A Company You Can Trust

Transcription

1 A Company You Can Trust

2 Strength where strength matters for more than 100 years.

3 Welcome Welcome to Security Benefit! We appreciate the opportunity to serve you as you plan, prepare and go through your retirement. The following pages will help you learn more about Security Benefit, our history, financial strength and our ability to provide you with the right retirement vehicles to help you create retirement income. As you ll see, we ve been helping our community and serving our clients for more than 100 years based upon a set of core values and a belief in what we do. This foundation of strength and service is what enables us to serve you well today and into the future. Our belief is this: If you are provided the right products, with the options you need and served by people who care, then you will benefit. This is why we are here... to provide you with solutions that lead up to, and carry you through, your retirement years. After you ve had a chance to get acquainted with Security Benefit, please ask your Financial Professional for more information about retirement options that may be a good fit for you. Sincerely, Michael P. Kiley Chief Executive Officer Security Benefit

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5 3 helping people prepare for the future

6 About Security Benefit About Guggenheim Partners Founded in 1892, Security Benefit Corporation, a Guggenheim Partners Company, is a leading provider of savings and income solutions for America s pre-and postretirees. Security Benefit Corporation targets multiple wealth segments and channels of distribution through an independent, meritbased distribution structure. By leveraging Guggenheim s superior general account management capabilities into highly competitive products, Security Benefit Corporation focuses on the retirement savings market providing a full range of services to independent distributors including broker/dealers, IMOs and other financial service providers. Security Benefit is indirectly controlled by Guggenheim Partners, LLC. The firm s se2 division is an award-winning and nationally recognized provider of administrative services for the insurance and financial services industry. Learn more about Security Benefit or se2, by visiting or Guggenheim Partners is a privately held global financial services firm with more than $125 billion in assets under management 1. The firm provides asset management, investment banking and capital markets services, insurance, institutional finance and investment advisory solutions to institutions, governments and agencies, corporations, investment advisors, family offices and individuals. Guggenheim Partners is headquartered in New York and Chicago and serves clients around the world from more than 25 offices in 10 countries. For more information, please visit 1 As of December 31,

7 Helping Others: A Rich History of Serving the Community Since 1892 In a small Topeka, Kansas, drugstore, Dr. H.A. Doc Warner encouraged 11 men and women to contribute $1 each to help form The Knights and Ladies of Security. The forward-thinking fraternal society was among the first to accept women as equals, provide life insurance to everyday people and focus on caring for the community. These core values served as the foundation upon which Security Benefit is built today. Later known as the Security Benefit Association, SBA continued to show its commitment to helping the community. Members donated nickels to help fund a mutual cooperative farm, a children s orphanage, a home for the elderly, a private school and a hospital. The first dormitory to accommodate children who were orphans of members was fondly called The Home That Nickels Built. During World War I and World War II, SBA offered expanded coverage to members who served in the military, despite the financial turmoil the wars caused for the organization. A Patriotic Fund was created by members to support fellow military members. After World War II, SBA evolved from a fraternal society to Security Benefit Life Insurance Company (SBL), a mutual reserve life insurance company. This rich history has shaped Security Benefit into the stable company it is today. Our forward-thinking approach has helped us transition throughout the years and become industry leaders while creating innovative products to meet the changing needs of our clients. In July 2010, Security Benefit was purchased by an investor group led by Guggenheim Partners and is now privately owned. Impressive strides were made and in August 2011, the same month the United States credit rating was downgraded, Security Benefit received an upgrade. We believe this speaks to the certain growth we are pursuing and experiencing. Security Benefit Life s 2011 statutory equity was $613 million 2. This level strengthens our confidence that we can meet our obligations to our customers as we have for 120 years, and help them meet their retirement goals. Opposite Page: Top: The drugstore where the company began. Middle Left: Female members in the early years. Middle Right: World War I soldier members. Bottom: The Home That Nickels Built. 2 As of December 31,

