Insurance Industry Execs Launch Special Purpose Investment Fund; “First-Ever” to Purchase Subrogation Claims Portfolios

The inaugural fund is expected to be capitalized with a minimum of $30 million and will specialize in buying the subrogation rights of automobile-related insurance claims. The fund is scheduled to close before the end of the second quarter. The company plans to establish several follow-on funds totaling $250 million over the next thirty six months.

According to Scott Conant, one of the firm’s principals, “Through this fund, we have created unique capital and cash flow solutions for insurance companies and state insurance funds throughout the country. Typically, these enterprises carry subrogation claims on their balance sheet as receivables, but until now, they have had to endure a lengthy and costly collection process before actually realizing cash payments.”  

Conant, a 30-year veteran of the insurance industry and a former KMPG Peat Marwick consultant added, “By providing up-front cash payments for these portfolios, we offer an alternative remedy to insurance companies focused on balance sheet and operating performance and we can be an important source of liquidity for companies faced with cash flow challenges and capital deficiencies.”

The fund’s criteria for portfolio purchases will include a valuation process that employs highly sophisticated computer modeling techniques developed by Subrogation Partners, Inc., a national claims administration company and recognized for leading the industry in technology-based claims recovery services.

Thomas Bryan, a Principal and General Counsel of Subrogation Capital, “We have already received considerable interest from a number of “portfolio sellers”, and equally important, we have had an overwhelming response from the banking and investment communities. Many of the fund’s prospective investors and strategic partners believe that we have identified a new institutional investment asset class.”     

In addition to Conant and Bryan, the fund’s advisors include a rolodex of “who’s who in the industry.” 

The fund’s Advisory Board is comprised of Joseph Termini, former Special Deputy Superintendent of the New York State Insurance Department; Vincent Mistretta, Sr., former Executive Director of the New York State Insurance Department; Kieran Sweeney, former President and CEO of Arrowhead General Insurance Agency, the country’s largest privately held general insurance agency; and Linda Lamel, a former  President of the College of Insurance and Vice President of TIAA-CREF, and recently selected by Crains Business Insurance as one of the top 100 Women in the Industry.  

About Subrogation Partners, Inc.

Subrogation Partners, Inc.(“SP”) is a nationally-focused, independent subrogation claims administration company recognized as one of the insurance industry’s primary outsource solutions for automobile and property-related subrogation recovery.

Established in 1994, Subrogation Partners has processed more than $1 billion in claims on behalf of 80 leading insurance companies and state liquidation bureaus throughout the United States. The company’s management team has over 150 years combined experience in the areas of claims management and is credited for designing SubroAGS, a multi-million dollar Web-based platform acknowledged industry-wide as the next generation technology solution to dramatically enhance work flow processes and overall returns on subrogation.  Subrogation Partners is headquartered in Farmingville, NY and can be found on the Internet via www.SubroPartners.com  

*          *          *          *

For Additional Information:

Thomas Riordan
Subrogation Capital Group, LLC
728 Post Road East, Suite 203 
Westport, Connecticut 06880                           
Tel  (203) 226-1693 Ext. 12
http://www.Subrocap.com                                
email: [email protected]