American National Completes Acquisition of Farm Family Holdings

Apr 10, 2001, 01:00 ET from American National Insurance Company

    GALVESTON, Texas, April 10 /PRNewswire/ --
 American National Insurance Company (Nasdaq:   ANAT) ("American National") and
 Farm Family Holdings, Inc. (NYSE:   FFH) ("Farm Family") today announced that
 American National consummated its acquisition of Farm Family.  The
 acquisition, valued at approximately $280 million, was accomplished through
 the merger of Farm Family and American National Acquisition Company, a wholly-
 owned subsidiary of American National.  The Farm Family shareholders will
 receive $44 for each share of common stock and $35.72, plus any accrued and
 unpaid dividends, for each share of Series A Preferred Stock.
     Farm Family, an insurance holding company, has over $1.3 billion in assets
 and had total revenues for the year ended December 31, 2000 of approximately
 $313 million.  Farm Family is the parent of Farm Family Casualty Insurance
 Company ("Farm Family Casualty"), Farm Family Life Insurance Company ("Farm
 Family Life") and United Farm Family Insurance Company ("United Farm Family")
 which are domiciled in New York and operate in twelve northeastern states.
 Farm Family Casualty and United Farm Family are specialized property and
 casualty insurers of farms, agricultural related businesses and residents and
 businesses of rural and suburban communities.  Farm Family Life sells
 individual whole life, term and universal life insurance products, single and
 flexible premium deferred annuity products and disability income insurance
 products.  Additional information regarding Farm Family is available at
 www.farmfamily.com.
     G. Richard Ferdinandtsen, President and Chief Operating Officer of
 American National said, "We are pleased to welcome Farm Family to the American
 National family of companies.  The combination of these companies creates
 marketing synergies that benefit both companies and offers exciting
 opportunities for the companies' agents.  Farm Family's presence in the
 northeast, particularly in New York, will geographically expand the
 policyholder base of American National and its insurance subsidiaries.
 Further, American National intends to utilize Farm Family's expertise in
 serving agricultural and related markets.  This acquisition, and its strategic
 benefits, are consistent with our continuing commitment to the American
 National shareholders."
     American National, which was founded in 1905, is headquartered in
 Galveston, Texas.  American National has over $9 billion in assets and had
 total revenues for the year ended December 31, 2000 of approximately
 $1.8 billion.  The American National family of companies offers a broad line
 of products and services, which include individual and group life and health
 insurance, and annuities; personal lines property and casualty insurance;
 credit insurance and mutual funds.  The life insurance business conducted by
 the American National family of companies is conducted in all states, as well
 as in Mexico, Puerto Rico, Guam and American Samoa.  American National is also
 authorized to sell its products to American military personnel in Western
 Europe.  American National's property and casualty subsidiary, American
 National Property and Casualty Company ("ANPAC"), is based in Springfield,
 Missouri and currently operates in 37 states.  American National and ANPAC
 have been assigned a Best's rating of A+ (Superior) by A.M. Best Company and
 are rated A++ (Very Strong) by Standard and Poor's.  In addition, the Ward
 Financial Group named ANPAC as a 1999 Ward's 50 Benchmark Company.  Additional
 information regarding American National is available at www.anico.com.
     Philip P. Weber, President and Chief Executive Officer of Family Farm
 said, "We are pleased to officially become an integral part of the American
 National family of companies.  The addition of Farm Family to American
 National's extensive financial services network creates a tremendous
 opportunity for our customers, agents, and employees."
     Following the merger, Farm Family will continue as a subsidiary of
 American National and will be headquartered in Albany, New York with Mr. Weber
 as its Chief Executive Officer.  Farm Family will retain its brand identity
 and will focus on expanding the delivery of a wider array of financial
 services to farms, agricultural related businesses and residents and
 businesses of rural and suburban communities in its existing twelve-state
 territory.  In addition, ANPAC plans to introduce certain of Farm Family's
 products, including the Special Farm Package, Country Estate, business owners
 and commercial package policies into ANPAC's markets across the United States.
 
     Safe Harbor Statement Under the Private Securities Litigation Reform Act
 of 1995:
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995 and is based on
 managements' current knowledge, expectations, estimates, beliefs and
 assumptions.  The forward-looking statements in this press release include,
 but are not limited to, statements of plans and objectives of each of American
 National and Farm Family or their managements' statements of future economic
 performance and assumptions underlying statements regarding American National
 and Farm Family or their businesses.  Readers are hereby cautioned that
 certain events or circumstances could cause actual results to differ
 materially from those estimated, projected, or predicted.  The forward-looking
 statements in this press release are not guarantees of future performance and
 are subject to a number of important risks and uncertainties, many of which
 are outside American National's and Farm Family's control, that could cause
 actual results to differ materially.  These risks include, but are not limited
 to, the following:  (i) changes in general economic conditions; (ii) changes
 in regulatory requirements; (iii) adverse decisions from regulatory
 authorities; (iv) adverse litigation or arbitration results or resolution of
 litigation or arbitration; (v) competition from existing insurance companies;
 (vi) the failure of expected benefits from the merger to be realized; and
 (vii) the potential occurrence of natural disasters.
 
