29 May 2017
Record Revenue and Strong Earnings
2016 Financial Highlights
2016 marked the achievement of an important milestone in Pan-American Life’s history. For the first time, the company reported revenues and total premium in excess of US$1 billion. This reflects a 25.7 percent increase in revenue and a 17 percent increase in total premium. GAAP pre-tax operating earnings increased by 32.9 percent compared with 2015 to total $72.1 million. Net income for 2016 increased 38 percent to $48.9 million, as compared to $35.3 million the year before. Total assets for the Group grew to $5.6 billion, a 3.28 percent increase, while its total equity increased 10 percent to $933 million.
Other highlights of this strong financial performance include the premium contributions of each of the company’s four business units. Respectively they delivered as follows:
- International Life: $265 million
- S. Life: $237 million
- International Group: $326 million
- S. Group: $237 million.
The greater balance in that premium distribution, both in terms of geography and business unit, results in large measure from 2015 merger with Mutual Trust and their first full year impact.
Strategy & Execution for the Win
Taken together, these results reflect a decade of careful strategic planning, excellent execution and an unwavering commitment to delivering peace of mind to millions of policyholders. It is no coincidence that Pan-American Life met its billion dollar target two years ahead of the date scheduled in its 5 year strategic plan.
However, more than what these financial indicators say about Pan-American Life’s consistent growth over the last 10 + years, it’s what they reveal about the company’s future that is most significant. With such a solid financial foundation, PALIG is better positioned than ever to invest in initiatives that will deliver results today and at the same time ensure that the company sustains its success in the future.
Key initiatives that will feature in this new chapter of Pan-American Life’s story include:
- Complete a new 5-year strategic plan
- Implement remaining aspects of PALIG/Mutual Trust integration and leverage investment synergies
- Review and refresh the Enterprise Risk Management platform
- Continue to invest in strengthening cybersecurity solutions
- Drive organizational growth through strategic M&A activity
- Further enhance U.S. Life product portfolio
- Begin implementation of new administration system to support U.S Life operations
- Introduce captive agency system in Costa Rica
- Expand International Group distribution in Colombia and Mexico
- Continue rollout of group business administrative system to the Caribbean
- Deliver online portal access to producers and providers in Latin America and the Caribbean
- Focus on Accident growth in the U.S. Group market
- Introduce refreshed code of conduct