We are the people who rise above the
challenge to be there when our policyholders need us most.
We are the people who
We are the People you
can trust for life.
Pan-American Life Insurance Group (PALIG) has earned the trust of millions of customers since opening its doors 110 years ago in 1911. By delivering trusted financial security and peace of mind, meeting the insurance needs of individuals and businesses
in the Americas, PALIG protects what matters most to our policyholders – their families, their business, and their futures.
Together Upholding Promises
A network of trusted agents and brokers across the Americas
Serving 7.1 million Policyholders
As a Leading Provider of Insurance and Financial Services PALIG 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.
Indexed Universal Life
Medical Stop Loss
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 service offered, visit palig.com
A Message FROM OUR CEO
RISING ABOVE THE CHALLENGE. UPHOLDING PROMISES
As Pan-American Life Insurance Group celebrated its 110th anniversary of providing trusted financial security and peace of mind for millions of families and businesses across the Americas, I could not help but reflect on the past two years,
which have been among the most challenging in the history of our company and the industry. What strikes me the most is that I could not be prouder of how we have risen to that challenge. It is deeply humbling to be in this noble profession
that is truly making a difference in people’s lives every day.
Over the past two years, as the pandemic has taken its tragic toll, we have upheld our promise to our customers to be there when they need us most. In 2021, a record year, we paid out more than $1 billion in policy loans, surrenders, claims,
including more than $90 million in death and health insurance claims related to the COVID-19 pandemic, bringing our 2-year COVID-19 related paid claims to $134 million, that in the absence of this unprecedented global challenge, we would not
have had. As a leading insurance provider in the Americas, ensuring our policyholders have the support they need with access to prevention, testing and treatment options continues to be a top priority.
Our enduring financial strength is what made that possible. Amid these extraordinary circumstances, AM Best and Fitch Ratings maintained our “A” rating with a stable outlook, a remarkable achievement that few in the industry have been able to
match. In a low interest rate environment, PALIG’s consolidated bond yield outperformed the Life Industry average, a reflection of our strong investment profile.
That strength, combined with
the dedication of our resilient team and continued investment in our people and technology - in this second year of our three- year, $40 million IT strategic
plan - enabled us to rise above the challenges and deliver solid results. Revenues grew 3% to $1.218 billion in 2021, driven by growth across all lines of our highly diversified businesses. Pre-tax operating income was $37 million, as we continued to pay out significant pandemic related claims. Our balance sheet remains stronger than ever, with GAAP Equity reaching a record high of $1.38 billion, reflecting the underlying financial strength of our business.
Our ability to resolutely confront the challenges posed by COVID-19 are a testament to PALIG’s robust business continuity planning, experienced management team and strong enterprise risk management. The lessons we have learned and the investments underway
in technology and our people are making PALIG a more nimble, adaptable and productive organization. This is evident
in how we were able to quickly adopt
a Work-From-Home posture as the pandemic emerged, and evolve that into a hybrid, flexible work environment strategy that positions PALIG for the future. We will continue to strengthen our systems and processes and nurture the talent that are integral to our continued success.
That success has been due in no small part to the talent of leaders like Carlos Mickan, who retired as Vice Chairman of the Board and Head of Finance and Administration at the end of 2021 after a long and distinguished career at PALIG and in the industry. Carlos was instrumental in PALIG’s transformation and his expert financial stewardship helped ensure that we have the financial strength to weather even
the most unexpected storm, as recent events have borne out. We are glad
to announce that he will remain on the PALIG Board as a Director and we will continue to benefit from his deep understanding of the business.
Early this year, we announced steps
to further strengthen and deepen our leadership structure. I relinquished
my role as President to transition to
three Presidents at the helm of three priority pillars to advance our corporate initiatives: Robert DiCianni, President Global Benefits; Bruce Parker, President Global Life; and Steve Friedman, President Finance and Investments. Their leadership will be instrumental in driving our corporate strategy. I will continue to serve as Chairman of the Board and CEO. Fellow Director Martha Hesse will retire from the PALIG Board in August 2022 after more than six years of service.
