With And Without An Allowance) (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 71,847	$ 233,252
Unpaid Principal Balance	71,847	233,252
Related Allowance
Average Recorded Investment	72,325	233,544
Interest Income Recognized	3,515	16,194
Office [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	13,022	48,833
Unpaid Principal Balance	13,022	48,833
Related Allowance
Average Recorded Investment	13,050	49,088
Interest Income Recognized	635	3,506
Industrial [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment		57,261
Unpaid Principal Balance		57,261
Related Allowance
Average Recorded Investment		57,514
Interest Income Recognized		3,628
Retail [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	13,626	15,477
Unpaid Principal Balance	13,626	15,477
Related Allowance
Average Recorded Investment	13,992	15,535
Interest Income Recognized	604	1,514
Recorded Investment
Unpaid Principal Balance	493	493
Related Allowance	493	493
Average Recorded Investment
Interest Income Recognized
Other [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	45,199	111,681
Unpaid Principal Balance	45,199	111,681
Related Allowance
Average Recorded Investment	45,283	111,407
Interest Income Recognized	$ 2,276	$ 7,546

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Investments In Securities (Proceeds From Available For Sale Securities And Realized Gain Loss) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of available-for-sale securities	$ 85,400	$ 23,224	$ 123,705	$ 122,574
Gross realized gains	15,742	11,702	27,769	32,679
Gross realized losses	$ (204)		$ (374)	$ (840)

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INVESTMENT REAL ESTATE (Tables)

9 Months Ended

Sep. 30, 2012

Investment Real Estate by Property Type

Investment real estate by property-type distribution is as follows:

	September 30, 2012			December 31, 2011
Shopping centers		40.9	%		41.1	%
Office buildings		22.0			22.0
Industrial		18.2			16.3
Hotels and motels		1.9			2.1
Other		17.0			18.5
Total		100.0	%		100.0	%

Investment Real Estate by Geographic Distribution

Investment real estate by geographic distribution is as follows:

	September 30, 2012			December 31, 2011
West South Central		60.9	%		66.1	%
South Atlantic		11.3			11.6
East North Central		10.3			5.2
Mountain		6.3			6.9
East South Central		5.4			5.2
West North Central		3.2			2.7
Pacific		2.6			2.3
Total		100.0	%		100.0	%

Assets and Liabilities Related to VIEs

The total assets and liabilities relating to VIEs in which American National is the primary beneficiary and which are consolidated in its financial statements for the periods indicated are as follows (in thousands):  

	September 30, 2012		December 31, 2011
Investment real estate	$	160,288	$	154,878
Short-term investments		1,260		3,364
Cash and cash equivalents		3,515		5,777
Accrued investment income		2,346		2,299
Other receivables		11,599		11,816
Other assets		5,647		3,870
Total assets of consolidated VIEs	$	184,655	$	182,004
Notes payable	$	161,247	$	58,894
Other liabilities		5,593		5,354
Total liabilities of consolidated VIEs	$	166,840	$	64,248

Carrying Amount and Maximum Exposure to Loss Related to VIEs

were not consolidated. The following table presents the carrying amount and maximum exposure to loss relating to VIEs for which American National holds significant variable interests but is not the primary beneficiary and which have not been consolidated (in thousands):

	September 30, 2012				December 31, 2011
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
Investment in unconsolidated affiliates	$	73,871	$	73,871	$	85,509	$	85,509

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DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Estimated Fair Value and Gains and Losses on Derivative Instrument Reported in Financial Position

The following tables detail the volume, estimated fair value and the gains or losses on derivative instruments (in thousands):

Derivatives Not Designated as Hedging Instruments	Location in the Consolidated Statements of Financial Position	September 30, 2012						December 31, 2011
		Number of Instruments		Notional Amounts	Estimated Fair Value			Number of Instruments	Notional Amounts	Estimated Fair Value
Equity-indexed options	Other invested assets		355	$839,100	$	88,476		332	$791,900	$	65,188
Equity-indexed annuity embedded derivative	Future policy benefits - Annuity		19,760	702,000		(80,324	)	16,727	661,300		(63,275	)

Schedule of Estimated Fair Value and Gains and Losses on Derivative Instrument Reported in Statements of Operations

Derivatives Not Designated as Hedging Instruments	Location Reported in the Consolidated Statements of Operations	Gains (Losses) Recognized in Income on Derivatives
		Three months ended September 30,						Nine months ended September 30,
		2012			2011			2012			2011
Equity-indexed options	Net investment income	$	10,448		$	(23,492	)	$	21,947		$	(18,195	)
Equity-indexed annuity embedded derivative	Interest credited to policyholders’ account balances		(7,711	)		25,193			(16,779	)		21,585

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
OPERATING ACTIVITIES
Net income (loss)	$ 126,681	$ 136,324
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Realized investments (gains) losses	(46,852)	(62,488)
Other-than-temporary impairments	22,073	4,851
Accretion (amortization) of discounts, premiums and loan origination fees	(1,719)	6,375
Net capitalized interest on policy loans and mortgage loans	(22,635)	(21,412)
Depreciation	27,697	30,168
Interest credited to policyholders' account balances	323,952	288,343
Charges to policyholders' account balances	(146,406)	(141,860)
Deferred federal income tax (benefit) expense	(1,131)	(253)
Deferral of policy acquisition costs	(291,941)	(349,262)
Amortization of deferred policy acquisition costs	304,409	309,638
Equity in (earnings) losses of unconsolidated affiliates	2,462	(2,839)
Changes in:
Policyholder liabilities	79,909	122,514
Reinsurance recoverables	16,574	(56,811)
Premiums due and other receivables	(30,021)	(15,876)
Accrued investment income	(3,877)	(17,148)
Current tax receivable/payable	21,856	6,621
Liability for retirement benefits	2,117	(3,897)
Prepaid reinsurance premiums	7,368	2,314
Other, net	(85,008)	17,178
Net cash provided by (used in) operating activities	305,508	252,480
Proceeds from sale/maturity/prepayment of:
Bonds - held-to-maturity	975,850	479,123
Bonds - available-for-sale	384,925	330,839
Equity securities	52,340	76,082
Investment real estate		91,679
Mortgage loans	226,527	322,949
Policy loans	50,928	39,317
Other invested assets	27,492	29,039
Disposals of property and equipment	1,323	1,358
Distributions from unconsolidated affiliates	30,820	22,612
Payment for the purchase/origination of:
Bonds - held-to-maturity	(916,538)	(1,284,363)
Bonds - available-for-sale	(549,914)	(466,316)
Equity securities	(18,266)	(53,015)
Investment real estate	(21,948)	(9,531)
Mortgage loans	(385,263)	(447,627)
Policy loans	(33,423)	(31,727)
Other invested assets	(29,862)	(29,107)
Additions to property and equipment	(19,733)	(13,555)
Contributions to unconsolidated affiliates	(29,099)	(58,560)
Change in short-term investments	23,818	135,776
Other, net	10,278	48,121
Net cash provided by (used in) investing activities	(219,745)	(816,906)
FINANCING ACTIVITIES
Policyholders' account deposits	897,654	1,722,051
Policyholders' account withdrawals	(960,668)	(1,064,860)
Change in notes payable	102,353	(1,659)
Dividends to stockholders	(61,995)	(61,957)
Proceeds from (payments to) noncontrolling interest	(2,591)	(30,498)
Net cash provided by (used in) financing activities	(25,247)	563,077
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	60,516	(1,349)
Beginning of the year	102,114	101,449
End of year	$ 162,630	$ 100,100

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NET INVESTMENT INCOME AND REALIZED INVESTMENT GAINS (LOSSES) (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Net Investment Income, Before Federal Income Taxes

Net investment income, before federal income taxes, is shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012		2011
Bonds	$	171,515	$	173,737		$	514,237	$	514,856
Equity securities		6,965		6,230			20,718		19,392
Mortgage loans		52,501		48,521			153,008		149,329
Real estate		8,173		9,838			16,456		20,154
Options		10,448		(23,492	)		21,947		(18,195	)
Other invested assets		8,588		11,108			28,083		29,650
Total	$	258,190	$	225,942		$	754,449	$	715,186

Summary of Realized Investment Gains (Losses), Before Federal Income Taxes and Other than Temporary Impairment Losses

Realized investments gains (losses), before federal income taxes, are shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012			2011
Bonds	$	8,393	$	788		$	21,813		$	13,895
Equity securities		12,172		11,975			22,386			30,789
Mortgage loans		2,132		5,518			(1,190	)		5,518
Real estate		3,386		(338	)		3,134			12,775
Other invested assets		822		(412	)		709			(489	)
Total	$	26,905	$	17,531		$	46,852		$	62,488

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Bonds	$	(12,659	)	$	—		$	(12,659	)	$	—
Equity securities		(1,316	)		(4,851	)		(9,414	)		(4,851	)
Total	$	(13,975	)	$	(4,851	)	$	(22,073	)	$	(4,851	)

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Segment Information (Narrative) (Detail)	9 Months Ended
	Sep. 30, 2012 Segment
Segment Information [Line Items]
Segment information, number of operating segments	5

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RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2012

Related Party Transactions

		Dollar Amount of Transactions				Amount due to/(from)
		Nine months ended September 30,				American National
Related Party	Financial Statement Line Impacted	2012		2011		September 30, 2012			December 31, 2011
Gal-Tex Hotel Corporation	Mortgage loans on real estate	$	794	$	738	$	9,164		$	9,957
Gal-Tex Hotel Corporation	Net investment income		522		578		55			60
Greer, Herz and Adams, LLP	Other operating costs and expenses		5,689		5,830		(307	)		(198	)

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Mortgage Loans (Commercial Mortgage Loans Placed On Nonaccrual Status) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Commercial mortgages
Amounts of commercial mortgage loans	$ 493	$ 32,433
Office [Member]
Commercial mortgages
Amounts of commercial mortgage loans		8,436
Retail [Member]
Commercial mortgages
Amounts of commercial mortgage loans	$ 493	$ 23,997

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Notes Payable (Narrative) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Maximum amount of investment in long term notes payable	$ 14,196,000	$ 17,959,000
Notes payable current	48,747,000	46,387,000
Long Term Notes Payable	$ 112,500,000	$ 12,507,000
Average interest rate on current portion of notes payable	2.86%
Average interest rate on long term notes payable	4.00%
Adjusted Libor	The interest rates of the long-term portion of notes payable are 4.00% and adjusted LIBOR plus 1.00% and 2.50% margins.
Notes Payable To Bank 1 [Member]
Debt Instrument [Line Items]
Interest rates on long term notes payable	1.00%
Notes Payable To Bank 2 [Member]
Debt Instrument [Line Items]
Interest rates on long term notes payable	2.50%

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Fixed maturity, bonds held-to-maturity, at amortized cost (Fair Value $10,061,217 and $9,857,691)	$ 9,187,881	$ 9,251,972
Fixed maturity, bonds available-for-sale, at fair value (Amortized cost $4,313,577 and $4,135,610)	4,668,577	4,381,607
Equity securities, at fair value (Cost $687,488 and $710,679)	1,094,387	1,006,080
Mortgage loans on real estate, net of allowance	3,058,663	2,925,482
Policy loans	393,774	393,195
Investment real estate, net of accumulated depreciation of $218,161 and $202,180	508,202	470,222
Short-term investments	321,512	345,330
Other invested assets	129,675	109,514
Total investments	19,362,671	18,883,402
Cash and cash equivalents	162,630	102,114
Investments in unconsolidated affiliates	240,676	241,625
Accrued investment income	217,861	213,984
Reinsurance recoverables	388,459	405,033
Prepaid reinsurance premiums	61,417	68,785
Premiums due and other receivables	308,459	280,031
Deferred policy acquisition costs	1,269,867	1,320,693
Property and equipment, net	85,335	77,909
Current tax receivable		17,150
Other assets	135,385	131,403
Separate account assets	817,057	747,867
Total assets	23,049,817	22,489,996
LIABILITIES
Future policy benefits-Life	2,641,916	2,599,224
Future policy benefits-Annuity	801,839	748,675
Future policy benefits-Accident and health	71,176	74,829
Policyholders' account balances	11,621,182	11,506,504
Policy and contract claims	1,330,715	1,340,651
Unearned premium reserve	804,288	797,398
Other policyholder funds	287,854	288,910
Liability for retirement benefits	248,728	257,602
Current portion of long-term notes payable	48,747	46,387
Long-term notes payable	112,500	12,507
Current federal income taxes	4,706
Deferred tax liabilities, net	88,217	21,851
Other liabilities	332,695	397,353
Separate account liabilities	817,057	747,867
Total liabilities	19,211,620	18,839,758
STOCKHOLDERS' EQUITY
Common stock, $1.00 par value, - Authorized 50,000,000 Issued 30,832,449 and 30,832,449, Outstanding 26,836,664 and 26,821,284 shares	30,832	30,832
Additional paid-in capital	5,004
Accumulated other comprehensive income	279,760	159,403
Retained earnings	3,608,459	3,545,546
Treasury stock, at cost	(98,286)	(98,490)
Total American National stockholders' equity	3,825,769	3,637,291
Noncontrolling interest	12,428	12,947
Total stockholders' equity	3,838,197	3,650,238
Total liabilities and stockholders' equity	$ 23,049,817	$ 22,489,996

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Investments In Securities (Narrative) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012
Securities transferred from held-to-maturity to available-for-sale	$ 34,227,000
Other-than-temporary impairment	$ 11,358,000

