Jump to content

Transamerica Corporation

From Wikipedia, the free encyclopedia
Transamerica Corporation
Company typeSubsidiary
IndustryInsurance
Investments
Retirement planning
Founded1928; 96 years ago (1928)
FounderA.P. Giannini
HeadquartersCedar Rapids, Iowa, US
Number of locations
10
Area served
North America
Key people
Will Fuller (CEO)
ProductsLife insurance, Investment & Retirement services
Number of employees
6,800 (2023)
ParentAegon
Websitewww.transamerica.com

Transamerica Corporation is an American holding company for various life insurance companies and investment firms operating primarily in the United States, offering life and supplemental health insurance, investments, and retirement services. The company has major offices located in Baltimore, Maryland; Cedar Rapids, Iowa; Denver, Colorado; Canton, Massachusetts; Harrison, New York; Knoxville, Tennessee; Plano, Texas; St. Paul, Minnesota and St. Petersburg, Florida. Additional affiliated offices are located throughout the United States. In 1999, it became an independent subsidiary of multinational company Aegon.[1]

Contributions from the Transamerica Life Insurance Company and its affiliates fund the Transamerica Institute, a nonprofit, private foundation. The Transamerica Center for Retirement Studies is an operating division of Transamerica Institute. [2]

History

[edit]
The Transamerica Pyramid in San Francisco

In October 1904, A.P. Giannini founded the Bank of Italy in San Francisco.[3][4] In October 1928, Giannini created a holding company that he named the Transamerica Corporation, which owned Bank of America, Bank of Italy, Bancitaly Corporation, National Bankitaly Company, California Joint Stock Land Bank, and Banca d'America e d'Italia [it], which gave it assets in excess of $1.5 billion (equivalent to $27 billion in 2023).[5][6][5][7][8][9] The Transamerica Corporation original headquarters was located at 4 Columbus Avenue in San Francisco.[10] The Bank of Italy later merged with Bank of America, Los Angeles in 1928, which was then renamed Bank of America in 1930.[3][11]

In March 1930, Transamerica acquired Occidental Life Insurance Company, founded in 1906.[12] At the time, Occidental had over $25 million in assets and over $150 million in life insurance policies in force.[12] Giannini said the purchase of the West Coast-based life insurance company was part of a plan for Transamerica to control every type of financial service.[12] Following the acquisition, Occidental was renamed Transamerica Occidental Life Insurance Company.[13]

Over time, the company became a more diversified conglomerate that included the film distributor United Artists,[14] Transamerica Airlines and Budget Rent a Car.[15]

In 1972, the company completed construction of the Transamerica Pyramid skyscraper in San Francisco which served as its headquarters for many years. Although the company currently retains no offices in the building, the pyramid is still depicted in the company's logo and marketing materials.[16][17]

In the 1980s, Transamerica began to divest and focused exclusively on financial services.[18] In 1981, Transamerica sold United Artists to Tracinda Corporation, a media company owned by Kirk Kerkorian which in turn also owned Metro-Goldwyn-Mayer.[19] Transamerica was eventually reduced to three main product divisions: insurance, investments, and retirement planning.[20] In July 1999, Transamerica CEO Frank C. Herringer announced that Aegon, the Netherlands-based insurer, would acquire the company.[21] Transamerica Occidental merged into Transamerica Life Insurance Company on October 1, 2008.[22]

In 2018, Transamerica entered a 10 year, $2 billion agreement with Tata Consultancy Services, an Indian technology company, to digitize their policies under a single platform. However, this project was abandoned in 2023.[23]

Products and services

[edit]

Transamerica primarily offers insurance, retirement, and investment services. Types of life and health insurance policies offered include term life, whole life, universal life, variable universal life, accidental death, and final expense. Transamerica companies also offer a variety of mutual funds and annuities.[24]

Transamerica's retirement division offers defined benefit pension plans and defined contribution retirement plans,[25] including 401(k) and 403(b), 457, profit sharing, money purchase, cash balance, Taft-Hartley, multiple employer plans, pooled employer plans, retirement plan exchanges, nonqualified deferred compensation, and rollover individual retirement accounts. Other services include plan-level record keeping and administrative services, participant communications and education services, fiduciary risk mitigation services, open investment architecture, and compliance guidance and regulatory support.[26]

In December 2020, Transamerica announced it would no longer sell variable annuities with benefit riders and fixed index annuities and is also exiting the standalone long-term care market.[27][28][29]

Partnerships

[edit]

Transamerica has a long history of supporting third-party research and thought leadership, including Massachusetts Institute of Technology AgeLab. Previous work includes American Heart Association, Stanford's Center on Longevity, Georgetown's AgingWell Hub, and Alzheimer's Association.