The commitment, thoughtfulness and insightful perspective she brought to PALIG, from many years of experience on public and private company boards, will be missed. We wish Martha the very best as she embarks on her next chapter.
Having demonstrated our resiliency and ability to thrive and rise above even the most challenging circumstances, it’s full steam ahead in 2022 as we look to renewed growth, margin improvement driven by operational excellence and acceleration of our digital journey. Our strategic focus going forward will be
on organically growing our business, strengthening our cyber security solutions and enterprise risk management process, and targeting key sectors for mergers and acquisition opportunities.
We have gone through so much together these past two years. In the face of a global crisis, we discovered the depths of our resilience and courage, the power of compassion and empathy, and the value of service, all while facing hardships and challenges never imagined. And during this time, we have evaluated what is truly important and remained focused on what matters most. Together we have made a difference. And that is why I am more confident than ever in the future of PALIG as we continue to proudly uphold our promise to be there when you need us most.
José S. Suquet Chairman of the Board & CEO Pan-American Life Insurance Group
Persevering IN UNCERTAIN TIMES
During the second year of the pandemic, we pushed through the challenges with grit and determination. It wasn’t easy or without trials, but our 2021 highlights underscore the perseverance that drove progress and results. We balanced addressing
immediate needs, while also being mindful of executing on the continued developments and innovations that lay the groundwork for the future.
Celebrated PALIG’s 110-year anniversary and the 65th in Ecuador recognizing these important milestones with our colleagues and strategic partners
Continued executive growth and succession planning - a critical component in leadership development
Launched Flexible Work @ PALIG a hybrid - flexible work environment strategy that positions PALIG for the future
Continued strengthening our systems and processes, including recognizing and rewarding talent, who are integral to our ensuing success
Accelerated the company’s digital transformation
Engaged our producers through virtual training, meetings, webinars and events across the Americas
Conducted extensive tracking of COVID-19 death and health claims, paying benefits under established protocols that protect our insureds
Converted PALIC El Salvador branch to a subsidiary - Pan-American Life, S.A. Seguros de Personas
Enhanced information security capabilities throughout the company
Further strengthened our enterprise risk management processes, cybersecurity controls and compliance infrastructure
Expanded reach of easy@pp, an electronic application submission platform that is now available for our individual and small group products in most countries. Great early adoption with over 80% of applications submitted via this sales
Launched Tele-Med underwriting (TMU), facilitating new business processes and elevating PALIG’s leadership position in the marketplace.
Introduced Vida Flex Max, a new Universal Life product, in Colombia
Indexed Universal Life continues to be our leading product in the Private Client Life market
Rolled out online premium payments across the Caribbean region
Initiated preparation, ensured awareness and readiness to be compliant with the New Insurance Act in Trinidad and Tobago
Enhanced product development process allowed us to address changes to IRC 7702 valuation rate change and the persistent low interest rate environment
Introduced Horizon Guarantee product
Added a 20-year term rider to our Term portfolio
Introduced ground-breaking COVID-19 telemedicine service in four Latin American markets
Strengthened our Provider Affinity program, including enhanced provider partnerships and expanded pharmacy networks
Published Gastrointestinal Health whitepaper to address the progressive issue of this disease and condition in Latin America and the Caribbean
Continued operational improvements in the adoption of automation, process streamlining, electronic claims processing and digitizing the contact centers
Launched new Service Portal in Panamá and Costa Rica bringing enhanced functionality for our members
Continued strong growth of our Stop-Loss business
Strong Accident growth driven by MGU and program partners
Introduced new products, including a Minimum Value Product and an Individual Accident product
Continued building out our service and product capabilities for the unique requirements of the Government Contractor market segment
Rising above the industry, we are proud to report that Fitch Ratings and AM Best have maintained Pan-American Life’s ‘A’ (Strong) Insurance Financial Strength (IFS) rating and A (Excellent) rating both with stable outlook – this
includes Pan-American Life Insurance Company (PALIC) and its wholly owned subsidiary, Pan-American Assurance Company (PAAC), Pan-American International Insurance Corp. (PAIIC), INRECO International Reinsurance and Mutual Trust Life Insurance
Company. “Pan-American’s ratings consider the company’s strong business profile, which reflects its relatively modest scale, strong niche position in the Hispanic market, conservative product profile, very strong capitalization, and
strong operating performance. Pan-American’s capital strength continues to be a key rating driver”
Achieved a “New Acquisition Yield” of 3.75% on PALIG’s consolidated purchases in 2021, in an environment where the U.S. Corporate bond investment grade index was 2.11% without sacrificing investment quality.
