NEW YORK, NY - Guggenheim Partners today announced that it has completed a spin off its wholly owned insurance subsidiary, Guggenheim Life and Annuity Corporation ("GLAC"), to Group 1001.
The spin off marks the end of Guggenheim Partner's control and management of insurance businesses. With Guggenheim's exit from the business of controlling and managing insurance businesses, it will focus on its core businesses: Guggenheim Investments and Guggenheim Securities.
Guggenheim Investments is a global asset manager and investment advisor with expertise in fixed income, equity, alternatives, and advisory solutions. It has $259 billion in assets under management as of September 30, 2021, and a track record of delivering results through innovative solutions.
Guggenheim Securities is an investment banking and capital markets business. It is one of the leading M&A and restructuring advisors in the U.S. and has developed scale financing solutions across public and private fixed income and equity markets.
Guggenheim received substantial consideration in the spin off transaction, including participation in the future economic successes of Group 1001. Guggenheim Partners' investors continue to participate in the future successes of GLAC in that way.
A substantial portion of Guggenheim Partners value derives from these benefits, which fostered Guggenheim's successful growth.
Guggenheim is no longer the controlling owner of GLAC and does not meet the control test for such a designation. However, Group 1001 unilaterally and voluntarily has agreed to provide regulators with disclosures and notices of any transactions or interactions with Guggenheim, as if it were an affiliate of Guggenheim, thereby assuring full transparency to insurance regulators.
Group 1001 is a dedicated insurance business with operations in the life, annuity, health, property, and casualty insurance businesses. It also has advanced technology for the next generation of insurance operations. Group 1001 is well capitalized. Its holding company has billions of dollars of additional capital that can be used to grow and support its insurance businesses.
This transaction also marks the successful completion of Guggenheim's 12 years of effort to rescue and to rebuild insurance businesses, some of which were gravely impacted by the financial crisis of 2008. Several of the insurance companies Guggenheim controlled or managed were brought to Guggenheim by state insurance regulators to help them resolve troubled businesses.
Every one of the insurance businesses Guggenheim aided, controlled, or managed is now thriving, well capitalized, safe, and secure. GLAC was the last of the insurance companies controlled or managed by Guggenheim Partners. Now that GLAC has been spun off, these insurers are all be independently owned and operated.
Group 1001's insurance companies continue to benefit from the innovative capital support structure, Safe Harbor. Through Safe Harbor, Group 1001's insurance companies, including GLAC, have tens of billions of dollars of assets available to provide capital support should that be required.
About Guggenheim Partners
Guggenheim Partners is a diversified financial services firm that delivers value to its clients through two primary businesses: Guggenheim Investments, a premier global asset manager and investment advisor, and Guggenheim Securities, a leading investment banking and capital markets business.
Guggenheim's professionals are based in offices around the world. Our commitment is to deliver long-term results with excellence and integrity while advancing the strategic interests of our clients .
Learn more at GuggenheimPartners.com, and follow us on LinkedIn and Twitter @GuggenheimPtnrs.
About Group 1001
Group One Thousand One, LLC ("Group 1001") is an insurance holding company in the United States, with current combined assets under management of approximately $44 billion as of June 30, 2021, and a mission to make insurance and retirement products more useful, intuitive, and accessible so everyone can get the most value from their money.
Guggenheim Partners Media Contact
Steven Lee
Guggenheim Partners
212.293.2811
[email protected]
Group 1001 Media Contact
George Haj
HajMedia
305.834.4808
[email protected]