Pan-American Life Insurance Group acquires Encova
Founded in 1991 and headquartered in New Orleans, US, Pan-American Life Insurance Group (PALIG) provides cover for 7.1 million lives over 22 countries, and employs over 2100 people.
The leading provider of life, accident and health insurance throughout the Americas is made up of more than twenty-member companies throughout North and South America.
In a move to boost its US business, PALIG has acquired and merged Encova Life Insurance Company.
Ranked in the top 20 mutual insurance companies in the United States, Ohio based Encova was founded in 1965 and provides commercial, auto, home and life insurance and markets insurance solutions through more than 2,000 independent agencies in 28 states and Washington, D.C.
“We have had strong success in our property and casualty operations as evidenced by our recent AM Best upgrade, and we want to focus exclusively on leveraging this recent P&C success,” says Thomas J Obrokta Jr., Encova Insurance President and CEO.
Obrokta Jr. was part of the team that launched BrickStreet Insurance in 2006, starting as general counsel, senior vice president and secretary before becoming COO in 2012. In 2017, BrickStreet combined with Motorists Insurance Group, with the pair merging to become Encova in 2019. Obrokta Jr. was appointed CEO and President in 2020.
“We remain committed to our agency partners, and we will help ensure this transition to Pan-American Life is a smooth process for our life agents and policyholders.”
Acquisitions promoting economic growth
As well as further enhances PALIC’s US scale, reach and investment portfolio, the acquisition benefits PALIC’s U.S. life insurance business in:
- Approximately US$60m in revenue
- Over US$500m in total assets
- US$35m in insurance premiums
- 79,000 covered lives
“We are very pleased to have closed this strategic transaction that complements and strengthens PALIC’s Mutual Trust Life Solutions (MTLS) division,” shares José S. Suquet, Chairman of the Board and Chief Executive Officer of PALIG.
Before joining PALIG as CEO in 2004, Suquet was a Senior Executive Vice President and Chief Distribution Officer at AXA Financial, Chairman of LIMRA International and member of The American College of Financial Services. He has a Bachelor of Science from Fordham University in New York and holds an M.B.A. from the University of Miami. He is also a National Association of Corporate Directors (NACD) Governance Fellow.
In his two decades as CEO, Suquet has led PALIG to triple in size, with total assets growing from US$1.6bn to US$6.9bn and GAAP equity grew from US$389m to US$1.38bn. Four years after his appointment as CEO, Suquet became Chairman of the Board of PALIG in 2008, leading to further economic growth for the company.
“The addition of Encova Life’s business further solidifies PALIC’s market leadership position with increased scale, greater financial strength, a sterling ratings profile, and continued growth in our strategic market segments.”
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