Guggenheim to Reinsure Standard Life of Indiana in Reorganization

Indiana Insurance Commissioner Stephen W. Robertson announced that Guggenheim Life and Annuity Co. will reinsure policies originally issued by Standard Life Insurance Company of Indiana, which has been in rehabilitation for two years.

Standard Life is undergoing reorganization. As part of the current transaction, Guggenheim Life and Annuity and its affiliates will take over Standard Life’s offices in Carmel and guarantee employment to Standard Life’s 55 employees for at least 18 months. Guggenheim Life and Annuity currently has its principal place of business in Indianapolis.

Standard Life was placed into rehabilitation in 2008 by then Indiana Commissioner of Insurance Jim Atterholt. At the time, the department said 38,758 individuals held annuities issued by Standard Life. Atteherholt said Standard Life’s portfolio had deteriorated as a result of a high concentration of sub-prime debt. At the time the Order of Rehabilitation was issued, Standard Life also had investments in the failed Lehman Brothers and Washington Mutual, among others, that further undermined its portfolio.

The current agreement, which is still subject to approval by the Marion County Circuit Court and other closing conditions, would provide security for nearly 34,000 individuals, including 3,400 Indiana residents, who hold annuities and other insurance policies issued by Standard Life.

Guggenheim Life and Annuity Company (GLAC) is a subsidiary of Guggenheim Partners LLC.

Since being placed in rehabilitation in 2008, Standard Life has operated under the oversight of Randolph Lamberjack, president of Noble Consulting of Indianapolis, who was appointed Special Deputy by the Insurance Commissioner. Lamberjack directed the continued provision of service to Standard Life’s customers, communicated with agents and policyholders and conducted an assessment and reorganization of Standard Life that made its assets more attractive to a company that could take over its policies.

For the present and for a transition period, Standard Life policyholders will continue to be served under the procedures approved by the court. These procedures include:

The agreement calls for notice to policyholders of the terms of the transaction and any modifications required in their contracts. The Rehabilitator would continue to monitor the interests of Standard Life’s policyholders through completion of the rehabilitation process.

As part of the transaction, Guggenheim’s Asset Management division will succeed Delaware Investments as asset manager of SLIC’s assets.

Source: Indiana Department of Insurance