The History and Evolution of Reliance Standard Life Insurance Company

Reliance Standard Life Insurance Company has a long and storied history dating back to its founding in 1907. Over 115 years later, it has grown into a leading provider of insurance and retirement solutions. This article will explore the origins of Reliance Standard and how it has adapted and evolved into the reputable company it is today.

The Early Days

Reliance Standard Life Insurance Company was founded in 1907 as the Central Standard Life Insurance Company in Chicago, Illinois It was started by a group of ambitious businessmen led by HG. Carleton who had a vision to provide financial safety nets for American families.

The late 19th and early 20th century saw an explosion in the life insurance industry. Numerous companies sprung up to meet the growing needs of Americans during a time of industrialization and urbanization. Central Standard Life was one of these early players.

The founders put great emphasis on fiscal discipline and maintaining reserves to fulfill future claims obligations, This conservative approach served the company well in its formative years

In 1909, Central Standard Life was renamed Reliance Standard Life Insurance Company to better align with its growing national ambitions. Reliance Standard established its headquarters in Chicago where it remained for over a century until relocating in 2016.

Continued Growth Through Mergers and Acquisitions

In the 1920s and 1930s, Reliance Standard Life expanded steadily by acquiring smaller life insurance firms. Major mergers during this period included:

• Minnehaha Life Association of Sioux Falls in 1922
• Occidental Life Insurance Company of Albuquerque in 1936

Absorbing these smaller entities allowed Reliance Standard to widen its presence across America. By the late 1930s, Reliance Standard Life Insurance Company ranked among the top 60 life insurance providers in the United States.

The company sold a wide range of policies including life, endowment, disability, and annuity contracts Policyholders exceeded 290,000 and insurance in force was over $500 million by the end of the 1930s.

Adapting to Evolving Times

In the post-War period of the 1940s and 1950s, Reliance Standard adapted its offerings to fit the changing insurance needs of American households. With improving life expectancy, new forms of retirement planning and pensions started gaining prominence.

In 1947, Reliance Standard Life started selling its first group insurance policies to employers to provide benefits to employees. By 1950, group coverage made up over 30% of the company’s new business sales.

Reliance Standard also began offering innovative pension products and retirement annuities to cater to workers planning for their golden years. These included deferred compensation annuities, income replacement plans and more.

In 1958, Reliance Standard acquired World Insurance Company further boosting its presence on the East Coast. The company also became licensed in Hawaii in 1959 coinciding with its statehood.

Continued Diversification

By the 1970s, Reliance Standard was writing over $9 million in new coverage annually across all policy types including life insurance, disability income, and retirement solutions.

In 1974, Reliance Standard formed a new subsidiary – Reliance Insurance Company – to meet the growing demand for short-term health insurance plans.

Over the next decades, Reliance Standard continued to diversify its offerings to keep up with evolving insurance needs. Key moves included:

• Launching limited benefit medical plans in the 1980s amidst rising healthcare costs.

• Introducing dread disease, cancer, and intensive care policies in the 1990s to supplement traditional health plans.

• Adding innovative riders like waiver of premium, accidental death benefits, and guaranteed insurability to policies.

• Expanding coverage to new segments like high-risk groups.

Commitment to Financial Strength

As Reliance Standard grew over the decades, it never wavered from its founding principles of maintaining fiscal discipline and conservatism. This ensured the company was able to keep its promises to policyholders.

Some of the ways Reliance Standard has built financial strength over its history include:

• Maintaining high reserve levels through sound actuarial practices to cover future liabilities.

• Investing premiums wisely by diversifying across asset classes while minimizing risk.

• Achieving excellent ratings from insurance rating agencies – currently an A (Excellent) from A.M. Best.

• Meeting stringent solvency and capital requirements set by insurance regulators.

• Upholding strong corporate governance principles.

• Avoiding risky practices common in the life insurance sector like high guarantees or shadow insurance.

Major Relocation to Philadelphia

In 2016, after over a century in Chicago, Reliance Standard Life moved its corporate headquarters to Philadelphia. This strategic relocation was aimed at talent acquisition and growth opportunities on the East Coast.

Reliance Standard felt its Chicago location constrained its ability to access a strong talent pool in adjacent sectors like asset management and financial services.

By moving to Philadelphia, Reliance gained proximity to these hubs and the many universities offering insurance and actuarial programs. The new headquarters provided room for growth.

Despite the relocation, Reliance Standard maintains strong service capabilities distributed across the country to continue serving customers nationwide.

Reliance Standard Today

Today, Reliance Standard Life Insurance Company offers a wide range of insurance and annuity products including:

• Traditional Life Insurance – Whole, universal, and term life insurance plans.

• Fixed and Indexed Annuities – Annuity products for retirement income and savings.

• Disability Income Insurance – Short and long-term disability policies.

• Group Insurance – Employer plans for life, disability, dental, and accident coverage.

• Limited Benefit Plans – Policies like dental, vision, hospital indemnity plans.

Reliance Standard markets its products through independent agents and brokers across America. It combines its long-standing financial strength with modern, innovative insurance solutions for evolving consumer needs.

With over $4 billion in capital and billions more in assets under management, Reliance Standard is well-positioned to keep its promises and pay future claims. It has successfully served over 1.5 million customers to date through its 115+ year journey.

For over a century, Reliance Standard Life Insurance Company has provided financial safety nets for American families. It has skillfully adapted from a fledgling start-up to a diversified insurance leader meeting changing needs.

Reliance Standard’s commitment to disciplined growth, honoring promises, and maintaining strength provides policyholders the assurance they seek from their insurer. Its rich heritage and continued evolution make Reliance Standard a trusted partner for insurance and retirement planning needs today and long into the future.