the Future

Purpose and Partnership in Action

Annual Report 2018


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Building the Future

Purpose and Partnership in Action

A Message from Our CEO

In our business, solid and steady - especially when it comes to financial performance – are generally a result of disciplined risk management, hard work and proper planning. Our customers place their trust in PALIG’s financial strength and expect us to fulfill the promise that we’ll be there for them at some of the most critical times in their lives.

As such, we have made a concerted strategic effort to build our business in a way that will continue to generate consistent growth while preserving a sound foundation that helps guarantee our commitment to our policyholders. That approach bears out in another year of strong financial results for PALIG in 2018.

Last year, we continued our consistent trajectory of revenue growth, posting GAAP revenues of $1.1 billion, a 3 percent increase over 2017. Total premium grew 1 percent to $1.11 billion and pre-tax operating income rose by 6 percent to a record $93 million. Net income for 2018 decreased 5 percent to $73 million due to lower unrealized investment gains.

Those results build on a remarkable track record over the past decade. But solid and steady should not be mistaken for staying put, and we refuse to rest on our laurels. That is why we approached 2018 as a year of building for the future. A time to redouble our purpose and put our partnerships into action to ensure that our next decade will be as successful as the past one.

We focused our attention on investments that will strengthen the organization well into the future, including in leadership and talent development, systems and technology enhancements, new products and succession planning. We are now in a better position to take on the market with new leadership in key areas of the company and renewed momentum.

During my years as CEO, I have been fortunate to count on an extremely capable leadership team that has been instrumental to the transformation of Pan-American Life. Some of those leaders were looking forward to the time when they could embark on a different path and enjoy the hard-earned fruits of their labor. So, in 2018 we began implementing a succession planning process that has been years in the making.

Key executives such as John Foley, head of our U.S. Group Business; Stephen Batza, President of U.S. Life and President and longtime CEO of Mutual Trust Life Insurance Company; and Chief Investment Officer Rudy Revuelta all announced their retirements in 2018. And by the time you read these words, Patrick Fraizer, our General Counsel for more than ten years, will have also announced that he is leaving our leadership ranks.

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Who We Are

For more than 100 years the New Orleans based Pan-American Life Insurance Group (PALIG) has been a leading provider of insurance and financial services throughout the Americas. Today, the Group’s 20-member companies employ more than 1,950 people, and deliver trusted financial security and peace of mind to millions of policyholders.

Pan-American Life 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.

  • Global Life
    • Whole Life
    • Term Life
    • Universal Life and Indexed Universal Life
    • Personal Accident
  • Global Benefits
    • Life
    • Accident
    • Health
    • Credit Life
    • Mass Marketing
    • Medical Stop Loss
    • Multinational Solutions

Not all products are available in all locations. For a complete list of the Group’s branches and affiliates as well as the products and services offered, visit

Building a Solid Foundation

2018 Annual Review

We have extraordinary teams across our organization whose depth of knowledge and commitment to excellence have built an impressively solid foundation for the future of our company. The accomplishments of 2018 open the door for new initiatives and continued organic growth.

Global Life

International Life

  • Introduced an Indexed Universal Life offering to our Private Client Life portfolio; administratively supported by leading provider
  • Obtained approval for Pan-American Assurance Company International, Inc. to do business in Hawaii
  • Completed the transition to electronic applications and electronic policy delivery for Private Client Life business
  • Continued the expansion of our captive agency network in Latin America
  • Launched LifeDirect portal in Latin America
  • Calibrated our talent acquisition and succession planning strategy
  • Added a new Universal Life product to our life insurance portfolio in Panama

U.S. Life

  • Launched several new products as part of the Horizon whole life series
  • Completed the implementation of a new administration system and began assessing capabilities and system upgrades for management of select products
  • Strengthened focus on agent recruitment across our distribution network
  • Accelerated underwriting process for efficiencies within the SelecTerm products

Global Benefits

International Group:

  • Achieved significant growth in Colombia and Mexico
  • Maintained market share in Panama and Costa Rica to strengthen market leadership position
  • Restructured onsite clinics for key clients in Panama
  • Completed the implementation of a new administration system in the Caribbean as well as the resulting migration of in-force policies
  • Strengthened Caribbean leadership with addition of new Country Managers for Barbados, the Dutch Caribbean and Regional Vice President for group business
  • Enhanced the PALIGMED wellness and integrated health care network, enabling us to continue to serve as a valuable partner

