Topeka (WIBW) - The group which announced plans earlier this month to acquire Security Benefit gave the company its first cash infusion.

A group of investors led by Guggenheim Partners announced Friday that it's indirectly contributed $175 million of capital to Security Benefit Life Insurance Company.

The company says the contribution was structured as a loan to Security Benefit.

Meanwhile, Security Benefit's interim chairman Howard Fricke says the major credit rating agencies have already changed the company's outlooks for the insurance firms.

“We are pleased that major credit rating agencies already have changed their outlooks for SBL and First Security Benefit Life Insurance and Annuity Co. of New York to positive, and we remain focused on following through on our plans to return to investment grade,” Fricke said.

Fricke also said he is pleased with the positive reception the acquisition is receiving from Security Benefit’s distribution partners, including the NEA’s Member Benefits Corporation.

“We at NEA’s Member Benefits are pleased with the acquisition of Security Benefit by an investment group led by Guggenheim Partners,” said Gary Phoebus, NEA’s Member Benefits Corporation president and chief executive officer. “We believe it will help to reposition Security Benefit as a more stable company that NEA members can count on for quality investment and retirement services. Security Benefit has always exhibited a commitment to our members. It is our anticipation that this development will enhance that commitment and our partnership for years to come.”

One of Security Benefit’s key business partners, FHLBank Topeka, also indicated their support of the transaction.

"We view this transaction as a very positive development," said Andy Jetter, FHLBank Topeka president and chief executive officer. "We do quite a bit of business with Security Benefit. I think this transaction will be a big boost for Security Benefit and Topeka."

It is anticipated the remainder of the $400 million investment to be made by the Guggenheim-led investor group will be made at the closing of the transaction, which is expected late second quarter or early third quarter 2010 following regulatory, policyholder and fund shareholder approval.