Today Tomorrow TogetherPan-American Life Insurance Group Today Tomorrow Together 3 Pan-American Life...
Transcript of Today Tomorrow TogetherPan-American Life Insurance Group Today Tomorrow Together 3 Pan-American Life...
Today Tomorrow Together
2017 ANNUAL REPORT
2 2017 Annual Report
1. Who We Are ......................................................................3
2. A Message from Our CEO ...............................................4
3. 2017 Annual Review ........................................................6 • U.S. Life • U.S. Group • International Life • International Group • Corporate Highlights • Ratings
4. Working Together ..........................................................10
5. Corporate Giving.............................................................11
6. 2018 Key Initiatives & Vision .......................................12
7. Corporate ........................................................................14 • Senior Management Committee • International Leadership • Board of Directors
8. Financials ........................................................................18 • Summary of Operations • Consolidated Balance Sheet
Table of Contents
Pan-American Life Insurance Group: Today | Tomorrow | Together 3
Pan-American Life Insurance Group is a leading provider of insurance and financial services throughout the Americas. Since 1911, the New Orleans-based Group has been delivering trusted financial services and currently comprises more than 20 member companies, employs more than 1,950 worldwide and offers top-rated individual and group life, accident and health insurance, and financial services in 49 states, the District of Columbia (DC), Puerto Rico, the U.S. Virgin Islands, and throughout Latin America and the Caribbean. The Group has branches and affiliates in Costa Rica, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, and 13 Caribbean markets, including Barbados, Cayman Islands, Curacao and Trinidad and Tobago.
Pan-American Life Insurance Group offers:
• Individuals & Families - Life - Accident - Health• Businesses - Life - Accident - Health - Pensions - Mass Marketing - Credit Life - Multinationals
___________________________________
Not all products are available in all locations. For additional information on Pan-American Life products and services, and the Group member companies that offer them, visit palig.com.
Who we are
4 2017 Annual Report
Pan-American Life Insurance Group delivered a stellar performance in 2017. What we’ve accom-plished speaks volumes about the company we are today and will be tomorrow.
I state that with confidence, because I have wit-nessed first-hand what can result from the col-lective effort and collaboration that permeates at all levels of our organization as well as in our work with our external business partners and the markets we serve. This powerful dynamic has truly allowed us to become one PALIG, aligned under the common vision of improving our pol-icyholders’ sense of wellbeing, while becoming the leading insurance carrier in the Americas. And that exceptional teamwork shows.
Teamwork shows in our financial performance. PALIG has consistently delivered top-line revenue, premium and pre-tax operating income (PTOI) growth. In 2017 revenues grew 6.7 percent to reach a record $1.07 billion. Pre-tax operating earnings grew a strong 21.7 percent to $87.8 million. Net income for the year was $77.5 million, a 58 percent increase compared to 2016. Total assets now stand at $6 billion and total equity increased 14.5 percent to over $1 billion.
We exhibited strong performance across business lines, registering a combined growth of 7 percent in new sales and 3 percent in total premium. International Group and U.S. Life led the way with double digit growth in sales over 2016. This level of performance can only be achieved through the consistent, integrated effort of all our functional areas working together towards a common goal.
A message from our CEO
José S. SuquetChairman of the Board, President and CEO
Pan-American Life Insurance Group: Today | Tomorrow | Together 5
When we embarked on our 5-year strategic plan in 2014, we set aggressive targets for the year 2018. We surpassed those targets two years ahead of schedule. As a result, we’ve reset our expectations, embarking on a new 5-year plan with an eye towards 2021. Our new plan builds on our current performance and our strengths as an organization, focusing on four core areas:
• Organic growth of product business• Investing in talent and technology• Capitalizing on strategic market opportunities• Investing in future wins
Teamwork shows in our ability to integrate new operations into the PALIG organization. The exceptional performance of our U.S. Life business in 2017 is testament to the outstand-ing work our teams have done to integrate our U.S. Life operations in the United States. It has now been two years since the completion of the merger of Mutual Trust and Pan-American Life, and the highly eff ective integration of human, operational, and investment resources is show-ing clear results in the bottom line.
