Mr. Hunter: Standard Management was founded in 1989 as a life insurance holding company. Over the last 13 years, we have grown the company from a startup to approximately $2 billion in assets. Our success has been achieved through a strategic plan of acquisitions and organic growth. In 1997 we shifted our main emphasis from acquisitions to growing organically, establishing ourselves as a company providing retirement benefits through one of our subsidiaries, Standard Life Insurance Company of Indiana, which will soon be 70 years old. In 2001, we exceeded $322 million in new annuity revenues in our domestic insurance division. In the last five years, we have achieved double digit compounded annual growth in both the top and bottom line. We have a better quality stream of earnings along with an investment portfolio representing 95% investment grade.
TWST: What did the company do internally that contributed to this
success?
Mr. Hunter: We started the foundation for our growth back when the
company was founded in 1989. So it was a matter of proceeding with our
plan as we became larger and had more capital and could afford to grow.
Last year we built a new international headquarters; we raised $20.7
million in a trust preferred, which gave us the opportunity for a more
efficient capital structure enhancing our ability to manage our growth.
So from a strategic point of view, we didn't have to get senior
management on board because we always knew what the business would
consist of. For the company at large, we put a huge emphasis on
servicing the customer and our producers. We hired additional actuaries
to design more competitive and efficient products. So the entire company
became interactive and engaged in our initiative to become one of the
best providers of retirement products in the country.
Tickers included in this excerpt: SMAN
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.