StoneRiver

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StoneRiver is a provider of technology and services to the insurance industry.

Formerly known as Fiserv Insurance Solutions, Inc., StoneRiver was a leading provider of outsourcing and technology solutions to the insurance industry. At the time of Trident’s investment, StoneRiver comprised the following divisions: workers compensation pharmacy processing, flood insurance outsourcing, life & annuity software and services, and property & casualty software and services.

INTRODUCTION TO CLIENTS & PARTNERS

Stone Point provided executive-level introductions to potential clients and business partners, including helping the company secure a large client to its flood services business.

M&A SOURCING

Stone Point assisted with six acquisitions, including:

  • Arkovi in 2012, which augmented the company’s RegEd business line
  • Compliance Assurance Corp in 2012, which further augmented the company’s RegEd business line
  • 50 Below in 2012, which was highly complementary and solidified StoneRiver’s position in website compliance hosting for financial advisors;
  • CSC Flood in 2013, which was the company’s flood division’s largest competitor; and
  • PMSI in 2013, which created the then largest workers’ compensation pharmacy benefit manager with $1 billion in revenue.

Additionally, Stone Point assisted with repositioning StoneRiver’s workers’ compensation pharmacy business by:

  • Acquiring Progressive Medical in 2010 and combining it with StoneRiver Pharmacy, creating Progressive Solutions; and
  • Merging Progressive Solutions with PMSI in 2013 and sourcing capital for this acquisition (creation of Helios)

EXECUTIVE RECRUITING & ALIGNMENT

Stone Point helped to enhance StoneRiver’s management team by recruiting Bob Lipp, former CEO of Travelers Property & Casualty and Vice Chairman of Citigroup, as Executive Chairman of StoneRiver. Bob Lipp helped the company undertake an expense restructuring that eliminated ~$10 million of run-rate expenses. Stone Point helped to restructure StoneRiver’s incentive plan to align with the new business strategy, and recruited new management to a number of business lines within StoneRiver.

CAPITAL RAISING & STRUCTURING

Stone Point helped the company complete six debt financings and refinancings.

OPERATIONAL ASSISTANCE & GOVERNANCE

Stone Point helped to restructure StoneRiver’s legal organization to facilitate tax efficient dispositions. Additionally, in the StoneRiver Insurance Solutions business, Stone Point helped reduce R&D spend for system upgrades and implement phased development based on client adoption.

EXIT STRATEGY

Stone Point helped to identify buyers and executed exits of businesses after the work of value creation and repositioning was completed. In particular, Stone Point assisted with the sale of separate business lines to various buyers in order to maximize value.

We recorded a net gain of $146 million and received $140 million of cash distribution from our StoneRiver joint venture…We've realized $1.1 billion including the proceeds from the original sale of our 51% interest. Although there are only limited assets remaining in this venture, we're very pleased with its overall performance.
Bob Hau, Fiserv CFO (Q1’16 Earnings Call)