Annual Report 2017


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What Teamwork Means

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A Message from Our CEO

Pan-American Life Insurance Group delivered a stellar performance in 2017. What we’ve accomplished speaks volumes about the company we are today and will be tomorrow.

I state that with confidence, because I have witnessed first-hand what can result from the collective effort and collaboration that permeates at all levels of our organization as well as in our work with our external business partners and the markets we serve. This powerful dynamic has truly allowed us to become one PALIG, aligned under the common vision of improving our policyholders’ sense of wellbeing, while becoming the leading insurance carrier in the Americas. And that exceptional teamwork shows.

Teamwork shows in our financial performance.

PALIG has consistently delivered top-line revenue, premium and pre-tax operating income (PTOI) growth. In 2017 revenues grew 6.7 percent to reach a record $1.07 billion. Pre-tax operating earnings grew a strong 21.7 percent to $87.8 million. Net income for the year was $77.5 million, a 58 percent increase compared to 2016. Total assets now stand at $6 billion and total equity increased 14.5 percent to over $1 billion.

We exhibited strong performance across business lines, registering a combined growth of 7 percent in new sales and 3 percent in total premium. International Group and U.S. Life led the way with double digit growth in sales over 2016. This level of performance can only be achieved through the consistent, integrated effort of all our functional areas working together towards a common goal.

When we embarked on our 5-year strategic plan in 2014, we set aggressive targets for the year 2018. We surpassed those targets two years ahead of schedule. As a result, we’ve reset our expectations, embarking on a new 5-year plan with an eye towards 2021. Our new plan builds on our current performance and our strengths as an organization, focusing on four core areas:

  • Organic growth of product business
  • Investing in talent and technology
  • Capitalizing on strategic market opportunities
  • Investing in future wins
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Who We Are

Pan-American Life Insurance Group is a leading provider of insurance and financial services throughout the Americas. Since 1911, the New Orleans-based Group has been delivering trusted financial services and currently comprises more than 20 member companies, employs more than 1,950 worldwide and offers top-rated individual and group life, accident and health insurance, and financial services in 49 states, the District of Columbia (DC), Puerto Rico, the U.S. Virgin Islands, and throughout Latin America and the Caribbean. The Group has branches and affiliates in Costa Rica, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, and 13 Caribbean markets, including Barbados, Cayman Islands, Curacao and Trinidad and Tobago.

Pan-American Life Insurance Group offers:

  • Individuals & Families
    • Life
    • Accident
    • Health
  • Businesses
    • Life
    • Accident
    • Health
    • Pensions
    • Mass Marketing
    • Credit life
    • Multinationals

Together We Drive Success

2017 Annual Review

Across our footprint in the Americas, our teams are executing on our vision of success. Their commitment to working together inspires our performance as a company and enhances the value that we add to our stakeholders.

U.S. Life

  • Achieved double-digit sales growth for the second consecutive year, outperforming the industry by 18 percentage points
  • Introduced new whole life product, Horizon Guarantee to further strengthen product offering
  • Continued to invest in strong relationships with independent distribution partners
  • Repositioned Mutual Trust assets as part of the integrated PALIG investment portfolio, resulting in increased investment yields
  • Optimized coordination between operations teams in New Orleans and Oak Brook to enhance administrative processes
  • Mutual Trust highlights in 2017
    • Achieved $2 billion in statutory assets
    • Announced increased aggregate policyholder dividend payout for 2018 despite continued low-interest rate environment, with over $9 million in dividends to be delivered to policyholders.

U.S. Group

  • Demonstrated the ability to remain flexible and successfully pivot in uncertain political and regulatory environments
  • Delivered strong new account sales in Employee Benefits and Major Medical Stop Loss
  • Expanded sales and marketing distribution channels
  • Added new coverages to accident product portfolio
  • Strengthened service culture and customer service delivery
  • Maintained Hispanic niche market focus with Hispanic-owned businesses accounting for 65 percent of new group clients

International Life

  • Delivered pre-tax operating income (PTOI) of $52.7 million
  • Generated strong sales in Latin America driven by growth in Panama, Honduras, Costa Rica, Colombia and El Salvador
  • Achieved strong sales of annuity and personal accident products in the Caribbean
  • Grew sales in the personal accident segment by 20 percent
  • Expanded the agency distribution model for individual products to Costa Rica and El Salvador
  • Added a single premium term insurance product to the Pan-American Private Client Life suite of products
  • Enhanced product portfolios in Latin America and the Caribbean with the introduction of a new critical illness product and a new term insurance product in key regional markets

