The Challenge

A leading Midwest private equity firm engaged Equity Risk Partners to undertake a review of an acquisition candidate’s property and casualty insurance program. The target company was the second-largest installer of insulation in the new residential and commercial construction market with 48 branches across 15 states. During the course of our due diligence, Equity Risk Partners uncovered material issues related to the target company’s loss projections for its high deductible insurance program. Further, our private equity client was under enormous pressure to sign a definitive agreement with the seller on an expedited timeline.

Our Solution

Equity Risk Partners rose to the challenge, drew on its top-notch external actuarial resource, and ultimately analyzed the information and prepared a detailed analysis within five days. We analyzed the claims and worked with the company’s management to resolve the discrepancies while providing a broad risk management assessment. In the course of our analysis, we also identified potential cost savings opportunities involving outstanding surety bonds for completed work. In addition, Equity Risk Partners procured new Executive Liability coverage on time and with a modest increase in premium despite a few claims.