State strikes deal with Standard Life
December 24, 2010 by Bruce C. Smith
Written by
Bruce C. Smith
After two years of limbo, the policy and annuity holders of financially troubled Standard Life Insurance Co. of Indiana were assured Wednesday that they will be protected and repaid.
State Insurance Commissioner Stephen W. Robertson announced late Wednesday that agreements have been reached for the $1.7 billion in policies and financial obligations of Carmel-based Standard Life to be assumed by Guggenheim Life and Annuity Co.
After two years of Standard Life’s state-supervised rehabilitation, its customers will receive the full value of their policies and annuities, and the 55 employees of the company will be offered jobs with Guggenheim.
The parent corporation, Guggenheim Partners, a worldwide financial services company, will assign its Guggenheim Asset Management division to take over the Standard Life operation.
Standard Life has operated and paid death claims, but it will remain under some restrictions for another six months.
Eventually, the Standard Life name will disappear from old policies as they are replaced with Guggenheim policies, according to Steve Coons, spokesman for Standard Life.
The deal affects about 34,000 remaining Standard Life policy and annuity holders, including 3,400 in Indiana. It must still be approved by Marion Circuit Court, where the state insurance regulators asked for a court-ordered rehabilitation Dec. 18, 2008.
Standard Life got into trouble more than two years ago when its investments in subprime mortgages deteriorated and the financial underpinnings of the company were weakened.
Call Star reporter Bruce C. Smith at (317) 444-6081.