U.S. Group:

  • Added new Managing General Underwriter (MGU) partners to our Special Markets distribution
  • Transitioned to new leadership organization following key executive retirement
  • Restructured U.S. sales team to better support independent distribution and optimize growth potential
  • Significantly fortified our underwriting structure to support a robust increase in quotation activity
  • Continued service platform enhancement, including expanding capacity for Service Contract Act business
  • Experienced significant sales growth on the HolaDoctor platform during 2018 open enrollment period

Corporate Highlights

  • Executed C-suite succession plan following the retirements of key executives in U.S. sales and corporate investment leadership roles
  • Completed the second phase of enterprise succession planning
  • Continued to advance the implementation of tools to strengthen the Anti-Money Laundering infrastructure
  • Remained on schedule for the rollout of new Governance, Risk and Compliance (GRC) system
  • Enhanced Information Security capabilities through the addition of staff and introduction of additional detection and monitoring tools

Focus On: International Group

This line of business continues to be a strong driver of the company’s growth. In 2018, ongoing investments in operational infrastructure, technology and talent acquisition combined with precise execution of sales strategy to deliver exceptional results.

Our reputation as the leading provider of employee benefits and wellness solutions for local and multinational business continues to be enhanced through our ongoing commitments to product innovation, operational improvements and world class service.

The PALIGMED wellness and integrated health care network, remains a strong differentiator, enabling us to serve as a valuable partner.


We’re proud to say that Pan-American Life Insurance Company, Pan-American Assurance Company International, Inc., Pan-American Assurance Company and INRECO International Reinsurance 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 5.29 percent on $758 million of bond purchases in 2018
  • Pan-American Life Insurance Company’s statutory bond yield in 2018 of 5.80 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 2017 the average bond yield for the Life Industry was 4.49 percent

Planning with Purpose

2018 was a year of building for the future across the Pan-American Life organization. We took purposeful action to prepare our people and our business operations for the years to come.


Planning for Our Sales Structure

We consolidated our four business segments into two divisions - Global Life and Global Benefits. This strategic decision was the result of careful succession planning in advance of key executive retirements, as well as a detailed assessment of how our business and industry will continue to evolve.

With these two complementary structures in place, Pan-American Life is positioned to leverage synergies, maximize efficiencies and promote growth across its lines of business and geographic footprint.

Planning for Our Investment Strategy

Our disciplined investment strategy has underpinned PALIG’s superior financial strength and stability for more than a decade and will continue to be a pillar of our operating strategy. We believe that further integrating our investment functions with other aspects of the finance structure, notably corporate development and strategy, will enhance our ability to deliver stable investment returns while growing our assets under management.

It is for that reason that in succession planning for the Chief Investment Officer role we incorporated this structural adjustment, which was implemented in the last quarter of 2018. This change positions the company for an even closer alignment of its investment and corporate development strategies going forward.

Planning for Our Legal & Regulatory Framework

Pan-American Life’s presence in multiple jurisdictions throughout the Americas presents complex legal and regulatory challenges. Over the last 15 years the office of General Counsel has been instrumental in navigating this environment, while also building depth and expertise in our legal and compliance functions.

That strengthening of organizational capability has enabled succession planning for our General Counsel and will facilitate a seamless transition that will be completed this year after his retirement. The transition will allow for new and ongoing legal activities to be executed with the same guiding principles that have ensured our ability to effectively address all our regulatory matters to date.

Purpose in Action

Corporate Giving

In 2018, Pan-American Life partnered with organizations across the Americas to drive positive changes in our communities. Our commitment to community development, the arts, education and public safety continues to reflect our broader purpose - to support the well-being of the people we serve - and we are proudly recognizing these partnerships.

