NEW ORLEANS, May 14, 2013 /PRNewswire/ -- Pan-American Life Insurance Group (PALIG), a leading provider of insurance and financial services throughout the Americas, today announced financial results for the full year ending December 31, 2012.
Revenues grew 19 percent to $560 million, while pre-tax operating earnings were down 27 percent to close the year at $25.6 million as a result of one-time acquisition-related charges of $19 million. Excluding these charges pre-tax operating income increased by 13 percent. Revenue gains were primarily attributable to growth in the Latin American markets where PALIG operates and the acquisition of MetLife Algico/Alico assets in the Caribbean, Panama and Costa Rica. Net income for the year was $46 million compared to $32 million in 2011, reflecting strong operating results in all segments and one-time adjustments such as increased acquisition expenses, investment gains and the impact of M&A activity during the year.
"This was a milestone year for Pan-American Life and we're beginning 2013 in an excellent financial position," said Jose S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group. "This year we've been successful in continuing to execute our core strategy by expanding our operations in growth markets, while maintaining conservative financial management and a prudent risk profile. Our improved revenue and operating earnings reflect our continued focus on execution exemplified by the acquisition of certain MetLife operations in Latin America and the Caribbean, the initial realization of value in markets such as Costa Rica and our continued investment in promising opportunities, such as Mexico and the Private Client Major Medical business."
In addition to the MetLife acquisition and the opening of Pan-American Life's Mexico office, the company also launched several new products in 2012, including LifeAccess, a competitive universal life product in Latin America and PanaBridge Advantage in the United States to capitalize on the supplementary health insurance market.
During the last six months of 2012, PALIG closed its acquisition on select businesses and assets from MetLife's Alico/Algico units in the Caribbean, Panama and Costa Rica, providing the company with additional scale in its life and health segments and expansion into 13 new markets. Operating results of MetLife businesses acquired by PALIG are included in the company's 2012 consolidated financial statements. 2013 financial statements will reflect full year impact of these operations.
"The MetLife acquisition advances Pan-American Life Insurance Group's strategy to become one of the leading life and health insurance providers in the Americas," added Mr. Suquet. "This purchase enhances PALIG's financial strength and expands our size and geographic footprint, and makes our high quality services available to customers in the Caribbean."
"The acquisition adds 36 percent to our asset base, which now stands at more than $3 billion, increases our statutory gross earned premium by 42 percent to more than $685 million, more than doubles the number of countries in which we offer products to 22, and increase the number of insured lives by 54 percent to more than 1 million," said Mr. Suquet. "The added scale, financial strength, depth of product offerings and added expertise offers PALIG the opportunity to continue to meet our growth objectives and become the preferred provider in all the markets in which we compete."
PALIG's financial strength and stability continue to be recognized within the industry. Earlier in 2012, Fitch Ratings and A.M Best reaffirmed Pan-American Life's ratings with 'A' Insurer Financial Strength (IFS) rating and Stable Outlook.
2012 financial and sales highlights follow:
2012 Financial Highlights
- Total Assets: $3.0 billion
- Total Equity: $600 million
- Net Income: $46 million
- Total Revenues: $560 million
2012 Sales Highlights
- Overall sales in 2012 increased 15 percent
- Global Life showed a 9 percent increase
- International Group increased 28 percent
- Domestic Markets showed a 7 percent increase
About Pan-American Life
The Pan-American Life Insurance Group is a leading provider of insurance and financial services throughout the Americas. New Orleans-based Pan-American Life Insurance Company, the Group's flagship member, has been delivering trusted financial services since 1911, employing more than 1,300 worldwide, providing top-rated life and health insurance, employee benefits and financial services in 47 states, the District of Columbia (DC), Puerto Rico, and the U.S. Virgin Islands. The Group's member companies offer individual and/or group life and health insurance throughout Latin America and the Caribbean. The Group has branches and affiliates in Costa Rica, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, and 15 Caribbean markets, including Barbados, Cayman Islands, Curacao and Trinidad and Tobago. For more information, visit the Pan-American Life Web site at palig.com.
SOURCE Pan-American Life Insurance Group