The Guardian Life Insurance Company of America
| Company type | Mutual company |
|---|---|
| Industry | Insurance |
| Founded | 1860 |
| Founder | Hugo Wesendonck |
| Headquarters | Manhattan, New York City , United States |
Area served | United States |
| Products | Life insurance, disability income insurance, annuities, investment products, dental insurance, vision insurance |
Number of employees | 8000 |
| Website | www |
The Guardian Life Insurance Company of America ranks among the world's foremost mutual life insurance organizations. Based in Manhattan, it employs approximately 8,000 individuals within the United States and supports a network exceeding 3,000 financial advisors spanning over 70 agencies nationwide. By 2018, it achieved the 239th position on the Fortune 500 revenue list. In 2015, Guardian reached record financial strength with $7.3 billion in capital and $1.5 billion allocated to operating expenses. Established in 1860, the company provides a broad range of insurance solutions, including life insurance, disability income insurance, annuities, investment products, as well as dental and vision insurance.
History
Guardian was created by Hugo Wesendonck, a German revolutionary and civil rights attorney who escaped Europe following the revolutions of 1848–49. Supported financially by German expatriates, he founded Germania Life Insurance Company in 1860 on Wall Street to cater to German immigrant communities. By 1862, the firm had expanded its operations to San Francisco and subsequently extended coverage into regions such as Colorado, New Mexico, North Dakota, and South Dakota.
In 1868, Germania became the pioneer American insurer to establish an agency in Europe. By the early twentieth century, close to half of its business was international until World War I necessitated withdrawal from European markets.
The company relocated its headquarters to the Germania Life Insurance Company Building at Union Square in 1911, where it remained for over eight decades. It adopted the name The Guardian Life Insurance Company of America in 1918. Beginning in 1979, Guardian decentralized many Home Office operations by opening satellite offices in locations such as Bethlehem, Pennsylvania, Appleton, Wisconsin, Spokane, Washington, and Norwell, Massachusetts. In 1999, it shifted its main office to 7 Hanover Square in Manhattan’s Financial District. In April 2017, Guardian revealed plans to transfer several hundred staff members to the historic Bell Labs site in Holmdel, New Jersey.
Dental
As of February 2015, Guardian ranked as the sixth largest dental insurer in the United States, covering 6.4 million members. Its dental market share grew through acquisitions including First Commonwealth in 1999, Premier Access in 2014, and Avesis in 2016.
Disability insurance
After merging with Berkshire Life Insurance Company in 2001, Guardian’s disability insurance offerings have been managed by the Berkshire Life Insurance Company of America subsidiary.
Human resources
Guardian broadened its human resources services by acquiring Reed Group in 2012, which delivers absence management solutions such as "LeavePro" software and "MDGuidelines" for facilitating return-to-work processes. The company further expanded this division by purchasing Aon Hewitt’s absence management business in 2015.
Investment services
In 2006, Guardian acquired a controlling interest (65%) in RS Investments, which provides mutual funds and investment management services to pensions, investment firms, affluent individuals, corporations, and banks. RS Investments held a notable stake in Corrections Corporation of America during 2007. Victory Capital took ownership of RS Investments in 2016.
In September 2016, Guardian sold its 401(k) division to Ameritas Life.
Additionally, Guardian owns Park Avenue Securities (PAS), a comprehensive broker-dealer founded in 1999.
Controversies
In 2009, Guardian encountered significant backlash after discontinuing the insurance policy for Ian Pearl, a muscular dystrophy patient who depends on round-the-clock nursing care with annual costs nearing one million dollars. Although federal ERISA regulations mandated that Guardian maintain coverage for an additional year following cancellation, the company failed to provide a comparable alternative plan. Pearl's parents initiated legal action but were unsuccessful when a federal court ruled in October 2009 that Guardian had the right to terminate the entire insurance plan. The family subsequently appealed to the Secretary of Health and Human Services and brought attention to an internal trial memo that referred to expensive policies like Ian’s as "dogs" and "trainwrecks." In response, Guardian issued a public apology and consented to sustain coverage for Ian along with two other similar cases. This incident led to the enactment of "Ian's Law" in New York State, which requires insurers who cancel policies to offer replacement coverage of similar nature to affected policyholders.