Guggenheim Closes on Security Benefit

Guggenheim says it is spending a total of $400 million on acquiring and strengthening Security Benefit.

Guggenheim says it already has injected $340 million into Security Benefit Life. The capital should help the financial strength ratings of Security Benefit Life and a sister company, First Security Benefit Life Insurance and Annuity Company of New York, Guggenheim says.

Before the Security Benefit deal could be consummated, the policyholder-owners of Security Benefit’s holding company, Security Benefit Mutual Holding Company, had to agree to demutualize and dissolve the holding company.

The demutualization was approved by the mutual holding company members in May. About 90% of the members who voted in favor of the demutualization and dissolution plans.

Each former holding company member will receive about $100 in consideration, and those who own Security Benefit Life tax-qualified contracts will probably receive policy credits, or an increase in the cash value of their policies, rather than cash, depending on the outcome of requests for rulings submitted to the Internal Revenue Service and the U.S. Department of Labor, Guggenheim says.

-ab