| Inspire Insurance Solutions, Inc. | |||
| Ticker: | NSPR | 300 Burnett Street | |
| Exchange: | NASDAQ-National Market | Fort Worth, TX 76102 | |
| Industry: | High-Tech (SIC Code 7373) | (817) 332-7761 | |
| Type of Shares: | Common Shares | Filing Date: | 7/11/97 | |
| U.S. Shares: | 5,500,000 | Offer Date: | 8/21/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 2,775,000 | Offer Price: | $12.00 | |
| Secondary Shares: | 2,725,000 | Gross Spread: | $0.84 | |
| Offering Amount: | $55,000,000 | Selling: | $0.50 | |
| Expenses: | $1,000,000 | Reallowance: | $0.10 | |
| Shares Out After: | 9,500,000 | |||
| Spin out parent firm: | Millers Mutual Fire Insurance Co. | |||
| Manager | Tier | Phone |
| Raymond James & Associates, Inc. | Lead Manager | (813) 573-8108 |
| Southwest Securities, Inc. | Co-manager | (214) 658-9495 |
| Issuer's Law Firm: | Akin, Gump, Strauss, Hauer & Feld |
| Bank's Law Firm: | Thompson & Knight |
| Auditor: | Deloitte & Touche |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $13.65 | $8.19 | $2.31 | Assets: | $31.45 |
| Net Income: | -$0.52 | -$3.50 | -$0.27 | Curr Assets: | |
| EPS: | -$0.07 | -$0.41 | -$0.04 | Liabilities: | $22.54 |
| Prior EPS: | -$0.16 | $2.24 | $0.09 | Curr Liabilities: | |
| Cash Flow/Oper: | -$0.46 | Equity: | $8.92 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a provider of policy and claims administration solutions to the property and casualty insurance industry offering a comprehensive choice of outsourcing services and software and software services. The company's outsourcing services, which generally are provided on a percentage of premiums or claims paid basis, include application of underwriting and rating criteria defined by the insurer, policy issuance, customer service, billing and collecting, claims adjusting and processing, and policyholder mailings. The company's software products include policy and claims administration systems, as well as systems that increase the productivity of insurers by automating certain functions, such as workflow management, underwriting rules and guidelines, document production and rating algorithms. The company's software services include installation, customization, conversion and maintenance of these systems to meet customer specifications. |
| Competition |
| The markets for policy and claims administration services and products are highly competitive and subject to rapid changes in technology. The company competes in the following three markets serving the P&C; insurance industry: (I) outsourcing of policy administration, (ii) outsourcing of claims administration and (iii) software and software services. The policy administration outsourcing market is relatively new and is dominated by PMSC. The company competes for policy administration outsourcing customers on the basis of customer service, performance and price. The claims administration market is highly fragmented, with competition from a large number of claims administration companies of varying size as well as independent contractors and in-house claims adjusters employed by P&C; insurance companies. Competition in the claims administration market is highly price driven. Two of the larger competitors in the claims administration arena are Lindsey Morden Claim Services Inc. and Crawford & Company, In. The company believes that its most significant competition for outsourcing services and software comes from policy and claims administration and information systems development performed in-house by insurance companies. Many of the company's competitors have longer operating histories and significantly greater financial, technical, marketing and other resources than the company, including name recognition with current and potential customers. As a result, these competitors may devote more resources to the development, promotion and sale of their products than the company and respond more quickly to emerging technologies and changes in customer requirements. In addition, current and potential competitors may establish cooperative relationships among themselves or with third parties to increase the ability of their services and products to address customer needs. There can be no assurance that the company will be able to compete successfully against current and future competitors, or that competitive pressure faced by the company will not have a material adverse effect on its business, financial condition, and results of operations. |
| Business Plan |
| The company's objective is to become the leading provider of policy and claims administration solutions to the P&C; insurance industry. The company's strategy to achieve this objective involves the following elements: (I) Offer a Comprehensive Choice of Solutions, (ii) Implement and Integrated Marketing Plan, (iii) Generate Recurring Revenues, (iv) Penetrate New Markets, (v) Enhance Product Capabilities and (vi) Pursue Strategic Acquisitions. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of indebtedness and for general corporate purposes including working capital, research and development and possible acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| Millers Mutual | 100.00% | 52.60% |
| Officer Name | Title | Age |
| W. Scott Lewis | Executive Vice President -- Marketing | 42 |
| Jeffrey W. Robinson | Executive Vice President -- Outsourcing | 40 |
| Stuart H. Warrington | Executive Vice President -- Software and Systems | 63 |
| Robert K. Agazzi | Executive Vice President -- Software and Systems | 53 |
| Terry G. Gaines | Executive Vice President and Chief Financial Officer | 37 |
| Ronald O. Lynn | Executive Vice President and Chief Information Officer | 59 |
| F. George Dunham, III | President, Chief Executive Officer, Chairman and Director | 39 |