Reliance Standard Life Insurance Company, an insurance company focusing on absence and employee benefits solutions, has agreed to purchase Standard Security Life Insurance Company of New York (SSL).

Financial terms of the deal, which awaits regulatory approvals, were not disclosed.

Currently part of Independence Holding Company (IHC), SSL will become a wholly-owned subsidiary of Reliance Standard upon deal completion.

SSL president Gary Balzofiore will report to Reliance Standard group benefits president and CEO Chris Fazzini once the deal is finalised in the third quarter of this year.

Standard Security Life is the sixth-largest New York DBL insurance provider as per the results for the year ending 31 December 2020.

The combination is said to help Reliance Standard expand its book of business to nearly $44.4m.

Reliance Standard, which is a unit of the Tokio Marine Group, will become the third-largest provider of New York Disability Benefit Law (DBL) insurance with the deal, accounting for a market share of nearly 10%.

IHC president and COO David Kettig believes that the deal will offer benefits for SSL’s agents, brokers and clients.

“Looking at SSL’s leadership and effectiveness in the New York statutory market and Reliance’s long-term, holistic approach to disability and leave, it really does seem like an ideal match,” Kettig noted.

SSL offers New York DBL and statutory paid family leave (PFL) insurance.

The company, set up in 1957, reported $122m in gross written premium last year. The company insures around one million employees across 60,000 employer groups.

Fazzini noted: “In an era of unprecedented growth and dynamism in the statutory disability and paid leave space, we are fully committed to expanding our service to employers in New York and beyond.”

Chicago-based Reliance Standard’s insurance portfolio includes disability, life, accident, critical illness, hospital indemnity, dental, vision, medical stop loss and limited benefit medical offerings.

Alongside sister company Matrix Absence Management, the firm offers absence solutions including management of federal and state leave of absence and paid leave of absence programmes, among others.