Our 2018 Community Partners

  • Alianza Anticáncer Infantil - Mexico
  • ALS Greater Chicago Chapter
  • Alzheimer’s Association
  • American Diabetes Association
  • American Heart Association
  • American Cancer Society
  • American Lung Association
  • American Red Cross
  • Andrew W. Ross Endowed Photography Scholarship for the College of Visual and Performing Arts at Radford University
  • Angels Among Us Pet Rescue
  • Animal Care League
  • Association for Corporate Growth
  • Asociación Hogar Jesucristo es mi casa – Guatemala
  • Audubon Nature Institute – New Orleans
  • Boy Scouts of America – New Orleans
  • Boys to Men of GOD and Daughters of the KING
  • Casa Argentina – New Orleans
  • Club de Leones Guatemala
  • Club Rotario de Guatemala
  • Club Rotario Panama Norte – Panama
  • Club Kiwanis de Panamá, Panamá
  • Committee for a Better New Orleans – New Orleans
  • Comunidad Religiosa “Siervas de María Ministras
  • de los Enfermos” - Ecuador
  • Contemporary Arts Center
  • Court Watch NOLA
  • Crimestoppers – New Orleans
  • Doctors without Borders
  • Down Syndrome Association
  • Ejército de Salvación - Puerto Rico
  • Easter Seals
  • Faces of Cancer St. Lucia
  • Family Shelter Service
  • Feeding America
  • Firearm Injury Reduction in Medicine
  • Fondo Unido de Guatemala United Way
  • French Quarter Festival – New Orleans
  • Fundación Amigos del Niño con Leucemia y Cáncer – Panama
  • Fundación Desarrollo Senshi, Panamá
  • Fundación Más Magia Más Vida - Mexico
  • Fundación Porque quiero a Colombia – Colombia
  • Fundación San Ignacio de Loyola – Mexico
  • Fundación Seguridad Ciudadana, Panamá
  • Fundación Tía Dora – Feria Internacional del Libro, Panamá
  • Greater New Orleans Council
  • Greater New Orleans Foundation
  • Greater New Orleans, Inc.
  • Habitat for Humanity – New Orleans
  • Habitat for Humanity – Chicago
  • Head for the Cure
  • HELPS International Guatemala
  • HeartGift
  • Hispanic Chamber of Commerce of Louisiana
  • Hogs for the Cause – New Orleans
  • Honor Flight Chicago
  • Houston Food Bank
  • Humanitarian Service Project
  • Hurricane Harvey Relief Fund
  • Idea Village – New Orleans
  • Instituto Oncológico Nacional - Panama
  • Junior Achievement – New Orleans
  • Juntos Podemos - Curundú
  • Juvenile Diabetes Foundation
  • Leukemia & Lymphoma Society
  • Liga Nacional contra el Cáncer de El Salvador
  • Little Brothers – Friends of the Elderly
  • Little Friends
  • Louisiana Appleseed
  • Louisiana Children’s Museum
  • Louisiana Philharmonic Orchestra
  • Loyola University New Orleans
  • Lungevity
  • March of Dimes
  • Marine Toys for Tots Foundation
  • Museo de Arte Contemporáneo, Panamá
  • Museo de Arte, Puerto Rico
  • National MS Society
  • New Orleans Art Council
  • New Orleans Ballet Association
  • New Orleans Hispanic Heritage Foundation
  • New Orleans Museum of Art
  • New Orleans Police and Justice Foundation
  • New Republican PAC
  • NOLA Foundation
  • Northern Illinois Food Bank
  • Ochsner Clinic Foundation
  • Open Arms Breast Cancer Fund – Hinsdale Hospital
  • Pastoral San Lucas, Panamá
  • Raíces
  • Robert Lurie Children’s Foundation
  • Rotary Club of Port of Spain – Trinidad
  • Royal Barbados Police Force
  • Second Harvest Food
  • Sociedad Israelita de Beneficencia Shevet Ahim - Panamá
  • Special Olympics
  • Sarah’s Circle
  • Susan G. Komen
  • St. Baldrick’s Foundation
  • St. Jude Children’s Research Hospital
  • The American Chamber of Commerce of Trinidad and Tobago
  • The Barbados Cancer Society
  • The Good Shepherd School – New Orleans
  • The National World War II Museum
  • The National Multiple Sclerosis Society
  • The Pro-Bono Project
  • The U.S. Military
  • The YMCA of Greater New Orleans
  • Tulane University
  • United Way
  • United Way – Honduras
  • United Way – Trinidad and Tobago
  • Visión Mundial – Guatemala
  • Warrens Sports Club – Barbados
  • West Suburban Community Pantry
  • World Relief
  • YMCA

Building the Future

2019 Key Initiatives and Vision

With the continued implementation of our current five-year strategic plan, Pan-American Life Insurance Group looks ahead to 2019 with confidence and a renewed commitment to meaningful partnerships and purposeful action, grounded in a growth mindset. The Group’s goals reflect customer-centered and organizational enhancements to embrace the challenges and opportunities ahead.