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
Balance at beginning of the period at Dec. 31, 2010		$ 30,832	$ 15,190	$ 225,212	$ 3,459,911	$ (98,494)	$ 4,042
Issuance of treasury shares as restricted stock			(4)			4
Contributions							29
Net income (loss) attributable to American National Insurance Company and Subsidiaries	134,418				134,418
Other comprehensive income (loss)	(61,933)			(61,933)
Income tax effect from restricted stock arrangement			(14)
Distributions							(15,278)
Cash dividends to common stockholders ($2.31 per share)					(61,957)
Amortization of restricted stock			3,354
Gain (loss) attributable to noncontrolling interest	(1,906)						1,906
Cumulative effect of accounting change - deferred policy acquisition costs				604	(19,195)
Balance at end of period at Sep. 30, 2011	3,618,627		18,526	163,883	3,513,177	(98,490)	(9,301)
Balance at beginning of the period at Dec. 31, 2011	3,650,238	30,832		159,403	3,545,546	(98,490)	12,947
Issuance of treasury shares as restricted stock			(204)			204
Net income (loss) attributable to American National Insurance Company and Subsidiaries	124,908				124,908
Other comprehensive income (loss)	120,357			120,357
Income tax effect from restricted stock arrangement			(610)
Distributions							(2,591)
Cash dividends to common stockholders ($2.31 per share)					(61,995)
Amortization of restricted stock			7,710
Gain (loss) attributable to noncontrolling interest	(1,773)						1,773
Purchase of ownership interest from noncontrolling interest			(1,892)				299
Balance at end of period at Sep. 30, 2012	$ 3,838,197		$ 5,004	$ 279,760	$ 3,608,459	$ (98,286)	$ 12,428

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Investment Real Estate (Assets And Liabilities Related To VIEs) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Dec. 31, 2010
Variable Interest Entity [Line Items]
Investment real estate	$ 508,202	$ 470,222
Short-term investments	321,512	345,330
Cash and cash equivalents	162,630	102,114	100,100	101,449
Accrued investment income	217,861	213,984
Other assets	135,385	131,403
Other liabilities	332,695	397,353
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Investment real estate	160,288	154,878
Short-term investments	1,260	3,364
Cash and cash equivalents	3,515	5,777
Accrued investment income	2,346	2,299
Other receivables	11,599	11,816
Other assets	5,647	3,870
Total assets of consolidated VIEs	184,655	182,004
Notes payable	161,247	58,894
Other liabilities	5,593	5,354
Total liabilities of consolidated VIEs	$ 166,840	$ 64,248

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LIABILITY FOR UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES (Tables)

9 Months Ended

Sep. 30, 2012

Liability for Unpaid Claims and Claim Adjustment Expenses

Activities in the liability for unpaid claims and CAE (“claims”) included in policy and contract claims in the consolidated statements of financial position are shown below (in thousands):

	Nine Months Ended September 30,
	2012			2011
Unpaid claims balance, beginning	$	1,180,259		$	1,210,126
Less reinsurance recoverables		235,174			222,635
Net beginning balance		945,085			987,491
Incurred related to:
Current		779,602			869,549
Prior years		(46,037	)		(59,753	)
Total incurred claims		733,565			809,796
Paid claims related to:
Current		454,183			536,834
Prior years		284,025			290,279
Total paid claims		738,208			827,113
Net balance		940,442			970,174
Plus reinsurance recoverables		238,268			253,178
Unpaid claims balance, ending	$	1,178,710		$	1,223,352

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Fair Value Of Financial Instruments (Carrying Amount And Estimated Fair Value Of Financial Instruments) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Financial assets
Short-term investments, fair value disclosure	$ 321,512	$ 345,330
Separate account assets, fair value disclosure	817,057	747,867
Financial liabilities
Separate account liabilities, fair value disclosure	817,057	747,867
Carrying Amount [Member]
Financial assets
Held-to-maturity securities fair value disclosure	9,187,881	9,251,972
Option fair value disclosure	88,476	65,188
Short-term investments, fair value disclosure	321,512	345,330
Separate account assets, fair value disclosure	817,057	747,867
Total financial assets, fair value disclosure	19,630,327	19,116,721
Financial liabilities
Liabilities related to investment contracts, fair value disclosure	10,066,103	9,993,804
Embedded derivative liability for equity-indexed annuity, fair value disclosure	80,324	63,275
Notes payable, fair value disclosure	161,247	58,894
Separate account liabilities, fair value disclosure	817,057	747,867
Total financial liabilities, fair value disclosure	11,124,731	10,863,840
Carrying Amount [Member] | U.S. Treasury And Other U.S. Government Corporations And Agencies [Member]
Financial assets
Held-to-maturity securities fair value disclosure	8,503	13,704
Available-for-sale securities fair value disclosure	17,507	13,086
Carrying Amount [Member] | States of the U.S. and political subdivisions of the states [Member]
Financial assets
Held-to-maturity securities fair value disclosure	401,608	405,526
Available-for-sale securities fair value disclosure	625,914	618,848
Carrying Amount [Member] | Foreign governments [Member]
Financial assets
Held-to-maturity securities fair value disclosure	29,064	29,044
Available-for-sale securities fair value disclosure	7,409	7,435
Carrying Amount [Member] | Corporate debt securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure	8,105,733	8,011,901
Available-for-sale securities fair value disclosure	3,856,760	3,505,146
Carrying Amount [Member] | Residential mortgage-backed securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure	602,449	714,659
Available-for-sale securities fair value disclosure	118,386	202,721
Carrying Amount [Member] | Commercial mortgage-backed securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure		31,341
Available-for-sale securities fair value disclosure	11,341
Carrying Amount [Member] | Collateralized debt securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure	2,504	7,134
Available-for-sale securities fair value disclosure	19,723	19,077
Carrying Amount [Member] | Other debt securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure	38,020	38,663
Available-for-sale securities fair value disclosure	11,537	15,294
Carrying Amount [Member] | Bonds Available-For-Sale [Member]
Financial assets
Available-for-sale securities fair value disclosure	4,668,577	4,381,607
Carrying Amount [Member] | Common Stock [Member]
Financial assets
Available-for-sale securities fair value disclosure	1,059,162	968,907
Carrying Amount [Member] | Preferred stock [Member]
Financial assets
Available-for-sale securities fair value disclosure	35,225	37,173
Carrying Amount [Member] | Equity securities [Member]
Financial assets
Available-for-sale securities fair value disclosure	1,094,387	1,006,080
Carrying Amount [Member] | Mortgage Receivable [Member]
Financial assets
Loans receivable, fair value disclosure	3,058,663	2,925,482
Carrying Amount [Member] | Policy Loans [Member]
Financial assets
Loans receivable, fair value disclosure	393,774	393,195
Estimate Fair Value [Member]
Financial assets
Held-to-maturity securities fair value disclosure	10,061,217	9,857,691
Option fair value disclosure	88,476	65,188
Short-term investments, fair value disclosure	321,512	345,330
Separate account assets, fair value disclosure	817,057	747,867
Total financial assets, fair value disclosure	20,742,046	19,975,163
Financial liabilities
Liabilities related to investment contracts, fair value disclosure	10,066,103	9,993,804
Embedded derivative liability for equity-indexed annuity, fair value disclosure	80,324	63,275
Notes payable, fair value disclosure	161,247	58,894
Separate account liabilities, fair value disclosure	817,057	747,867
Total financial liabilities, fair value disclosure	11,124,731	10,863,840
Estimate Fair Value [Member] | U.S. Treasury And Other U.S. Government Corporations And Agencies [Member]
Financial assets
Held-to-maturity securities fair value disclosure	8,595	13,897
Available-for-sale securities fair value disclosure	17,507	13,086
Estimate Fair Value [Member] | States of the U.S. and political subdivisions of the states [Member]
Financial assets
Held-to-maturity securities fair value disclosure	443,181	437,792
Available-for-sale securities fair value disclosure	625,914	618,848
Estimate Fair Value [Member] | Foreign governments [Member]
Financial assets
Held-to-maturity securities fair value disclosure	33,935	34,022
Available-for-sale securities fair value disclosure	7,409	7,435
Estimate Fair Value [Member] | Corporate debt securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure	8,881,773	8,550,744
Available-for-sale securities fair value disclosure	3,856,760	3,505,146
Estimate Fair Value [Member] | Residential mortgage-backed securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure	649,445	761,447
Available-for-sale securities fair value disclosure	118,386	202,721
Estimate Fair Value [Member] | Commercial mortgage-backed securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure		11,183
Available-for-sale securities fair value disclosure	11,341
Estimate Fair Value [Member] | Collateralized debt securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure	2,846	6,116
Available-for-sale securities fair value disclosure	19,723	19,077
Estimate Fair Value [Member] | Other debt securities [Member]
Financial assets
Held-to-maturity securities fair value disclosure	41,442	42,490
Available-for-sale securities fair value disclosure	11,537	15,294
Estimate Fair Value [Member] | Bonds Available-For-Sale [Member]
Financial assets
Available-for-sale securities fair value disclosure	4,668,577	4,381,607
Estimate Fair Value [Member] | Common Stock [Member]
Financial assets
Available-for-sale securities fair value disclosure	1,059,162	968,907
Estimate Fair Value [Member] | Preferred stock [Member]
Financial assets
Available-for-sale securities fair value disclosure	35,225	37,173
Estimate Fair Value [Member] | Equity securities [Member]
Financial assets
Available-for-sale securities fair value disclosure	1,094,387	1,006,080
Estimate Fair Value [Member] | Mortgage Receivable [Member]
Financial assets
Loans receivable, fair value disclosure	3,297,046	3,178,205
Estimate Fair Value [Member] | Policy Loans [Member]
Financial assets
Loans receivable, fair value disclosure	$ 393,774	$ 393,195

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CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2012

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

14. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in the accumulated balances of each component of other comprehensive income (loss), and the related tax effects thereon, are shown below (in thousands):

	Net Unrealized Gains/(Losses) on Securities			Defined Benefit Pension Plan Adjustments			Foreign Currency Transaction and Translation Adjustments			Accumulated Other Comprehensive Income
Balance at December 31, 2010	$	290,489		$	(65,533	)	$	256		$	225,212
Unrealized holding gains (losses) arising during the period (net of tax $21,498)		(39,924	)								(39,924	)
Reclassification adjustment for (gains) losses realized in net income/loss (net of tax $9,494)		(17,893	)								(17,893	)
Unrealized adjustment to deferred policy acquisition costs (net of tax $2,592)		(4,648	)								(4,648	)
Unrealized (gains) losses on investments attributable to participating policyholders’ interest (net of tax $601)		1,117									1,117
Cumulative effect of accounting change - deferred policy acquisition costs (net of tax $325)		604									604
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost (net of tax $166)					(308	)					(308	)
Foreign exchange adjustment (net of tax $149)								(277	)		(277	)
Balance at September 30, 2011	$	229,745		$	(65,841	)	$	(21	)	$	163,883
Balance at December 31, 2011	$	274,837		$	(115,485	)	$	51		$	159,403
Unrealized holding gains (losses) arising during the period (net of tax $80,337)		149,198									149,198
Reclassification adjustment for (gains) losses realized in net income/loss (net of tax $3,277)		(5,757	)								(5,757	)
Unrealized adjustment to deferred policy acquisition costs (net of tax $13,425)		(24,933	)								(24,933	)
Unrealized (gains) losses on investments attributable to participating policyholders’ interest (net of tax $2,867)		(5,325	)								(5,325	)
Amortization of prior service cost and actuarial (gain) loss included in net periodic pension cost (net of tax $3,847)					7,144						7,144
Foreign exchange adjustment (net of tax $16)								30			30
Balance at September 30, 2012	$	388,020		$	(108,341	)	$	81		$	279,760

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FEDERAL INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2012

Effective Income Tax Reconciliation

A reconciliation of the effective tax rate to the statutory federal income tax rate is shown below (in thousands, except percentages):

	Three months ended September 30,										Nine months ended September 30,
	2012					2011					2012					2011
	Amount		Rate			Amount		Rate			Amount		Rate			Amount		Rate
						(As Adjusted)										(As Adjusted)
Income tax expense on pre-tax income		$31,285		35.0	%		$26,326		35.0	%		$59,989		35.0	%		$60,676		35.0	%
Tax-exempt investment income		(1,827)		(2.0)			(1,968)		(2.6)			(5,569)		(3.2)			(6,035)		(3.5)
Dividend exclusion		(1,501)		(1.7)			(1,342)		(1.8)			(4,453)		(2.6)			(4,046)		(2.3)
Miscellaneous tax credits, net		(2,206)		(2.5)			(1,515)		(2.0)			(6,669)		(3.9)			(5,644)		(3.3)
Other items, net		1,903		2.1			(2,404)		(3.2)			(1,045)		(0.6)			(5,077)		(2.9)
Total	$	27,654		30.9	%	$	19,097		25.4	%	$	42,253		24.7	%	$	39,874		23.0	%

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to the deferred tax assets and liabilities are shown below (in thousands):

	September 30, 2012			December 31, 2011
				(As Adjusted)
DEFERRED TAX ASSETS:
Investments, principally due to impairment losses	$	87,523		$	87,518
Investment in real estate and other invested assets principally due to investment valuation allowances		7,812			8,620
Policyholder funds, principally due to policy reserve discount		235,845			235,827
Policyholder funds, principally due to unearned premium reserve		32,240			31,230
Non-qualified pension		28,424			28,503
Participating policyholders’ surplus		35,691			33,677
Pension		60,590			63,597
Commissions and other expenses		7,582			8,165
Tax carryforwards		27,870			32,220
Other assets		793			79
Gross deferred tax assets		524,370			529,436
DEFERRED TAX LIABILITIES:
Available-for-sale securities, principally due to net unrealized gains		(266,254	)		(189,194	)
Investment in bonds, principally due to accrual of discount on bonds		(11,361	)		(11,774	)
Deferred policy acquisition costs, due to difference between GAAP and tax amortization methods		(334,972	)		(350,319	)
Gross deferred tax liabilities		(612,587	)		(551,287	)
Total net deferred tax liability	$	(88,217	)	$	(21,851	)

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SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2012

SEGMENT INFORMATION

16. SEGMENT INFORMATION

American National is engaged principally in the insurance business. Management organizes the business into five operating segments which are discussed in Note 18, Segment Information, of the notes to the consolidated financial statements in our 2011 Annual Report on Form 10-K filed with the SEC on March 6, 2012:

• The Life segment markets whole, term, universal, indexed and variable life insurance on a national basis primarily through career and multiple-line agents, as well as through direct marketing channels.

• The Annuity segment offers fixed, indexed, and variable annuity products. These products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents.

• The Health segment’s primary lines of business are Medicare Supplement, stop loss, other supplemental health products and credit disability insurance. Health products are typically distributed through independent agents and managing general underwriters.

• The Property and Casualty segment writes personal, commercial and credit-related property insurance. These products are primarily sold through multiple-line agents and independent agents.