And in 2017, with the acquisition of HolaDoctor, we demonstrated yet again how PALIG can seamlessly add and integrate strategic assets that complement our existing operations to advance the company’s overall mission and set us up for future success. Joining forces with the leading digital provider of health and wellness solutions for Hispanic audiences is a signifi cant strategic initiative that both expands our presence in the U.S. Hispanic market and strengthens our position as a healthcare leader in Latin America.
Teamwork shows in our operational excellence.Day in and day out, I witness integrated cross-functional and cross-geography teams working together to deliver operational excel-lence, achieve our business objectives and build the footprint of our bright future. Over the past four years those teams have driven execution and margin improvement; tapped into new
market opportunities and leveraged our grow-ing scale; and strengthened our operational support functions to deliver improved respon-siveness and customer service.
Our team has also shown resilience and come together to assist each other when parts of our organization have come under severe external stress, as was readily evident with a spate of natural disasters in 2017. We all pulled together to support our operation in Mexico in the after-math of the earthquakes and did likewise after major hurricanes aff ected our colleagues in Texas, Florida, Puerto Rico and the Caribbean.Without doubt, we are able to accomplish much more with support and trust as an anchor.
At Pan-American Life Insurance Group every individual has the capacity to make a diff erence and drive business success. That capacity grows exponentially when we work hand in hand to-wards a common purpose, leveraging the best of what we each have to off er.
I don’t want to end my remarks this year with-out also noting a fabulous addition to our team on the Board of Directors. Suzanne Mestayer, Managing Principal of Thirty North Investments, LLC, will contribute her fi nancial expertise as a member of the Audit and Finance Committee. In addition to her long and successful record as a fi nancial services and banking professional, Suzanne has been a supporter and leader of several prominent community organizations and business groups in the New Orleans area.
I am proud to be a part of this great team and am looking forward to working in unison with all of my colleagues to make PALIG a bigger, stronger and more successful company for years to come.
Sincerely,
José S. Suquet Chairman of the Board, President and CEO
6 2017 Annual Report
2017 annual review
TogetherAcross our footprint in the Americas, our teams are executing
on our vision of success. Their commitment to
working together inspires our performance as a
company and enhances the value that we add
to our stakeholders.
U.S. LIFE
• Achieved double-digit sales growth for the second consecutive year, outper-forming the industry by 18 percentage points
• Introduced new whole life product, Horizon Guarantee to further strength-en product off ering
• Continued to invest in strong relation-ships with independent distribution partners
• Repositioned Mutual Trust assets as part of the integrated PALIG invest-ment portfolio, resulting in increased investment yields
• Optimized coordination between operations teams in New Orleans and Oak Brook to enhance administrative processes
• Mutual Trust highlights in 2017 – Achieved $2 billion in statutory assets – Announced increased aggregate
policyholder dividend payout for 2018 despite continued low-interest rate environment, with over $9 million in dividends to be delivered to policyholders
Together we drive success
Pan-American Life Insurance Group: Today | Tomorrow | Together 7
U.S. GROUP
• Demonstrated the ability to remain fl exible and successfully pivot in uncertain political and regulatory environments
• Delivered strong new account sales in Employee Benefi ts and Major
Medical Stop Loss• Expanded sales and marketing
distribution channels• Added new coverages to accident
product portfolio• Strengthened service culture and
customer service delivery• Maintained Hispanic niche market
focus with Hispanic-owned businesses accounting for 65 percent of new group clients
INTERNATIONAL LIFE
• Delivered pre-tax operating income (PTOI) of $52.7 million
• Generated strong sales in Latin America driven by growth in Panama, Honduras, Costa Rica, Colombia and El Salvador
• Achieved strong sales of annuity and personal accident products in the Caribbean
• Grew sales in the personal accident segment by 20 percent
• Expanded the agency distribution model for individual products to Costa Rica and El Salvador
• Added a single premium term insurance product to the Pan-American Private Client Life suite of products
