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06/13/2006
Sedgwick CMS Announces Acquisition of CompManagement
MEMPHIS, Tenn., and JACKSONVILLE, Fla., June 13 -- Sedgwick CMS Holdings, Inc., the parent company of Sedgwick Claims Management Services, Inc. (Sedgwick CMS), the leading provider of innovative claims and productivity management solutions, has signed a definitive agreement to acquire CompManagement, Inc. (CMI) and its affiliated companies through a merger of a subsidiary of Sedgwick CMS Holdings with CMI's parent company, Security Capital Corporation (AMEX:SCC) , for a cash purchase price of approximately $191.5 million. Today's announcement comes jointly from Sedgwick CMS and from Fidelity National Financial, Inc. (NYSE:FNF) , a principal equity holder of Sedgwick CMS Holdings, Inc. along with Thomas H. Lee Partners, L.P. and Evercore Capital Partners.
CMI and its affiliates provide third-party claims administration (TPA) and a variety of related claims, risk and benefits consulting services to clients nationwide. Combined 2005 revenue was $145 million. The CMI group of companies includes:
-- CompManagement, Inc., a full-service TPA delivering integrated workers'
compensation, disability and other employee absence claims
administration and managed care services to large and small employers
including employer trade association programs.
-- Octagon Risk Services, Inc., a large account-oriented TPA specializing
in workers' compensation, medical professional liability, general
liability and employment practices liability claims administration and
related consulting services.
-- CompManagement Health Systems, Inc., a State of Ohio-certified managed
care organization (MCO).
-- CMI Octagon, Inc. (formerly CompManagement of Virginia, Inc.), a
provider of workers' compensation and general liability claims services
principally in the mid-Atlantic states.
-- Caronia Corporation, a national provider of professional liability
claims and risk management services to healthcare providers.
-- CMI Barron Risk Management Services, Inc., a provider of workers'
compensation and other claims management services principally in the
Southwest.
-- RHS Solutions, a provider of risk, health and safety management
consulting and educational services to small and mid-sized businesses.
-- Integrated Claims Strategies (ICS), a full-service claims adjusting
service operating in the Southeastern United States.
"This acquisition brings a robust and diverse array of specialized capabilities to Sedgwick CMS," said Sedgwick CMS President and CEO David A. North. "Some we will integrate into our service offerings for current clients. Others will take us into new businesses such as services for managed care organizations (MCO services) and medical malpractice claims administration, or materially increase our presence in important markets such as association programs and regional employers.
"We are very pleased to welcome the 1350 people of the CMI group to Sedgwick CMS. We look forward to working with their talented management team in implementing plans to deliver additional benefits to clients, career opportunities to our new colleagues, and returns to our shareholders," North concluded.
"The CMI family of companies is a great addition to the Sedgwick CMS platform," said William P. Foley, FNF Chairman and CEO. "CMI not only provides a significant incremental revenue stream, but it also broadens the product offering that Sedgwick CMS can offer to its current and future customers."
Source: Sedgwick Claims Management Services; Fidelity National Financial
Article ID #: 1407
06/13/2006
Feature Article: Hurricane Katrina & Insurance Coverage
Hurricane Katrina And Insurance Coverage:
First Words From The Bench: Playing It Down The Senter
By
Randy J. Maniloff
On May 24, Judge L.T. Senter, Jr. of the Southern District of Mississippi issued a decision in Tuepker v. State Farm, addressing the availability of insurance coverage under a homeowners policy for property damage caused by Hurricane Katrina. This is the second case involving homeowners coverage for Katrina damage in which Judge Senter has issued an opinion. He issued opinions in March and April in Buente v. Allstate.
Below is a link to "Hurricane Katrina and Insurance Coverage: First Words From The Bench; Playing it Down the Senter," an article that is being published in the June issue of Mealey's Litigation Report: Catastrophic Loss. The article examines how Mississippi's Judge Senter is addressing the difficult coverage issues surrounding Hurricane Katrina.
The Buente and Tuepker decisions are far from the last word on the availability of insurance under homeowners policies for damage caused by Hurricane Katrina. But because they may be the first, and address certain issues of policy interpretation that will likely be common in many claims, they are sure to be studied closely by policyholders and insurers involved in Katrina coverage disputes -- and cited by both sides for any support that they offer. Just as the early decisions in the asbestos coverage battles were nowhere near the last word on this evolving subject, they certainly played a part in shaping the landscape to come.
[Editor’s Note: Randy J. Maniloff is an attorney at White and Williams, LLP in Philadelphia. He concentrates his practice in the representation of insurers in coverage disputes over primary and excess policy obligations for various types of claims, including construction defect, mold, general liability (products/premises), environmental property damage, asbestos/silica and other toxic torts, first-party property, homeowners, director’s & officer’s liability, a variety of professional liability exposures, including medical malpractice, media liability, community associations, public official’s liability, school board liability, police liability, computer technology liability, managed care and additional insured/contractual indemnity issues. The author expresses his appreciation to firm partner Gale White for her invaluable assistance in the preparation of this article. The views expressed herein are solely those of the author and are not necessarily those of his firm or its clients.]
Source: Randy J. Maniloff
http://www.whiteandwilliams.com/CM/Publications/Hurricane-Katrina-and-Insurance-Coverage.pdf
Article ID #: 1407
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