• The Corporate and Other business segment consists of net investment income on the investments not allocated to the insurance segments and the operations of non-insurance lines of business.

The accounting policies of the segments are the same as those referred to in Note 2. Many of the principal factors that drive the profitability of each operating segment are separate and distinct. All income and expense amounts specifically attributable to policy transactions are recorded directly to the appropriate operating segment. Income and expenses not specifically attributable to policy transactions are allocated to each segment as follows:

• Recurring income from bonds and mortgage loans is allocated based on the funds accumulated by each line of business at the average yield available from these assets.

• Net investment income from all other assets is allocated to the insurance segments in accordance with the amount of equity allocated to each segment, with the remainder recorded in the Corporate and Other business segment.

• Expenses are allocated based upon various factors, including premium and commission ratios within the respective operating segments.

The following tables summarize results of operations by operating segments (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
			(As Adjusted)				(As Adjusted)
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Life	$	9,212	$	17,050	$	36,025	$	47,345
Annuity		25,384		14,323		72,998		45,972
Health		6,179		5,254		10,989		13,303
Property and casualty		25,021		12,488		13,173		(18,343	)
Corporate and other		23,589		26,102		38,211		85,082
Total	$	89,385	$	75,217	$	171,396	$	173,359

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Fair Value Of Financial Instruments (Financial Instruments Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 145,968	$ 83,386	$ 101,831	$ 97,549
Total realized and unrealized investment gains/losses Included in other comprehensive income	11,811	1,606	13,909	1,348
Net fair value change included in realized gains/losses	(11,431)		(11,449)	168
Net gain (loss) for derivatives included in net investment income	9,708	(23,449)	17,878	(18,152)
Net change included in interest credited	(7,711)	25,193	(16,779)	21,585
Purchases	2,972	5,351	11,976	14,239
Sales	(6,254)	(257)	(9,135)	(10,438)
Settlements or maturities	4,321	(3,842)	(725)	(16,538)
Premiums less benefits	(419)	(3,066)	(270)	(4,839)
Gross transfers into Level 3			41,729
Ending balance	148,965	84,922	148,965	84,922
Embedded Derivative Liability [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	(72,194)	(65,025)	(63,275)	(59,644)
Total realized and unrealized investment gains/losses Included in other comprehensive income
Net fair value change included in realized gains/losses
Net gain (loss) for derivatives included in net investment income
Net change included in interest credited	(7,711)	25,193	(16,779)	21,585
Purchases
Sales
Settlements or maturities
Premiums less benefits	(419)	(3,066)	(270)	(4,839)
Gross transfers into Level 3
Ending balance	(80,324)	(42,898)	(80,324)	(42,898)
Investment Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	141,026	76,886	99,918	90,477
Total realized and unrealized investment gains/losses Included in other comprehensive income	11,811	1,606	13,909	1,348
Net fair value change included in realized gains/losses	(11,431)		(11,449)	168
Net change included in interest credited
Purchases	(19)	1	504	13
Sales	(192)	(257)	(3,073)	(10,438)
Settlements or maturities	(382)	(123)	(725)	(3,455)
Premiums less benefits
Gross transfers into Level 3			41,729
Ending balance	140,813	78,113	140,813	78,113
Equity-Indexed Options [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	77,136	71,525	65,188	66,716
Net fair value change included in realized gains/losses
Net gain (loss) for derivatives included in net investment income	9,708	(23,449)	17,878	(18,152)
Net change included in interest credited
Purchases	2,991	5,350	11,472	14,226
Sales	(6,062)		(6,062)
Settlements or maturities	4,703	(3,719)		(13,083)
Premiums less benefits
Gross transfers into Level 3
Ending balance	$ 88,476	$ 49,707	$ 88,476	$ 49,707

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (Retained Earnings [Member], USD $)	9 Months Ended
	Sep. 30, 2012
Retained Earnings [Member]
Cash dividends to common stockholders	$ 2.31

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Fair value of bonds held-to-maturity	$ 10,061,217	$ 9,857,691
Amortized cost of bonds available-for-sale	4,313,577	4,135,610
Cost of equity securities	687,488	710,679
Accumulated depreciation of investment real estate	$ 218,161	$ 202,180
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	30,832,449	30,832,449
Common stock, shares outstanding	26,836,664	26,821,284

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FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2012

FAIR VALUE OF FINANCIAL INSTRUMENTS

9. FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amount and estimated fair value of financial instruments are shown below (in thousands):

	September 30, 2012				December 31, 2011
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,503	$	8,595	$	13,704	$	13,897
States of the U.S. and political subdivisions of the states		401,608		443,181		405,526		437,792
Foreign governments		29,064		33,935		29,044		34,022
Corporate debt securities		8,105,733		8,881,773		8,011,901		8,550,744
Residential mortgage-backed securities		602,449		649,445		714,659		761,447
Commercial mortgage-backed securities		—		—		31,341		11,183
Collateralized debt securities		2,504		2,846		7,134		6,116
Other debt securities		38,020		41,442		38,663		42,490
Total bonds held-to-maturity		9,187,881		10,061,217		9,251,972		9,857,691
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		17,507		17,507		13,086		13,086
States of the U.S. and political subdivisions of the states		625,914		625,914		618,848		618,848
Foreign governments		7,409		7,409		7,435		7,435
Corporate debt securities		3,856,760		3,856,760		3,505,146		3,505,146
Residential mortgage-backed securities		118,386		118,386		202,721		202,721
Commercial mortgage-backed securities		11,341		11,341		—		—
Collateralized debt securities		19,723		19,723		19,077		19,077
Other debt securities		11,537		11,537		15,294		15,294
Total bonds available-for-sale		4,668,577		4,668,577		4,381,607		4,381,607
Equity securities
Common stock		1,059,162		1,059,162		968,907		968,907
Preferred stock		35,225		35,225		37,173		37,173
Total equity securities		1,094,387		1,094,387		1,006,080		1,006,080
Options		88,476		88,476		65,188		65,188
Mortgage loans on real estate, net of allowance		3,058,663		3,297,046		2,925,482		3,178,205
Policy loans		393,774		393,774		393,195		393,195
Short-term investments		321,512		321,512		345,330		345,330
Separate account assets		817,057		817,057		747,867		747,867
Total financial assets	$	19,630,327	$	20,742,046	$	19,116,721	$	19,975,163
Financial liabilities
Investment contracts	$	10,066,103	$	10,066,103	$	9,993,804	$	9,993,804
Embedded derivative liability for equity-indexed annuities		80,324		80,324		63,275		63,275
Notes payable		161,247		161,247		58,894		58,894
Separate account liabilities		817,057		817,057		747,867		747,867
Total financial liabilities	$	11,124,731	$	11,124,731	$	10,863,840	$	10,863,840

Summary

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. A fair value hierarchy is used to determine fair value based on a hypothetical transaction at the measurement date from the perspective of a market participant. The classification of assets or liabilities within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are defined as follows:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. American National defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities.

Level 2 Quoted prices in markets that are not active or inputs that are observable directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect American National’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and third-party evaluation, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

American National has evaluated the types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Based on the results of this evaluation and investment class analysis, each financial instrument was classified into Level 1, 2, or 3 measurements.

Fixed Maturity Securities and Equity Options

American National utilizes a pricing service to estimate fair value measurements for approximately 99.0% of fixed maturity securities. The pricing service utilizes market quotations for fixed maturity securities that have quoted prices in active markets. Since fixed maturity securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, the pricing service uses an option adjusted spread model to develop prepayment and interest rate scenarios.

The pricing service evaluates each asset class based on relevant market information, relevant credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and economic events. The extent of the use of each market input depends on the asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary.

American National has reviewed the inputs and methodology used by the pricing service and the techniques applied by the pricing service to produce quotes that represent the fair value of a specific security. The review of the pricing services’ methodology confirms the service is utilizing information from organized transactions or a technique that represents a market participant’s assumptions. American National does not adjust quotes received from the pricing service. The pricing service utilized by American National has indicated that they will only produce an estimate of fair value if there is objectively verifiable information available.

The fair value estimates of most fixed maturity investments including municipal bonds are based on observable market information rather than market quotes. Accordingly, the estimates of fair value for such fixed maturity securities provided by the pricing service are disclosed as Level 2 measurements.

Additionally, American National holds a small amount of fixed maturity securities that have characteristics that make them unsuitable for matrix pricing. For these fixed maturity securities, a quote from an independent broker (typically a market maker) is obtained. Due to the disclaimers on the quotes that indicate that the price is indicative only, American National includes these fair value estimates in Level 3. The pricing of certain private placement debt also includes significant non-observable inputs, the internally determined credit rating of the security, and an externally provided credit spread, and these securities are classified as Level 3 measurements.

For securities priced using a quote from an independent broker, such as the equity options and certain fixed maturity securities, American National uses a market-based fair value analysis to validate the reasonableness of prices received from an independent broker. Price variances above a certain threshold are analyzed further to determine if any pricing issue exists. This analysis is generally performed on a weekly basis, but no less frequently than on a monthly basis.

Equity Securities

For publicly-traded equity securities, American National receives prices from a nationally recognized pricing service that are based on observable market transactions and these securities are classified as Level 1 measurements. For certain preferred stock, current market quotes in active markets are unavailable. In these instances, American National receives an estimate of fair value from the pricing service. The service utilizes similar methodologies to price preferred stocks as it does for fixed maturity securities. These estimates for equity securities are disclosed as Level 2 measurements.

Mortgage Loans

The fair value of mortgage loans is estimated using discounted cash flow analyses. Fair value is calculated on a loan by loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. Factors used to arrive at the discount rate include inputs from spreads based on U.S. Treasury notes and the loan’s credit rating, region, property type, lien number, payment type and current status.

Embedded Derivative

The embedded derivative liability for equity-indexed annuities is measured at fair value. The embedded derivative liability is recalculated each reporting period using equity option pricing models. To validate the assumptions used to price the embedded derivative, American National measures and compares embedded derivative returns against the returns of equity options held to hedge the liability cash flows.

The significant unobservable input used to calculate the fair value of the embedded derivatives is equity option implied volatility. This volatility assumption is the range of implied volatilities that American National has determined market participants would use to price equity options that match the current derivative characteristics of our in-force equity-indexed annuities. Implied volatility can vary by term and strike price. An increase in implied volatility will result in an increase in the value of the equity-indexed annuity embedded derivatives, all other things being equal. At September 30, 2012, the implied volatility used to estimate embedded derivative value ranges from 13.0% to 30.5%.

Other Financial Instruments

For other financial instruments discussed below, American National believes that their carrying value approximates fair value. This assumption is supported by the qualitative information discussed below. These financial instruments are classified as level 3 measurements.

Policy loans – The carrying value of policy loans is equivalent to outstanding balance plus any accrued interest. Due to the collateralized nature of policy loans, unpredictable timing of repayments and the fact that it cannot be separated from the policy contract, American National believes that the carrying value of policy loans approximates fair value.

Investment contracts liability – The carrying value of investment contracts liability is equivalent to the accrued account balance. The accrued account balance consists of deposits, net of withdrawals, plus or minus interest credited, fees and charges assessed and other adjustments. American National believes that the carrying value of investment contracts liability approximates fair value because the majority of these contracts’ interest rates reset to current rates offered at anniversary.

Notes payable – Notes payable are carried at outstanding principal balance. The carrying value of the notes payable approximates fair value because the underlying interest rates approximate market rates at the balance sheet date.

Quantitative Disclosures

The quantitative disclosures regarding fair value hierarchy measurements of the financial instruments are shown below (in thousands):

	Fair Value Measurement as of September 30, 2012 Using:
	Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,595	$	—	$	8,595	$	—
States of the U.S. and political subdivisions of the states		443,181		—		443,181		—
Foreign governments		33,935		—		33,935		—
Corporate debt securities		8,881,773		—		8,811,273		70,500
Residential mortgage-backed securities		649,445		—		649,443		2
Collateralized debt securities		2,846		—		1		2,845
Other debt securities		41,442		—		34,961		6,481
Total bonds held-to-maturity		10,061,217		—		9,981,389		79,828
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		17,507		—		17,507		—
States of the U.S. and political subdivisions of the states		625,914		—		623,389		2,525
Foreign governments		7,409		—		7,409		—
Corporate debt securities		3,856,760		—		3,811,608		45,152
Residential mortgage-backed securities		118,386		—		118,382		4
Commercial mortgage-backed securities		11,341		—		—		11,341
Collateralized debt securities		19,723		—		17,788		1,935
Other debt securities		11,537		—		11,537		—
Total bonds available-for-sale		4,668,577		—		4,607,620		60,957
Equity securities
Common stock		1,059,162		1,059,162		—		—
Preferred stock		35,225		35,197		—		28
Total equity securities		1,094,387		1,094,359		—		28
Options		88,476		—		—		88,476
Mortgage loans on real estate		3,297,046		—		3,297,046		—
Policy loans		393,774		—		—		393,774
Short-term investments		321,512		—		321,512		—
Separate account assets		817,057		—		817,057		—
Total financial assets	$	20,742,046	$	1,094,359	$	19,024,624	$	623,063
Financial liabilities
Investment contracts	$	10,066,103	$	—	$	—	$	10,066,103
Embedded derivative liability for equity-indexed annuities		80,324		—		—		80,324
Notes payable		161,247		—		—		161,247
Separate account liabilities		817,057		—		817,057		—
Total financial liabilities	$	11,124,731	$	—	$	817,057	$	10,307,674

