The branch of American Life Insurance Company in the Cayman Islands will soon find itself under new ownership together with ALICO branches in Barbados, Panama, Costa Rica and the majority of the Leeward and Windward Islands, as well as the operations of American Life and General Insurance in Trinidad and Tobago.
Current owner MetLife is planning to sell the businesses to Pan-American Life Insurance Group, a life and health insurer in Latin America and the United States.
The businesses represent more than $125 million in 2010 premiums and $675 million in assets and will extend Pan-American Life Insurance Group’s geographic footprint in the Caribbean and add to the group’s existing businesses in Panama and Costa Rica.
“ALICO has a long history of being a formidable company and respected competitor. Their success has been driven by their talented employees and we look forward to adding them to the Pan-American Life team as we expand into 22 countries in the region,” said Jose S. Suquet, chairman of the board, president and chief executive officer of Pan-American Life Insurance Group. ”We believe this transaction allows us to grow profitably and bring value to our customers, distributors, employees and the communities we serve. We will work closely with MetLife to ensure the smoothest possible transition for employees and uninterrupted service for customers.”
Both MetLife and PALIG have received their required internal approvals, and the transaction is expected to close in the first half of 2012. It is subject to certain regulatory approvals and other customary closing conditions.
“Post close, Pan-American Life Insurance Group will have more than $625 million in revenues, $2.8 billion in assets and more than 1300 employees,” Mr. Suquet said. “The acquisition of the MetLife businesses and the establishment of our new operation in Mexico expand our geographic footprint, give us greater diversification and economies of scale, and reinforce the commitment our founders made 100 years ago to providing trusted financial security to customers in Latin America and the Caribbean.”
In connection with the transaction with MetLife, the parties anticipate that PALIG will become the MAXIS Global Benefits partner in these markets, Central America and Ecuador. MAXIS Global Benefits Network is a worldwide pooling arrangement created to deliver local insurance coverage to multinational companies through their own operations as well as independent carriers.
“This transaction expands Pan-American Life’s product offerings within the Life and Health segments by adding Personal Accident and Health lines, making Pan-American Life the number one, two or three life and health carrier in nearly all markets in which we compete outside of the United States,” Mr. Suquet said.