Transactions with Related Persons Promoters and Certain Control Persons
The Company pays fees to SEI under management contracts that cover certain investment, accounting, employee benefit and management services. The Company wascharged $34,493, $35,522 and $34,175 in 2019, 2018 and 2017, respectively, related to these contracts.
In 2013, the Company issued guaranteed investmentcontracts (GICs) to SEI for $102,000. In 2016, the Company issued additional GICs of $100,000. These contracts totaling $202,579 and $201,757 in 2019 and 2018, respectively, are included in liabilities for deposit type funds in thestatements of admitted assets, liabilities and capital and surplus. These contracts pay between 1.3% and 2.7% interest and mature in equal monthly installments for an additional one-year period. Each contractmay be renewed for an additional one-year period.
The Company pays investment management fees to an affiliate,Guggenheim Partners Investment Management Inc. (GPIM). SEI holds an indirect interest in Guggenheim. During 2019, 2018 and 2017, the Company incurred fees of $44,239, $42,095 and $39,481, respectively, for these investment managementservices. The fees are calculated based on the average fair value of invested assets under management multiplied by a contractual rate.
GuggenheimCommercial Real Estate Finance, LLC, (an indirect subsidiary of Guggenheim) provides commercial mortgage loan origination and servicing services for the Company. The Company incurred expense of $8,109, $8,036 and $8,171 in 2019, 2018 and 2017,respectively, for these commercial mortgage services. The fee is calculated monthly based on the outstanding principal balance of the commercial mortgage loans and real estate owned multiplied by a contractual rate.
At December 31, 2019, the Company holds an investment security issued by GPIM. The security is reported in bonds in the statements of admitted assets,liabilities, and capital and surplus at December 31, 2019 (3.50% interest, $52,972 par, $52,899 reported value, due 2023). At December 31, 2018, the security was reported in bonds in the statements of admitted assets, liabilities, andcapital and surplus (3.50% interest, $53,569 par, $53,476 reported value, due 2023).
The Company holds $619,268 and $357,013 of investments in debtsecurities issued by affiliates which are reported in bonds in the statement of admitted assets, liabilities, and capital and surplus at December 31, 2019 and December 31, 2018, respectively. The Company also holds $573,383 and $515,841 oflimited partnership interests in affiliates which are reported in other invested assets in the statement of admitted assets, liabilities, and capital and surplus at December 31, 2019 and 2018, respectively.
The Company provided certain investment, accounting, policy administration and management services to North American. The Company received reimbursements of$132,296, $134,271 and $115,044 in 2019, 2018 and 2017, respectively, for the costs incurred to render such services.
The Company provides certaininsurance and noninsurance services to MNL Re. The Company received reimbursements of $100 in each of 2019, 2018 and 2017 for the costs incurred to render such services.
The Company provides certain insurance and noninsurance services to Solberg Re. The Company received reimbursements of $100 in each of 2019, 2018 and 2017 forthe costs incurred to render such services.
The Company provides certain insurance and noninsurance services to Canal Re. The Company did not receive anyreimbursements in 2019 for the costs incurred to render such services.
The Company provided certain investment, accounting, payroll administration andmanagement series to SIG for which it was reimbursed $5,527, $6,676 and $5,421 in 2019, 2018 and 2017, respectively, for costs incurred to render such services.
The Company provided certain investment, accounting, payroll administration and management series to SFN for which it was reimbursed $22,304, $26,134 and$30,915 in 2019, 2018 and 2017, respectively, for costs incurred to render such services.
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