• Enhanced product portfolios in Latin America and the Caribbean with the introduction of a new critical illness product and a new term insurance product in key regional markets
TogetherTogether we drive success
8 2017 Annual Report
INTERNATIONAL GROUP
• Realized impressive top and bottom line growth of 19 percent and 18 per-cent, respectively
• Achieved record breaking sales in the multinational employee benefits segment sales with over $15 million in new annualized premium (NAP)
• Delivered particularly strong growth in the employee benefits segment in Latin America with over 30 percent growth in pre-tax operating income (PTOI) growth
• Generated significant growth in large markets, notably Mexico and Colombia
• Continued to successfully grow mass marketing business in Latin America and the Caribbean
• Expanded Accident & Health product offerings
• Completed the transformational acquisition of HolaDoctor, a leading digital provider of health and wellness solutions for Hispanic audiences
CORPORATE HIGHLIGHTS
• Completed new 5-year strategic plan and made significant inroads in map-ping the company’s succession plan-ning process
• Continued to enhance financial controls• Expanded enterprise risk manage-
ment (ERM) frameworks across the Group, further embedding the culture of ERM throughout the organization’s activities, from strategic planning to execution
• Upgraded cybersecurity capabilities with the addition of expert profes-sionals
2017 annual review
FOCUS ON: U.S. LIFE
2017 was another outstanding year for our U.S. Life business. Building on the value added in the 2015 merger with Mutual Trust, this line of business is helping PALIG maintain its balanced geographic and product distribution. Other highlights include:
• Completing the post-merger integration and accelerating growth momentum
• Growing 21 percent in an industry that rarely exceeds 2 – 3 percent annual growth
• Delivering an excellent performance in terms of revenue and pre-tax operating income (PTOI)
Pan-American Life Insurance Group: Today | Tomorrow | Together 9
We’re proud to say that Pan-American Life Insurance Company received an A (Excellent) rating from A.M. Best and an A (Strong) rating from Fitch Ratings; and that Mutual Trust Life Insurance Company is also rated A (Excellent) by A.M. Best. These ratings are strong endorse-ments of the financial strength that enables us to be there when our clients need us the most.
“Pan-American Life’s rating affirmations reflect the benefits derived from the company’s long- established presence and name recognition in Latin America and the U.S. Hispanic marketplace, as well as its improved balance sheet and income statement. The ratings also reflect Pan-American Life’s solid con-solidated risk-adjusted capitalization, well-performing fixed-income invest-ment portfolio and positive net oper-ating performance.”
– A.M. Best
“Pan-American’s ratings reflect its very strong capitalization and rel-atively low-risk liability profile. The company’s strong balance sheet continues to be a key ratings driver with very strong capitalization and low leverage. The ratings also con-sider the successful integration of Mutual Trust, which has strength-ened Pan-American’s position in the U.S. life insurance market.”
- Fitch Ratings
INVESTMENTS
• Pan-American Life Insurance Group achieved a “new acquisition yield” of 5.28 percent on $830.9 million of bond purchases in 2017
• Net unrealized gains in Pan-American Life Insurance Group’s bond portfolio stood at $251.0 million as of December 31, 2017. This constitutes an increase of $119.9 million from the previous year
• Pan-American Life Insurance Company’s statutory bond yield in 2017 of 5.76 per-cent compares exceptionally well to the Life Industry average as published by A.M. Best. The most updated statistic available from A.M. Best reports that in 2016 the average bond yield for the Life Industry was 4.64 percent
Ratings
10 2017 Annual Report
OUR LEADERSHIP WORKING TOGETHERPan-American Life’s corporate and in-country leadership teams nourish a collaborative culture that encourages every individual within the organization to play their part in bringing the company’s mission, vision and values to life every day.
OUR SALES TEAMS WORKING TOGETHER Across the United States, Latin America and the Caribbean, our agents and brokers relish the challenge of setting themselves apart and representing their client’s best interests – always. Together, they epitomize all we can accomplish when we work together.
OUR EMPLOYEES WORKING TOGETHERFor more than 100 years, we’ve been known as people you can trust for life. Our teams across the Americas protect and strengthen that legacy with their commitment to delivering the best service to every client from the moment their application comes through the door.
