Encova Mutual Insurance Group and Pan American Life Insurance Company have made a joint announcement that Encova Life Insurance Company, an affiliate of the Encova Mutual Insurance Group, will be acquired by and merged into PALIC.
TJ Obrokta Jr, the Encova Insurance President and CEO said, “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. 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.”
In terms of PALIC’s investment portfolio, this acquisition and merger will add approximately $60 million in revenues, $600 million in total assets, and $38 million in insurance premiums. The 82,000 covered lives will help with PALIC’s U.S. life insurance business, in terms of having a better scale and reach.
José S. Suquet, the Chairman of the Board and CEO of Pan-American Life Insurance Group said, “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. The addition of Encova Life’s business complements and strengthens PALIC’s Mutual Trust Life Solutions (MTLS) 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.
This will be 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. There will be no changes to product terms or features for current policyholders.