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:

Global Life
U.S. Life: $31 million;
International Life: $55 million;

Global Benefits
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:

Global Life
U.S. Life: $228 million;
International Life: $234 million;

Global Benefits
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.”