• Investment Year:2005
  • Status:Past | Acquired by QBE
  • Stage:
  • HQ:Atlanta, GA

ZC Sterling

ZC Sterling was a provider of outsourcing services for the mortgage and homebuilding industries.

ZC Sterling’s primary business was managing lender-placed hazard insurance programs on behalf of mortgage servicers. The company also provided real estate tax services, voluntary homeowners insurance programs and other marketing and customer care services to mortgage servicers and other financial institutions.

Industry Knowledge & Network

Stone Point helped to retain one of ZC Sterling’s largest clients through a senior-level approach to the acquirer with a value-sharing proposal.

Introduction to Clients & Partners

Stone Point leveraged its network to have an instrumental role in securing several other large clients for ZC Sterling (Merrill Lynch, Fannie Mae, Fortress, Nova, Cunningham Lindsey).

M&A Sourcing

Stone Point assisted ZC Sterling in the acquisition of Westwood Insurance Agency in 2008, which doubled the size of ZC Sterling’s Consumer Marketing business.

Business & Product Development

Stone Point helped to restructure ZC Sterling’s underwriting agreements to increase fixed commissions in lieu of profit commissions. Additionally, Stone Point negotiated the purchase of a unique profit sharing protection insurance coverage, and paid for reinsurance umbrella to protect profit commissions and “de-risk” earnings stream.

Executive Recruiting & Alignment

Stone Point re-energized ZC Sterling’s management team with an incentive plan and management co-investment structure.

Operational Assistance & Governance

Stone Point assisted in conducting a detailed analysis of ZC Sterling’s expense structure and operational processes, resulting in ~$10 million of annual expense savings.

Exit Strategy

Stone Point helped to execute a successful sale process to QBE.

When the management team at ZC Sterling first approached Stone Point, we were seeking an investor partner that would complement our operational and marketing strengths with financial acumen and deal making skills. What we got was so much more—creativity, cultural compatibility, and an entrepreneurial outlook.
Bill Krochalis, CEO of ZC Sterling