The firm also makes private equity investments in insurance services companies. We target companies that provide claims administration, subrogation recovery, underwriting services and business process outsourcing services to insurance companies. Each acquisition is funded, owned and managed as a stand-alone entity. We work with a group of co-investors to complete each acquisition.
Insurance services are provided by a large and diverse network of business services companies. The types of insurance services provided can be classified into two major categories. First, underwriting services include a variety of services designed to assist insurance companies in the selection and pricing of risks. They include underwriting reports, inspections, replacement cost estimators, loss control services and others. Second, claims services include a variety of services designed to assist insurance companies in adjusting and settling claims. They include fraud investigation, case management, subrogation recoveries, first notice of loss reporting and others.
We estimate there are approximately 10,000 businesses serving the property-casualty insurance industry that generate over $25 billion annually in revenues, or approximately 5% of total industry premiums.