Transamerica has sponsored Zach Johnson his entire PGA TOUR career. The 2023 US Ryder Cup team captain and 12-time PGA TOUR winner, including the 2007 Masters and 2015 Open Championship, Johnson grew up in the Cedar Rapids community, home to many Transamerica employees. Transamerica is also a longtime sponsor of Azahara Munoz, 2009 LPGA Rookie of the Year.[30]

Foundations

[edit]

Transamerica funds two foundations: the Aegon Transamerica Foundation and the Transamerica Institute. It created the Aegon Transamerica Foundation in 1994 to provide financial grants to community non-profit organizations. Transamerica employees also volunteer services to these organizations.[31] The foundation received the Corporate Citizenship Award in 2013 for creating the first urban farm in Iowa.[32]

Transamerica Institute is a nonprofit, private foundation dedicated to identifying, researching, and educating the public about health and wellness, employment, financial literacy, longevity, and retirement. Transamerica Center for Retirement Studies (TCRS), an operating division of Transamerica Institute, focuses on trends, issues, and opportunities related to saving and planning for retirement and achieving financial security in retirement.[33]

See also

[edit]

References

[edit]
  1. ^ Tagliabue, John (February 19, 1999). "Big Dutch Insurer to Acquire Transamerica for $9.7 Billion". The New York Times. Retrieved 30 September 2017.
  2. ^ "About Transamerica Institute". Transamerica. Retrieved 12 December 2023.
  3. ^ a b "Newcomers". They Made America. June 9, 2004. PBS. WGBH-TV.
  4. ^ "History". Transamerica. October 1, 2008. Retrieved 27 February 2014.
  5. ^ a b "Dover Charter Joins Giannini Corporations". Associated Press. The News Journal (Wilmington, Delaware). October 12, 1928. p. 26.
  6. ^ 1634–1699: McCusker, J. J. (1997). How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States: Addenda et Corrigenda (PDF). American Antiquarian Society. 1700–1799: McCusker, J. J. (1992). How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States (PDF). American Antiquarian Society. 1800–present: Federal Reserve Bank of Minneapolis. "Consumer Price Index (estimate) 1800–". Retrieved February 29, 2024.
  7. ^ "Giant Giannini Corporation Being Formed". United Press International. The Times (San Mateo, California). October 12, 1928. p. 3.
  8. ^ Scott, H. S. (October 14, 1928). "Stocks Do Little in Short Session: Bank of America, Marchant, Dairydale B Show Gains List as Whole is Firm". Oakland Tribune (Oakland, California). p. 54.
  9. ^ "Gigantic Institution to Acquire Control of Giannini Enterprises: Transamerica Corporation Being Forms to Own Financial Firms". Associated Press. Los Angeles Evening Express. October 24, 1928. p. 27.
  10. ^ "San Francisco Landmark #52: Fugazi Bank Building". noehill.com. Retrieved 2022-11-12.
  11. ^ "World's biggest bank (Fortune Classics, 1947)". Fortune. Archived from the original on March 25, 2019. Retrieved 2019-03-25.
  12. ^ a b c "Transamerica Buys Big Firm". Los Angeles Evening Post-Record. March 25, 1930. p. 3.
  13. ^ "Company Profile: Transamerica Occidental Life Insurance Company". California Department of Insurance. Retrieved 30 September 2017.
  14. ^ International Directory of Company Histories. Vol. 25. St. James Press. January 1, 1999. pp. 326–330. ISBN 978-1558623675. Retrieved 30 September 2017.
  15. ^ "Budget Car Rental Corporate History". Budget Rent A Car.
  16. ^ "Transamerica Pyramid". Shvo. Retrieved 12 December 2023.
  17. ^ Said, Carolyn (May 29, 2004). "ICONS OF BUSINESS / Transamerica Pyramid / From corporate emblem to city landmark / It's not really a pyramid, and it's not owned by Transamerica". SFGate.
  18. ^ Zonana, Victor F. (January 31, 1986). "Transamerica Plans to Divest Units: Will Sell Air Travel, Auto Rental, Manufacturing Firms". Los Angeles Times. Retrieved 30 September 2017.
  19. ^ Cole, Robert J. (May 16, 1981). "M-G-M is Reported Purchasing United Artists for $350 Million". The New York Times. Archived from the original on September 8, 2016. Retrieved August 17, 2015.
  20. ^ Fabrikant, Geraldine (August 8, 1985). "Turner Acquiring MGM Movie Empire". The New York Times. Archived from the original on October 11, 2014. Retrieved November 4, 2014.
  21. ^ "Aegon buys Transamerica". CNNMoney. February 18, 1999. Retrieved 30 September 2017.
  22. ^ wpengine (2008-10-20). "Hong Kong: Court Sanctions Transfer of Business of Transamerica Occidental Life Insurance Company". Insurance & Reinsurance. Retrieved 2023-09-22.
  23. ^ "India's TCS, Transamerica end $2 billion contract due to macro environment". Reuters. 2023-06-16. Retrieved 2023-09-11.
  24. ^ "Individual". Transamerica. Retrieved 30 September 2017.
  25. ^ "Aegon acquires Mercer's US defined contribution record-keeping business" (Press release). Aegon. September 21, 2015. Retrieved 30 September 2017.
  26. ^ "Retirement Solutions". Transamerica. Retrieved 30 September 2017.
  27. ^ "Transamerica Latest To Exit VAs With Benefits, FIAs". InsuranceNewsNet. December 16, 2020.
  28. ^ Partners, LTCI. "Transamerica Exiting the Standalone LTC Market". www.ltcipartners.com.
  29. ^ "Transamerica to halt sales of VAs with guarantees, fixed annuities". December 14, 2020.
  30. ^ "Partnerships". Transamerica Partnerships. Retrieved 12 December 2023.
  31. ^ "Aegon Transamerica Foundation". Transamerica. Retrieved 30 September 2017.
  32. ^ Ford, George (November 21, 2013). "Transamerica wins award for Time Check 'urban farm'". The Gazette. Cedar Rapids. Retrieved 30 September 2017.
  33. ^ "About Transamerica Institute". Transamerica. Retrieved 12 December 2023.
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Transamerica_Corporation&oldid=1256336432"