In 2010 SBLI USA Mutual Life Insurance Company, Inc. suffered a catastrophic loss in the Company's Statutory Surplus Accounts losing $49 million, when the value of their Mortgage Backed Securities declined from $113 million to $64 million. To compound the loss, SBLI USA Mutual Life Insurance Company was spending more money to grow the business than they were taking in. The outcome is that in June of 2010, SBLI USA Mutual Life Insurance Company discontinued operations, closed their Customer Service Centers, stopped selling insurance, and under pressure from New York State insurance regulators their President and CEO, Vikki L. Pryor, resigned.
The current management team at SBLI USA, including the new President and CEO, Michael Akker, and the Board of Directors has been in place since 2000 when Savings Bank Life Insurance (SBLI) of New York was converted into a mutual life insurance company, SBLI USA Mutual Life Insurance Company. During this 12 year period (2000 to 2012) your dividends declined by 75%, whole life premium declined by 42%, the number of policyholders declined by 35% and insurance in-force declined by 30%. Also, from 2000 to 2012 cumulative net income was actually a loss of $439,000. Management and Board have had more than ample time to demonstrate their inability to properly manage the operations and finances of SBLI USA Mutual Life Insurance Company.
IMPORTANT NEWS UPDATE
SBLI USA Mutual Life Insurance Company announced on January 30, 2013, that it will be acquired by Prosperity Life Insurance Group (Prosperity) through a sponsored demutualization. Upon closing of this transaction, and following board, regulatory and policyholder approval, (emphasis added) Prosperity will own 100% of SBLI USA Mutual Life Insurance Company. To learn more about how the proposed demutualization will impact your rights as policyholders, please view the Demutualization Tab and please complete the Contact Us Form.
LAST CHANCE TO VOTE
Policyholders are still the owners of SBLI USA Mutual Life Insurance Company and have a right to know if the premiums you pay are being effectively utilized. Your last chance to vote for or against management is at the June 2013 Annual Meeting. SBLI USA Mutual Life Insurance Company will begin the demutualization process. Once the demutualization process is completed and approved,by the NYS Department of Financial Services, policyholders will receive full disclosure regarding the details of the transaction and will be given ample time to cast their vote.
SBLI USA (and S.USA Life) are registered trademarks of the SBLI USA Mutual Life Insurance Company, Inc., Rather than indicating every occurrence of a trademarked name as such, this website blog uses the names only in an editorial fashion with no intention of infringement of the trademark or copyright.
SBLI USA Today is published as a web site blog by Richard Hoffman CPA, who is also long time policyholder. SBLI USA Today is not affiliated with SBLI USA Mutual Life Insurance company, Inc. or USA Today.