García & Bodán’s team from El Salvador advised Pan-American Life Insurance Group (PALIG), a multinational company that has had operations in El Salvador for more than 90 years, through the foreign branch called Pan-American Life Insurance Company, Sucursal El Salvador, which offers individual insurance services in its different modalities (life, health and accident).
García & Bodán provided advice for the implementation of a project for the creation, authorization and strengthening of a new Salvadoran insurance company named Pan American Life, S.A., Seguros de Personas, with the purpose of migrating the operations of its foreign branch to this one. The project was carried out before the Superintendency of Insurance of the Superintendence of the Financial System, the Central Reserve Bank, and the Registry of Commerce of the National Center of Registries.
The advice provided by García & Bodán included obtaining authorization for the incorporation of an insurance company, with a capital stock of USD 1,000,000.00, before the Superintendence of Insurance of the Superintendence of the Financial System; a process of incorporation and registration of the insurance company before the Registry of Commerce of El Salvador; and the authorization to start operations of the new entity. Finally, we proceeded to obtain the authorization for the assignment of the insurance portfolio of the existing foreign branch in favor of the new legal vehicle, and to comply with the legal formalities for the increase of its capital stock in the amount of USD 12,000,000.00. The advice related to the aforementioned portfolio assignment consisted in the preparation of the portfolio assignment contract for assets with a value of more than USD 38,000,000.00, as well as its authorization before the Superintendence of Insurance.
García & Bodán implemented the procedures regulated by the Insurance Companies Law, Technical Standards, Code of Commerce, and other applicable regulations, as well as worked closely with the local authorities of the Superintendence of the Financial System for the successful implementation of the project.
The advisory was carried out under the supervision of Partner Oscar Torres and Senior Associate David Claros of García & Bodán El Salvador.
Pan-American Life Insurance Group (PALIG) has been the only insurance company in El Salvador that has operated under the figure of a foreign branch, so the transfer of operations from a foreign branch to a local insurance company had never occurred in El Salvador.