Consolidated PALIG’s bond yield of 5.08% as of 12/31/21 continues to outperform the Life Industry average, as last reported by SNL as of 12/31/21 of 4.05%.
At the center ·At the center ·At the center ·At the center ·At the center ·At the center ·
Video ·Video ·Video ·Video ·Video ·Video ·Video ·Video ·
BRINGING GROUND-BREAKING TELEMEDICINE TO COVID-19 PATIENTS IN CENTRAL AND SOUTH AMERICA
As a leading health insurance provider, PALIG took action in late 2020 to pioneer Telemedicine in Panamá. The break-through service provides policyholders immediate medical attention and support from the comfort of home, after a COVID-19 diagnosis.
Shortly thereafter, in 2021, PALIG launched the Telemedicine offering in Costa Rica, Ecuador and Guatemala.
PALIG Telemedicine benefits
About PALIG’s Telemedicine Service
PALIG’s Telemedicine service is a complimentary video consultation with a medical provider for PALIG policy-holders who have tested positive for COVID-19 and are experiencing mild symptoms (and do not require hospitalization).
The virtual visit is simple to schedule, secure and confidential, and potentially reduces the spread and exposure of COVID-19. An appointment is not required.
The program has helped reduce COVID-19 hospitalizations and complications.
How it Works
Policyholders and medical provider are connected via video call from an app on a smart device (phone or tablet).
Following the initial video consultation, the patient receives delivery of a customized COVID-19 Home Care Kit which may include a Pulse Oximeter, and a combination of acetaminophen, ibuprofen and vitamins as indicated following the evaluation
Additionally, the service provides daily monitoring of the patient’s condition by telephone or video consultation.
A COVID-19 diagnosis can be stressful. PALIG’s Telemedicine service aims to provide peace of mind and real time care to support in the treatment and recovery from COVID-19.
PALIG Telemedicine by the Numbers
PALIG TELEMEDICINE: SUPPORT, CARE AND PEACE OF MIND IN THE TIME OF COVID
Communities and BUILDING RESILIENCY
Pan-American Life is committed to collaborative partnerships that address needs, and fund programs and projects that are making positive impacts across the communities we serve throughout the Americas.
We are proud of our employees, whose service and giving helped nonprofits build resilience and support communities in need.
Aldeas SOS - Honduras
American Chamber of Commerce - Trinidad & Tobago (AMCHAM)
American Heart Association
American Lung Association
American Red Cross
Arts Refreshing the Soul
Aruba Aquatics Federation
Asociación de Niños y Adultos Mayores Jesucristo es mi Hogar - Guatemala
Athens Symphony Orchestra
Audubon Nature Institute
Barbados Cancer Society
Barbados Cancer Society (Breastsreening Programme)
Bureau of Governmental Research
Centro de Rendimiento Educativo Especial (CREER) - Honduras
Congregación Siervas de María Ministras de los Enfermos - Ecuador
Court Watch NOLA
Disabled American Veterans Charitable Trust
Faces of Cancer - St. Lucia
FCIB Walk for the Cure 2020 - Grenada
Fundación de Amigos con Leucemia y Cáncer - FANLYC - Panama
Fundación Niños con Cáncer - Honduras
Fundación Piero Rafael Martínez De La Hoz - Panamá
Greater New Orleans, Inc.
