Security Benefit

Security Benefit Life Insurance Company began as a fraternal organization: its corporate history traces to 1892, when it was founded as the Knights and Ladies of Security.[1][2] A Delaware examination report summarizes that the company later merged with the National American Association in 1919 and evolved into a modern life insurer, reflecting a common path for fraternal groups that professionalized as insurance regulation and actuarial standards matured.[2] Security Benefit's own 'Our Story' narrative emphasizes that heritage and highlights later strategic moves as the company broadened into retirement products.[1] A pivotal modern ownership shift came in 2010, when Guggenheim Partners-affiliated investors acquired Security Benefit, a change the company describes as enabling growth and investment in product and service capabilities.[1] Since then, Security Benefit has been closely associated with fixed and indexed annuities designed for retirement income, distributed heavily through independent agents and advisors.[1] Managing long-duration guarantees requires careful investment strategy and risk transfer. Security Benefit notes that it entered a risk-sharing arrangement with Lloyd's of London related to its fixed indexed annuity book, underscoring how reinsurers and risk partners can be used to manage exposure and support growth.[1] Through economic cycles - especially the low-rate era after 2008 - the opportunity for Security Benefit has been focusing on retirement-income niches where product design, distribution relationships, and disciplined balance-sheet management can differentiate a mid-sized carrier.[1][2]

The following timeline details the history of Security Benefit, tracing its evolution from a pioneer fraternal benefit society on the American frontier to a modern financial services corporation.

Founding & Fraternal Era (1892 – 1949)

• 1892: Eleven men found The Knights and Ladies of Security in a drugstore in Topeka, Kansas. It is established as a fraternal benefit society to provide insurance to men and women, an inclusive practice unusual for the time.
• 1895: The organization expands to serve nine states with over 10,000 members.
• 1919 (Merger & Name Change): The Knights and Ladies of Security merges with the National American Association, a Kansas City-based fraternal society.
  • Name Change: Following the merger, the organization renames itself the Security Benefit Association (SBA).
• 1920s–1940s: The association operates a hospital and a home for the elderly and orphans, typical of fraternal societies of that era.

Mutualization & Corporate Expansion (1950 – 2009)

• 1950 (Transformation): Effective January 1, the organization completes its demutualization from a fraternal society into a mutual legal reserve life insurance company.
  • Name Change: The entity adopts its current name, Security Benefit Life Insurance Company (SBL).
• 1982: A downstream holding company, Security Benefit Group, is formed to manage the company's growing diversity of subsidiaries.
• 1995 (NY Expansion & Merger):
  • The company forms a New York subsidiary, First Security Benefit Life Insurance and Annuity Company of New York.
  • Merger: On September 8, Pioneer National Life Insurance Company merges into this New York subsidiary, with First Security Benefit Life becoming the surviving entity.
• 2005: Security Benefit launches se2, a business processing subsidiary that handles policy administration for other insurance carriers.
• 2008 (Acquisition): Security Benefit acquires Rydex Investments (now known as Guggenheim Investments), significantly expanding its asset management and mutual fund capabilities.

Acquisition & Private Ownership (2010 – Present)

• 2010 (Acquisition by Guggenheim): A group of investors led by Guggenheim Partners acquires the company.
  • Restructure: The Security Benefit Mutual Holding Company is dissolved (demutualized), and Security Benefit becomes a privately held stock company.
• 2017 (Ownership Change): Eldridge Industries, a holding company led by Todd Boehly (formerly of Guggenheim), acquires Security Benefit. This transfers ownership from Guggenheim Partners to Eldridge.
• 2025: Security Benefit continues to operate as an Eldridge business, recently completing a redemption of senior notes to strengthen its balance sheet.

‍

Sources: [1] https://www.securitybenefit.com/about/about-security-benefit/our-story (Security Benefit - Our Story) ; [2] https://insurance.delaware.gov/wp-content/uploads/sites/15/2022/05/SecurityBenefitLifeInsuranceCompany2020web.pdf (Delaware Dept. of Insurance exam report (Security Benefit Life Insurance Company))