NEW ORLEANS, March 5, 2012 /PRNewswire/ -- Pan-American Life Insurance Group (PALIG), a leading provider of life and health insurance in Latin America and the US Hispanic market, today announced financial results for the full year ending December 31, 2011.
Revenues grew 9.8 percent to $470 million, while pre-tax operating earnings also gained 9.8 percent to close the year at $35.5 million. Revenue gains were mostly attributable to premium revenue, which boosted profits across all three major business segments: Domestic, International and Global Life. Net income for the year was $30.7 million, an 11.5 percent improvement over 2010, reflecting the continued strong performance of the company's investment portfolio.
"Continued execution of our core strategy, expansion of distribution partners and new product development combined to make 2011 a very successful year," said Jose S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group. "Our revenue growth reflects strong sales performance throughout our core business segments and we are also very encouraged by the sales gains experienced across multiple markets in Latin America."
Latin America Group - the largest line of business - posted double digit sales growth at 24 percent, as did Domestic Markets with a 16 percent increase. Global Life insurance sales grew 9 percent, far outpacing the industry average.
"Our experienced executive management team and operating managers have successfully guided Pan-American Life through a challenging economic environment and positioned us for future success," added Mr. Suquet. "In 2012 we will build on these results and continue providing trusted financial security to customers throughout the Americas while integrating the operations that we are in the process of acquiring from MetLife and exploring new avenues for sustained growth."
In November 2011 PALIG announced that the company had entered into an agreement to acquire select businesses and assets from MetLife - ALICO/ALGICO units in Central America and the Caribbean. PALIG is currently securing regulatory approval for the acquisition in the appropriate jurisdictions and the company expects to close the transaction in the first half of 2012.
In 2011 PALIG also invested more than $10 million in strategic initiatives, including the launch of its Private Client International Major Medical unit; incremental investment in the Costa Rica operation that opened in 2010; and the initial filing for a Mexico affiliate in May 2011, for which management expects to receive regulatory approval to begin operation in 2012.
PALIG's financial strength and stability continue to be recognized within the industry. Earlier in 2011, Fitch Ratings and A.M Best reaffirmed Pan-American Life's ratings with 'A' Insurer Financial Strength (IFS) rating.
2011 financial and sales highlights follow:
2011 Financial Highlights
-- Total Assets: $2.2 billion -- Total Equity: $538 million -- Net Income: $30.7 million -- Total Revenues: $470 million -- Pre-tax Operating Earnings: $35.5 million-- Overall sales in 2011 increased 19 percent -- Global Life showed a 9 percent increase -- Latin America Group increased 24 percent -- Domestic Markets showed an 16 percent increase
About Pan-American Life
The Pan-American Life Insurance Group is a leading provider of insurance and financial services serving nearly half a million customers 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 800 worldwide, providing top-rated life and health insurance, worksite benefits and financial services in 47 states, the District of Columbia (DC) and Puerto Rico. The Group's member companies offer individual and/or group life and health insurance throughout Latin America. The Group has branches and affiliates in Costa Rica, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, and the Cayman Islands. For more information, visit the Pan-American Life Web site at palig.comPan-American Life Insurance Group
Web site: http://www.palig.com/