Mutual Trust & Pan American Merger

[pfg1]

I got a notice about this, figured I'd post it for anyone who might be interested. Sounds like it should hopefully be a good thing for both companies. Pan American is a huge player in the Latin America market - this will give them a better USA footprint, and MTL will gain some addl size and financial backing.

https://www.mutualtrust.com/content/pdf/SpecialAnnouncemet.pdf

 

[YourFamilyBank]

Well we write the majority of our whole life with mtl and have a great relationship with them. Love all the people there. Spent a lot of time with them on trips etc, but they are a small company. Albeit a great one.

Needless to say we were apprehensive when we heard about the merger from mtl execs. They were very positive about the pan American team though and what the combined team would bring. Hopefully stronger dividend due to increased capital for reserves and overall capital for growth.

We are flying to new Orleans Monday to meet the Pan American execs and are excited to meet them. We've heard they are true sales guys vs strict corporate types.

Will double back here and give what I can when back.

 

[SusieQ2]

Now that a little bit of time has passed I am wondering what your feel is for the merger?

 

[YourFamilyBank]

Now that a little bit of time has passed I am wondering what your feel is for the merger?

Well nothing really has taken place per say. Pan American's home office is first class and their CEO is one impressive guy. It's a 6 month process from when announced before officially closed. I don't see a lot, if any changes, in what you see publicly. I foresee most being behind the scenes and as some have suggested earlier, in ratings and capital stability.

We just got back from MTL's trip a couple weeks ago but none of the Pan-Am guys were there and it was talked about amongst us but the MTL folks were quiet about it.

We will see.

 

[heynow5]

Have you seen any changes good or bad? What are there strengths, I got an illustration and it was just ok comparatively.

 

[pfg1]

Illustration for what, and compared to what?

There are no changes really. MTL still functions as they were - now as a business unit of PA. Its just a win-win merger for them as they both gained in area's they weren't strong in. MTL gained alot as far as size and resources. They have $1b surplus now which is alot stronger for a smaller company. Their dividend increased this year also, so that was good. PA now has a presence for Life sales in the USA.

 

[heynow5]

whole life compared to other companies. I'm sure they have their strengths; I know they embrace the IBC, but the long term growth of the cash value wasn't great compared to others.

 

[pfg1]

whole life compared to other companies. I'm sure they have their strengths; I know they embrace the IBC, but the long term growth of the cash value wasn't great compared to others.

Its because their dividend has been lower than some of the other bigger companies in recent years. They definitely have their strengths and weaknesses - as do most companies. I use several companies, depending on what the needs of the client are.
They definitely embrace IBC which is a big plus (if that matters to someone), and they are very easy to work with.

 

[sayedhesham]

yes your opinion wright

 

[LostDollar]

I wondered if anyone has current comments about MTL from the perspective of a prospective policyholder?

I want to buy a $10K whole life policy (from a Mutual with a participating policy) and had MTL suggested. I have been hesitant about that because of positive comments I have seen in the forums about Assurity Life and Lafayette Life. I am wondering if I shouldn't reconsider that. If MTL has experience operating in a conservative manner and now has a strong parent, perhaps they would be a wiser choice over the next 20-25 years if one expects some trouble in the economy.

Comments?