Pan-American Life Insurance Group and Mutual Trust Financial Group have announced an agreement to combine their mutual insurance holding companies, which is intended to strengthen the combined company’s position as a life, accident and health insurer.

The combined company will continue to operate as a mutual insurance holding company with $1 billion in revenues, $5.5 billion in total assets, 1.5 million covered lives and 1,650 employees; it also will have $1 billion in total capital, enhancing its financial strength, the companies said.

“This merger brings together each company’s 100-plus year history and culture to create a company with enhanced growth opportunities, diversification and financial strength,” said José S. Suquet, chairman of the board, president and CEO of Pan-American Life Insurance Group. “Our shared vision, complementary geographic footprints and the opportunity to provide increased penetration of the U.S. Hispanic market for both companies’ core products make this merger attractive for both organizations and our distribution partners.”

Pan-American Life's financial strength, record of profitable growth and focus on Latin America and the Caribbean, combined with Mutual Trust’s product expertise and market position creates an attractive insurance platform well-positioned to meet policyholders’ needs, the companies said.

“The merger of Pan-American Life and Mutual Trust combines two leading organizations with significant financial strength, complementary businesses and strong operations in their respective markets,” said Stephen Batza, chairman, president and CEO of Mutual Trust Financial Group. “Together, we will have accelerated growth prospects, superior financial flexibility and an enhanced ability to serve the needs of our policyholders and distribution partners.”

The merger has been approved by both boards of directors and is expected to close in the second half of 2015, subject to policyholder and regulatory approvals and customary closing conditions.

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