International Group

  • Realized impressive top and bottom line growth of 19 percent and 18 percent, respectively
  • Achieved record breaking sales in the multinational employee benefits segment sales with over $15 million in new annualized premium (NAP)
  • Delivered particularly strong growth in the employee benefits segment in Latin America with over 30 percent growth in pre-tax operating income (PTOI) growth
  • Generated significant growth in large markets, notably Mexico and Colombia
  • Continued to successfully grow mass marketing business in Latin America and the Caribbean
  • Expanded Accident & Health product offerings
  • Completed the transformational acquisition of HolaDoctor, a leading digital provider of health and wellness solutions for Hispanic audiences

Corporate Highlights

  • Completed new 5-year strategic plan and made significant inroads in mapping the company’s succession planning process
  • Continued to enhance financial controls
  • Expanded enterprise risk management (ERM) frameworks across the Group, further embedding the culture of ERM throughout the organization’s activities, from strategic planning to execution
  • Upgraded cybersecurity capabilities with the addition of expert professionals

Focus On: U.S. Life

2017 was another outstanding year for our U.S. Life business. Building on the value added in the 2015 merger with Mutual Trust, this line of business is helping PALIG maintain its balanced geographic and product distribution. Other highlights include:

  • Completing the post-merger integration and accelerating growth momentum
  • Growing 21 percent in an industry that rarely exceeds 2 – 3 percent annual growth
  • Delivering an excellent performance in terms of revenue and pre-tax operating income (PTOI)


We’re proud to say that Pan-American Life Insurance Company received an A (Excellent) rating from A.M. Best and an A (Strong) rating from Fitch Ratings; and that Mutual Trust Life Insurance Company is also rated A (Excellent) by A.M. Best. These ratings are strong endorsements of the financial strength that enables us to be there when our clients need us the most.

“Pan-American Life’s rating affirmations reflect the benefits derived from the company’s long-established presence and name recognition in Latin America and the U.S. Hispanic marketplace, as well as its improved balance sheet and income statement. The ratings also reflect Pan-American Life’s solid consolidated risk-adjusted capitalization, well-performing fixed-income investment portfolio and positive net operating performance.” – A.M. Best

"Pan-American's ratings reflect its very strong capitalization and relatively low-risk liability profile. The company’s strong balance sheet continues to be a key ratings driver with very strong capitalization and low leverage. The ratings also consider the successful integration of Mutual Trust, which has strengthened Pan-American's position in the U.S. life insurance market.” - Fitch Ratings


  • Pan-American Life Insurance Group achieved a “new acquisition yield” of 5.28 percent on $830.9 million of bond purchases in 2017
  • Net unrealized gains in Pan-American Life Insurance Group’s bond portfolio stood at $251.0 million as of December 31, 2017. This constitutes an increase of $119.9 million from the previous year
  • Pan-American Life Insurance Company’s statutory bond yield in 2017 of 5.76 percent compares exceptionally well to the Life Industry average as published by A.M. Best. The most updated statistic available from A.M. Best reports that in 2016 the average bond yield for the Life Industry was 4.64 percent

Working Together

Over the course of our 107 year history we have learned many lessons about how we can best serve the people and communities that place their trust in us. Chief among those lessons is the impact of our collective power. When we work together we benefit from each other’s knowledge, empower each other to progress and most importantly, we enhance the company’s ability to deliver on the promise we make to our policyholders.


Our Leadership Working Together

Pan-American Life’s corporate and in-country leadership teams nourish a collaborative culture that encourages every individual within the organization to play their part in bringing the company’s mission, vision and values to life every day.

Our Sales Teams Working Together

Across the United States, Latin America and the Caribbean, our agents and brokers relish the challenge of setting themselves apart and representing their client’s best interests – always. Together, they epitomize all we can accomplish when we work together.

Our Employees Working Together

For more than 100 years, we’ve been known as people you can trust for life. Our teams across the Americas protect and strengthen that legacy with their commitment to delivering the best service to every client from the moment their application comes through the door.

Celebrating Our Legacy and Working Together

In 2017, Pan-American Life’s affiliates in Panama and Guatemala turned 105 and 60, respectively. We also celebrated the 5th anniversary of acquisition in the Caribbean, Costa Rica and Panama. These important milestones are the result of an unwavering commitment to working together.

Coming Together To Make A Difference

Corporate Giving

Teams that work well together achieve a greater impact and make a genuine difference in the lives of all those they touch. In 2017, our employees and producers across the Americas came together to make a meaningful difference in the communities they serve. With their generous support Pan-American Life Insurance Group partnered with organizations that share our commitment to community development, the arts, education and public safety.

