Pan-American Life Insurance Group and Mutual Trust Financial Group have signed a merger agreement to combine their mutual insurance holding companies.

Under the deal, both firms will aggregate Pan-American Life Mutual Holding Company and Mutual Trust Holding Company.

Pan-American Life Insurance Group, board chairman, president and CEO José Suquet said: "This merger brings together each company’s 100-plus year history and culture to create a company with enhanced growth opportunities, diversification and financial strength."

The merger is said to enhance the combined firm’s position as a provider of life, accident and health insurance products in the Americas.

Once the deal concludes, the combined company will be continued to operate as a mutual insurance holding firm with around $1bn in revenues, $5.5bn in total assets, 1.5 million covered lives and 1,650 employees.

The firm is also being supported by $1bn total capital, increasing its financial strength.

Mutual Trust Financial Group chairman, president and CEO Stephen Batza said: "The merger of Pan-American Life and Mutual Trust combines two leading organizations with significant financial strength, complementary businesses and strong operations in their respective markets."

The addition of Mutual Trust’s business will expand Pan-American Life’s three high growth businesses, including International Group, International Life, and Domestic Group.

Subject to policyholder and regulatory approvals and customary closing conditions, the merger is expected to be completed in the second half of this year.