Reliance Standard Acquires Standard Security Life Insurance of New York

Rhea-AI Summary

Reliance Standard Life Insurance Company, part of the Tokio Marine Group, has acquired Standard Security Life Insurance Company of New York from Independence Holding Company (IHC). The acquisition, effective January 1, 2022, enhances Reliance Standard's position in the New York disability insurance market, making it the third largest provider of statutory disability benefits with a combined business of approximately $44.4 million. The acquisition was approved by the New York State Department of Financial Services and will allow for operational synergies moving forward.

Positive

• Acquisition strengthens market position, making Reliance Standard the third largest provider of New York statutory disability benefits.
• Combines business segments to total approximately $44.4 million in New York DBL insurance.
• Operational synergies anticipated from the acquisition.

Negative

• None.

Expands to become leading New York statutory disability insurer

PHILADELPHIA--(BUSINESS WIRE)-- As announced in April, Reliance Standard Life Insurance Company (Reliance Standard), a member of the Tokio Marine Group, has completed its acquisition of Standard Security Life Insurance Company of New York (SSL) from Independence Holding Company (NYSE:IHC).

The transaction received final approval from the New York State Department of Financial Services (DFS) and was effective on January 1, 2022.

Standard Security Life is a leading provider of New York DBL and statutory paid family leave (PFL) insurance, with approximately one million covered employees across 60,000 employer groups, according to Reliance Standard President Chris Fazzini.

“We’re excited to welcome Standard Security Life to Reliance Standard and the Tokio Marine family,” Fazzini said. “SSL is respected in the New York disability and PFL space, with a stellar reputation among the broker and employer communities. We see immediate benefit as well as future synergies.”

Standard Security Life will continue to operate as a wholly-owned subsidiary of Reliance Standard with SSL President Gary Balzofiore reporting to Fazzini. SSL employs approximately 70 individuals, based in New York City.

Founded in 1907, Reliance Standard is a leader in absence and employee benefits solutions including financial protection, absence management and supplemental health, with a portfolio of insurance products that include group disability, life, accident, critical illness, hospital indemnity, dental, vision and limited benefit medical. Reliance Standard also operates in the fixed annuity market space, including indexed annuities, working with banks, broker dealers and independent marketing organizations nationwide. Reliance Standard is rated A++ (Superior) by A.M. Best and A+ (Strong) by Standard & Poor’s.

According to results¹ for the year ending December 31, 2020, Standard Security Life is the sixth largest provider of New York DBL insurance. Reliance Standard finished the year as the 11^th largest provider. When combined, Reliance Standard will expand its book of business to approximately $44.4 million, making it the third largest provider of NY DBL insurance.

1) Smith Group 2020 DBL Market Share Survey

About Reliance Standard

Reliance Standard is a leader in absence and employee benefits solutions including financial protection, absence management and supplemental health, with a portfolio of insurance products that include disability, life, accident, critical illness, hospital indemnity, dental, vision and limited benefit medical. Reliance Standard markets these solutions nationwide through independent brokers and agents to employers of all sizes. With sister company Matrix Absence Management, Reliance Standard provides comprehensive absence solutions including management of federal and state leave of absence and paid leave of absence programs, ADA and employer-specific leave programs. Reliance Standard also offers a portfolio of traditional fixed and indexed annuities to individuals seeking to preserve capital and retirement income with guaranteed returns. Reliance Standard was founded in 1907 in Chicago, IL.

Reliance Standard and Matrix Absence Management are members of the Tokio Marine Group. Tokio Marine Holdings, Inc., the ultimate holding company of the Tokio Marine Group, operates in the property and casualty insurance, reinsurance and life insurance sectors globally. The Group’s main operating subsidiary, Tokio Marine & Nichido Fire (TMNF), was founded in 1879 and is the oldest and leading property and casualty insurer in Japan.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211228005116/en/

David Gittelman

Vice President, Marketing Communications

David.Gittelman@rsli.com

Source: Reliance Standard Life Insurance Company

FAQ

What is the significance of Reliance Standard's acquisition of Standard Security Life?

This acquisition enhances Reliance Standard's market position, making it the third largest provider of New York statutory disability benefits.

When did the acquisition of Standard Security Life by Reliance Standard take effect?

The acquisition was effective on January 1, 2022.

What is the combined business volume of Reliance Standard and Standard Security Life after the acquisition?

The combined business volume is approximately $44.4 million in New York DBL insurance.

Who approved the acquisition of Standard Security Life by Reliance Standard?

The acquisition received final approval from the New York State Department of Financial Services.

What can we expect in terms of operational changes after the acquisition?

Standard Security Life will operate as a wholly-owned subsidiary, allowing for potential operational synergies.