Fiserv acquires Insurance Wholesalers
16 June 2006 | 2323 views | 0
Fiserv, Inc. (Nasdaq:FISV) announced today that it has acquired Insurance Wholesalers Inc.
The firm, based in Citrus Heights, Calif., will become part of the Distribution Solutions Division of Fiserv's Insurance Group. Details of the transaction were not disclosed.
Insurance Wholesalers generates leads resulting in the sale of term and universal life insurance products that cover the amount of an insured's mortgage. Brian Pope, who founded the firm in 1991, will continue as president of the newly acquired company. The firm's 42 employees will join Fiserv.
"Fiserv is committed to providing industry-leading solutions. Insurance Wholesalers has a strong business model that enhances our distribution capabilities and fits our strategy to provide growth-oriented solutions to the insurance industry," said Jeff Yabuki, president and chief executive officer of Fiserv, Inc. "Adding Insurance Wholesalers to our existing insurance businesses allows us to add to our level of competitive differentiation."
The acquisition of Insurance Wholesalers adds an important element to the growth strategy of Fiserv's Insurance Group, according to Terry Wade, president of the Insurance Group. "The life insurance market is characterized by highly fragmented distribution channels," Wade said. "Agencies such as Insurance Wholesalers that bring high quality sources of potential customers command an increasingly powerful market position. We believe that significant growth opportunities exist through expansion and optimization on the distribution side of the insurance industry."
Increased strength in insurance distribution channel management through the Insurance Wholesalers acquisition will enable Fiserv to more efficiently serve clients by facilitating improved workflows in an area where many firms are challenged, according to Wade. "Insurance Wholesalers' proven capability to gather leads that generate increased sales for life insurance carriers through a network of 300 independent agents and 1,800 life insurance brokerage relationships, significantly increases Fiserv's presence in the distribution area."
"Fiserv's expertise in insurance distribution and back-office management is well known, and we feel our contribution will add another valuable link to the company's already effective distribution solution chain," Pope said. "We are very excited to be joining Fiserv."