Encova Mutual Insurance Group and Pan American Life Insurance Company announced on May 22 that Encova Life Insurance Company, an affiliate of the Encova Mutual Insurance Group, will be acquired by and merged into PALIC.
“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,” said Encova Insurance President and CEO TJ Obrokta Jr. in a news release. “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.”
The companies said the acquisition and merger will add approximately $60 million in revenues, $600 million in total assets, $38 million in insurance premiums and 82,000 covered lives to PALIC’s U.S. life insurance business.
“This acquisition is aligned with our U.S. growth strategy and demonstrates our commitment to the U.S. market and to our whole life business,” said José S. Suquet, chairman of the board and CEO of Pan-American Life Insurance Group. “The addition of Encova Life’s business complements and strengthens PALIC’s Mutual Trust Life Solutions division, further solidifying PALIC’s market leadership position with increased scale, greater financial strength, a sterling ratings profile, and enhanced growth opportunities.”
The transaction has been unanimously approved by Encova Insurance and PALIC’s boards of directors and is likely to close at the end of 2023, immediately followed by the merger of Encova Life into PALIC, subject to certain customary closing conditions, including approval by relevant insurance regulatory authorities.
Following the merger, all Encova Life policies will be assumed by PALIC. The companies said there will be no changes to product terms or features for current policyholders.
Encova Insurance has more than 1,100 associates writing in 28 states and Washington, D.C., premiums in excess of $1 billion, a surplus in excess of $1.96 billion and assets in excess of $4.8 billion.
Pan-American Life Insurance Group has been a provider of life, accident and health insurance throughout the Americas since 1911. The New Orleans-based Group is comprised of more than twenty-member companies, employs more than 2,100 worldwide and offers individual and/or group life, accident and health insurance, employee benefits 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.
Source: Biz NEW ORLEANS