Life history: the roots of Indiana's life & health insurance companies go back more than a century.

AuthorBeck, Bill
PositionInsurance - Industry Overview

Indiana's roots in the life and health insurance industry stretch back more than a century. Mutual and brotherhood insurance companies began selling insurance to their Indiana shareholders and members as far back as the 1880s. Today, more than a century later, the state is home to some of the larger and more aggressive players in the industry.

Following are profiles of Indiana's largest players in life/health insurance, listed in order of their assets.

LINCOLN NATIONAL

Indiana's largest life and health carrier is Lincoln National Life Insurance Co. Headquartered in Fort Wayne, where it was established in 1905, Lincoln National Life is the dominant life/health subsidiary of Lincoln National Corp., also based in Fort Wayne and the state's largest public company. Another of the parent company's life/health units is American States Life Insurance Co., which has its headquarters in Indianapolis.

Lincoln National Corp.'s life/health subsidiaries have assets exceeding $37 billion. Its life insurance and annuities division accounted for $2.9 billion in revenues in 1993, while life/health reinsurance, a growing business during the 1980s, reported revenues of $1.9 billion.

Another fast-growing field, that of employee life/health benefits, accounted for 1993 revenues of nearly $2.3 billion. The parent company's life and health operations accounted for more than 75 percent of revenues in 1993.

Ian M. Rolland is chairman of Lincoln National Corp., and Robert A. Anker is president.

CONSECO INC.

In its latest annual report to shareholders, CEO Stephen C. Hilbert lays out what he calls a "stunningly simple business strategy." The Carmel-based company he co-founded in 1979 makes its money by operating life insurance companies, providing services to affiliates and non-affiliates for fees, and acquiring and restructuring life insurance companies.

Conseco also has an uncanny knack for making news in the nation's financial markets. The company's latest headlines came in late June, when Conseco announced plans to buy Kemper Corp., an Illinois-based insurance and financial-services giant, in a $3.3 billion leveraged buyout.

If all goes well, Kemper will join a Conseco stable of insurance companies that includes Bankers Life and Casualty Co., Western National Life Insurance Co. and CCP Insurance Co., which does business through such well-known subsidiaries as Great American Reserve Insurance Co., Beneficial Standard Life Insurance Co. and Jefferson National Life Insurance Co. Once the Kemper deal is completed, Conseco plans to take on the better-known Kemper name.

The only Conseco-related company that actually is domiciled in Indiana is Jefferson National Life, but the Conseco's strategy of consolidation has brought the operations of other carriers to Carmel as well. Those carriers have combined assets of more than $5.8 billion. Conseco's total 1993 revenues of $2.6 billion were up 73 percent over 1992 revenue.

AMERICAN UNITED LIFE INSURANCE CO.

One of the identifying landmarks of downtown Indianapolis is the AUL Tower., named for this major insurance player. American United Life Insurance Co. has been at home in downtown Indianapolis since 1877, making it perhaps the oldest insurance company still domiciled in the state. Back then, it was organized to sell policies to Hoosier members of the Knights of Pythias.

Today, American United Life is licensed to do business in 45 states and the District of Columbia. The company has almost $5.5 billion in assets, with more than $3.5 billion of group annuity and pension assets under management.

Jerry D. Semler is chairman, president and CEO of American United Life.

In July, American United Life and cross-town competitor The State Life Insurance Co. announced...

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