Pan-American Life Navigates Growth and Global Uncertainty
In 2004, José Suquet took the helm of Pan-American Life Insurance Group (PALIG), a New Orleans-based company with a rich history in the Americas. His mission was to revitalize an insurance provider that, despite once being a leader, had seen its market share decline amidst rising costs and unsuccessful ventures. Suquet’s charge was significant: to turn around a company founded in 1911 by Crawford E. Ellis, a former United Fruit Co. executive during the peak of the banana trade between New Orleans and Honduras.
Over the past two decades, Suquet has focused on expanding the company’s presence in core Latin American markets, restructuring its financial framework, and eliminating business lines he deemed as distractions.
Today, PALIG’s revenues have reached nearly $1.5 billion, a substantial increase from the $284 million reported when Suquet assumed leadership. The company now comprises over 30 member companies and employs more than 2,200 individuals worldwide. Its operational reach extends across 49 states and over 20 countries.
In this week’s “Talking Business,” Suquet discusses the company’s impressive growth trajectory and addresses his views on potential disruptions to global trade and economic stability. The interview has been edited for clarity and length.
“I would bet a lot of people who walk by your building at 601 Poydras St. every day have no idea what PALIG does.”
“We are a life and health insurance player for the individual and corporate markets,” Suquet explains. “In Latin America, we focus on affluent and high net-worth customers on the individual side. We also focus on employee benefits for all of the leading, major multinational firms that operate in Latin America — Walmart, Amazon, Dell, Microsoft — clients that are top of the corporate world in business. Though we are all over Latin America, Panama, Costa Rica and Columbia are the countries where most of our activity is located.”
When asked whether PALIG underwrites policies or handles plan administration, Suquet clarified that PALIG does both. “We do all of the above. We are an employee benefit plan administrator, we underwrite, we have an extensive network of medical providers throughout Latin America. We have about 47 doctors and 40-50 nurses that work with us as well and offer a full array of services, whether group medical, group life, or accident products throughout the region. We have a very strong brand name in the region. We have been in Panama for more than 100 years and more than 80 years in Honduras. No other company can say that.”
U.S. Expansion and Growth Strategies
PALIG is also expanding its business in the United States. In the states, we offer individual life insurance to the middle and mass affluent classes. We don’t compete in the high net worth segments. With respects to health insurance, we are focused on the blue collar and no collar industries — trucking, for instance.”
Suquet elaborated on PALIG’s growth tactics, which incorporate both organic expansion and strategic acquisitions.
“We have a strong, organic growth machine but we have had three acquisitions that have helped the growth trajectory. Last year, we bought Encova Life Insurance Company in Ohio, which brought about $600 million in assets that are fully integrated with Pan American Life. They are also that mass affluent type of marketplace. Ten years ago, we acquired a company called Mutual Trust that was based in Oakbrook, Illinois, and brought $2.5 billion in assets into the company. We kept their facility and employees and management team, and they now manage the U.S. life business for us. And the one that started it all was in 2012, when AIG, which was a major insurance company, was taken over by the U.S. Treasury and we acquired certain companies from one of their subsidiaries.”
Branding in a B2B World
PALIG recently installed new signage atop its building, christening the Pan-American Life Center. This move reflects the company’s progress over the last two decades.
“The name has always been at the bottom. We just put it on top before the Super Bowl to recognize the progress we have made over the last 20 years. We have almost 400 employees here and 2,300-2,400 throughout our footprint. When I got here, we had revenues of $284 million. Last year, we closed with almost $1.5 billion, which puts us in the top five companies in New Orleans in revenue. We have made great progress and want to tell that story.”
Future Growth Opportunities and Global Market Concerns
Looking ahead, Suquet identifies significant opportunities for future growth, particularly internationally.
“More growth opportunities are international. When you have a recognized brand with a long history in that market, which is comprised of foreign companies that are in and out of the countries down there, there is plenty of potential. The life insurance industry in the U.S., in general, grows at a steady 2%-3% a year. We have been able to hyper charge that in Latin America.”
Regarding current global market volatility, Suquet expresses confidence in PALIG’s resilience.
“We don’t anticipate that will impact us. Our Panamanian company, a subsidiary, has been there more than 100 years. We have a Honduran company run by a Honduran, also a subsidiary. Our CEOs down there are stalwart members of their communities. Our customers are large multinationals like Microsoft and Amazon. They’re not going away. They are not going to close up. They want coverage from a multinational like us that has strong cyber security, respects privacy and has strong state-of-the-art tools to help them pay claims. So, we understand. We are not on pins and needles with every executive order that comes into effect. We are going to keep our head down and keep doing business the way we have been doing it. So far it has worked. If we take sides, we will be in deep trouble. We stay in the middle of the fairway and live by values that incorporate doing the right thing.”
When asked about retirement plans, having stepped back as president a few years prior, Suquet indicated his commitment to staying at the helm, citing the board’s desire for his continued leadership.
“The board really wants me to stay as long as I can. I have had two knee replacements and two hip replacements in the past five years but otherwise, my health is good. I am blessed to have three co-presidents, and we have a tremendous team that is working very well together. We challenge each other, but there is real collaboration and a lot of transparency.”
