Long-time Fiserv Insurance Solutions customers have a new technology service provider—sort of. The company, spun off from the larger Fiserv financial services entity in July 2008, was grabbed, along with a number of other Fiserv divisions, by Trident IV, a private equity fund managed by Stone Point Capital LLC, Columbia, S.C., and restructured into StoneRiver.
Trident/Stone Point Capital acquired a 51% interest in Fiserv Insurance Solutions from Fiserv Inc. Fiserv Inc. still owns 49% of the newly named StoneRiver, and Fiserv’s CEO, CFO and legal counsel still sit on the StoneRiver board of directors.
As reported in INN late last year, this move represents yet another example of bold economic expansion in financial services and insurance at a time when contraction seems the more likely course. As part of the restructuring, StoneRiver launched a new Web site this morning at www.stoneriver.com. StoneRiver’s newly combined divisions represent comprehensive, sweeping offerings under one flag.
“We are reaping the benefits of a Fiserv strategy that was years in the making,” Eddie Jones, VP of marketing, told INN. “That strategy involves looking for smart people and smart companies, and creating a mix of products and services to offer a comprehensive set of products and services that makes sense to our growing customer base.”
StoneRiver plans to capitalize on the existing customer base from all five divisions and cross-market in some areas.
StoneRiver’s Insurance Solutions division is probably the most familiar to the industry, offering software and services that support policy administration, claims management, billing, comparative rating, agency management, client management, reinsurance administration and annual statement reporting across almost all lines of business.
StoneRiver’s National Flood Services (NFS) business services the industry to support the National Flood Insurance Program (NFIP). Jones estimates that the division will comprise one-third of the overall business and represent $1 billion in annual premiums. “Our insurance company clients know us as a third-party administrator, but the federal agencies know us as a vendor,” he says.
Located in Kalispell, Montana, NFS operates as the Flood Department for a number of insurance companies participating in the federally sponsored “Write Your Own” (WYO) program. NFS currently serves close to 85% of all WYO companies participating in the NFIP program.
The Memphis-based Pharmacy Solutions division provides workers’ compensation prescription programs to more than 60,000 participating pharmacies.
“We have the largest network that is workers’compensation-specific for processing pharmacy claims,” says Jones. The division’s P2P link connects providers and payers.
Located in San Diego, StoneRiver’s Emerald division is a marketing bureau that already counts MetLife, AXA and New York Life as customers. The division offers marketing services, such as seminars, direct mail, newsletters and Web site development.
StoneRiver’s RegEd division, Morrisville, N.C., offers products and services that manage contracting, training, licensing and registration, annual compliance and continuing education for representative and agent compliance. This company will compete with Kaplan and Sircon, Jones confirmed.
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