CELEBRATING OUR LEGACY AND WORKING TOGETHERIn 2017, Pan-American Life’s affiliates in Panama and Guatemala turned 105 and 60, respectively. We also celebrated the 5th anniversary of the MetLife acquisition in the Caribbean, Costa Rica and Pana-ma. These important milestones are the result of an unwavering commitment to working together
Working together
Over the course of our 107 year history we have learned many lessons about how we can best serve the people and communities that place their trust in us. Chief among those lessons is the impact of our collective power. When we work together we benefit from each other’s knowledge, empower each other to progress and most importantly, we enhance the company’s ability to deliver on the promise we make to our policyholders.
11
Teams that work well together achieve a greater impact and make a genuine difference in the lives of all those they touch. In 2017, our employees and producers across the Americas came together to make a meaningful difference in the communities they serve. With their generous support Pan-American Life Insurance Group part-nered with organizations that share our commitment to community development, the arts, education and public safety.
• Alianza Anticáncer Infantil - Mexico• American Cancer Society• American Diabetes Association• American Red Cross• Asociación de Cónyuges de Funcionarios Diplomáticos
del Ecuador• Asociación Hogar Jesucristo es mi casa - Guatemala• Asociación Pro-Niñez Panameña - Panama• Audubon Nature Institute – New Orleans• Bayou District Foundation – New Orleans• Birdfoot Festival – New Orleans• Boy Scouts of America – New Orleans• Breastoration – New Orleans• Casa Argentina – New Orleans• Club de Leones Guatemala• Club Rotario de Guatemala• Club Rotario Panama Norte - Panama• Committee for a Better New Orleans – New Orleans• Comunidad Religiosa “Siervas de María Ministras
de los Enfermos” - Ecuador• Court Watch NOLA• Creer – Honduras• Crimestoppers – New Orleans• Cystic Fibrosis• Doctors without Borders• Easter Seals• Ejército de Salvación - Puerto Rico• Escuela República de Francia - Honduras• Family Shelter Service• Fondo Unido de Guatemala United Way• French Quarter Festival – New Orleans• Fundacáncer - Panama• Fundación Amigos del Niño con Leucemia y Cáncer - Panama• Fundación Ayuvi – Guatemala• Fundación Castillo Córdova - Guatemala • Fundación Jesús Luz de Oportunidades - Panama• Fundación Latidos – Panama• Fundación Más Magia Más Vida - Mexico• Fundación Niño Feliz - Honduras• Fundación Porque quiero a Colombia - Colombia• Fundación San Ignacio de Loyola - Mexico• Fundación Valórate – Panama• Fundación Voces del Autismo - Guatemala• Fundayuda - Panama• Great Lakes Adaptive Sports Association• Greater New Orleans Council• Greater New Orleans Foundation• Greater New Orleans, Inc.• Guardian Angel Community Service• Habitat for Humanity• Habitat for Humanity – New Orleans• Hábitat para la Humanidad - Guatemala• Help HOPE Live• Hispanic Chamber of Commerce of Louisiana• Hogar de Niñas Natalia de Simán - El Salvador• Hogar del Niño El Ave María - Puerto Rico• Hogs for the Cause – New Orleans• Honor Flight Chicago• Houston Food Bank• Humanitarian Service Project
• Hurricane Harvey Relief Fund• Idea Village – New Orleans• Illinois Leukemia and Lymphoma Society• Instituto Oncológico Nacional - Panama• Junior Achievement – New Orleans• Juntos Podemos - Curundú• Juvenile Diabetes Foundation• Leukemia & Lymphoma Society• Liga Nacional Contra el Cáncer de Guatemala• Little Brothers – Friends of the Elderly• Little Friends• Louisiana Appleseed• Louisiana Children’s Museum• Louisiana Philharmonic Orchestra• Louisiana State University• Loyola University New Orleans• Lungevity• Make a Wish - Mexico• Make- A-Wish Foundation• March of Dimes• Midwest Shelter for Homeless Veterans• National Alliance on Mental Illness• National MS Society• New Orleans Ballet Association• New Orleans Council for Community & Justice• New Orleans Hispanic Heritage Foundation• New Orleans Museum of Art• New Orleans Police and Justice Foundation• Northern Illinois Food Bank• Nutre Hogar - Panama• Ochsner Clinic Foundation• Pacific Garden Mission• Pancreatic Cancer Action Network• Patronato Ciudad del Niño - Panama• Patronato de Nutrición - Panama• Pediatric Brain Tumor Foundation• Rotary Club of Port of Spain – Trinidad• Salvation Army• Sociedad Israelita de Beneficencia Shevet Ahim - Panama• Sociedad Protectora del Niño - Guatemala• St. Baldrick’s Foundation• Susan G. Komen• Texas Diaper Drive• The Cotton Tree Foundation -Trinidad• The Good Shepherd School – New Orleans• The San Antonio Green Market• The YMCA of Greater New Orleans• Toys for Tots• Tulane University• United Way• United Way - Honduras• United Way of Trinidad and Tobago• Upturn Arts• US Armed Forces• US Fund for UNICEF• West Suburban Community Pantry• WYES – New Orleans• Young Leadership Council• Youth Leadership Project