Habitat for Humanity
Hispanic Chamber of Commerce of Louisiana
Instituto Oncológico Nacional
Junior Achievement of Greater New Orleans
Leukemia & Lymphoma Society
Leukemia & Lymphoma Society of Mississippi/Louisiana
Living Water Community - Trinidad
Louisiana Children's Museum
Midwest Shelter for Homeless Vets
Movimiento Raíz - México
National MS Society
New Orleans Ballet Association
New Orleans Community Outpost - Barbados
New Orleans Hispanic Heritage Foundation
New Orleans Homework Programme - Barbados
New Orleans Police & Justice Foundation
Ochsner Health System
Outreach to Haiti
Prospect New Orleans
Public Action to Deliver Shelter
Selección Mexicana de Jiu-Jitsu - México
The Idea Village
The Night Ministry
The Posse Foundation
The Pro Bono Project
Trinidad and Tobago Cancer Society
United Way of Metro Chicago
United Way of Metropolitan Dallas
United Way of Miami-Dade
United Way of Southeast Louisiana
Veterans of Foreign Wars
West Suburban Community Pantry
West Suburban Symphony
World Vision - Guatemala
Wounded Warrior Project
YMCA of Greater New Orleans
Young Leadership Council
Focused on What matters
2022 KEY INITIATIVES AND VISION
Complete the merger of Pan-American Life Insurance Company and Mutual Trust Life Insurance Company, recognizing important operational and financial efficiencies
Successful office re-entry, including the rollout of our Flexible Work @ PALIG program and PALIG Headquarters office renovations
Continue executive development and enterprise succession planning
Finalize our 3-year IT strategic roadmap, and continue to invest in of our corporate- wide digital strategy, including an expanded consumer and producer portal strategy – One PALIG
Further strengthen our enterprise risk management processes, cybersecurity controls and compliance infrastructure
Implement our new general ledger solution as well as meet new regulatory challenges
Target key sectors for mergers and acquisitions opportunities
Continue to develop and implement the fully integrated eApp (easy@pp) solution and expanding it throughout the regions
Integrate RGA/Aura automated underwriting system into Private Client Life’s easy@pp
Continue to grow Private Client Life Asian strategy
Develop IUL product for Mutual Trust Producers, UL for Costa Rica and Term Life for Caribbean
Continue product development enhancements to current whole life products
Continue to refine, monitor and expand the Agency Model System in Colombia, Costa Rica and Panamá
Continued execution on the U.S. Group accelerated growth plan:
Special Markets: Grow existing and recently added MGU programs
U.S. Accident: Grow Accident MGU and partner relationships
U.S. Benefits: Focus on transportation, SCA, Education, Cross-Border target markets, and the addition of complementary coverage offerings
Drive significant growth in our individual accident and health business
Continue support of insurance products through alternative distribution
Focus on longer term COVID-19 impact on renewal and new business pricing for our life and health business
Expand initiatives to improve overall service experience and ease of doing business for our producers and insureds
Continue education and thought leadership with respect to healthcare in our international markets
Execute on requirements under the new Insurance Act in Trinidad & Tobago
Strong FOCUSED LEADERSHIP
Leadership changes welcomed the emergence of new opportunities and avenues for growth at PALIG. With renewed optimism and focus, José S. Suquet, Chairman of the Board and CEO relinquished his role as President, making way for three Presidents
in leadership positions going forward. As one strong focused leadership unit, Steven A. Friedman, Robert DiCianni and Bruce Parker are instrumental in positioning PALIG for success and working alongside José Suquet to drive PALIG’s
business and growth, support strategic investments and move the PALIG mission forward, while supporting our colleagues and strategic partners along the way.
