NEW ORLEANS, Aug. 2, 2012 /PRNewswire/ — Pan-American Life Insurance Group (PALIG), a leading provider of insurance and financial services throughout the Americas, today announced it received regulatory approval and has completed its acquisition of assets and businesses of MetLife (NYSE: MET) in the Cayman Islands, Costa Rica, Panama, St. Lucia and Trinidad and Tobago. In an important next step, PALIG expects to receive regulatory approval and close on the remaining Caribbean countries over the next few months.
Upon closing in all jurisdictions, the PALIG acquisition will represent approximately US$675 million in assets, encompassing 15 countries in Central America and the Caribbean. In total, the acquisition will represent more than US$170 million in revenues (as of 2010).
"This purchase solidifies Pan-American Life Insurance Group’s strategy to become one of the leading life and health insurance providers in the Americas," said Jose S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group. "For more than 100 years, Pan-American Life Insurance Group has provided trusted financial security to our policyholders. The acquisition enhances Pan-American Life Insurance Group’s financial strength and expands our size and geographic footprint, and makes available our high quality of service to customers in the Caribbean."
The regions acquired through this transaction greatly expand PALIG’s international revenues further making these markets a priority as the company continues to expand its global footprint. In the Caribbean, the Alico/Algico acquired premiums represent 11 percent of PALIG’s overall premium distribution and 20 percent of its international portfolio, thus making the Caribbean market one of the most important for PALIG.
"This transaction aligns with our dedicated focus on our core competencies of life and health insurance. The addition of the MetLife – Alico/Algico business fits perfectly with Pan-American Life’s strategic focus of becoming a leading life and health insurance carrier with international reach for insureds of both our corporate and personal lines," said Mr. Suquet. "Additionally, it ranks PALIG in the top three among life and/or health insurance carriers in nearly all markets in which it competes outside of the United States."
MetLife – Alico/Algico customers in the Caribbean and Central America will benefit from being insured by a provider that has a high-quality asset base, a strong balance sheet, financial strength ratings of A (Excellent) from AM Best and Fitch Ratings, an expanded footprint and 100 years of experience with a distinct focus of life and health insurance in the Americas, the Company said.
In connection with the acquisition, a PALIG insurer is now a MAXIS Global Benefits partner in the Caribbean, Panama and Costa Rica, as well as in Central America and Ecuador. The MAXIS Global Benefits Network is a worldwide network created by MetLife and AXA to deliver optimal local insurance coverage to multinational companies through their own operations as well as independent carriers.
Working together with the senior management team, leading the PALIG business in the Caribbean will be Miguel Sierra, as Managing Director of the Caribbean Operations and Jacinto Martinez, Vice President, Regional Director of Agencies.
Terms of the transaction were not disclosed.
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.
* Pending Regulatory Approval