CCC Information Services Inc. Completes Divestiture of CCC Consumer Services Inc. Business
CHICAGO--Sept. 5, 2001--CCC Information Services Inc., a leading supplier of advanced software and communications systems to the automotive claims industry, today announced that it has completed the sale of two components within CCC Consumer Services Inc., its U.S.-based claims outsourcing business, in two separate transactions effective September 1, 2001. Financial terms of the agreements were not disclosed.
The first transaction involves CCC's policy services and loss reporting operation, based in Sioux Falls, South Dakota, which has been sold to San Francisco-based Esurance. The second sale includes CCC's claims administration operation, based in Battle Creek, Michigan, which has been sold to Los Angeles-based David Morse & Associates. As part of the transaction, David Morse & Associates can provide certain claims administration services to Esurance.
"These actions mark the final transactions to our U.S. claims outsourcing exit strategy, which was announced in the first quarter of this year," stated Githesh Ramamurthy, Chairman and Chief Executive Officer of CCC Information Services Inc. "This strategy mirrors our corporate objective of continuing to focus on what we do best - providing technology solutions that anticipate and respond to changing demands in our industry."
The first transaction involving CCC's Sioux Falls outsourcing operation will now enable Esurance to handle its policy services and loss reporting call center in-house. As part of the transaction, 46 employees from CCC's call center operations staff who provide these services have joined Esurance. CCC will continue to operate out of its Sioux Falls office while leasing a portion of its office space to Esurance. The sale also included other fixed assets associated with the policy services and loss reporting operations.
"The acquisition of the call center assets enables us to operate at even greater efficiency while also providing direct management which is core to our business growth," said Gary Tolman, President and Chief Executive Officer of Esurance. "Furthermore, we're able to have a seamless transition for Esurance customers by adding to our ranks dedicated, well-trained employees who are already knowledgeable about our business and are familiar with our system."
The second transaction includes CCC's claims administration operations. With this transaction complete, David Morse & Associates will now provide claims administration services to Esurance. In addition, 19 CCC employees working in the Battle Creek office have joined David Morse & Associates. The sale also included other fixed assets and the office lease.
"The Battle Creek facility fits beautifully with our presence on the East and West coasts and nearly completes our expansion to a 48-state coverage," said David Morse, Chairman of David Morse and Associates. "The skills of the Battle Creek staff and the opportunity to provide the claims administration to Esurance with their dynamic growth are key elements of our own rapid expansion in the claims administration business. The skill and dedication of the Battle Creek staff are an important addition to our company."
CCC Information Services Inc. announced in the first quarter of 2001 that it would begin exiting CCC Consumer Services Inc., its U.S.-based claims outsourcing business, in order to better focus on its core technology strengths. To date, this wind down process is proceeding smoothly and remains on target for completion by December 2001.
About CCC
CCC Information Services Inc., a wholly owned subsidiary of CCC Information Services Group , headquartered in Chicago, IL, is a leading supplier of advanced software, communications systems, Internet and wireless-enabled technology solutions to the automotive claims and collision repair industries. Its technology-based products and services optimize efficiency throughout the entire claims management supply chain and facilitate communication among more than 14,800 collision repair facilities, 350 insurance companies, and a range of industry participants. For more information about CCC Information Services Inc., visit our Web site at www.cccis.com; or contact Susan Jablonski of CCC at 312-229-2830, or Lisa Wahrmund of Ketchum CTC at 312-832-9300.
About Esurance
Esurance Inc. is a nationwide direct-to-consumer provider of personal automobile insurance. The company is redefining the insurance experience by creating an easy and time efficient way to buy and manage personal auto insurance online. Esurance's technology eliminates paper-based processes and creates cost savings that are passed on to customers in the form of low rates for top-rated insurance policies. Through its online service (www.esurance.com), Esurance offers consumers expert advice, quote comparisons, instant coverage, as well as convenient 24x7 policy management, customer service and superior claims handling. The company was the first Internet-based provider to offer real-time quote capability and fulfillment service online to more than half of the nation's driving population. Esurance is an operating subsidiary of Folksamerica Holding Company, Inc., a subsidiary of White Mountains Insurance Group .
About David Morse & Associates
David Morse & Associates is a full-service claims administration and insurance adjusting company with regional claims centers in California, Michigan, New York, Florida and, later this year, Texas. David Morse & Associates is a leader in the use of metrics and benchmarks to improve claims processing performance beyond industry norms. With headquarters in Los Angeles, California and offices in 13 states, the company now handles claims in 39 states and will have nationwide coverage by the end of the year. David Morse & Associates provides its clients with more than 300 staff, 22 years of claims experience and a web-based claims system for client access and the creation of customized reports.
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statement, including any statement regarding the intent, belief, plans, or current expectations of the companies or their management, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those forward-looking statements and that contractual arrangements are complex, may be terminated under appropriate circumstances or revised by mutual agreement. The companies have based these forward-looking statements on information currently available and disclaim any intention or obligation to update or revise any forward-looking statement.