Our 2017 Community partners

  • Alianza Anticáncer Infantil - Mexico
  • American Cancer Society
  • American Diabetes Association
  • American Red Cross
  • Asociación de Cónyuges de Funcionarios Diplomáticos del Ecuador
  • Asociación Hogar Jesucristo es mi casa - Guatemala
  • Asociación Pro-Niñez Panameña - Panama
  • Audubon Nature Institute – New Orleans
  • Bayou District Foundation – New Orleans
  • Birdfoot Festival – New Orleans
  • Boy Scouts of America – New Orleans
  • Breastoration – New Orleans
  • Casa Argentina – New Orleans
  • Club de Leones Guatemala
  • Club Rotario de Guatemala
  • Club Rotario Panama Norte - Panama
  • Committee for a Better New Orleans – New Orleans
  • Comunidad Religiosa “Siervas de María Ministras de los Enfermos” - Ecuador
  • Court Watch NOLA
  • Creer – Honduras
  • Crimestoppers – New Orleans
  • Cystic Fibrosis
  • Doctors without Borders
  • Easter Seals
  • Ejército de Salvación - Puerto Rico
  • Escuela República de Francia - Honduras
  • Family Shelter Service
  • Fondo Unido de Guatemala United Way
  • French Quarter Festival – New Orleans
  • Fundacáncer - Panama
  • Fundación Amigos del Niño con Leucemia y Cáncer - Panama
  • Fundación Ayuvi – Guatemala
  • Fundación Castillo Córdova - Guatemala
  • Fundación Jesús Luz de Oportunidades - Panama
  • Fundación Latidos – Panama
  • Fundación Más Magia Más Vida - Mexico
  • Fundación Niño Feliz - Honduras
  • Fundación Porque quiero a Colombia - Colombia
  • Fundación San Ignacio de Loyola - Mexico
  • Fundación Valórate – Panama
  • Fundación Voces del Autismo - Guatemala
  • Fundayuda - Panama
  • Great Lakes Adaptive Sports Association
  • Greater New Orleans Council
  • Greater New Orleans Foundation
  • Greater New Orleans, Inc.
  • Guardian Angel Community Service
  • Habitat for Humanity
  • Habitat for Humanity – New Orleans
  • Hábitat para la Humanidad - Guatemala
  • Help HOPE Live
  • Hispanic Chamber of Commerce of Louisiana
  • Hogar de Niñas Natalia de Simán - El Salvador
  • Hogar del Niño El Ave María - Puerto Rico
  • Hogs for the Cause – New Orleans
  • Honor Flight Chicago
  • Houston Food Bank
  • Humanitarian Service Project
  • Hurricane Harvey Relief Fund
  • Idea Village – New Orleans
  • Illinois Leukemia and Lymphoma Society
  • Instituto Oncológico Nacional - Panama
  • Junior Achievement – New Orleans
  • Juntos Podemos - Curundú
  • Juvenile Diabetes Foundation
  • Leukemia & Lymphoma Society
  • Liga Nacional Contra el Cáncer de Guatemala
  • Little Brothers – Friends of the Elderly
  • Little Friends
  • Louisiana Appleseed
  • Louisiana Children’s Museum
  • Louisiana Philharmonic Orchestra
  • Louisiana State University
  • Loyola University New Orleans
  • Lungevity
  • Make a Wish - Mexico
  • Make- A-Wish Foundation
  • March of Dimes
  • Midwest Shelter for Homeless Veterans
  • National Alliance on Mental Illness
  • National MS Society
  • New Orleans Ballet Association
  • New Orleans Council for Community & Justice
  • New Orleans Hispanic Heritage Foundation
  • New Orleans Museum of Art
  • New Orleans Police and Justice Foundation
  • Northern Illinois Food Bank
  • Nutre Hogar - Panama
  • Ochsner Clinic Foundation
  • Pacific Garden Mission
  • Pancreatic Cancer Action Network
  • Patronato Ciudad del Niño - Panama
  • Patronato de Nutrición - Panama
  • Pediatric Brain Tumor Foundation
  • Rotary Club of Port of Spain – Trinidad
  • Salvation Army
  • Sociedad Israelita de Beneficencia Shevet Ahim - Panama
  • Sociedad Protectora del Niño - Guatemala
  • St. Baldrick’s Foundation
  • Susan G. Komen
  • Texas Diaper Drive
  • The Cotton Tree Foundation -Trinidad
  • The Good Shepherd School – New Orleans
  • The San Antonio Green Market
  • The YMCA of Greater New Orleans
  • Toys for Tots
  • Tulane University
  • United Way
  • United Way - Honduras
  • United Way of Trinidad and Tobago
  • Upturn Arts
  • US Armed Forces
  • US Fund for UNICEF
  • West Suburban Community Pantry
  • WYES – New Orleans
  • Young Leadership Council
  • Youth Leadership Project

Today| Tomorrow| Together

2018 Key Initiatives and Vision

2017 was the beginning of a new phase for Pan-American Life as we began to implement our new strategic five year plan, with ambitious goals for 2021 and beyond. With mutual support and trust anchoring the efforts of our teams across all areas of the business, we are preparing Pan-American Life to continue building on its success.

