How Does Our Merger with PALIG Benefit You?
On October 30, 2015, Mutual Trust received word from the State of Illinois that it had approved our Articles of Merger, and we officially became a member of the Pan-American Life Insurance Group (PALIG). Our merger with PALIG offers you and your loved ones new possibilities.
Increased Financial Strength
Together Mutual Trust Life Insurance Company and PALIG operate as a mutual holding company with approximately $1 billion in revenues, $5.5 billion in total assets, $850 million in total capital, 1.5 million covered lives and 1,650 employees. While we were certainly a financially strong organization, merging with PALIG places us firmly in the medium-size category among life insurance carriers.
Being a larger organization can be advantageous in an industry that values size. Shortly after we communicated the closing of the merger, Fitch Ratings announced that they had assigned Mutual Trust an "A" Insurer Financial Strength rating with a Stable Outlook. This is significant because, previously, Mutual Trust didn't have a rating from Fitch. Fitch cited that our "stand-alone credit profile reflects [Mutual Trust's] adequate competitive position in the U.S. life insurance market, strong balance sheet fundamentals and modest earnings profile."
The good news continued the next day when A.M. Best announced that they had affirmed the financial strength rating of A- (Excellent) for Mutual Trust and revised our outlook to positive from stable. Per the release from A.M. Best, the revised outlook for us “reflects the potential for rating enhancement as [Mutual Trust] is integrated into the operations of its affiliates under [Pan-American Life Mutual Holding Company]. Prior to the merger, Mutual Trust had been told that an increase in our rating was impossible because of our size.
Diversified Organization
PALIG, which is celebrating its 105th anniversary this spring, is a leading provider of insurance and financial services throughout the Americans. The New Orleans-based group is comprised of more than 20 member companies and offers top-rated individual and group life, accident and health insurance, employee benefits and financial services in 49 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and throughout Latin America and the Caribbean.
To learn more about PALIG, visit www.palig.com. |
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