NEW ORLEANS, Feb. 17 /PRNewswire-HISPANIC PR WIRE/ — Pan-American Life Insurance Group today announced its financial results for 2008. The company generated revenues of $400 million and pre-tax operating earnings of $25.7 million, representing annual growth of 9% and 17% respectively.
Earnings growth was influenced by the restructuring and diversification of the company’s international sales organizations, consistent performance in individual life sales and improved sales, renewal rates, and loss ratios in group health insurance in domestic and international markets. Net income of $5 million reflects strong operating performance offsetting losses primarily from Fannie Mae and Freddie Mac preferred stock.
In 2008, Pan-American Life Insurance Group transitioned to the US GAAP standards of financial accounting and reporting. The earnings results released are presented on the new basis of accounting; including comparative US GAAP 2007. Among the key motives for the transition are to operationalize the company’s Mutual Holding Company structure; which include increasing access to capital markets; facilitating mergers and acquisitions activity; to increase opportunities for review among larger selection of ratings agencies and other key evaluation groups and to increase benchmarking opportunities within the industry.
“Overall, 2008 was another strong year for Pan-American Life. Closing with a strong increase in annual revenue driven by double digit increase in sales is an excellent accomplishment, positioning us favorably for continued growth and success in 2009,” said Jose S. Suquet, Chairman of the Board, President and CEO of Pan-American Life. “As we look ahead, despite difficult economic conditions, we will build on the momentum of 2008 while monitoring developments and maintaining our conservative investment approach and risk management processes. We will also continue to focus on those initiatives that assure we retain our financial strength and commitment to our policyholders, while continuing to focus on our core strategy of expansion in Latin America and the U.S. Hispanic market.”
Pan-American Life maintained its rating scores of “A-” with a “positive outlook” from A.M. Best, affirmed January 31, 2009; and an “A” from Fitch Ratings Insurance Group.
In 2008 the Company focused on improving its Latin American group business’ operating performance. Many of these initiatives were implemented in the first quarter. As a result of these initiatives, there was an overall decrease in loss ratios of 2% and a 10% decrease in our overall Latin American group business general and administrative expenses.
2008 financial and sales highlights follow:
2008 Financial Highlights
— Total Assets: $2 billion
— Total Equity: $339 million
— Total Revenues: $400 million
— Total Operating Earnings: $25.7 million
2008 Sales Highlights
— Domestic gross earned premium increased by $31.1 million increasing its contribution of gross earned premium to 54%, from 50% in 2007
— Overall LATAM contribution to gross earned premium remained flat at 32%, while increasing by $10.9 million.
— Domestic sales reached $93.4 million, representing 52% of total sales.
— Latin American sales reached nearly $75 million; contribution remained consistent at 43%, while increasing by $8 million from 2007.
— Total sales of $176.8 million 22% growth over prior year
About Pan-American Life Insurance Group
The Pan-American Life Insurance Group comprises a number of insurance and reinsurance companies serving nearly half a million customers throughout the Americas. A member of the Group, New Orleans-based Pan-American Life Insurance Company, is a leading international insurance company since 1911, employing more than 700 worldwide, providing top-rated life and health insurance, worksite benefits and financial services in 46 states, the District of Columbia (DC) and Puerto Rico. Its international operations, offering individual and group life and health insurance throughout Latin America, includes affiliates in Panama, Guatemala, Cayman Islands and Colombia, and branch offices in Ecuador, El Salvador and Honduras. For more information, visit the Pan-American Life Web site at http://www.panamericanlife.com
SOURCE Pan-American Life Insurance Group