Key initiatives for 2019 include:

  • Drive organic premium growth with a focus on purposeful sales activity management
  • Expand enterprise succession planning to include all functions across the organization
  • Implement enhancements to compliance infrastructure
  • Continue to strengthen enterprise risk management processes
  • Begin development of corporate wide digital strategy
  • Invest in strengthening cyber security solutions
  • Target key sectors for Mergers and Acquisitions opportunities
  • Introduce new products to the Global Benefits and Global Life portfolio in United States and International segments
  • Develop comprehensive system and portal strategy for Global Life and Global Benefits stakeholders in key Latin America markets
  • Invest in the expansion of wellness initiatives across the organization’s international footprint
  • Continue implementation of administration systems for selected U.S. Life products
  • Expand Foreign National business and increase market penetration

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

Managing Director – Caribbean

International Leadership Map

Board of Directors

In Recognition of Outstanding Partnership and Service to PALIG

During 2018, and as we enter 2019, the Pan-American Life family has bid farewell to several senior executives who collectively played a foundational role in many of the company’s achievements over the past decade – and beyond.

We are extremely grateful to Stephen Batza, John Foley, Rudy Revuelta, Pat Fraizer and board member Ken Mlekush, not only for their years of service and commitment to PALIG’s mission, but also for the camaraderie and true partnership they exhibited with their colleagues during their time with the company. Each of them made our organization better and has left a unique imprint for others to follow in their steps.

Steve and John created a solid foundation for our U.S. Life and U.S. Group business; Rudy has been the “secret sauce” behind our successful investment strategy; Pat was instrumental in guiding PALIG through several major financial transactions and a challenging regulatory climate; and Ken, as the longest serving member of our board of directors, played a key role in strengthening our culture of corporate governance.

Together, their knowledge, expertise, wisdom and leadership helped shape PALIG into what is it today and have positioned the organization to achieve sustained growth and financial success.

We salute their legacy and wish them all the very best!


Summary of Operations

Pan-American Life Mutual Holding Company
As of December 31, 2018, 2017, and 2016

2018 reflects unaudited financials | 2017, 2016 reflects audited financials

Revenues 2018 2017 2016  
Premiums $ 719,514 $ 701,723 $ 650,332  
Policy and contract fees 114,006 114,106 111,165  
Net investment income 254,220 243,141 231,432  
Other revenues 19,295 13,526 12,196  
Total Revenues $ 1,107,035 $ 1,072,496 $ 1,005,125  
And Expenses
2018 2017 2016  
Policyholder benefits and interest credited $ 627,822 $ 617,166 $ 580,610  
Underwriting, acquisition, insurance and other expenses 352,310 336,520 319,329  
Amortization of deferred policy acquistion costs 34,192 30,981 33,036  
Total benefits and expenses $ 1,014,324 $ 984,667 $ 932,975  
Income from operations before taxes and noncontrolling interest $ 92,711 $ 87,829 $ 72,150  
Net realized investment (losses) gains (181) 8,688 6,606  
Income tax expense 26,164 19,029 29,810  
Income after taxes and before noncontrolling interest 66,366 77,488 48,946  
Noncontrolling interest in income 4 (2) 7  
Net Income $ 66,362 $ 77,490 $ 48,939  

Balance Sheet

Pan-American Life Mutual Holding Company
As of December 31, 2018, 2017, and 2016

2018 reflects unaudited financials | 2017, 2016 reflects audited financials

Assets 2018 2017 2016  
Cash and invested assets $ 5,093,184 $ 5,237,693 $ 4,979,558  
Deferred policy acquisition costs 256,749 194,281 190,032  
Other assets 588,169 569,642 519,114  
Total Assets $ 5,938,102 $ 6,001,616 $ 5,688,704  
And Equity
2018 2017 2016  
Future policy benefits and claims $ 2,456,753 $ 2,444,775 $ 2,397,061  
Policyholder account balances and funds 2,099,268 2,132,760 2,039,287  
Other liabilities 368,763 358,471 322,186  
Total Liabilities $ 4,924,784 $ 4,936,006 $ 4,758,534  
Non controlling interests in subsidiaries $ 286 $ 293 $ 592  
Unassigned equity 1,065,103 1,001,843 924,350  
Accumulated other comprehensive (loss) income (52,071) 63,474 5,228  
Total Equity $ 1,013,318 $ 1,065,610 $ 930,170  
Total Liabilities And Equity $ 5,938,102 $ 6,001,616 $ 5,688,704