	Fair Value Measurement as of December 31, 2011 Using:
	Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	13,897	$	—	$	13,897	$	—
States of the U.S. and political subdivisions of the states		437,792		—		437,792		—
Foreign governments		34,022		—		34,022		—
Corporate debt securities		8,550,744		—		8,492,957		57,787
Residential mortgage-backed securities		761,447		—		759,773		1,674
Commercial mortgage-backed securities		11,183		—		—		11,183
Collateralized debt securities		6,116		—		—		6,116
Other debt securities		42,490		—		35,147		7,343
Total bonds held-to-maturity		9,857,691		—		9,773,588		84,103
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		13,086		—		13,086		—
States of the U.S. and political subdivisions of the states		618,848		—		616,323		2,525
Foreign governments		7,435		—		7,435		—
Corporate debt securities		3,505,146		—		3,492,113		13,033
Residential mortgage-backed securities		202,721		—		202,715		6
Collateralized debt securities		19,077		—		18,826		251
Other debt securities		15,294		—		15,294		—
Total bonds available-for-sale		4,381,607		—		4,365,792		15,815
Equity securities
Common stock		968,907		968,907		—		—
Preferred stock		37,173		37,173		—		—
Total equity securities		1,006,080		1,006,080		—		—
Options		65,188		—		—		65,188
Mortgage loans on real estate		3,178,205		—		3,178,205		—
Policy loans		393,195		—		—		393,195
Short-term investments		345,330		—		345,330		—
Separate account assets		747,867		—		747,867		—
Total financial assets	$	19,975,163	$	1,006,080	$	18,410,782	$	558,301
Financial liabilities
Investment contracts	$	9,993,804	$	—	$	—	$	9,993,804
Embedded derivative liability for equity-indexed annuities		63,275		—		—		63,275
Notes payable		58,894		—		—		58,894
Separate account liabilities		747,867		—		747,867		—
Total financial liabilities	$	10,863,840	$	—	$	747,867	$	10,115,973

For financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period, a reconciliation of the beginning and ending balances is shown below at estimated fair value (in thousands):

	Three months ended September 30,												Nine months ended September 30,
				Equity-			Embedded									Equity-			Embedded
	Investment			Indexed			Derivative						Investment			Indexed			Derivative
	Securities			Options			Liability			Total			Securities			Options			Liability			Total
Beginning balance, 2011	$	76,886		$	71,525		$	(65,025	)	$	83,386		$	90,477		$	66,716		$	(59,644	)	$	97,549
Total realized and unrealized investment gains/losses
Included in other comprehensive income		1,606			—			—			1,606			1,348			—			—			1,348
Net fair value change included in realized gains/losses		—			—			—			—			168			—			—			168
Net gain (loss) for derivatives included in net investment income		—			(23,449	)		—			(23,449	)		—			(18,152	)		—			(18,152	)
Net change included in interest credited		—			—			25,193			25,193			—			—			21,585			21,585
Purchases, sales and settlements or maturities
Purchases		1			5,350			—			5,351			13			14,226			—			14,239
Sales		(257	)		—			—			(257	)		(10,438	)		—			—			(10,438	)
Settlements or maturities		(123	)		(3,719	)		—			(3,842	)		(3,455	)		(13,083	)		—			(16,538	)
Premiums less benefits		—			—			(3,066	)		(3,066	)		—			—			(4,839	)		(4,839	)
Gross transfers into Level 3		—			—			—			—			—			—			—			—
Ending balance, 2011	$	78,113		$	49,707		$	(42,898	)	$	84,922		$	78,113		$	49,707		$	(42,898	)	$	84,922
Beginning balance, 2012	$	141,026		$	77,136		$	(72,194	)	$	145,968		$	99,918		$	65,188		$	(63,275	)	$	101,831
Total realized and unrealized investment gains/losses
Included in other comprehensive income		11,811			—			—			11,811			13,909			—			—			13,909
Net fair value change included in realized gains/losses		(11,431	)		—			—			(11,431	)		(11,449	)		—			—			(11,449	)
Net gain (loss) for derivatives included in net investment income		—			9,708			—			9,708			—			17,878			—			17,878
Net change included in interest credited		—			—			(7,711	)		(7,711	)		—			—			(16,779	)		(16,779	)
Purchases, sales and settlements or maturities
Purchases		(19	)		2,991			—			2,972			504			11,472			—			11,976
Sales		(192	)		(6,062	)		—			(6,254	)		(3,073	)		(6,062	)		—			(9,135	)
Settlements or maturities		(382	)		4,703			—			4,321			(725	)		—			—			(725	)
Premiums less benefits		—			—			(419	)		(419	)		—			—			(270	)		(270	)
Gross transfers into Level 3		—			—			—			—			41,729			—			—			41,729
Ending balance, 2012	$	140,813		$	88,476		$	(80,324	)	$	148,965		$	140,813		$	88,476		$	(80,324	)	$	148,965

Within the net gain (loss) for derivatives included in net investment income were an unrealized gain of $16,334,000 and an unrealized loss of $12,613,000 relating to assets still held at September 30, 2012 and December 31, 2011, respectively.

The transfers into Level 3 were the result of existing securities no longer being priced by the third-party pricing service at the end of the period. American National’s valuation of these securities involves judgment regarding assumptions market participants would use including quotes from independent brokers. The transfers out of Level 3 were securities being priced by a third-party service at the end of the period, using inputs that are observable or derived from market data, which resulted in classification of these assets as Level 2.

There were no transfers between Level 1 and Level 2 fair value hierarchies.

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Oct. 31, 2012
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Trading Symbol	ANAT
Entity Registrant Name	AMERICAN NATIONAL INSURANCE CO /TX/
Entity Central Index Key	0000904163
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		26,836,664

XML

DEFERRED POLICY ACQUISITION COSTS

9 Months Ended

Sep. 30, 2012

DEFERRED POLICY ACQUISITION COSTS

10. DEFERRED POLICY ACQUISITION COSTS

Deferred policy acquisition costs are shown below (in thousands):

	Life			Annuity			Accident & Health			Property & Casualty			Total
Balance at December 31, 2011 (As Adjusted)	$	651,579		$	463,030		$	55,100		$	150,984		$	1,320,693
Additions		62,162			54,015			8,311			167,453			291,941
Amortization		(56,276	)		(64,333	)		(12,958	)		(170,842	)		(304,409	)
Effect of change in unrealized gains on available-for-sale securities		(7,250	)		(31,108	)		—			—			(38,358	)
Net change		(1,364	)		(41,426	)		(4,647	)		(3,389	)		(50,826	)
Balance at September 30, 2012	$	650,215		$	421,604		$	50,453		$	147,595		$	1,269,867

Commissions comprise the majority of the additions to DAC during the period. Effective January 1, 2012, American National retrospectively adopted a new accounting standard that modified the accounting for DAC. Refer to Notes 2 and 3 for additional discussion.

XML

Stockholders' Equity And Noncontrolling Interests (Stock-Based Compensation Information) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at December 31, 2011	126,769
Exercised	(200)
Forfeited	(3,510)
Expired	(14,108)
Outstanding at September 30, 2012	108,951
Weighted-Average Grant Date Fair Value Outstanding at December 31, 2011	$ 110.08
Weighted Average Grant Date Fair Value, Forfeited	$ 114.02
Weighted Average Grant Date Fair Value, Expired	$ 100.14
Weighted-Average Grant Date Fair Value Outstanding at September 30, 2012	$ 111.31
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at December 31, 2011	261,334
Exercised	(76,000)
Outstanding at September 30, 2012	185,334
Weighted-Average Grant Date Fair Value Outstanding at December 31, 2011	$ 102.98
Weighted-Average Grant Date Fair Value, Exercised	$ (88.00)
Weighted-Average Grant Date Fair Value Outstanding at September 30, 2012	$ 109.13
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at December 31, 2011	69,566
Granted	75,355
Exercised	(17,380)
Forfeited	(482)
Outstanding at September 30, 2012	127,059
Weighted-Average Grant Date Fair Value Outstanding at December 31, 2011	$ 83.56
Weighted-Average Grant Date Fair Value, Granted	$ 71.69
Weighted-Average Grant Date Fair Value, Exercised	$ 94.47
Weighted Average Grant Date Fair Value, Forfeited	$ 74.85
Weighted-Average Grant Date Fair Value Outstanding at September 30, 2012	$ 75.06

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Premiums
Life	$ 72,203	$ 71,926	$ 209,353	$ 207,786
Annuity	30,140	21,704	93,275	73,304
Accident and health	56,199	57,708	167,965	174,736
Property and casualty	272,903	289,796	814,503	856,958
Other policy revenues	49,343	46,350	146,406	141,860
Net investment income	258,190	225,942	754,449	715,186
Realized investments gains (losses)	26,905	17,531	46,852	62,488
Other-than-temporary impairments	(13,975)	(4,851)	(22,073)	(4,851)
Other income	8,160	6,604	22,975	18,896
Total premiums and other revenues	760,068	732,710	2,233,705	2,246,363
Policyholder Benefits
Life	84,615	75,472	245,237	232,013
Annuity	37,964	29,960	120,931	102,770
Claims incurred
Accident and health	38,436	38,691	119,586	119,764
Property and casualty	187,944	215,226	620,462	685,168
Interest credited to policyholders' account balances	108,069	82,813	323,952	288,343
Commissions for acquiring and servicing policies	92,253	109,346	283,295	337,747
Other operating expenses	114,234	111,451	336,378	346,823
Change in deferred policy acquisition costs	7,168	(5,466)	12,468	(39,624)
Total benefits, losses and expenses	670,683	657,493	2,062,309	2,073,004
Income (loss) before federal income tax and equity in earnings/losses of unconsolidated affiliates	89,385	75,217	171,396	173,359
Less: Provision (benefit) for federal income taxes
Current	19,900	12,610	43,384	40,127
Deferred	7,754	6,487	(1,131)	(253)
Total provision (benefit) for federal income taxes	27,654	19,097	42,253	39,874
Equity in earnings (losses) of unconsolidated affiliates, net of tax	(895)	3,077	(2,462)	2,839
Net income (loss)	60,836	59,197	126,681	136,324
Less: Net income (loss) attributable to noncontrolling interest, net of tax	1,650	1,547	1,773	1,906
Net income (loss) attributable to American National Insurance Company and Subsidiaries	$ 59,186	$ 57,650	$ 124,908	$ 134,418
Earnings per share:
Basic	$ 2.21	$ 2.17	$ 4.68	$ 5.06
Diluted	$ 2.20	$ 2.16	$ 4.65	$ 5.03
Weighted average common shares outstanding	26,736,464	26,559,950	26,699,211	26,559,865
Weighted average common shares outstanding and dilutive potential common shares	26,870,655	26,718,464	26,859,100	26,706,798

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INVESTMENTS IN SECURITIES

9 Months Ended

Sep. 30, 2012

INVESTMENTS IN SECURITIES

4. INVESTMENTS IN SECURITIES

The cost or amortized cost and estimated fair value of investments in held-to-maturity and available-for-sale securities are shown below (in thousands):

	September 30, 2012
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	8,503	$	92	$	—		$	8,595
States of the U.S. and political subdivisions of the states		401,608		41,574		(1	)		443,181
Foreign governments		29,064		4,871		—			33,935
Corporate debt securities		8,105,733		780,685		(4,645	)		8,881,773
Residential mortgage-backed securities		602,449		48,272		(1,276	)		649,445
Collateralized debt securities		2,504		342		—			2,846
Other debt securities		38,020		3,422		—			41,442
Total bonds held-to-maturity		9,187,881		879,258		(5,922	)		10,061,217
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		16,293		1,214		—			17,507
States of the U.S. and political subdivisions of the states		578,800		47,140		(26	)		625,914
Foreign governments		5,000		2,409		—			7,409
Corporate debt securities		3,551,547		321,373		(16,160	)		3,856,760
Residential mortgage-backed securities		112,773		6,001		(388	)		118,386
Commercial mortgage-backed securities		20,934		376		(9,969	)		11,341
Collateralized debt securities		18,158		1,595		(30	)		19,723
Other debt securities		10,072		1,465		—			11,537
Total bonds available-for-sale		4,313,577		381,573		(26,573	)		4,668,577
Equity securities
Common stock		660,798		405,750		(7,386	)		1,059,162
Preferred stock		26,690		8,609		(74	)		35,225
Total equity securities		687,488		414,359		(7,460	)		1,094,387
Total investments in securities	$	14,188,946	$	1,675,190	$	(39,955	)	$	15,824,181

	December 31, 2011
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Fixed maturity securities, bonds held-to-maturity
U.S. treasury and other U.S. government corporations and agencies	$	13,704	$	193	$	—		$	13,897
States of the U.S. and political subdivisions of the states		405,526		32,272		(6	)		437,792
Foreign governments		29,044		4,978		—			34,022
Corporate debt securities		8,011,901		564,159		(25,316	)		8,550,744
Residential mortgage-backed securities		714,659		50,774		(3,986	)		761,447
Commercial mortgage-backed securities		31,341		—		(20,158	)		11,183
Collateralized debt securities		7,134		—		(1,018	)		6,116
Other debt securities		38,663		3,827		—			42,490
Total bonds held-to-maturity		9,251,972		656,203		(50,484	)		9,857,691
Fixed maturity securities, bonds available-for-sale
U.S. treasury and other U.S. government corporations and agencies		11,930		1,156		—			13,086
States of the U.S. and political subdivisions of the states		579,008		39,930		(90	)		618,848
Foreign governments		5,000		2,435		—			7,435
Corporate debt securities		3,316,083		221,079		(32,016	)		3,505,146
Residential mortgage-backed securities		191,832		11,898		(1,009	)		202,721
Collateralized debt securities		17,636		1,611		(170	)		19,077
Other debt securities		14,121		1,173		—			15,294
Total bonds available-for-sale		4,135,610		279,282		(33,285	)		4,381,607
Equity securities
Common stock		679,724		305,269		(16,086	)		968,907
Preferred stock		30,955		7,688		(1,470	)		37,173
Total equity securities		710,679		312,957		(17,556	)		1,006,080
Total investments in securities	$	14,098,261	$	1,248,442	$	(101,325	)	$	15,245,378

Actual maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential and commercial mortgage-backed securities, which are not due at a single maturity, have been allocated to their respective categories based on the year of final contractual maturity. The amortized cost and estimated fair value, by contractual maturity of fixed maturity securities, are shown below (in thousands):

	September 30, 2012
	Bonds Held-to-Maturity				Bonds Available-for-Sale
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,147,452	$	1,173,170	$	366,867	$	373,976
Due after one year through five years		2,779,703		3,043,367		1,690,520		1,820,346
Due after five years through ten years		4,471,977		4,989,079		1,827,871		2,006,695
Due after ten years		782,899		851,026		423,319		462,961
Without single maturity date		5,850		4,575		5,000		4,599
Total	$	9,187,881	$	10,061,217	$	4,313,577	$	4,668,577

Available-for-sale securities are sold throughout the year for various reasons. All gains and losses were determined using specific identification of the securities sold. Proceeds from the sales of these securities, with the realized gains and losses, are shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012			2011		2012			2011
Proceeds from sales of available-for-sale securities	$	85,400		$	23,224	$	123,705		$	122,574
Gross realized gains		15,742			11,702		27,769			32,679
Gross realized losses		(204	)		—		(374	)		(840	)

During the nine months ended September 30, 2012 bonds with a carrying value of $34,227,000 were transferred from held-to-maturity to available-for-sale due to evidence of a significant deterioration in the issuers’ creditworthiness. An other-than-temporary impairment of $11,358,000 was recorded following the transfers at fair value.

