Encova Mutual Insurance Group and Pan American Life Insurance Company have made a joint announcement that Encova Life Insurance Company, a subsidiary of Encova Mutual Insurance Group, will be acquired and merged with PALIC.
TJ Obrokta Jr, the President and CEO of Encova Insurance said, “We have had strong success in our property and casualty operations as evidenced by our recent AM Best upgrade, and we want to will focus solely on capitalizing on this recent success at P&C. We remain committed to our agency partners, and we will help ensure that this transition to Pan-American Life is a smooth process for our agents of life and policy holders.
In terms of PLIC’s investment portfolio, this acquisition and merger will add approximately $60 million in revenue, $600 million in total assets, and $38 million in insurance premiums. The 82,000 covered lives help PLIC’s US life insurance business, in terms of having better scale and reach.
José S. Suquet, Chairman of the Board and CEO of Pan-American Life Insurance Group said, “This acquisition is in line with our US growth strategy and demonstrates our commitment to the US market and our whole life business. The addition of the Encova Life business connects and strengthens PALIC’s Mutual Trust Life Solutions (MTLS) division, further strengthening PLIC’s market leadership position with greater scale, greater strength of finance, a good rating profile, and enhanced growth opportunities.
The transaction has been unanimously approved by Encova Insurance and PLIC’s Board of Directors and is expected to close by the end of 2023.
This will be followed by the merger of Encova Life into PLIC, subject to certain customary closing conditions, including approval by the relevant insurance regulatory authorities.
After the merger, all policies of Encova Life will be assumed by PLIC. There are no changes in product terms or features for existing policy holders.