Corporate Giving
OUR 2017 COMMUNITY
PARTNERS
12 2017 Annual Report
2017 was the beginning of a new phase for Pan-American Life as we began to implement our new strategic five year plan, with ambitious goals for 2021 and beyond. With mutual support and trust anchoring the efforts of our teams across all areas of the business, we are preparing Pan-American Life to continue building on its success.
Key business initiatives for 2018 include:
• Execute first phase of 5-year strategic plan
• Assess strategic implications of U.S. tax reform
• Expand enterprise risk management processes
• Continue to enhance cybersecurity infrastructure
• Leverage strategic M&A opportunities
• Expand U.S. Group accident product portfolio
• Introduce additional products in the U.S. Life portfolio and leverage cross-selling opportunities
• Launch Index Universal Life product for U.S. Foreign National business
• Achieve growth in U.S. Special Markets segment through new strategic partnerships
• Offer additional products through Hola Doctor distribution channels
• Strengthen wellness platform in support of international health products
• Install new anti-money laundering system and further strengthen compliance culture
2018 Key Initiatives & Vision
TodayTomorrowTogether
Pan-American Life Insurance Group: Today | Tomorrow | Together 13
14 2017 Annual Report
Senior Management Committee
MR. JOSÉ S. SUQUETChairman of the Board, President and CEO
MR. CARLOS F. MICKANVice Chairman of the Board, Head of Finance and Administration
MR. PATRICK C. FRAIZERExecutive Vice President - General Counsel and Corporate Secretary
MR. RODOLFO J. (RUDY) REVUELTAExecutive Vice President and Chief Investment Officer
MR. STEPHEN BATZAPresident – U.S. Life Business; President and CEO, Mutual Trust Life Insurance Company
MR. ROBERT DICIANNIPresident – International Group Business
MR. JOHN FOLEYPresident - U.S. Group Business
MR. BRUCE PARKERPresident - International Life Business
MR. ROBERTO ESTRADACEO – HolaDoctor
MR. MICHAEL CARRICARTESenior Vice President – Individual Health
MR. DANIEL COSTELLOSenior Vice President – International Country Management
MR. DAVID DEMMONSenior Vice President – Chief Financial Officer and Controller
MR. FRANK RECIOSenior Vice President - International Business Technology and Operations
MR. SCOTT REITANSenior Vice President - Administration and Information Technology
MR. BRYAN SCOFIELDSenior Vice President - Human Resources
MR. SELIG EHRLICH, FSA, MAAAChief Actuary and Risk Officer
MR. CARLOS ALDANAVice President - Corporate Development
MR. PAUL ENGERISERVice President - Corporate Actuary
MR. ALYWIN FRUGEVice President - Internal Audit
MR. RICK MABRYVice President - Tax
MR. CARLO MULVENNAVice President - Domestic Operations and Head of Product Development
MR. ÁLVARO MUÑOZVice President - Financial Reporting & Planning
MS. MARTA C. REEVESVice President - Corporate Marketing
MR. WILLIAM R. (BILL) SCHULTZ, JR Vice President – International Group
MR. RAFAEL SHABETAIVice President - International Life Chief Underwriter – Latin America and the Caribbean
MR. ROBB SUCHECKIVice President – International Healthcare
Pan-American Life Insurance Group: Today | Tomorrow | Together 15
MS. MARÍA DEL ROSARIO ÁLVAREZCountry Manager – Honduras
MR. CARLOS CHIRIBOGACountry Manager – Ecuador
MR. JOSÉ ANTONIO (TONY) ELETACountry Manager – Panama
MS. MARIA TERESA BOLAÑOSCountry Manager – El Salvador
MR. SALVADOR LEIVACountry Manager – Guatemala
MR. JUAN PABLO LUQUECountry Manager – Colombia
MR. ALFREDO RAMÍREZCountry Manager – Costa Rica
MS. GREER QUANCEO – Caribbean
MR. LUIS CARLOS COVARRUBIASCountry Manager – Mexico
MR. JOSÉ LUIS VARGASCountry Manager – Puerto Rico
International Leadership
16 2017 Annual Report
Frank Purvis was a man of vision,
whose more than 56 years of
stewardship and service was instrumental in
making Pan-American Life
the company that it is today.