Net unrealized gains (losses) on securities

The components of the net unrealized gains (losses) on securities during the periods indicated are shown below (in thousands):

	Nine months ended September 30,
	2012			2011
Bonds available-for-sale	$	109,003		$	51,205
Equity securities		111,498			(140,014	)
Net unrealized gains (losses) on securities during the year		220,501			(88,809	)
Adjustments for:
Deferred policy acquisition costs		(38,358	)		(7,240	)
Participating policyholders' interest		(8,192	)		1,718
Deferred federal income tax benefit (expense)		(60,768	)		32,983
Net unrealized gains (losses) on securities, net of tax	$	113,183		$	(61,348	)

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are shown below (in thousands):

	September 30, 2012
	Less than 12 months					12 Months or more					Total
	Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
States of the U.S. and political subdivisions of the states	$	—		$	—	$	(1	)	$	80	$	(1	)	$	80
Corporate debt securities		(1,102	)		103,810		(3,543	)		43,768		(4,645	)		147,578
Residential mortgage-backed securities		(162	)		16,290		(1,114	)		25,752		(1,276	)		42,042
Total bonds held-to-maturity		(1,264	)		120,100		(4,658	)		69,600		(5,922	)		189,700
Fixed maturity securities, bonds available-for-sale
States of the U.S. and political subdivisions of the states		(26	)		1,978		—			—		(26	)		1,978
Corporate debt securities		(746	)		123,044		(15,414	)		76,570		(16,160	)		199,614
Residential mortgage-backed securities		(88	)		6,381		(300	)		10,317		(388	)		16,698
Commericial mortgage-backed securities		—			—		(9,969	)		5,768		(9,969	)		5,768
Collateralized debt securities		(1	)		224		(29	)		940		(30	)		1,164
Total bonds available-for-sale		(861	)		131,627		(25,712	)		93,595		(26,573	)		225,222
Equity securities
Common stock		(7,386	)		56,165		—			—		(7,386	)		56,165
Preferred stock		(74	)		5,780		—			—		(74	)		5,780
Total equity securities		(7,460	)		61,945		—			—		(7,460	)		61,945
Total investments in securities	$	(9,585	)	$	313,672	$	(30,370	)	$	163,195	$	(39,955	)	$	476,867

	December 31, 2011
	Less than 12 months					12 Months or more					Total
	Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value
Fixed maturity securities, bonds held-to-maturity
States of the U.S. and political subdivisions of the states	$	—		$	—	$	(6	)	$	264	$	(6	)	$	264
Corporate debt securities		(20,204	)		680,202		(5,112	)		39,280		(25,316	)		719,482
Residential mortgage-backed securities		(227	)		19,398		(3,759	)		32,653		(3,986	)		52,051
Commercial mortgage-backed securities		—			—		(20,158	)		11,183		(20,158	)		11,183
Collateralized debt securities		(8	)		1,605		(1,010	)		4,511		(1,018	)		6,116
Total bonds held-to-maturity		(20,439	)		701,205		(30,045	)		87,891		(50,484	)		789,096
Fixed maturity securities, bonds available-for-sale
States of the U.S. and political subdivisions of the states		(10	)		762		(80	)		1,971		(90	)		2,733
Corporate debt securities		(12,142	)		396,761		(19,874	)		85,623		(32,016	)		482,384
Residential mortgage-backed securities		(202	)		25,943		(807	)		9,047		(1,009	)		34,990
Collateralized debt securities		(6	)		704		(164	)		2,770		(170	)		3,474
Total bonds available-for-sale		(12,360	)		424,170		(20,925	)		99,411		(33,285	)		523,581
Equity securities
Common stock		(16,086	)		98,731		—			—		(16,086	)		98,731
Preferred stock		(1,470	)		6,481		—			—		(1,470	)		6,481
Total equity securities		(17,556	)		105,212		—			—		(17,556	)		105,212
Total investments in securities	$	(50,355	)	$	1,230,587	$	(50,970	)	$	187,302	$	(101,325	)	$	1,417,889

For all investment securities with an unrealized loss, including those in an unrealized loss position for 12 months or more, American National performs a quarterly analysis to determine if an other-than-temporary impairment (“OTTI”) loss should be recorded. As of September 30, 2012, the investment securities with unrealized losses were not deemed to be other-than-temporarily impaired. Even though the duration of the unrealized losses on some of the securities exceeds one year, American National has no intent to sell. Further, it is not more-likely-than-not that American National will be required to sell these securities prior to recovery, and recovery is expected in a reasonable period of time.

Credit Risk Management

Management believes American National’s bond portfolio is diversified and of investment grade. The bond portfolio distributed by credit quality rating, using both S&P and Moody’s ratings, is shown below:

	September 30, 2012			December 31, 2011
AAA		6.2	%		8.1	%
AA		10.8			10.5
A		38.0			38.3
BBB		40.6			38.6
BB and below		4.4			4.5
Total		100.0	%		100.0	%

American National’s equity securities by market sector distribution are shown below:

	September 30, 2012			December 31, 2011
Consumer goods		20.8	%		21.5	%
Financials		18.0			17.2
Information technology		17.8			16.9
Energy and utilities		16.3			17.3
Healthcare		12.3			11.7
Industrials		8.7			9.0
Communications		3.5			4.2
Materials		2.5			2.1
Other		0.1			0.1
Total		100.0	%		100.0	%

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RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 30, 2012

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

ADOPTION OF NEW ACCOUNTING STANDARDS

In October 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. The new standard redefines the term “acquisition cost” and added the term “incremental direct cost of contract acquisition” to the master glossary. These changes limit the deferrable cost to those costs that are related directly to the successful acquisition of insurance contracts, and those that result directly from and are essential to the contract acquisition and costs that would have not been incurred had the contract acquisition not occurred. The new guidance also specifies that advertising costs should be deferred only if the capitalization criteria for direct-response advertising are met. ASU 2010-26 is effective for interim and annual periods, commencing after December 15, 2011. American National adopted this standard effective January 1, 2012, and applied the retrospective method of adoption to all prior periods presented in the consolidated financial statements. Accordingly, upon adoption, the DAC asset was reduced by approximately $34,260,000 as a result of acquisition costs previously deferred that are no longer eligible for deferral under the new guidance. The after-tax cumulative effect adjustment to the opening balance of stockholders’ equity was approximately $19,745,000.

In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in the U.S. GAAP and IFRSs. ASU 2011-04 clarifies the intent of the FASB about the application of existing fair value measurement and disclosure requirements such as: (1) the application of the highest and best use and valuation premise concepts; (2) a requirement specific to measuring the fair value of an instrument classified in a reporting entity’s shareholders’ equity; and (3) a requirement to disclose unobservable inputs used in the fair value of an instrument categorized within Level 3 of the fair value hierarchy. The new guidance also prohibits the use of block premiums and discounts for all fair value measurement, regardless of hierarchy. In addition, ASU 2011-04 expands the disclosures about fair value measurements. ASU 2011-04 is effective for interim and annual periods, beginning after December 15, 2011. American National’s adoption of this guidance on January 1, 2012 did not have a material effect on the consolidated financial statements.

In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income. ASU 2011-05 makes the presentation of other comprehensive income (“OCI”) more prominent by giving reporting entities two presentation options. Reporting entities can present the total net income and total OCI along with their respective components as one continuous statement or as two separate consecutive statements. The new guidance also eliminates the option to present OCI in the statement of changes in stockholders’ equity. In addition, the new guidance requires reporting entities to present reclassification adjustments from OCI to net income on the face of the financial statements. ASU 2011-05 is effective for interim and annual periods, beginning after December 15, 2011. American National’s adoption of this guidance on January 1, 2012 did not have a material effect on its consolidated financial statements.

In September 2011, the FASB issued ASU No. 2011-08, Testing Goodwill for Impairment. ASU 2011-08 allows an assessment of qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis to determining whether the two-step goodwill impairment test is necessary. ASU 2011-08 is effective for interim and annual periods beginning after December 15, 2011. American National’s adoption of this guidance on January 1, 2012 did not have a material effect on its consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05. The guidance defers the application of the reclassification adjustment provisions in ASU 2011-05. ASU 2011-12 is effective for interim and annual periods beginning after December15,2011. American National’s adoption of this guidance on January 1, 2012 did not have a material effect on its consolidated financial statements.

Future Adoption of New Accounting Standards

In July 2011, the FASB issued ASU No. 2011-06, Fees Paid to the Federal Government by Health Insurers. ASU 2011-06 addresses questions about how health insurers should recognize and classify in their income statements fees mandated by the Patient Protection and Affordable Care Act, which imposes an annual fee on health insurers for each calendar year beginning on or after January 1, 2014. The new guidance specifies that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year. The corresponding deferred cost is then amortized to expense using a straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. ASU 2011-06 is effective for calendar years beginning after December 31, 2013. American National’s adoption of this guidance on January 1, 2014 is not expected to have a material effect on its consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-10, Derecognition of in Substance Real Estate. The new guidance clarifies that when a reporting entity ceases to have a controlling financial interest in a subsidiary that is in substance real estate because of a default on the subsidiary’s nonrecourse debt secured by the real estate, the reporting entity should apply the guidance for real estate sales when evaluating the subsidiary for deconsolidation. ASU 2011-10 is effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. American National’s adoption of this guidance on January 1, 2013 is not expected to have a material effect on its consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The new guidance requires an entity to disclose both gross and net information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for interim and annual periods beginning on or after January 1, 2013 and the new disclosure requirements should be applied retrospectively for all periods presented. American National’s adoption of this guidance on January 1, 2013 is not expected to have a material effect on its consolidated financial statements.

In October 2012, the FASB issued ASU No. 2012-04, Technical Amendments and Corrections. The updates to current guidance make the codification easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarification. ASU 2012-04 is effective for fiscal periods beginning after December 15, 2012. American National’s adoption of this guidance on January 1, 2013 is not expected to have a material effect on its consolidated financial statements.

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STOCKHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

9 Months Ended

Sep. 30, 2012

STOCKHOLDERS' EQUITY AND NONCONTROLLING INTERESTS

15. STOCKHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS

American National has one class of common stock with a par value of $1.00 per share and 50,000,000 authorized shares. The amounts outstanding at the dates indicated are shown below:

	September 30,			December 31,
	2012			2011
Common stock
Shares issued		30,832,449			30,832,449
Treasury shares		(3,995,785	)		(4,011,165	)
Outstanding shares		26,836,664			26,821,284
Restricted shares		(185,334	)		(261,334	)
Unrestricted outstanding shares		26,651,330			26,559,950

Stock-based compensation

American National has one stock-based compensation plan, which allows for grants of Non-Qualified Stock Options, Stock Appreciation Rights (“SAR”), Restricted Stock (“RS”) Awards, Restricted Stock Units (“RSU”), Performance Awards, Incentive Awards or any combination of these. The number of shares available for grants under the plan cannot exceed 2,900,000 shares, and no more than 200,000 shares may be granted to any one individual in any calendar year.

RS Awards entitle the participant to full dividend and voting rights. Unvested shares are restricted as to disposition, and are subject to forfeiture under certain circumstances. Compensation expense is recognized over the vesting period. The restrictions on these awards lapse after 10 years, and these awards feature a graded vesting schedule in the case of the retirement of an award holder. Restricted stock has been granted, with a total of 340,334 shares granted at an exercise price of zero, of which 185,334 shares are unvested. For the three months ended September 30, 2012, a credit to compensation expense was recorded totaling $766,000, while a charge to compensation expense of $573,000 was recorded for the nine months ended September 30, 2012. The compensation expense recorded for the three and nine months ended September 30, 2011 was $678,000 and $2,011,000, respectively.

The SARs give the holder the right to cash compensation based on the difference between the price of a share of stock on the grant date and the price on the exercise date. The SARs vest at a rate of 20% per year for 5 years and expire 5 years after vesting. American National uses the Black-Scholes option pricing model to calculate the fair value and compensation expense for SARs. The fair value of the SARs was $9,000 and $10,000 at September 30, 2012 and December 31, 2011, respectively. For the three months ended September 30, 2012, a charge to compensation expense was recorded totaling $2,000, while a credit to compensation expense of $1,000 was recorded for the nine months ended September 30, 2012. Compensation income was recorded totaling $9,000 and $13,000 for the three and nine months ended September 30, 2011, respectively.

RSUs are awarded as part of American National’s incentive compensation plan. In 2011, RSUs were also awarded as part of the Board of Directors compensation. The RSUs are converted to American National’s common stock on a one-for-one basis, generally after a two-year cliff or three-year graded vesting requirement, depending on the terms of the grant. These awards result in compensation expense to American National over the vesting period or a shorter period as a result of retirement provisions. For the three months ended September 30, 2012, a credit to compensation expense was recorded totaling $175,000 while a charge to compensation expense of $7,137,000 was recorded for the nine months ended September 30, 2012. Compensation expense was recorded totaling $530,000 and $1,343,000 for the three and nine months ended September 30, 2011, respectively.

SAR, RS and RSU information for the periods indicated is shown below:

	SAR Shares			SAR Weighted- Average Grant Date Fair Value		RS Shares			RS Weighted- Average Grant Date Fair Value			RS Units			RSU Weighted- Average Grant Date Fair Value
Outstanding at December 31, 2011		126,769		$	110.08		261,334		$	102.98			69,566		$	83.56
Granted		—			—		—			—			75,355			71.69
Exercised		(200	)		—		(76,000	)		(88.00	)		(17,380	)		94.47
Forfeited		(3,510	)		114.02		—			—			(482	)		74.85
Expired		(14,108	)		100.14		—			—			—			—
Outstanding at September 30, 2012		108,951		$	111.31		185,334		$	109.13			127,059		$	75.06

The weighted-average contractual remaining life for the 108,951 SAR shares outstanding as of September 30, 2012, is 1.2 years. The weighted-average exercise price, which is the same as the weighted-average grant date fair value above, for these shares, is $111.31 per share. Of the shares outstanding, 92,976 are exercisable at a weighted-average exercise price of $111.24 per share.