Key business initiatives for 2018 include:

  • Execute first phase of 5-year strategic plan
  • Assess strategic implications of U.S. tax reform
  • Expand enterprise risk management processes
  • Continue to enhance cybersecurity infrastructure
  • Leverage strategic M&A opportunities
  • Expand U.S. Group accident product portfolio
  • Introduce additional products in the U.S. Life portfolio and leverage cross-selling opportunities
  • Launch Index Universal Life product for U.S. Foreign National business
  • Achieve growth in U.S. Special Markets segment through new strategic partnerships
  • Offer additional products through Hola Doctor distribution channels
  • Strengthen wellness platform in support of international health products
  • Install new anti-money laundering system and further strengthen compliance culture

Senior Management Committee

International Leadership

Mr. Luis Carlos Covarrubias

Country Manager – Mexico

Mr. Salvador Leiva

Country Manager – Guatemala

Ms. Maria Teresa Bolaños

Country Manager – El Salvador

Ms. María del Rosario Álvarez

Country Manager – Honduras

Mr. Alfredo Ramírez

Country Manager – Costa Rica

Mr. José Antonio (Tony) Eleta

Country Manager – Panama

Mr. Juan Pablo Luque

Country Manager – Colombia

Mr. Carlos Chiriboga

Country Manager – Ecuador

Mr. José Luis Vargas

Country Manager – Puerto Rico

Ms. Greer Quan

CEO – Caribbean

International Leadership Map

Board of Directors

In Memorium: Frank Purvis

Frank Purvis was a man of vision, whose more than 56 years of stewardship and service was instrumental in making Pan-American Life the company that it is today. He was an inspiration to all those who knew him and an example, even to those who didn’t. May he rest in peace.


Summary of Operations

Pan-American Life Mutual Holding Company
As of December 31, 2017, 2016, and 2015

*2017 reflects unaudited financials | **2016, 2015 reflects audited financials

Revenues 2017* 2016** 2015**  
Premiums $ 701,723 $ 650,332 $ 515,384  
Policy and contract fees 114,106 111,165 111,820  
Net investment income 243,141 231,432 156,405  
Other revenues 13,526 12,196 16,286  
Total Revenues $ 1.072.496 $ 1,005,125 $ 799,895  
And Expenses
2017* 2016** 2015**  
Policyholder benefits and interest credited $ 617,166 $ 580,610 $ 454,635  
Underwriting, acquisition, insurance and other expenses 336,520 319,330 276,226  
Amortization of deferred policy acquistion costs 30,981 33,036 14,762  
Total benefits and expenses $ 984,667 $ 932,975 $ 745,623  
Income from operations before taxes and noncontrolling interest $ 87,829 $ 72,150 $ 54,272  
Loss from discontinued operations net of tax - - -  
Net realized investment gains 8,688 6,606 1,690  
Income tax expense 19,029 29,810 20,599  
Income after taxes and before noncontrolling interest 77,488 48,946 35,363  
Noncontrolling interest in income (2) 7 52  
Net Income $ 77,490 $ 48,939 $ 35,311  

Balance Sheet

Pan-American Life Mutual Holding Company
As of December 31, 2017, 2016, and 2015

*2017 reflects unaudited financials | **2016, 2015 reflects audited financials

Assets 2017* 2016** 2015**  
Cash and invested assets $ 5,237,693 $ 4,979,557 $ 4,776,399  
Deferred policy acquisition costs 194,281 190,032 190,863  
Other assets 569,642 519,114 545,739  
Total Assets $ 6,001,616 $ 5,688,704 $ 5,513,001  
And Equity
2017* 2016** 2015**  
Future policy benefits and claims $ 2,444,775 $ 2,397,061 $ 2,213,129  
Policyholder account balances and funds 2,132,760 2,039,287 1,951,584  
Other liabilities 358,471 322,186 500,490  
Total Liabilities $ 4,936,006 $ 4,758,534 $ 4,665,203  
Noncontrolling interest subsidiaries $ 293 $ 592 $ 537  
Unassigned equity 1,001,843 924,350 875,411  
Accumulated other comprehensive income (loss) 63,474 5,228 (28,150)  
Total Equity $ 1,065,610 $ 930,170 $ 847,798  
Total Liabilities And Equity $ 6,001,616 $ 5,688,704 $ 5,513,001