Pan-American Life Insurance Group and Mutual Trust Financial Group have agreed to merge their respective holding companies, the firms announced on Wednesday.

The combined company will continue to provide life, accident and health insurance in North and South America to roughly 1.5 million covered individuals, and is expected to generate approximately $1 billion in revenues, the companies said in a joint statement.

The addition of Mutual Trust’s presence in the U.S. life insurance market will compliment Pan-American Life Insurance’s existing international group, international life and domestic group businesses, which are focused primarily on the Latin American and Caribbean markets, José Suquet, Pan-American’s New Orleans-based president, board chairman and CEO, said in the statement.

Mr. Suquet said the merger will also provide the combined company with an opportunity for increased penetration of the U.S. Hispanic market for both companies’ core insurance products.

The merger will provide the combined company with an opportunity for increased penetration of the U.S. Hispanic market for both companies’ core insurance products, José Suquet, Pan-American’s New Orleans-based president, board chairman and CEO, said in the statement.

Under the terms of the merger, Oak Brook, Illinois-based Mutual Trust will retain its current brand name and corporate strategy, distribution channels and management team, and will operate as a wholly owned Pan-American subsidiary led by current Mutual Trust Chairman, President and CEO Stephen Batza.

The merger is expected to close in the second half of 2015 and will result in a combined company with approximately $5.5 billion in assets and 1,650 employees, according to the companies’ statement.

“We believe this merger allows us to continue growing profitably by establishing a dedicated U.S. individual life business with the enhanced ability to bring value to our customers, distributors, employees and the communities we serve,” Mr. Suquet said in the statement.