First Rehab Life Announces Significant Investment In It's Holding Company
Funding Expansion Initiatives of Rehab Services Corporation
Insurance carrier First Rehab Life is known as the broker’s company in its home state of New York. Upon approval of the New York State Insurance Department (NYSID), Eos’ equity investment will enable the company to significantly accelerate its business expansion activities, which will be built on its dedication to the independent producer community. The company’s management team will remain unchanged.
This investment will be used to provide funding for RSC growth initiatives ranging from new insurance to non-insurance products and services, all to be sold through First Rehab Life’s network of independent insurance producers.
“Since its inception, First Rehab Life has partnered exclusively with independent insurance producers to distribute its products. Our success as a company is based on strong working relationships with the independent producer community. We see a future of even stronger partnerships with independent producers as we plan to bring more products and services to our producer network that serve the needs of their clients,” states Rich White, Chief Executive Officer of RSC and First Rehab Life. He continues:
“Many of our producers have expressed great interest in selling new insurance products as well as noninsurance products tailored to the small business owner. We are excited about our insurance and noninsurance new product development pipeline. All of our new products will continue to be sold through First Rehab Life’s producers – exactly as our products have been sold in the past.”
Eos’ Managing Partner Brian Young said “We’re pleased that we could enter into a relationship with Rich White and his management team. This is a true partnership that puts RSC and First Rehab Life in a position to take advantage of the opportunities available to it in this market.” “The transaction enables RSC to more effectively assist its producers, who in turn meet their customers’ needs,” states Dr. Seth Goldberg, Chairman of the Board of RSC. “In 2009, RSC identified a new management team lead by Rich White. With the strength of the new management team combined with the capital and support from Eos, RSC will be in a position to consistently deliver premium products and services to its customers.”
Terms of the investment were not disclosed, however, company officials expect the closing of the transaction to occur within the next ninety days.
Rehab Services Corporation is the insurance holding company of The First Rehabilitation Life Insurance Company of America (First Rehab Life).
First Rehab Life is headquartered in Great Neck, NY, and licensed in 16 states. The company was founded in 1972. With approximately $100 million in total earned premiums in 2010, the company holds the strong rating of A- by A.M. Best and Standard & Poor’s. As a leader in the NY statutory disability market, First Rehab Life writes ancillary employee benefits (Vision, Dental, Shortand Long-Term Disability, Life with AD&D) exclusively through a network of more than 5,000 independent insurance producers (brokers and agents). First Rehab Life currently insures more than 120,000 employers. Quantum Discount Services is the company’s first non-insurance service. Visit www.firstrehab.com & www.quantumdiscountservices.com for details. Formed in 1994, Eos is a private investment partnership with approximately $2 billion of capital under management and a simple charter – to provide value-added capital to businesses at an inflection point in their development. Eos’ goal is to partner with superior management teams and commit our professionals' collective business experience, network of relationships, strategic judgment, and financial markets expertise in order to elevate these businesses to the next level.
M&A Capital, LLC, acts as RSC’s exclusive financial advisor. To contact or for additional information on M&A Capital, visit: www.mandacap.com.
This press release contains forward-looking statements and information – that is, statements related to future, not past, events. Such statements are based on the current expectations and certain assumptions of the management of RSC, First Rehab Life, Eos, and M&A Capital, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond their control, affect their operations, performance, business strategy and results and could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Risks may include, but are not limited to uncertainties in connection with: disposing of business activities, certain strategic reorientation measures; the performance of its equity interests and strategic alliances; the challenge of integrating major acquisitions, implementing joint ventures and other significant portfolio measures; the introduction of competing products or technologies by other companies or market entries by new competitors;