The weighted-average contractual remaining life for the 185,334 RS shares outstanding as of September 30, 2012, is 4.7 years. The weighted-average price at the date of grant for these shares is $109.13 per share. None of the shares outstanding were exercisable.

The weighted-average contractual remaining life for the 127,059 RSUs authorized as of September 30, 2012, is 2.1 years. The weighted-average price at the date of grant for these units is $75.06 per share. None of the authorized units were exercisable.

Earnings (loss) per share

Basic earnings (losses) per share were calculated using a weighted-average number of shares outstanding. The Restricted Stock resulted in diluted earnings per share as follows (in thousands, except share and per share data):

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
			(As Adjusted)				(As Adjusted)
Weighted average shares outstanding		26,736,464		26,559,950		26,699,211		26,559,865
Incremental shares from restricted stock		134,191		158,514		159,889		146,933
Total shares for diluted calculations		26,870,655		26,718,464		26,859,100		26,706,798
Net income (loss) attributable to American National
Insurance Company and Subsidiaries	$	59,186	$	57,650	$	124,908	$	134,418
Basic earnings (loss) per share	$	2.21	$	2.17	$	4.68	$	5.06
Diluted earnings (loss) per share		2.20		2.16		4.65		5.03

Dividends

American National Insurance Company’s payment of dividends to stockholders is restricted by statutory regulations. The restrictions require life insurance companies to maintain minimum amounts of capital and surplus, and in the absence of special approval, limit the payment of dividends to the greater of statutory net gain from operations on an annual, non-cumulative basis, or 10% of statutory surplus. Additionally, insurance companies are not permitted to distribute the excess of stockholders’ equity, as determined on a GAAP basis over that determined on a statutory basis. At September 30, 2012 and December 31, 2011, American National Insurance Company’s statutory capital and surplus was $2,137,986,000 and $2,000,551,000, respectively.

The same restrictions on amounts that can transfer in the form of dividends, loans, or advances to the parent company apply to American National’s insurance subsidiaries. Dividends received by the parent company from its insurance subsidiaries amounted to zero for the nine months ended September 30, 2012 and 2011.

At September 30, 2012, approximately $1,509,980,000 of American National’s consolidated stockholders’ equity represents net assets of its insurance subsidiaries, compared to approximately $1,436,489,000 at December 31, 2011. Any transfer of these net assets to American National Insurance Company would be subject to statutory restrictions and approval.

Noncontrolling interests

American National County Mutual Insurance Company “(County Mutual)” is a mutual insurance company that is owned by its policyholders. County Mutual has a management agreement that effectively gives complete control of County Mutual to American National. As a result, County Mutual is included in the consolidated financial statements of American National. The interests that the policyholders of County Mutual have in the financial position of County Mutual are reflected as noncontrolling interest totaling $6,750,000 at September 30, 2012 and December 31, 2011.

American National Insurance Company and its subsidiaries are partners in various joint ventures. They exercise significant control or ownership of certain of these joint ventures, resulting in their consolidation into American National’s consolidated financial statements. As a result of the consolidation, the interest of the other partners of the joint ventures is shown as noncontrolling interests. Noncontrolling interests were a net liability of $5,678,000 and $6,197,000 at September 30, 2012 and December 31, 2011, respectively.

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LIABILITY FOR UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES

9 Months Ended

Sep. 30, 2012

LIABILITY FOR UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES

11. LIABILITY FOR UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES

The liability for unpaid claims and claim adjustment expenses (“CAE”) for accident and health, and property and casualty insurance is included in the liability for policy and contract claims in the consolidated statements of financial position and represents the amount estimated for claims that have been reported but not settled and claims incurred but not reported. Liability for unpaid claims and CAE are estimated based upon American National’s historical experience and actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation. The effects of changes in such estimated liability are included in the consolidated results of operations in the period in which the changes occur.

Activities in the liability for unpaid claims and CAE (“claims”) included in policy and contract claims in the consolidated statements of financial position are shown below (in thousands):

	Nine Months Ended September 30,
	2012			2011
Unpaid claims balance, beginning	$	1,180,259		$	1,210,126
Less reinsurance recoverables		235,174			222,635
Net beginning balance		945,085			987,491
Incurred related to:
Current		779,602			869,549
Prior years		(46,037	)		(59,753	)
Total incurred claims		733,565			809,796
Paid claims related to:
Current		454,183			536,834
Prior years		284,025			290,279
Total paid claims		738,208			827,113
Net balance		940,442			970,174
Plus reinsurance recoverables		238,268			253,178
Unpaid claims balance, ending	$	1,178,710		$	1,223,352

The net and gross reserve calculations have shown favorable development for the last several years as a result of favorable loss emergence compared to what was implied by the loss development patterns used in the original estimation of losses in prior years. Estimates for ultimate incurred claims and CAE attributable to insured events of prior years decreased by approximately $46,037,000 during the first nine months of 2012 and $59,753,000 during the same period in 2011.

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Segment Information (Summary Of Results Of Operations By Operating Segments) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Income (loss) from continuing operations	$ 89,385	$ 75,217	$ 171,396	$ 173,359
Life [Member]
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Income (loss) from continuing operations	9,212	17,050	36,025	47,345
Annuity [Member]
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Income (loss) from continuing operations	25,384	14,323	72,998	45,972
Health [Member]
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Income (loss) from continuing operations	6,179	5,254	10,989	13,303
Property And Casualty [Member]
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Income (loss) from continuing operations	25,021	12,488	13,173	(18,343)
Corporate And Other [Member]
Income (loss) from continuing operations before federal income taxes, and equity in earnings/losses of unconsolidated affiliates:
Income (loss) from continuing operations	$ 23,589	$ 26,102	$ 38,211	$ 85,082

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DERIVATIVE INSTRUMENTS

9 Months Ended

Sep. 30, 2012

DERIVATIVE INSTRUMENTS

7. DERIVATIVE INSTRUMENTS

American National purchases derivative contracts (equity-indexed options) that serve as economic hedges against fluctuations in the equity markets to which equity-indexed annuity products are exposed. Equity-indexed annuities include a fixed host annuity contract and an equity-indexed embedded derivative. These derivative instruments are not designated as accounting hedges. The following tables detail the volume, estimated fair value and the gains or losses on derivative instruments (in thousands):

Derivatives Not Designated as Hedging Instruments	Location in the Consolidated Statements of Financial Position	September 30, 2012						December 31, 2011
		Number of Instruments		Notional Amounts	Estimated Fair Value			Number of Instruments	Notional Amounts	Estimated Fair Value
Equity-indexed options	Other invested assets		355	$839,100	$	88,476		332	$791,900	$	65,188
Equity-indexed annuity embedded derivative	Future policy benefits - Annuity		19,760	702,000		(80,324	)	16,727	661,300		(63,275	)

Derivatives Not Designated as Hedging Instruments	Location Reported in the Consolidated Statements of Operations	Gains (Losses) Recognized in Income on Derivatives
		Three months ended September 30,						Nine months ended September 30,
		2012			2011			2012			2011
Equity-indexed options	Net investment income	$	10,448		$	(23,492	)	$	21,947		$	(18,195	)
Equity-indexed annuity embedded derivative	Interest credited to policyholders’ account balances		(7,711	)		25,193			(16,779	)		21,585

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Investment Real Estate (Carrying Amount And Maximum Exposure To Loss Related To VIEs) (Detail) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Variable Interest Entity, Not Primary Beneficiary [Member]
Non-Variable Interest Entities [Line Items]
Investment in unconsolidated affiliates, Carrying Amount	$ 73,871	$ 85,509
Investment in unconsolidated affiliates, Maximum Exposure to Loss	$ 73,871	$ 85,509

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MORTGAGE LOANS

9 Months Ended

Sep. 30, 2012

MORTGAGE LOANS

5. MORTGAGE LOANS

American National makes commercial mortgage loans in areas that offer the potential for property value appreciation. Generally, mortgage loans are secured by first liens on income-producing real estate. American National attempts to maintain a diversified portfolio of mortgage loans by considering the property-type as well as the geographic distribution of the property, which is the underlying mortgage collateral. Mortgage loans by property-type distribution are as follows:

	September 30, 2012			December 31, 2011
Office		31.5	%		30.2	%
Industrial		24.8			24.6
Retail		19.7			19.1
Hotel and motel		14.4			13.4
Other		9.6			12.7
Total		100.0	%		100.0	%

Mortgage loans by geographic distribution are as follows:

	September 30, 2012			December 31, 2011
South Atlantic		23.6	%		22.9	%
West South Central		22.7			23.1
East North Central		18.1			18.8
Pacific		12.1			11.4
Mountain		7.1			6.7
East South Central		7.0			5.7
Middle Atlantic		4.0			5.4
West North Central		2.7			2.9
New England		2.1			2.5
Other		0.6			0.6
Total		100.0	%		100.0	%

During the nine months ended September 30, 2012, American National sold one commercial loan with a recorded investment of $19,665,000 and a realized gain of $2,607,000. During the year ended December 31, 2011, American National sold one industrial loan with a recorded investment of $27,532,000 and a realized gain of $4,968,000. During the nine months ended September 30, 2012, American National foreclosed on four loans with a recorded investment of $34,562,000. There were no foreclosures during the year ended December 31, 2011.

Credit Quality

The amounts of commercial mortgage loans placed on nonaccrual status and classified as non-performing are shown in the table below (in thousands):

	September 30, 2012		December 31, 2011
Commercial mortgages
Office	$	—	$	8,436
Retail		493		23,997
Total	$	493	$	32,433

The credit quality of the mortgage loan portfolio is assessed by evaluating the credit risk of each borrower. A loan is classified as performing or non-performing based on whether all of the contractual terms of the loan have been met.

The age analysis of past due commercial mortgage loans is shown in the table below (in thousands):

	September 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Mortgage Loans
Commerical mortgages
Office	$	6,220	$	—	$	—	$	6,220	$	961,586	$	967,806
Industrial		—		—		—		—		760,480		760,480
Retail		13,950		—		493		14,443		590,795		605,238
Other		10,299		—		—		10,299		727,681		737,980
Total	$	30,469	$	—	$	493	$	30,962	$	3,040,542		3,071,504
Allowance for loan losses												12,841
Mortgage loans on real estate, net of allowance											$	3,058,663

	December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Mortgage Loans
Commerical mortgages
Office	$	—	$	—	$	8,436	$	8,436	$	879,923	$	888,359
Industrial		—		—		—		—		721,704		721,704
Retail		13,140		—		10,857		23,997		537,665		561,662
Other		—		—		—		—		765,078		765,078
Total	$	13,140	$	—	$	19,293	$	32,433	$	2,904,370		2,936,803
Allowance for loan losses												11,321
Mortgage loans on real estate, net of allowance											$	2,925,482

The amounts shown above are net of unamortized discounts of $4,872,000 and $10,189,000 and unamortized origination fees of $12,801,000 and $12,683,000 at September 30, 2012 and December 31, 2011, respectively. No other unearned income is included in these amounts.

Allowance for Credit Losses

Loans not evaluated individually for collectibility are segregated by collateral property-type and location, and allowance factors are applied. These factors are developed annually and reviewed quarterly based on our historical loss experience adjusted for the expected trend in the rate of foreclosure losses. Allowance factors are higher for loans of certain property types and in certain regions based on loss experience or a blended historical loss factor.

The allowance for credit losses and unpaid principal balance in commercial mortgage loans are shown in the table below (in thousands):

	Collectively Evaluated for Impairment		Individually Evaluated for Impairment			Total
Allowance for credit losses
December 31, 2011	$	10,828	$	493		$	11,321
Write down		—		(2,277	)		(2,277	)
Change in allowance		1,520		2,277			3,797
September 30, 2012	$	12,348	$	493		$	12,841
Unpaid principal balance
September 30, 2012	$	3,016,837	$	72,340		$	3,089,177
December 31, 2011	$	2,725,930	$	233,745		$	2,959,675

The detail of loans individually evaluated for impairment with and without an allowance recorded by collateral property-type is shown in the tables below (in thousands):

	Nine months ended September 30, 2012
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With an allowance recorded
Retail	$	—	$	493	$	493	$	—	$	—
Without an allowance recorded
Office	$	13,022	$	13,022	$	—	$	13,050	$	635
Retail		13,626		13,626		—		13,992		604
Other		45,199		45,199		—		45,283		2,276
Total without an allowance recorded	$	71,847	$	71,847	$	—	$	72,325	$	3,515

	Year ended December 31, 2011
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With an allowance recorded
Retail	$	—	$	493	$	493	$	—	$	—
Without an allowance recorded
Office	$	48,833	$	48,833	$	—	$	49,088	$	3,506
Industrial		57,261		57,261		—		57,514		3,628
Retail		15,477		15,477		—		15,535		1,514
Other		111,681		111,681		—		111,407		7,546
Total without an allowance recorded	$	233,252	$	233,252	$	—	$	233,544	$	16,194

Troubled Debt Restructurings

American National has a high quality mortgage loan portfolio that management believes is well performing. For a very small portion of the portfolio, classified as troubled debt restructurings, American National has granted concessions related to the borrowers’ ability to pay the loans. The types of concessions granted are generally one of, or a combination of, a delay in payment of principal or interest, a reduction of the contractual interest rate or an extension of the maturity date. American National considers the amount, timing and extent of concessions granted in determining any impairment or changes in the specific allowance for loan losses recorded in connection with a troubled debt restructuring. The carrying value after specific allowance, before and after modification in a troubled debt restructuring, may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment.

Six loans as of September 30, 2012 and three loans as of December 31, 2011, which were part of the mortgage loan portfolio had been modified in troubled debt restructurings. The outstanding recorded investment was $80,081,000 and $45,366,000 for 2012 and 2011, respectively, both before and after the modifications. There are no commitments to lend additional funds to debtors whose loans have been modified in troubled debt restructurings and there have been no defaults on modified loans during the period.

