ChoicePoint acquires Insuratec
18 July 2006 | 2008 views | 0
ChoicePoint (NYSE:CPS) today announced the acquisition of Insuratec Inc., a leading provider of lien holder and mortgagee notification services to the Property and Casualty Insurance industry.
Insuratec, based in Danville, Calif., notifies automobile finance companies and mortgage lenders, on behalf of insurance clients, of material changes to insurance policies. Terms of the acquisition were not disclosed.
The Insuratec acquisition expands ChoicePoint's Financial Institution Reporting System (FIRSt) service, created earlier this year with the acquisition of ELIOS Inc. FIRSt, with more than 100 customers, is part of ChoicePoint's portfolio of Insurance Verification Services derived from Current Carrier, the P&C industry's premier and largest nationwide contributory policy database.
"Customers routinely decrease their Loss Payee Notification expenses by 50 percent or more upon implementing ChoicePoint's Current Carrier plus FIRSt solution," said Richard Collier, senior vice president and general manager of Insurance Data Services. "This acquisition is further evidence of ChoicePoint's continuing commitment to providing high quality solutions to real industry problems that have a direct, positive impact on our customer's bottom line."
The transaction is not expected to have a material impact on ChoicePoint's financial results. The company does not expect the acquisition to be dilutive to earnings.