G&B assists PALIG in setting up new insurance company

García & Bodán has advised Pan-American Life Insurance Group on the authorisation for the creation and operation of a new insurance company in El Salvador

 García & Bodán, through its office in El Salvador, has assisted Pan-American Life Insurance Group (PALIG) in the implementation of a project for the creation, authorisation and strengthening of a new Salvadorian insurance company called 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 Superintendencia de Seguros of the Superintendencia del Sistema Financiero, the Banco Central de Reserva and the Registro de Comercio of the Centro Nacional de Registros.

The consultancy included obtaining authorisation for the incorporation of an insurance company, with a share capital of USD 1,000,000.00, from the Superintendency of Insurance of the Superintendency of the Financial System; a process of incorporation and registration of the insurance company with the Registry of Commerce of El Salvador; and authorisation to start operations of the new entity. Finally, authorisation was obtained for the transfer of the insurance portfolio of the existing foreign branch in favour of the new legal vehicle, and to comply with the legal formalities for the increase of its share capital for an amount of USD 12,000,000.00. The consultancy related to the aforementioned portfolio transfer consisted of the drafting of the asset portfolio transfer contract for a value of more than USD 38,000,000.00, as well as its authorisation before the Superintendence of Insurance.

PALIG has been the only insurance company in El Salvador that has operated as a foreign branch, so the transfer of operations from a foreign branch to a local insurance company has never happened in El Salvador.
G&B’s team was led by partner Oscar Torres (pictured left), together with senior associate David Claros (pictured right).