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INVESTMENT REAL ESTATE

9 Months Ended

Sep. 30, 2012

INVESTMENT REAL ESTATE

6. INVESTMENT REAL ESTATE

Investment real estate by property-type distribution is as follows:

	September 30, 2012			December 31, 2011
Shopping centers		40.9	%		41.1	%
Office buildings		22.0			22.0
Industrial		18.2			16.3
Hotels and motels		1.9			2.1
Other		17.0			18.5
Total		100.0	%		100.0	%

Investment real estate by geographic distribution is as follows:

	September 30, 2012			December 31, 2011
West South Central		60.9	%		66.1	%
South Atlantic		11.3			11.6
East North Central		10.3			5.2
Mountain		6.3			6.9
East South Central		5.4			5.2
West North Central		3.2			2.7
Pacific		2.6			2.3
Total		100.0	%		100.0	%

In the normal course of investment activities, American National and its wholly-owned subsidiaries enter into real estate partnership and joint venture agreements. Generally, opportunities are presented by a sponsor, with the significant activities being conducted on behalf of the sponsor. American National participates in the design of these entities, but in most cases, its involvement is limited to financing. Through analysis performed by American National, some of these partnerships and joint ventures have been determined to be variable interest entities (“VIEs”). In certain instances, in addition to an economic interest in the entity, American National holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary or consolidator of the entity. The assets of the consolidated VIEs are restricted and must be used first to settle the liabilities of the VIE. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of American National, as American National’s obligation is limited to the amount of its committed investment. Financial or other support was not provided to investees designated as VIEs in the form of liquidity arrangements, guarantees, or other commitments to third parties that may affect the fair value or risk of American National’s variable interest in the investees designated as VIEs as of September 30, 2012 and December 31, 2011.

 The total assets and liabilities relating to VIEs in which American National is the primary beneficiary and which are consolidated in its financial statements for the periods indicated are as follows (in thousands):

	September 30, 2012		December 31, 2011
Investment real estate	$	160,288	$	154,878
Short-term investments		1,260		3,364
Cash and cash equivalents		3,515		5,777
Accrued investment income		2,346		2,299
Other receivables		11,599		11,816
Other assets		5,647		3,870
Total assets of consolidated VIEs	$	184,655	$	182,004
Notes payable	$	161,247	$	58,894
Other liabilities		5,593		5,354
Total liabilities of consolidated VIEs	$	166,840	$	64,248

For other real estate partnerships and joint ventures in which American National is a partner, the major decisions that most significantly impact the economic activities of the partnership and joint venture require unanimous consent of all partners. American National is not the primary beneficiary and these entities were not consolidated. The following table presents the carrying amount and maximum exposure to loss relating to VIEs for which American National holds significant variable interests but is not the primary beneficiary and which have not been consolidated (in thousands):

	September 30, 2012				December 31, 2011
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
Investment in unconsolidated affiliates	$	73,871	$	73,871	$	85,509	$	85,509

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NET INVESTMENT INCOME AND REALIZED INVESTMENT GAINS (LOSSES)

9 Months Ended

Sep. 30, 2012

NET INVESTMENT INCOME AND REALIZED INVESTMENT GAINS (LOSSES)

8. NET INVESTMENT INCOME AND REALIZED INVESTMENT GAINS (LOSSES)

Net investment income, before federal income taxes, is shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012		2011
Bonds	$	171,515	$	173,737		$	514,237	$	514,856
Equity securities		6,965		6,230			20,718		19,392
Mortgage loans		52,501		48,521			153,008		149,329
Real estate		8,173		9,838			16,456		20,154
Options		10,448		(23,492	)		21,947		(18,195	)
Other invested assets		8,588		11,108			28,083		29,650
Total	$	258,190	$	225,942		$	754,449	$	715,186

Realized investments gains (losses), before federal income taxes, are shown below (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012			2011
Bonds	$	8,393	$	788		$	21,813		$	13,895
Equity securities		12,172		11,975			22,386			30,789
Mortgage loans		2,132		5,518			(1,190	)		5,518
Real estate		3,386		(338	)		3,134			12,775
Other invested assets		822		(412	)		709			(489	)
Total	$	26,905	$	17,531		$	46,852		$	62,488

The OTTI, which are not included in the realized investments gains (losses) above, are shown below (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Bonds	$	(12,659	)	$	—		$	(12,659	)	$	—
Equity securities		(1,316	)		(4,851	)		(9,414	)		(4,851	)
Total	$	(13,975	)	$	(4,851	)	$	(22,073	)	$	(4,851	)

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Net Investment Income And Realized Investment Gains (Losses) (Summary of Realized Investment Gains (Losses), Before Federal Income Taxes and Other than Temporary Impairment Losses) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Realized investments gain (losses)	$ 26,905	$ 17,531	$ 46,852	$ 62,488
Other-than-temporary impairments	(13,975)	(4,851)	(22,073)	(4,851)
Bonds [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Realized investments gain (losses)	8,393	788	21,813	13,895
Other-than-temporary impairments	(12,659)		(12,659)
Equity securities [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Realized investments gain (losses)	12,172	11,975	22,386	30,789
Other-than-temporary impairments	(1,316)	(4,851)	(9,414)	(4,851)
Mortgage Loans On Real Estate [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Realized investments gain (losses)	2,132	5,518	(1,190)	5,518
Real estate [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Realized investments gain (losses)	3,386	(338)	3,134	12,775
Other Invested Assets [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Realized investments gain (losses)	$ 822	$ (412)	$ 709	$ (489)

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Commitments And Contingencies (Narrative) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Commitments Contingencies And Guarantees [Line Items]
Commitments outstanding, aggregate amount	$ 322,317,000
Commitments expected to be funded in 2012	255,497,000
Commitments expected to be funded in 2013 and beyond	66,820,000
Short-term borrowing facility, maximum capacity	100,000,000
Short-term borrowing facility, letters of credit	55,000,000
Letters of credit outstanding, amount	33,695,000	31,716,000
Short-term borrowing facility, expiration date	Sep. 30, 2013
Short-term borrowing, liquidity requirement	0
Total amount of the guarantees outstanding	206,513,000
Life insurance policies with guarantees, cash value	$ 208,762,000

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Fair Value Of Financial Instruments (Narrative) (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Fair Value Of Financial Instruments [Line Items]
Percentage of fixed maturity securities pricing service fair value	99.00%
Net gain (loss) for derivatives included in net investment income	$ 16,334,000	$ (12,613,000)
Minimum [Member]
Fair Value Of Financial Instruments [Line Items]
Estimate embedded derivative value ranges, Maximum	13.00%
Maximum [Member]
Fair Value Of Financial Instruments [Line Items]
Estimate embedded derivative value ranges, Maximum	30.50%

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Net Investment Income And Realized Investment Gains (Losses) (Summary Of Net Investment Income, Before Federal Income Taxes) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment income, Bonds	$ 171,515	$ 173,737	$ 514,237	$ 514,856
Investment income, Equity securities	6,965	6,230	20,718	19,392
Investment income, Mortgage loans	52,501	48,521	153,008	149,329
Investment income, Real estate	8,173	9,838	16,456	20,154
Investment income, Options	10,448	(23,492)	21,947	(18,195)
Investment income, Other invested assets	8,588	11,108	28,083	29,650
Net Investment Income, Insurance Entity, Total	$ 258,190	$ 225,942	$ 754,449	$ 715,186

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DEFERRED POLICY ACQUISITION COSTS (Tables)

9 Months Ended

Sep. 30, 2012

Deferred Policy Acquisition Costs

Deferred policy acquisition costs are shown below (in thousands):

	Life			Annuity			Accident & Health			Property & Casualty			Total
Balance at December 31, 2011 (As Adjusted)	$	651,579		$	463,030		$	55,100		$	150,984		$	1,320,693
Additions		62,162			54,015			8,311			167,453			291,941
Amortization		(56,276	)		(64,333	)		(12,958	)		(170,842	)		(304,409	)
Effect of change in unrealized gains on available-for-sale securities		(7,250	)		(31,108	)		—			—			(38,358	)
Net change		(1,364	)		(41,426	)		(4,647	)		(3,389	)		(50,826	)
Balance at September 30, 2012	$	650,215		$	421,604		$	50,453		$	147,595		$	1,269,867

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Mortgage Loans (Mortgage Loans By Geographic Distribution) (Detail) (Mortgage Loans On Real Estate [Member])	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Mortgage Loans	100.00%	100.00%
South Atlantic [Member]
Concentration Risk [Line Items]
Mortgage Loans	23.60%	22.90%
West South Central [Member]
Concentration Risk [Line Items]
Mortgage Loans	22.70%	23.10%
East North Central [Member]
Concentration Risk [Line Items]
Mortgage Loans	18.10%	18.80%
Pacific [Member]
Concentration Risk [Line Items]
Mortgage Loans	12.10%	11.40%
Mountain [Member]
Concentration Risk [Line Items]
Mortgage Loans	7.10%	6.70%
East South Central [Member]
Concentration Risk [Line Items]
Mortgage Loans	7.00%	5.70%
Middle Atlantic [Member]
Concentration Risk [Line Items]
Mortgage Loans	4.00%	5.40%
West North Central [Member]
Concentration Risk [Line Items]
Mortgage Loans	2.70%	2.90%
New England [Member]
Concentration Risk [Line Items]
Mortgage Loans	2.10%	2.50%
Other [Member]
Concentration Risk [Line Items]
Mortgage Loans	0.60%	0.60%

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FEDERAL INCOME TAXES

9 Months Ended

Sep. 30, 2012

FEDERAL INCOME TAXES

13. FEDERAL INCOME TAXES

The federal income tax provisions vary from the amounts computed when applying the statutory federal income tax rate. A reconciliation of the effective tax rate to the statutory federal income tax rate is shown below (in thousands, except percentages):

	Three months ended September 30,										Nine months ended September 30,
	2012					2011					2012					2011
	Amount		Rate			Amount		Rate			Amount		Rate			Amount		Rate
						(As Adjusted)										(As Adjusted)
Income tax expense on pre-tax income		$31,285		35.0	%		$26,326		35.0	%		$59,989		35.0	%		$60,676		35.0	%
Tax-exempt investment income		(1,827)		(2.0)			(1,968)		(2.6)			(5,569)		(3.2)			(6,035)		(3.5)
Dividend exclusion		(1,501)		(1.7)			(1,342)		(1.8)			(4,453)		(2.6)			(4,046)		(2.3)
Miscellaneous tax credits, net		(2,206)		(2.5)			(1,515)		(2.0)			(6,669)		(3.9)			(5,644)		(3.3)
Other items, net		1,903		2.1			(2,404)		(3.2)			(1,045)		(0.6)			(5,077)		(2.9)
Total	$	27,654		30.9	%	$	19,097		25.4	%	$	42,253		24.7	%	$	39,874		23.0	%

The tax effects of temporary differences that gave rise to the deferred tax assets and liabilities are shown below (in thousands):

	September 30, 2012			December 31, 2011
				(As Adjusted)
DEFERRED TAX ASSETS:
Investments, principally due to impairment losses	$	87,523		$	87,518
Investment in real estate and other invested assets principally due to investment valuation allowances		7,812			8,620
Policyholder funds, principally due to policy reserve discount		235,845			235,827
Policyholder funds, principally due to unearned premium reserve		32,240			31,230
Non-qualified pension		28,424			28,503
Participating policyholders’ surplus		35,691			33,677
Pension		60,590			63,597
Commissions and other expenses		7,582			8,165
Tax carryforwards		27,870			32,220
Other assets		793			79
Gross deferred tax assets		524,370			529,436
DEFERRED TAX LIABILITIES:
Available-for-sale securities, principally due to net unrealized gains		(266,254	)		(189,194	)
Investment in bonds, principally due to accrual of discount on bonds		(11,361	)		(11,774	)
Deferred policy acquisition costs, due to difference between GAAP and tax amortization methods		(334,972	)		(350,319	)
Gross deferred tax liabilities		(612,587	)		(551,287	)
Total net deferred tax liability	$	(88,217	)	$	(21,851	)

Management believes that a sufficient level of taxable income will be achieved over time to utilize the deferred tax assets in the consolidated federal tax return; therefore, no valuation allowance was recorded as of September 30, 2012 and December 31, 2011. However, if not utilized beforehand, approximately $27,870,000 in ordinary loss tax carryforwards will expire at the end of tax year 2032.

American National recognizes, when applicable, interest and penalties related to uncertain tax positions. Interest and penalties are included in the “Other operating expenses” line in the consolidated statements of operations. No such interest expense was incurred for the nine months ended September 30, 2012 and for the year ended December 31, 2011. In addition, no provision for penalties was established for uncertain tax positions. Management does not believe that there are any uncertain tax benefits that could be recognized within the next twelve months that would decrease American National’s effective tax rate.

The statute of limitations for the examination of federal income tax returns by the Internal Revenue Service (“IRS”) for years 2006 to 2011 either has been extended or has not expired. In the opinion of management, all prior year deficiencies have been paid or adequate provisions have been made for any tax deficiencies that may be upheld.

A total of $20,293,000 and $34,441,000 was paid to the IRS during the nine months ended September 30, 2012 and 2011, respectively.

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2012

RELATED PARTY TRANSACTIONS

18. RELATED PARTY TRANSACTIONS

American National has entered into recurring transactions and agreements with certain related parties as a part of its ongoing operations. These include mortgage loans, management contracts, agency commission contracts, marketing agreements, accident and health insurance contracts and legal services. The impact on the consolidated financial statements of the significant related party transactions for the periods indicated is shown below (in thousands):

		Dollar Amount of Transactions				Amount due to/(from)
		Nine months ended September 30,				American National
Related Party	Financial Statement Line Impacted	2012		2011		September 30, 2012			December 31, 2011
Gal-Tex Hotel Corporation	Mortgage loans on real estate	$	794	$	738	$	9,164		$	9,957
Gal-Tex Hotel Corporation	Net investment income		522		578		55			60
Greer, Herz and Adams, LLP	Other operating costs and expenses		5,689		5,830		(307	)		(198	)

Mortgage Loans to Gal-Tex Hotel Corporation (“Gal-Tex”): The Moody Foundation and the Libbie Shearn Moody Trust own 34.0% and 50.2%, respectively, of Gal-Tex Hotel Corporation. The Moody Foundation and the Libbie Shearn Moody Trust also own approximately 22.9% and 37.1%, respectively, of American National. American National held a first mortgage loan issued to Gal-Tex secured by hotel property in San Antonio, Texas. This loan was originated in 1999, had a balance of $9,164,000 as of September 30, 2012, has a current interest rate of 7.30%, and has a final maturity date of April 1, 2019. This loan is current as to principal and interest payments.

