26 Feb 2019
Pan-American Life Insurance Group Reports Sustained Revenue and Earnings Gains in 2018
NEW ORLEANS–February 26, 2019 – Pan-American Life Insurance Group (PALIG), a leading provider of life, accident and health insurance throughout the Americas, announced today financial results for the full year ending December 31, 2018.
PALIG continued its growth trajectory in 2018, while making investments in future growth. Pre-Tax Operating Earnings increased 6 percent in 2018 to a record $93 million with both business divisions posting strong results. In 2018, the company brought to market an Equity-Indexed Universal Life product, as well as invested in talent and technology, including expanding digital capabilities to position the company for continued future success. GAAP revenues exceeded $1.1 billion, a 3 percent increase over 2017. Sales improved 5 percent to $604 million with International Group and U.S. Group sales up 8 percent and 3 percent, respectively. Net income for 2018 decreased 5 percent to $73 million, due to lower realized gains versus 2017. Unrealized investment losses stemming from rising interest rates reduced total assets by 1 percent to $5.9 billion and total equity by 5 percent to $1.01 billion.
The company exhibited strong operating performance across its two key business segments, Global Life and Global Benefits, the latter producing double digit earnings growth over 2017. The business segments delivered the following pre-tax operating income:
U.S. Life: $31 million;
International Life: $55 million;
U.S. Group: $25 million; and
International Group: $40 million
The company achieved meaningful premium growth across its business segments, in particular, International Group which increased 7 percent. The business segments generated the following premium:
U.S. Life: $228 million;
International Life: $234 million;
U.S. Group: $233 million; and
International Group: $413 million
The premium distribution amongst the business segments reflects a well-balanced portfolio, consistent with the company’s strategic priorities.
“Our solid and steady performance has permitted us to focus attention on investments that willstrengthen the organization well into the future, including in leadership and talent development,
systems and technology enhancements and succession planning” said José S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group. “After a decade of remarkable growth and transformation, we are poised to take on the market with new leadership in key areas of the company and renewed momentum.”
About Pan-American Life Insurance Group
Pan-American Life Insurance Group (PALIG), a leading provider of life, accident and health insurance throughout the Americas, has been delivering trusted financial services since 1911. The New Orleans-based Group is comprised of more than twenty-member companies, employs more than 2,100 worldwide and offers top-rated individual and/or group life, accident and health insurance, employee benefits 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. For more information, visit the Pan-American Life website at palig.com, like us on Facebook @PanAmericanLife, follow us on Twitter @PanAmericanLife, and connect with us on LinkedIn at Pan-American Life Insurance Group.