SENIOR MANAGEMENT COMMITTEE
Mr. José S. Suquet Chairman of the Board and CEO
Mr. Robert DiCianni President - Global Benefits
Mr. Steve Friedman President - Finance and Investments
Mr. Bruce Parker President - Global Life
Ms. Geri Gaughan President & Chief Operating Officer Mutual Trust
Mr. Daniel Costello Executive Vice President - International Markets
Ms. Lisa Baudot Senior Vice President - Investments
Mr. Jose Corrada Senior Vice President - General Counsel and Corporate Secretary
Mr. David Demmon Senior Vice President - Chief Financial Officer
Mr. Miguel Edwards Senior Vice President - Chief Information Officer
Mr. Frank Recio Senior Vice President - International Business Technology and Operations
Mr. Bryan Scofield Senior Vice President - Human Resources
Mr. Selig Ehrlich, FSA, MAAA Chief Actuary and Risk Officer
Mr. Luke Cosme Senior Vice President - Sales and Marketing at Mutual Trust
Mr. Carlos Aldana Vice President - Capital Management and Corporate Development
Mr. Floriano Alencar Vice President - Private Client Life Sales and Operations
Ms. Paola Corrada Vice President - Chief Compliance Officer
Mr. Paul Engeriser Vice President - Corporate Actuary
Mr. Alywin Fruge Vice President - Internal Audit
Mr. Mark Jollands Vice President - U.S. Group Operations
Ms. Jennifer Lafleur Vice President - U.S. Group
Mr. Rick Mabry Vice President - Tax
Mr. Grant Martindale Vice President - Chief Underwriter International Life
Ms. Rosalina Miranda Vice President - Regional Health Operations
Mr. Álvaro Muñoz Vice President - Controller
Mr. Mario Naranjo Vice President - International Country Operations
Ms. Jennifer Noteware Vice President - Global IT Infrastructure
Ms. Renee Parkins Vice President - Corporate Administration
Mr. Rafael Pelaez Vice President - Chief Information Security Officer
Ms. Ana Melissa Ramos Vice President, Deputy Global Human Resources Officer
Ms. Marta C. Reeves Vice President - Corporate Marketing
Mr. William R. (Bill) Schultz, Jr Vice President - International Group
Mr. Iván Vergara Vice President - Global Application Delivery
Mr. Jared Woodward Vice President - Tax
Ms. María del Rosario Álvarez Country Manager - Honduras
Ms. Maria Teresa Bolaños Country Manager - El Salvador
Mr. Carlos Chiriboga Country Manager - Ecuador
Mr. Luis Carlos Covarrubias Country Manager - Mexico
Mr. José Antonio (Tony) Eleta Country Manager - Panama
Mr. Salvador Leiva Country Manager - Guatemala
Ms. Greer Quan CEO & Managing Director - Caribbean
Mr. Alfredo Ramírez Country Manager - Costa Rica
Ms. Diana Alejandra Vargas Torres Country Manager - Colombia
BOARDS OF DIRECTORS
Mr. Stephen Batza Member of the Board since November 2015
Mr. Jerry Carlisle Member of the Board since February 2013 Chair - Organization & Compensation Committee
Ms. Martha O. Hesse Member of the Board since November 2015
Ms. Suzanne T. Mestayer Member of the Board since November 2017
Mr. Carlos Mickan Member of the Board since July 2014
Mr. Carlos Palomares Member of the Board since October 2007 Chair - Finance Committee
Dr. Patrick J. Quinlan Member of the Board since November 2011 Lead Director
Mr. Coleman D. Ross Member of the Board since May 2006 Chair - Audit Committee
Mr. José S. Suquet Member of the Board since October 2004
Dr. José Antonio Villamil Member of the Board since November 2010 Chair - Nominating & Governance Committee
Celebrating a Legacy of Leadership, PARTNERSHIP AND EXCELLENCE.
A TRIBUTE TO CARLOS MICKAN AND 16 YEARS OF DISTINGUISHED SERVICE TO PALIG
At the close of 2021, Carlos Mickan retired from his role as Head of Finance and Administration after 16 years at PALIG and will remain on the PALIG Board of Directors.