 

SOURCE American National Insurance Company
    GALVESTON, Texas, April 10 /PRNewswire/ --
 American National Insurance Company (Nasdaq:   ANAT) ("American National") and
 Farm Family Holdings, Inc. (NYSE:   FFH) ("Farm Family") today announced that
 American National consummated its acquisition of Farm Family.  The
 acquisition, valued at approximately $280 million, was accomplished through
 the merger of Farm Family and American National Acquisition Company, a wholly-
 owned subsidiary of American National.  The Farm Family shareholders will
 receive $44 for each share of common stock and $35.72, plus any accrued and
 unpaid dividends, for each share of Series A Preferred Stock.
     Farm Family, an insurance holding company, has over $1.3 billion in assets
 and had total revenues for the year ended December 31, 2000 of approximately
 $313 million.  Farm Family is the parent of Farm Family Casualty Insurance
 Company ("Farm Family Casualty"), Farm Family Life Insurance Company ("Farm
 Family Life") and United Farm Family Insurance Company ("United Farm Family")
 which are domiciled in New York and operate in twelve northeastern states.
 Farm Family Casualty and United Farm Family are specialized property and
 casualty insurers of farms, agricultural related businesses and residents and
 businesses of rural and suburban communities.  Farm Family Life sells
 individual whole life, term and universal life insurance products, single and
 flexible premium deferred annuity products and disability income insurance
 products.  Additional information regarding Farm Family is available at
 www.farmfamily.com.
     G. Richard Ferdinandtsen, President and Chief Operating Officer of
 American National said, "We are pleased to welcome Farm Family to the American
 National family of companies.  The combination of these companies creates
 marketing synergies that benefit both companies and offers exciting
 opportunities for the companies' agents.  Farm Family's presence in the
 northeast, particularly in New York, will geographically expand the
 policyholder base of American National and its insurance subsidiaries.
 Further, American National intends to utilize Farm Family's expertise in
 serving agricultural and related markets.  This acquisition, and its strategic
 benefits, are consistent with our continuing commitment to the American
 National shareholders."
     American National, which was founded in 1905, is headquartered in
 Galveston, Texas.  American National has over $9 billion in assets and had
 total revenues for the year ended December 31, 2000 of approximately
 $1.8 billion.  The American National family of companies offers a broad line
 of products and services, which include individual and group life and health
 insurance, and annuities; personal lines property and casualty insurance;
 credit insurance and mutual funds.  The life insurance business conducted by
 the American National family of companies is conducted in all states, as well
 as in Mexico, Puerto Rico, Guam and American Samoa.  American National is also
 authorized to sell its products to American military personnel in Western
 Europe.  American National's property and casualty subsidiary, American
 National Property and Casualty Company ("ANPAC"), is based in Springfield,
 Missouri and currently operates in 37 states.  American National and ANPAC
 have been assigned a Best's rating of A+ (Superior) by A.M. Best Company and
 are rated A++ (Very Strong) by Standard and Poor's.  In addition, the Ward
 Financial Group named ANPAC as a 1999 Ward's 50 Benchmark Company.  Additional
 information regarding American National is available at www.anico.com.
     Philip P. Weber, President and Chief Executive Officer of Family Farm
 said, "We are pleased to officially become an integral part of the American
 National family of companies.  The addition of Farm Family to American
 National's extensive financial services network creates a tremendous
 opportunity for our customers, agents, and employees."
     Following the merger, Farm Family will continue as a subsidiary of
 American National and will be headquartered in Albany, New York with Mr. Weber
 as its Chief Executive Officer.  Farm Family will retain its brand identity
 and will focus on expanding the delivery of a wider array of financial
 services to farms, agricultural related businesses and residents and
 businesses of rural and suburban communities in its existing twelve-state
 territory.  In addition, ANPAC plans to introduce certain of Farm Family's
 products, including the Special Farm Package, Country Estate, business owners
 and commercial package policies into ANPAC's markets across the United States.
 
     Safe Harbor Statement Under the Private Securities Litigation Reform Act
 of 1995:
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995 and is based on
 managements' current knowledge, expectations, estimates, beliefs and
 assumptions.  The forward-looking statements in this press release include,
 but are not limited to, statements of plans and objectives of each of American
 National and Farm Family or their managements' statements of future economic
 performance and assumptions underlying statements regarding American National
 and Farm Family or their businesses.  Readers are hereby cautioned that
 certain events or circumstances could cause actual results to differ
 materially from those estimated, projected, or predicted.  The forward-looking
 statements in this press release are not guarantees of future performance and
 are subject to a number of important risks and uncertainties, many of which
 are outside American National's and Farm Family's control, that could cause
 actual results to differ materially.  These risks include, but are not limited
 to, the following:  (i) changes in general economic conditions; (ii) changes
 in regulatory requirements; (iii) adverse decisions from regulatory
 authorities; (iv) adverse litigation or arbitration results or resolution of
 litigation or arbitration; (v) competition from existing insurance companies;
 (vi) the failure of expected benefits from the merger to be realized; and
 (vii) the potential occurrence of natural disasters.
 
 SOURCE  American National Insurance Company