Pan-American & Mutual Trust to merge
With merger and acquisition (M&A) activity set to continue throughout the re/insurance market, two mutual insurance holding companies have announced plans to merge.
Pan-American Life Insurance Group and Mutual Trust Financial Group have signed a definitive merger agreement to combine Pan-American Life Mutual Holding Company and Mutual Trust Holding Company.
The companies said that the merger will strengthen the combined company’s position as a premier life, accident and health insurance provider in the Americas.
The combined company will continue to operate as a mutual insurance holding company with approximately $1 billion in revenues, $5.5 billion in total assets, 1.5 million covered lives and 1,650 employees. It will also have approximately $1 billion in total capital.
MTL Insurance Company’s (MTL) presence in the US life market will provide a new source of US focused growth, along with a leading technology platform to drive operational efficiencies in the combined domestic life business.
Upon completion of the merger, MTL will operate as a wholly-owned subsidiary of Pan-American Life. Pan-American Life’s existing US life business will combine with MTL’s US platform for individual life insurance into one domestic life business unit.
Stephen Batza, chairman, president and CEO of Mutual Trust Financial Group, will lead Pan-American Life’s re-launched domestic life business from MTL’s current headquarters in Oak Brook, Illinois. The combined organisation will have its global headquarters in New Orleans, Louisiana, and will be led by José Suquet, the current chairman of the board, president and chief executive officer (CEO) of Pan-American Life Insurance Group.
“This merger brings together each company’s 100-plus year history and culture to create a company with enhanced growth opportunities, diversification and financial strength,” said Suquet.
“Our shared vision, complementary geographic footprints and the opportunity to provide increased penetration of the US Hispanic market for both companies’ core products make this merger attractive for both organisations and our distribution partners,” he added.
Batza added: “The merger of Pan-American Life and Mutual Trust combines two leading organisations with significant financial strength, complementary businesses and strong operations in their respective markets. Together, we will have accelerated growth prospects, superior financial flexibility and an enhanced ability to serve the needs of our policyholders and distribution partners.”