Pan-American, Mutual Trust to merge; HQ to be in New Orleans

Pan-American Life Insurance Group in New Orleans and Mutual Trust Financial Group in Oak Brook Wednesday said they have agreed to merge.

Upon closing later this year, the combined company will continue to operate as a mutual insurance holding company with about a combined $1 billion in revenues, $5.5 billion in total assets, 1.5 million covered lives and 1,650 employees.

The combined company will have its global headquarters in New Orleans and will be led by José S. Suquet, chairman, president and CEO of Pan-American.

There are not expected to be any significant changes to Mutual Trust's current distribution channels or management team. Stephen Batza, chairman, president and CEO of Mutual Trust, will lead PanAmerican Life's re-launched Domestic Life business from Mutual Trust's current headquarters in Oak Brook, the companies said in a statement.

The merger offers "significant financial strength, complementary businesses and strong operations in their respective markets," said Batza.

Mutual Trust will operate as a wholly owned subsidiary of PanAmerican Life and complement Pan-American Life's existing U.S. life business by combining it with Mutual Trust's individual life insurance into one Domestic Life business unit. The merger will have no effect on current Mutual Trust policyholder terms, and the existing process by which policyholder dividends are determined will remain in place as part of the dividend protection plan included in the merger agreement, the companies said.