Transactions with Greer, Herz & Adams, L.L.P.: Irwin M. Herz, Jr. is one of American National’s advisory directors and a Partner with Greer, Herz Adams, L.L.P., which serves as American National’s General Counsel.

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Investments In Securities (Equity Securities With Market Sector Distribution) (Detail) (Equity securities [Member])	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Equity securities with market sector distribution	100.00%	100.00%
Consumer Goods [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	20.80%	21.50%
Financials [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	18.00%	17.20%
Information Technology [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	17.80%	16.90%
Energy And Utilities [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	16.30%	17.30%
Healthcare [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	12.30%	11.70%
Industrials [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	8.70%	9.00%
Communications [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	3.50%	4.20%
Materials [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	2.50%	2.10%
Other [Member]
Concentration Risk [Line Items]
Equity securities with market sector distribution	0.10%	0.10%

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Recently Issued Accounting Pronouncements (Narrative) (Detail) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Deferred policy acquisition cost	$ 1,269,867,000	$ 1,320,693,000
Adjustment to opening balance of stockholders' equity	19,745,000
Restatement Adjustment [Member]
Deferred policy acquisition cost	$ 34,260,000

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income (loss)	$ 60,836	$ 59,197	$ 126,681	$ 136,324
Other comprehensive income (loss), net of tax
Change in net unrealized gain (loss) on securities	53,446	(101,062)	113,183	(61,348)
Foreign currency transaction and translation adjustments	(300)	(470)	30	(277)
Defined benefit plan adjustment	2,351	(120)	7,144	(308)
Other comprehensive income (loss)	55,497	(101,652)	120,357	(61,933)
Total comprehensive income (loss)	116,333	(42,455)	247,038	74,391
Less: comprehensive income attributable to noncontrolling interest	1,650	1,547	1,773	1,906
Total comprehensive income (loss) attributable to American National Insurance Company and Subsidiaries	$ 114,683	$ (44,002)	$ 245,265	$ 72,485

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

9 Months Ended

Sep. 30, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Form 10-Q. In addition to GAAP, specific SEC requirements applicable to insurance companies are applied to the consolidated financial statements.

The interim consolidated financial statements and notes herein are unaudited. These interim consolidated financial statements reflect all adjustments which management considers necessary for the fair presentation of the consolidated statements of financial position, operations, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the interim periods.

These interim consolidated financial statements and notes should be read in conjunction with the annual consolidated financial statements and notes thereto included in American National’s Annual Report on Form 10-K as of and for the year ended December 31, 2011. The consolidated results of operations for the interim periods should not be considered indicative of results to be expected for the full year. American National consolidates all entities that are wholly-owned and those in which American National owns less than 100% but controls, as well as any variable interest entities in which American National is the primary beneficiary. Investments in unconsolidated affiliates are accounted for using the equity method of accounting.

Certain amounts in prior years have been reclassified to conform to current year presentation. The preparation of the consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported consolidated financial statement balances. Actual results could differ from those estimates.

Effective January 1, 2012, American National adopted a new accounting standard that modified the accounting for deferred policy acquisition costs (“DAC”) associated with acquiring new and renewal insurance and annuity contracts. Previously, acquisition costs were deferred if the costs varied with and were related primarily to the acquisition of new and renewal insurance and annuity contracts. In accordance with the new standard of Accounting Standard Update (“ASU”) No. 2010-26, DAC is limited to those costs that are related directly to the successful acquisition of insurance and annuity contracts, costs that result directly from and are essential to the contract acquisition and costs that would have not been incurred had the contract acquisition not occurred. In addition, advertising costs are included in DAC only if the capitalization criteria for direct-response advertising are met. Refer to Note 3 for discussion of the effects of this accounting change.

As of September 30, 2012 all other American National significant accounting policies and practices remain materially unchanged from those disclosed in Note 2, Summary of Significant Accounting Policies and Practices, of the Notes to the Consolidated Financial Statements included in American National’s 2011 Annual Report on Form 10-K.

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Investment Real Estate (Investment Real Estate By Geographic Distribution) (Detail) (Real Estate Investment [Member])	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Concentration Risk [Line Items]
Investment Real Estate	100.00%	100.00%
West South Central [Member]
Concentration Risk [Line Items]
Investment Real Estate	60.90%	66.10%
South Atlantic [Member]
Concentration Risk [Line Items]
Investment Real Estate	11.30%	11.60%
East North Central [Member]
Concentration Risk [Line Items]
Investment Real Estate	10.30%	5.20%
Mountain [Member]
Concentration Risk [Line Items]
Investment Real Estate	6.30%	6.90%
East South Central [Member]
Concentration Risk [Line Items]
Investment Real Estate	5.40%	5.20%
West North Central [Member]
Concentration Risk [Line Items]
Investment Real Estate	3.20%	2.70%
Pacific [Member]
Concentration Risk [Line Items]
Investment Real Estate	2.60%	2.30%

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Stockholders' Equity And Noncontrolling Interests (Noncontrolling Interests Narrative) (Detail) (USD $)	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 County Mutual [Member]	Dec. 30, 2011 County Mutual [Member]	Sep. 30, 2012 Antac Inc [Member]	Dec. 31, 2011 Antac Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Noncontrolling interest	$ 12,428,000	$ 12,947,000	$ 6,750,000	$ 6,750,000	$ 5,678,000	$ 6,197,000

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Deferred Policy Acquisition Costs (Deferred Policy Acquisition Costs) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Movement Analysis Of Deferred Policy Acquisition Costs Roll Forward
Balance at December 31, 2011 (As Adjusted)	$ 1,320,693,000
Additions	291,941,000	349,262,000
Amortization of deferred policy acquisition costs	(304,409,000)	(309,638,000)
Effect of change in unrealized gains on available-for-sale securities	(38,358,000)
Net change	(50,826,000)
Balance at September 30, 2012	1,269,867,000
Life [Member]
Movement Analysis Of Deferred Policy Acquisition Costs Roll Forward
Balance at December 31, 2011 (As Adjusted)	651,579,000
Additions	62,162,000
Amortization of deferred policy acquisition costs	(56,276,000)
Effect of change in unrealized gains on available-for-sale securities	(7,250,000)
Net change	(1,364,000)
Balance at September 30, 2012	650,215,000
Annuity [Member]
Movement Analysis Of Deferred Policy Acquisition Costs Roll Forward
Balance at December 31, 2011 (As Adjusted)	463,030,000
Additions	54,015,000
Amortization of deferred policy acquisition costs	(64,333,000)
Effect of change in unrealized gains on available-for-sale securities	(31,108,000)
Net change	(41,426,000)
Balance at September 30, 2012	421,604,000
Health [Member]
Movement Analysis Of Deferred Policy Acquisition Costs Roll Forward
Balance at December 31, 2011 (As Adjusted)	55,100,000
Additions	8,311,000
Amortization of deferred policy acquisition costs	(12,958,000)
Net change	(4,647,000)
Balance at September 30, 2012	50,453,000
Property And Casualty [Member]
Movement Analysis Of Deferred Policy Acquisition Costs Roll Forward
Balance at December 31, 2011 (As Adjusted)	150,984,000
Additions	167,453,000
Amortization of deferred policy acquisition costs	(170,842,000)
Net change	(3,389,000)
Balance at September 30, 2012	$ 147,595,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policies)

9 Months Ended

Sep. 30, 2012

Basis of Accounting

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Form 10-Q. In addition to GAAP, specific SEC requirements applicable to insurance companies are applied to the consolidated financial statements.

The interim consolidated financial statements and notes herein are unaudited. These interim consolidated financial statements reflect all adjustments which management considers necessary for the fair presentation of the consolidated statements of financial position, operations, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the interim periods.

These interim consolidated financial statements and notes should be read in conjunction with the annual consolidated financial statements and notes thereto included in American National’s Annual Report on Form 10-K as of and for the year ended December 31, 2011. The consolidated results of operations for the interim periods should not be considered indicative of results to be expected for the full year.

Consolidation Policy

American National consolidates all entities that are wholly-owned and those in which American National owns less than 100% but controls, as well as any variable interest entities in which American National is the primary beneficiary. Investments in unconsolidated affiliates are accounted for using the equity method of accounting.

Reclassification Policy

Certain amounts in prior years have been reclassified to conform to current year presentation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported consolidated financial statement balances. Actual results could differ from those estimates.

Deferred Policy Acquisition Cost, Accounting Policy

Effective January 1, 2012, American National adopted a new accounting standard that modified the accounting for deferred policy acquisition costs (“DAC”) associated with acquiring new and renewal insurance and annuity contracts. Previously, acquisition costs were deferred if the costs varied with and were related primarily to the acquisition of new and renewal insurance and annuity contracts. In accordance with the new standard of Accounting Standard Update (“ASU”) No. 2010-26, DAC is limited to those costs that are related directly to the successful acquisition of insurance and annuity contracts, costs that result directly from and are essential to the contract acquisition and costs that would have not been incurred had the contract acquisition not occurred. In addition, advertising costs are included in DAC only if the capitalization criteria for direct-response advertising are met. Refer to Note 3 for discussion of the effects of this accounting change.

As of September 30, 2012 all other American National significant accounting policies and practices remain materially unchanged from those disclosed in Note 2, Summary of Significant Accounting Policies and Practices, of the Notes to the Consolidated Financial Statements included in American National’s 2011 Annual Report on Form 10-K.

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Federal Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
DEFERRED TAX ASSETS:
Investments, principally due to impairment losses	$ 87,523	$ 87,518
Investment in real estate and other invested assets principally due to investment valuation allowances	7,812	8,620
Policyholder funds, principally due to policy reserve discount	235,845	235,827
Policyholder funds, principally due to unearned premium reserve	32,240	31,230
Non-qualified pension	28,424	28,503
Participating policyholders' surplus	35,691	33,677
Pension	60,590	63,597
Commissions and other expenses	7,582	8,165
Tax carryforwards	27,870	32,220
Other assets	793	79
Gross deferred tax assets	524,370	529,436
DEFERRED TAX LIABILITIES:
Available-for-sale securities, principally due to net unrealized gains	(266,254)	(189,194)
Investment in bonds, principally due to accrual of discount on bonds	(11,361)	(11,774)
Deferred policy acquisition costs, due to difference between GAAP and tax amortization methods	(334,972)	(350,319)
Gross deferred tax liabilities	(612,587)	(551,287)
Total net deferred tax liability	$ (88,217)	$ (21,851)

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STOCKHOLDERS' EQUITY AND NONCONTROLLING INTERESTS (Tables)

9 Months Ended

Sep. 30, 2012

Common Stock, Amounts Outstanding

The amounts outstanding at the dates indicated are shown below:

	September 30,			December 31,
	2012			2011
Common stock
Shares issued		30,832,449			30,832,449
Treasury shares		(3,995,785	)		(4,011,165	)
Outstanding shares		26,836,664			26,821,284
Restricted shares		(185,334	)		(261,334	)
Unrestricted outstanding shares		26,651,330			26,559,950

Stock-Based Compensation Information

SAR, RS and RSU information for the periods indicated is shown below:

	SAR Shares			SAR Weighted- Average Grant Date Fair Value		RS Shares			RS Weighted- Average Grant Date Fair Value			RS Units			RSU Weighted- Average Grant Date Fair Value
Outstanding at December 31, 2011		126,769		$	110.08		261,334		$	102.98			69,566		$	83.56
Granted		—			—		—			—			75,355			71.69
Exercised		(200	)		—		(76,000	)		(88.00	)		(17,380	)		94.47
Forfeited		(3,510	)		114.02		—			—			(482	)		74.85
Expired		(14,108	)		100.14		—			—			—			—
Outstanding at September 30, 2012		108,951		$	111.31		185,334		$	109.13			127,059		$	75.06

Summary of Basic and Diluted Earnings Per Share

The Restricted Stock resulted in diluted earnings per share as follows (in thousands, except share and per share data):

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
			(As Adjusted)				(As Adjusted)
Weighted average shares outstanding		26,736,464		26,559,950		26,699,211		26,559,865
Incremental shares from restricted stock		134,191		158,514		159,889		146,933
Total shares for diluted calculations		26,870,655		26,718,464		26,859,100		26,706,798
Net income (loss) attributable to American National
Insurance Company and Subsidiaries	$	59,186	$	57,650	$	124,908	$	134,418
Basic earnings (loss) per share	$	2.21	$	2.17	$	4.68	$	5.06
Diluted earnings (loss) per share		2.20		2.16		4.65		5.03

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NOTES PAYABLE

9 Months Ended

Sep. 30, 2012

NOTES PAYABLE

12. NOTES PAYABLE

American National’s real estate holding subsidiaries are partners in certain joint ventures determined to be VIEs that are consolidated in American National’s consolidated financial statements. The real estate owned through the respective ventures secures notes payable. The liability of American National Insurance Company is limited to the amount of its direct or indirect investment in the respective ventures, which totaled $14,196,000 and $17,959,000 at September 30, 2012 and December 31, 2011, respectively. At September 30, 2012, the current portion and the long-term portion of the notes payable to third-party lenders associated with these consolidated VIEs were $48,747,000 and $112,500,000, respectively. At December 31, 2011, the current portion and long-term portion of the notes payable to third-party lenders associated with these consolidated VIEs were $46,387,000 and $12,507,000, respectively. The average interest rate on the current portion of the notes payable was 2.86% during the nine months ended September 30, 2012. The interest rates of the long-term portion of notes payable are 4.00% and adjusted LIBOR plus 1.00% and 2.50% margins. The long-term notes payable will mature in 2016, 2022 and 2049.