TEXT-Fitch affirms Pan-American Life Insurance rating at 'A'

June 19 - Fitch Ratings has affirmed the 'A' Insurer Financial Strength
(IFS) rating of Pan-American Life Insurance Company (PALIC) and its wholly owned
subsidiary, Pan-American Assurance Company (PAAC), collectively referred to as
Pan-American. The Rating Outlook is Stable.

The rating affirmation reflects the company's continued very strong
capitalization, relatively low risk liability profile, improved operating
performance, and conservative financial management. The ratings also consider
Pan-American's relative position within the Fitch-rated universe, which includes
companies that have significantly greater scale, market share, pricing power and
distribution capabilities.

Pan-American's very strong balance sheet continues to be a key ratings driver.
The company's risk-based capital was estimated at 574% at March 31, 2012
compared to 563% at year-end 2011. Combined operating leverage of about 5 times
(x) compares favorably to an industry average of 9x. Consolidated financial
leverage for the Pan-American Life Insurance Group, Inc. (PALIG) is also very
low at 9% and the total financing and commitments (TFC) ratio is .10x.

Fitch believes that Pan-American's earnings have become increasingly stable and
predictable as management has successfully streamlined operations and addressed
legacy issues. Fitch also notes that Pan-American's target markets are making a
larger contribution to earnings, and the company is less reliant on its closed
block of ordinary life business in the U.S.

Fitch believes the pending acquisition of select Latin American and Caribbean
businesses of MetLife, Inc. will allow the company to expand its footprint in
the region although Fitch acknowledges the inherent execution risk. Fitch
believes successful integration of this business will improve the mix of
Pan-American's revenues and earnings between its core segments.

Pan-American has little exposure to equity market volatility or
disintermediation risk given its liability structure, which is made up primarily
of life insurance and accident and health reserves. Operating cash flow is good,
and PALIC is a member of the Federal Home Loan Bank of Dallas, which provides
borrowing capacity of roughly $100 million.

Fitch does not anticipate an upgrade in the near-to-intermediate term. Fitch
views Pan-American as a solid niche player which under Fitch's criteria has a
market position, size and scale supportive of a 'BBB' rated company. However,
the company's very strong balance sheet fundamentals provide Pan-American with
an uplift in its rating to the 'A' category. Fitch does not expect a change in
the balance of these key rating attributes to occur over the ratings horizon.

The key rating triggers that could result in a downgrade include:

--A sustained drop in the company's U.S. RBC ratio below 400%;
--A significant increase in financial leverage to over 20%;
--Deterioration in financial results that includes GAAP earnings-based interest
coverage falling below 4x;
--Inability to successfully integrate MetLife, Inc. acquisition.

Fitch affirms the following ratings with a Stable Outlook:

Pan-American Life Insurance Company
Pan-American Assurance Company
--IFS at 'A'.

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Insurance Rating Methodology' (Sept. 22, 2011).

Applicable Criteria and Related Research:
Insurance Rating Methodology