8 we d like to help you create your legacy 5 6

9 Key Financial Statistics 2011 Statutory Revenues 3 $1,960 million 2011 Statutory Equity 3 $613 million 7

10 Strength in Our Numbers Today, SBL is a growth company with $10.5 billion in assets. 3 We are actively hiring, developing new products and moving into new markets with the single goal of helping customers retire on their terms. Another sign of our financial strength can be seen in SBL s solvency ratio, which was % on December 31, Solvency, a financial-strength measurement, is the ability of a corporation to meet its financial obligations, both short-term and long-term. For an insurance company, such obligations include the benefits it has agreed to pay its customers, such as the death or living benefits on annuity contracts. There are numerous ways to measure an insurer s solvency or financial strength, some objective and some subjective. Solvency ratio is one of these measures. Other measures include Return on Assets (ROA), Return on Equity (ROE), Risk-based Capital (RBC), cash flow, liquidity and diversification of investments. In addition, liabilities may fluctuate daily. We are pleased with SBL s strong solvency ratio. The A.M. Best ratings of SBL and other companies are shown in the chart on page 9. The purpose of the ratings is to reflect the financial strength of the insurer and should not be considered to have a bearing on the investment performance of assets held in any SBL separate account. Rating agencies take many factors into account when assigning a financial strength or claims-paying rating to an insurer. For a more complete understanding of the reasons for the ratings assigned to SBL by A.M. Best, please refer to the ratings assessment of SBL. Want to Know More? We encourage those interested in SBL s financial position to review our statutory financial statements on our website (securitybenefit.com). You can also receive copies of SBL s statutory and GAAP financial statements by calling us at Comparing Solvency Solvency ratios take all of an insurer s assets (both general and separate accounts) and divide that number by its total liabilities. The quality of the assets, liquidity, diversification and other factors are not included in the ratio. 3 As of December 31,

11 Our Financial Strength Today Security Benefit as compared to those considered our peer insurance companies. A.M. Best 5 S&P 4 Rating Solvency Security Benefit Life Insurance Company A- B Symetra Life Insurance Company A A Variable Annuity Life Insurance Company (VALIC) A+ A Life Insurance Company of the Southwest A A Allianz Life Insurance Company of North America AA A Aviva Life and Annuity Company A+ A ING Life Insurance and Annuity Company A- A Insurance companies with an A.M. Best rating of A have a median solvency of %. Midland National Life Insurance Company A+ A Lincoln National Life Insurance Company AA- A Jackson National Life Insurance Company AA A Principal Life Insurance Company A A AXA Equitable Life Insurance Company AA- A MetLife Investors USA Insurance Company AA- A Prudential Retirement Ins & Annuity Company AA- A Insurance companies with an A.M. Best rating of A+ have a median solvency of %. Sorted by solvency ratio within ratings category as of December 31, Solvency ratio as provided by A.M. Best s Global Insurance Database, Data year Standard and Poor s (S&P) Ratings as of May 8, A.M. Best Ratings as of May 8, Looking Ahead Security Benefit is a financially sound company committed to providing our customers with financial guidance now and into the next 100 years. We are dedicated to providing financial tools and solutions for you, your children and your grandchildren. Join us and let us help guide you on your journey. 9

12 Security Benefit: Providing retirement solutions now and into the next 100 years.

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14 We Are Poised for Growth Let Security Benefit help you work toward your goal of a comfortable and secure retirement. We offer a range of retirement solutions including: effective retirement-planning vehicles guaranteeing a stream of income you cannot outlive 1 access to your money when you need it 2 tax deferral products 3 These attractive features, coupled with Security Benefit s company history, solid capital position and solvency, make it a wise choice for complementing your retirement portfolio. We are poised for growth and excited about the opportunity to show our commitment to you. Ask your Financial Professional if a Security Benefit product could be right for you and let us help you navigate the future with confidence Services are offered through and securities are distributed by Security Distributors, Inc., a subsidiary of SBL, which is wholly owned by Security Benefi t Corporation ( Security Benefi t ). Security Benefi t is indirectly controlled by Guggenheim Partners, L.L.C. 1 Guarantees are subject to the claims-paying ability of the issuing insurance company. 2 Depending on the product, early withdrawals will be subject to a surrender charge, bonus recapture and/or market value adjustment. 3 Withdrawals before age 59 1 / 2 may be subject to a 10% IRS penalty tax. One Security Benefi t Place, Topeka, KS securitybenefi t.com /05/07