Insurer Achieves Record Levels of Life Sales, Total Capital
NEW ORLEANS — (February 26, 2007) — Pan-American Life Insurance Group announced today that 2006 was one of the most successful years in the 95-year history of its flagship business Pan-American Life Insurance Company, with record levels of life insurance sales, and total surplus.
According to financial reports released by the company, Pan-American Life’s 2006 statutory revenues came in at $262.4 million, up from $242.2, led by outstanding sales increases of 50% in life insurance sales; including an 85% increase in the international dollar market, and a 26% improvement in Latin America.
"We are very proud with our accomplishments in 2006, an unparalleled year of success,” said José S. Suquet, President and Chief Executive Officer of Pan-American Life. “Spurred by the influx of a new management team, the continued focus on our core businesses and the drive of our loyal producers, we delivered outcomes that far exceeded our expectations.”
Another significant event is the fact that Pan-American Life has reorganized under a mutual holding company structure as Pan-American Life Insurance Group, following the approval of the Louisiana Department of Insurance and the resounding endorsement of its policyholders. According to Suquet, the mutual holding company structure introduces additional means to raise capital, provides greater organizational flexibility, enhances opportunities for growth through acquisitions, and further strengthens the financial stability of the company.
“With total capital at an all-time high – it’s over $300 million for the first time in the history of the company,” Suquet added, “we have definitely strengthened our capital base and increased our operating flexibility, and we expect that the continuing turnaround that began in 2005 will position us well for our future growth plans.”
2006 Financial Highlights
- Total Adjusted Surplus: $312.7 million (Total Capital)
- Total Assets: $1.67 billion
- Contribution to Adjusted Surplus: $28.2 million
- Contribution to Surplus: $19.2 million
- Total Revenues: $262.4 million
2006 Sales Highlights
- International Dollar sales up 85% from 2005
- Puerto Rico life sales up 83% from 2005
- Central American Region life sales up 12% from 2005
- Andes Region life sales up 37% from 2005
- Total group life and health up 8% from 2005
Ratings Highlights
- Following a thorough review of the company's balance sheet strength, management team, operating performance and business profile, Pan-American Life earned an “A-”(Excellent) rating from A.M. Best, according to Best’s established and objective standards. Pan-American Life was also assigned an industry outlook rating of stable.
- Pan-American Life also received an “A” (Strong) rating from the Fitch Ratings Insurance Group, a leading global rating agency. This rating is given to companies with strong capacity to meet policyholder contract obligations.
About Pan-American Life
The Pan-American Life Insurance Group is a leading provider of insurance and financial services throughout the Americas. New Orleans-based Pan-American Life Insurance Company, the Group's flagship member, has been delivering trusted financial services since 1911, employing more than 1,300 worldwide, providing top-rated life and health insurance, employee benefits and financial services in 47 states, the District of Columbia (DC), Puerto Rico, and the U.S. Virgin Islands. The Group’s member companies offer individual and/or group life and health insurance throughout Latin America and the Caribbean. The Group has branches and affiliates in Costa Rica, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, and 15 Caribbean markets, including Barbados, Cayman Islands, Curacao and Trinidad and Tobago. For more information, visit the Pan-American Life Web site at palig.com