Pan-American Life Insurance Group to acquire MetLife assets
NEW ORLEANS, United States, Wednesday November 9, 2011 - Pan-American Life Insurance Group (PALIG), a leading provider of life and health insurance in Latin America and the United States, today announced a definitive agreement to acquire select businesses and assets from MetLife (NYSE: MET). PALIG plans to acquire MetLife's American Life and General Insurance Company (ALGICO) unit in Trinidad & Tobago, along with American Life Insurance Company (ALICO) branches in Barbados, Cayman Islands and the majority of the Leeward and Windward Islands, and the ALICO operations in Panama and Costa Rica. Upon closing, this transaction expands Pan-American Life Insurance Group's size and extends its geographic footprint. Terms of the transaction were not disclosed.
Through this transaction, PALIG adds to its strong existing businesses in Panama and Costa Rica and expands its presence in the Caribbean. In total, the businesses being acquired by PALIG represent more than $125 million in 2010 premiums and $675 million in assets.
"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," said Jose S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group. "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 addition, in connection with the transaction with MetLife, the parties anticipate that PALIG will become the MAXIS Global Benefits partner in these markets, and also in Central America and Ecuador. MAXIS Global Benefits Network is a worldwide pooling arrangement created to deliver optimal 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," added Mr. Suquet.
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.
"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 Mr. Suquet. "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."
Morgan Stanley served as principal financial advisor to Pan-American Life Insurance Group. Debevoise & Plimpton LLP served as principal legal advisor to Pan-American Life Insurance Group. Dewey & LeBoeuf LLP served as principal legal advisor to MetLife.
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 www.panamericanlife.com.