Pan-American Life Insurance Company Reports 2005 Results; Overcomes Challenges from Hurricane Katrina to Accomplish Major Corporate Goals

Business Wire, March 20, 2006

NEW ORLEANS -- Pan-American Life Insurance Company, a leading international insurance company providing life insurance, group life and health, and worksite benefits, today reported 2005 statutory revenues of $242.3 million and a net loss of $4.5 million. This includes a $5.2 million business recovery expense related to Hurricane Katrina and a one-time restructuring charge of $9.4 million.

"Pan-American Life Insurance Company ended 2005 with a strong sense of pride and accomplishment," said Jose S. Suquet, President and Chief Executive Officer of Pan-American. "After facing one of the biggest natural disasters in United States history, we emerged stronger and strategically positioned for a groundbreaking road ahead."

In addition, the Company strengthened the Board of Directors with the election of two senior industry executives, as well as its management team with seven seasoned insurance executives, divested non-core businesses, and restructured its operations in New Orleans to 347 employees from 481 in 2004, a 38% reduction.

Additional key highlights in 2005:

--Pan-American reinvigorated its worksite business by increasing collected premiums by 22% over 2004 levels.

--Total sales were up 1% despite minor service interruptions due to Hurricane Katrina.

--The Company completed a $50 million private placement surplus note increasing adjusted surplus to $287 million from $247 million in 2004.

--FSC Securities Corporation (FSC) assumed full responsibility of all Pan-American Financial Advisers (PAFA) account assets - an important step in Pan-American's continued efforts to focus on core lines of business.

About Pan-American Life Insurance Company

New Orleans-based Pan-American Life has been a leading international insurance company for more than 90 years. Founded in 1911, Pan-American employs more than 800 worldwide, providing its top-rated life and disability insurance, group life and health, and worksite benefits in 42 states, the District of Columbia (DC) and Puerto Rico. Its international operations, offering life and group health insurance throughout Latin America, includes affiliates in Panama, Guatemala and Colombia, and branch offices in Ecuador, El Salvador and Honduras.