He was an inspiration
to all those who knew him
and an example, even to those
who didn’t. May he
rest in peace.
In Memorium: Frank Purvis
Pan-American Life Insurance Group: Today | Tomorrow | Together 17
MR. STEPHEN BATZA President - U.S. Life BusinessCEO, Mutual Trust Life Insurance CompanyPan-American Life Insurance Group Former Executive Vice President & Chief Operating Officer - Individual Life Business Unit Liberty Mutual GroupFellow of the Society of Actuaries and member of the American Academy of ActuariesOAK BROOK, ILLINOIS
MR. JERRY CARLISLEFinancial ConsultantFormer Adjunct ProfessorFormer Vice President, Controller & Chief Accounting OfficerLouisiana Land and Exploration CompanyFormer Audit ManagerPeat Marwick Mitchell & Co. (now/ahora KPMG)NEW ORLEANS, LOUISIANA
MS. MARTHA O. HESSERetired PresidentHesse Gas CompanyFormer Chairman of the BoardEnbridge Energy Partners Former ChairmanU.S. Federal Energy Regulatory Commission Assistant Secretary for Management and AdministrationWINNEMUCCA, NEVADA
MS. SUZANNE T. MESTAYEROwner & Managing Principal ThirtyNorth Investments, LLCChairmanOchsner Health SystemNEW ORLEANS, LOUISIANA
MR. CARLOS MICKANVice Chairman of the Board, Head of Finance and AdministrationPan-American Life Insurance GroupNEW ORLEANS, LOUISIANA
MR. KENNETH C. MLEKUSHFormer Vice Chairman Jefferson Pilot CorporationPresidentLife Companies Jefferson Pilot FinancialGREENSBORO, NORTH CAROLINA
MR. WENDELL MOTTLEYFormer ChairmanUnit Trust CorporationFormer Minister of Finance TrinidadFormer Managing DirectorCredit SuissePORT OF SPAIN, TRINIDAD
MR. DANIEL MULHERANRetired President, Individual Life Distribution ING U.S., LLC Former Senior Vice President and Head of IGA Distribution, U.S. Life GroupING U.S. Financial Services Former President and Principal Mulheran & Associates, Inc.NAPLES, FLORIDA
MR. CARLOS PALOMARESPresident SMC ResourcesFormer COO of Capital One FSBFormer COO Citibank Latin America Consumer BankMIAMI, FLORIDA
DR. PATRICK J. QUINLANFormer Chief Executive OfficerOchsner Clinic Foundation & International ServicesFormer Executive DirectorCenter for Community Wellness & Health PolicyFormer Chief Executive OfficerOchsner Health SystemNEW ORLEANS, LOUISIANA
MR. COLEMAN D. ROSSRetired PartnerPricewaterhouse Coopers LLPCHAPEL HILL, NORTH CAROLINA
MR. JOSÉ S. SUQUETChairman of the Board, President & CEOPan-American Life Insurance GroupNEW ORLEANS, LOUISIANA
DR. JOSÉ ANTONIO VILLAMILPrincipal AdvisorThe Washington Economics Group Inc.CORAL GABLES, FLORIDA
Board of Directors
18 2017 Annual Report
Financials
Summary of Operations Pan-American Life Mutual Holding Company Years ended December 31, 2017, 2016, and 2015*2017 reflects unaudited financials | **2016, 2015 reflects audited financials
$ (000)
Revenues
Total revenues
*2017
$1,072,496
**2016
$1,005,125
**2015
$799,895
Premiums
Policy and contract fees
Net investment income
Other revenues
$701,723
114,106
243,141
13,526
$650,332
111,165
231,432
12,196
$515,384
111,820
156,405
16,286
