Reliance Standard Agrees to Acquire Top-Tier New York Statutory Insurer
April 20, 2021 by Reliance Standard Life Insurance Company
PHILADELPHIA–(BUSINESS WIRE)–Reliance Standard Life Insurance Company (Reliance Standard), a member of the Tokio Marine Group, announced it has agreed to acquire Standard Security Life Insurance Company of New York (SSL), a subsidiary of Independence Holding Company (NYSE:IHC), subject to customary closing conditions including regulatory approvals. Once the acquisition is completed, Reliance Standard will be the third largest provider of New York Disability Benefit Law (DBL) insurance, with roughly 10% of the market.1
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, medical stop loss and limited benefit medical. Reliance Standard also operates in the fixed annuity market space, including indexed annuities. The group benefits segment wrote approximately $1.39 billion in gross premium in 2020. Reliance Standard is rated A++ (Superior) by A.M. Best and A+ (Strong) by Standard & Poor’s.
Founded in 1957, Standard Security Life is a leading provider of New York DBL and statutory paid family leave (PFL) insurance and a member of the Independence Holding Company Group. With $122 million in gross written premium in 2020, SSL insures approximately one million employees across 60,000 employer groups. Standard Security Life is rated A- (Excellent) by A.M. Best.
Under the terms of the proposed acquisition, SSL will operate as a wholly-owned subsidiary of Reliance Standard with SSL President Gary Balzofiore reporting to Chris Fazzini, president and CEO, group benefits, of Reliance Standard.
“We are excited about adding the scale and expertise we found at Standard Security Life to the Reliance Standard family,” Fazzini said. “In an era of unprecedented growth and dynamism in the statutory disability and paid leave space, we are fully committed to expanding our service to employers in New York and beyond.”
Together with Matrix Absence Management, one of the leading absence management TPAs in the U.S., Reliance Standard markets leave management solutions nationwide, regardless of jurisdiction and funding mechanism.
“Looking at SSL’s leadership and effectiveness in the New York statutory market and Reliance’s long-term, holistic approach to disability and leave, it really does seem like an ideal match,” said David Kettig, president and COO of Independence Holding Company. “I believe this combination will yield benefits for SSL’s agents, brokers and clients.”
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 11th 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. The parties are seeking to complete the transaction during the third quarter of 2021, subject to obtaining regulatory approvals and other closing conditions.
Waller Helms Advisors acted as financial advisor to Reliance Standard and Sullivan & Cromwell LLP provided external legal counsel in connection with this transaction.
- 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, medical stop loss 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 was founded in 1907 in Chicago, IL and is rated A++ (Superior) by A.M. Best.
About Tokio Marine Group
Reliance Standard and Matrix Absence Management are both 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.
About The IHC Group
Formed in 1980, Independence Holding Company (NYSE: IHC) is a holding company that is principally engaged in underwriting, administering and/or distributing group and individual specialty benefit products, including disability, supplemental health, pet, and group life insurance through its subsidiaries (Independence Holding Company and its subsidiaries collectively referred to as “The IHC Group”). The IHC Group consists of three insurance companies (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company).
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