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Transamerica Occidental Life Insurance Company Celebrates 100 Years of Innovation and Commitment
06/28/06
www.transamerica.com
LOS ANGELES (June 28, 2006) – On June 30, Transamerica Occidental Life Insurance Company will celebrate its founding 100 years ago. Established in 1906—when East Coast life insurance companies dominated the market—the company (originally known as Occidental Life Insurance Company) aimed to differentiate itself with an unconventional approach to the life insurance business and an unwavering commitment to policy owners.
"Being on the West coast and away from the rest of the industry helped set the stage for fresh thinking and new ideas,” says Ron Wagley, Chairman and CEO of Transamerica Occidental Life Insurance Company (TOLIC). “The leaders of this upstart life company decided early on that they would focus on the needs of their policy owners and not allow conventional thinking to inhibit the development of innovative products and programs."
Boldness and Commitment in the Early Years
The company had a good first year, closing with $602,000 in life insurance in force. Occidental Life’s commitment to policy owners was first demonstrated on a large scale, when during the 1918 flu epidemic, death claims spiked and the company’s leaders dipped into their own pockets to ensure the obligations represented by its life insurance policies were met.
The company’s willingness to buck trends was evident in the 1920s, when the desire to grow the business led to the decision to develop and offer term insurance. According to Bill Tate, Chief Marketing Officer and Senior Vice President of TOLIC, “The industry had little interest in term insurance, preferring to focus on the more expensive whole life products. But Occidental and its top salesman at the time persisted in the belief that customers wanted and needed an affordable product that provided pure protection for a specified time period. And now term insurance is a fundamental part of many financial plans."
By 1928, the company was offering policies in every state in the U.S. and in Canada. It was thriving but under-capitalized. At the same time, A.P. Gianinni, head of Transamerica Corporation and founder of Bank of America, was looking to acquire a life insurance company. In 1930, Occidental was purchased by Transamerica.
Milestones and New Directions
The company continued to grow, hitting the billion-dollar mark in 1944. Then, in 1956, Congress enacted the Bank Holding Company Act, which forced Transamerica to divest either its banking or its non-banking interests. Contrary to industry expectations, Transamerica sold its banking operations and Occidental Life became the centerpiece and principal subsidiary. In 1959, the company made history, becoming the first company west of the Mississippi to pass the $10 billion mark in inforce life insurance.
In the early 1980s, when it was time again to take a bold step, the company—now known as Transamerica Occidental Life—became one of the first major life insurers to enter the universal life market. It took years to develop the product and the systems necessary to support it, but the company’s leaders were sure this new kind of permanent life insurance would address a critical need for the insurance-buying public.
"Throughout its 100-year history, TOLIC has been both an innovative force and a company committed to delivering on its promises," says Ken Kilbane, president of Transamerica Insurance & Investment Group, a marketing unit of TOLIC. "The Transamerica brand, as embodied by the world-famous Transamerica Pyramid, represents the company’s financial strength and stability, as well as its ingenuity and creativity. It’s a powerful combination."
Centennial Celebrations Across the Country
TOLIC is celebrating its centennial with a substantial grant to First Book, a non-profit literacy organization whose mission is to provide children from low-income families with their first books and provide new books to programs that support literacy.
"Research indicates that the key element to improving reading scores is access to reading materials. But more than 80 percent of preschool and after-school programs serving low-income children have no books at all," says Wagley. "By providing these children with great new books, TOLIC and First Book can target the problem at its root and improve their chances of getting a quality education."
The corporate donation will support several literacy programs with First Book at the beginning of the school year in the fall. Employees and producers will be able to participate in the literacy effort with a book drive that will help build First Book’s inventory.
In June, the company launched a new advertising campaign featuring the headline, “We’ve Seen a lot of Life in 100 Years.” The print ad—along with an advertorial series in BusinessWeek—underscores TOLIC’s presence during the events that changed people’s lives and celebrates 100 years of helping individuals, families and businesses protect and plan for the future.
Throughout 2006, Transamerica is celebrating with employees and producers in the U.S. and in the Pacific Rim. A commemorative 20-minute retrospective DVD has been created to capture the highlights of 100 years of history and the contributions of the company’s producers to the company’s success, and the company is sponsoring a Pyramid-drawing contest at a Los Angeles elementary school.
More information on TOLIC’s centennial can be found at www.transamerica.com.
Looking Ahead to the Next 100 Years
From its beginnings as a small California life insurance company, TOLIC now has $760 billion of insurance in force (as of Jan. 1, 2006). The company continues its tradition of innovation and commitment with its expansion into new domestic and Pacific Rim markets.
“We’re proud of our accomplishments over the last century,” says Kilbane, “but that doesn’t mean we’re resting on our laurels. We must always keep in mind the promises we make to the people who buy our products. And, we continue to earn our reputation as a company with which producers and customers want to do business. We’re looking forward to our next 100 years, and the opportunity to build on our tradition of innovation and commitment.”
About Transamerica
Transamerica Occidental Life Insurance Company is a member of the AEGON Group, a multinational insurance organization headquartered in The Hague, the Netherlands. The AEGON Group is one of the world’s leading life insurance and financial services organizations.
Marketing units, including Transamerica Insurance & Investment Group; Transamerica Capital, Inc.; Transamerica Investment Management, LLC; Transamerica Retirement Services; Transamerica Reinsurance; and Transamerica Worksite Marketing, offer an array of innovative financial services and products designed to help individuals, families and businesses build, protect and preserve their assets. These products and services are underwritten by Transamerica Occidental Life Insurance Company or its affiliated statutory insurance companies.
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