Pan-American Life Insurance Group: Today | Tomorrow | Together 19
Benefits and expenses
Total benefits and expenses
Net income
2017
$984,667
$77,490
2016
$932,975
$48,939
2015
$745,623
$35,311
Policyholder benefits and interest credited
Underwriting, acquisition, insurance and other expenses
Amortization of deferred policy acquistion costs
Income from operations before taxes and noncontrolling interest
Loss from discontinued operations net of tax
Net realized investment gains
Income tax expense
Income after taxes and before noncontrolling interest
Noncontrolling interest in income
$617,166
336,520
30,981
$87,829
-
8,688
19,029
77,488
(2)
$580,610
319,329
33,036
$72,150
-
6,606
29,810
48,946
7
$454,635
276,226
14,762
$54,272
-
1,690
20,599
35,363
52
20 2017 Annual Report
Balance Sheet
Assets
Liabilities and equity
Total liabilities and equity
Total assets
Total liabilities
Total equity
*2017
2017
$6,001,616
$6,001,616
$4,936,006
$1,065,610
**2016
2016
$5,688,704
$5,688,704
$4,758,534
$930,170
**2015
2015
$5,513,001
$5,513,001
$4,665,203
$847,798
Cash and invested assets
Deferred policy acquisition costs
Other assets
Future policy benefits and claims
Policyholder account balances and funds
Other liabilities
Noncontrolling interests subsidiaries
Unassigned equity
Accumulated other comprehensive income (loss)
$5,237,693
194,281
569,642
$2,444,775
2,132,760
358,471
$293
1,001,843
63,474
$4,979,558
190,032
519,114
$2,397,061
2,039,287
322,186
$592
924,350
5,228
$4,776,399
190,863
545,739
$2,213,129
1,951,584
500,490
$537
875,411
(28,150)
Pan-American Life Mutual Holding Company Years ended December 31, 2017, 2016, and 2015*2017 reflects unaudited financials | **2016, 2015 reflects audited financials
$ (000)
Pan-American Life Insurance Group: Today | Tomorrow | Together 21
Total Equity(GAAP in millions of $)The 15% growth in 2017 was driven by positive earnings and an increase in the fair value of the Company’s investment portfolio.
Net Income(GAAP in millions of $)Net income increased 58% from 2016 to 2017 due to the strong earnings across all four of the Company’s lines of business and a lower eff ective tax rate.
Pre-tax Operating Income(GAAP in millions of $)Pre-tax operating income in 2017 increased 22% due to strong earnings across all four of the Company’s lines of business.
Revenue(GAAP in millions of $)The 7% growth in 2017 represents continued growth in the Company’s International Group and US Life business.
2015
1,200
1,000
800
600
400
200-
1,200
1,000
800
600
400
200
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
90.0
80.0
70.0
60.0
50.0
40.0
2015 2015
848
35.3
54.3
800
930
48.9
77.5
72.2
1,005
87.8
1,072
2016
2016 2016
2017
2017 2017
1,066
2015 2016 2017
Live to Win
Antigua/Barbuda
Aruba
Barbados
Bonaire
Cayman Islands
Colombia
Costa Rica
Curaçao
Dominica
Ecuador
El Salvador
Grenada
Guatemala
Honduras
Mexico
Panama
Puerto Rico
St. Lucia
St. Kitts/Nevis
St. Maarten
St. Vincent/Grenadines
Trinidad & Tobago
United States
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