Pan-American Life Insurance Group (PALIG), a leading provider of insurance and financial services throughout the Americas, announced financial results for the full year ending December 31, 2013.
Revenues grew 17.5 percent to $653.7 million, while GAAP pre-tax operating earnings increased by 107 percent to close the year at $56 million. Excluding one-time acquisition-related charges in both 2012 and 2013, pre-tax operating earnings grew $16 million or 34.5 percent in 2013. Revenue gains were primarily attributable to continued strong growth both in the Latin America markets where Pan-American Life Insurance Group operates and the new markets from the acquisition of MetLifes Algico/Alico operations in the Caribbean, Panama, and Costa Rica. Net income for the year was $53 million compared to $24 million in 2012, reflecting strong operating results in all segments, investment gains and a positive variance of $13.2 million in one-time acquisition-related expenses.
The effect of the 2012 acquisition is now showing throughout the organization and in the companys bottom line. PALIG is now operating on a greater scale, across many more countries and lines of business, said José S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group. While we continue to solidify the foundation of the core business that is the underpinning of our financial strength and we maintain a conservative financial management and prudent risk profile, our team has been focusing on nurturing growth in new areas that promise to accelerate the momentum we built after the acquisition and will propel us to new heights.
In addition to completing the integration of the newly-acquired operations, during 2013 PALIG placed a renewed emphasis on customer service through a corporate-wide employee initiative, Service for Life, and on capturing greater productivity synergies across all regions. Several product introductions underscored PALIGs drive for product innovation in 2013, including PALIGMED, the companys proprietary international medical network. Additional product innovations include, the introduction of Pan-American Life Access, a Universal Life product; enhanced multinational and corporate benefit solutions, customized mass marketing programs; and the introduction of WorldAccess and PreferredAccess in Mexico and Trinidad. On the domestic side of the business, Pan-American Benefits Solutions (PABS), posting a growth of 7.1 percent in 2013, continues to generate creative and affordable product alternatives for companies that are seeking to comply with provisions of the healthcare reform law.
PALIG is now in a stronger competitive position and we will move assertively to take advantage of the opportunities that the market presents us both domestically and internationally, said Mr. Suquet. We are the preferred provider in many of the markets and segments in which we operate, and we are in a position to leverage the companys added scale, financial strength, depth of product offering and expertise to capitalize on those growth opportunities.
PALIGs financial strength and stability continue to be recognized within the industry. In 2013, Fitch Ratings reaffirmed Pan-American Lifes A Insurer Financial Strength (IFS) rating and Stable Outlook, and Pan-American Life maintained its A (excellent) rating from A.M. Best with a Stable Outlook.
2013 financial and sales highlights follow:
2013 Financial Highlights
- Total Assets: $3 billion
- Total Equity: $616 million
- Net Income: $53 million
- Total Revenues: $654 million
2013 Sales Highlights
- Overall sales in 2013 increased 10 percent
- Global Life showed a 11 percent increase
- International Group increased 29 percent
- Pan-American Benefits Solutions increased 7.1 percent
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 1,400 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 Groups 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.