Carlos joined PALIG in 2005, and consistently rose above the challenges faced along the way. Carlos’ deep understanding of the business and steady financial stewardship was critical during Hurricane Katrina, the economic crisis of 2008, and the
COVID-19 Pandemic, contributing to strengthening PALIG’s reputation as a financially strong company meeting the needs of our customers across the Americas.
Working side by side and in close partnership over the years with Chairman of the Board & CEO, José S. Suquet, PALIG’s growth has been staggering, and outpaced those in the insurance industry under Carlos’ remarkable leadership. From creating the Mutual
Holding Company and guiding PALIG’s acquisitions, to growing PALIG from eight countries to 22, Carlos’ contributions have been truly invaluable.
Carlos, together with the executive leadership team, also established a new strategic direction for PALIG, developing an efficient operating platform and executing the company’s business continuity plans. Over the course of 16 years, PALIG’s profits increased
from break-even to $100 million annually and revenue grew by more than 250%. Carlos managed several significant M&A transactions that contributed to an increase in the company’s asset base from $2 billion to $6 billion. His legacy also encompasses
structuring environmental, social and governance (ESG) policies, enterprise risk management (ERM) and business continuity planning.
Carlos has enjoyed 36 years in the insurance industry. Prior to joining Pan-American Life, Carlos was Senior Vice President and CFO of Principal International, Inc., Chief Planning Officer for Aetna International, CFO for CIGNA Latin America and, Assistant
Treasurer for CIGNA Worldwide.
Carlos is known for his excellence and commitment to serving the community. From sitting on the Board of Directors of the New Orleans Ballet Association and as an Emeritus Board member of the Louisiana Appleseed, to the Advisory Committee for Risk & Uncertainty
Management Center at his alma mater, the University of South Carolina, he is known as a compassionate leader who guides with deep understanding and strategic insights.
We are filled with gratitude and appreciation for Carlos’ many years of dedicated service to PALIG and wish him the best in this next phase of his life.
Summary of Operations
Pan-American Life Mutual Holding Company
As of December 31, 2021, 2020, and 2019 2021 reflects unaudited financials 2020, 2019 reflects audited financials
Policy and contract fees
Net investment income
BENEFITS AND EXPENSES
Policyholder benefits and interest credited
Underwriting, acquisition, insurance and other expenses
Amortization of deferred policy acquistion costs
TOTAL BENEFITS AND EXPENSES
Income from operations before taxes and noncontrolling interest
(Loss) income from discontinued operations net of tax
Net realized investment (losses) gains and unrealized losses on equity securities
Income tax expense
Income after taxes and before noncontrolling interest
Noncontrolling interest in income
Pan-American Life Mutual Holding Company
As of December 31, 2021, 2020, and 2019 2021 reflects unaudited financials 2020, 2019 reflects audited financials
Cash and invested assets
Deferred policy acquisition costs
LIABILITIES AND EQUITY
Future policy benefits and claims
Policyholder account balances and funds
Non controlling interests in subsidiaries
Accumulated other comprehensive (loss) income
TOTAL LIABILITIES AND EQUITY
(GAAP in millions of $)
The 1% increase in 2021 was driven by a combination of positive earnings, even with increased COVID-19 related claims, offset by a decrease in the fair value of the Company's investment portfolio.
(GAAP in millions of $)
The 3% growth in 2021 includes a 4% increase in premium compared to 2020, in a year that saw continued impact from COVID-19.
Together Rising ABOVE CHALLENGES
Thank you ·Thank you ·Thank you ·Thank you ·Thank you ·Thank you ·
We extend a heartfelt thank you to our policyholders, business partners and community allies for your continued trust in us. Thank you for your patience, support, and confidence. Together we have risen to meet the challenges of the moment, driven
by our mission to be there when you need us most.
And to the PALIG family, your continued dedication, agility, and collaboration are the driving forces that have mitigated the impact of the pandemic and propelled our perseverance and success. Thank you for believing in our purpose and the difference we make with every promise we uphold.