TOPEKA, Kan., Aug. 6, 2013 (GLOBE NEWSWIRE) -- Security Benefit Corporation (SBC), an emerging leader in the retirement savings and income market, said that it has completed the full repayment, well ahead of schedule, of loans that SBC obtained in connection with its 2008 acquisition of Rydex Investment Co., an investment manager.
When SBC acquired Rydex, SBC borrowed approximately $700 million from Security Benefit Life Insurance Company (SBL). In 2008, as a result of the Rydex acquisition-related loans provided by SBL to SBC and certain legacy underperforming investments, SBC's insurance companies experienced multiple downgrades in ratings from Standard and Poor's and A.M. Best, falling as low as "B" from Best and "BB" from S&P.
"The elimination of these loans is consistent with the commitment the Guggenheim-led capital partners made when they purchased Security Benefit in 2010," said Michael P. Kiley, Chief Executive Officer, SBC. "Since 2010, we have worked diligently to restore the capital strength of SBL. We've refocused on our core retirement businesses, and introduced new products while opening new channels of distribution which have all contributed to considerable positive momentum."
As part of the purchase of SBC, the capital partners arranged by Guggenheim infused $340 million of capital into the insurance subsidiary, paid down portions of the Rydex-acquisition related loans, named Mr. Kiley CEO and more recently promoted Doug Wolff to President of SBL. As a result of these balance sheet enhancements and the new direction provided by the new owners and their leadership team, SBC's insurance company ratings have recovered to "B++" from A. M. Best and "A-" from S&P.
"Restoring our financial strength and redefining our strategic vision has facilitated the controlled expansion of our businesses," Mr. Kiley added. "All of our key financial metrics are at record levels. Capital stands at an all-time high. We have never been in a better position to take care of our policyholders' long-term needs and achieve strong, sustainable growth."
About Security Benefit
Security Benefit is a 121-year-old, Kansas-based insurance company which in recent years has become one of the fastest growing retirement savings and income companies in the industry. Through a combination of innovative products, exceptional investment management and a unique distribution strategy, we have become a leader in a full range of retirement markets and wealth segments. Security Benefit is indirectly controlled by Guggenheim Partners, LLC. To learn more about Security Benefit, visit www.securitybenefit.com.
Security Benefit refers to SBC and/or SBL. SBL is directly owned by SBC and issues annuities in all states except New York.
Source: Security Benefit