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.
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.
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).
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.
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.
Stone Point re-energized ZC Sterling’s management team with an incentive plan and management co-investment structure.
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.
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.
Investments highlighted or discussed in this selection have been selected to illustrate SPC’s investment approach and/or market outlook and are not intended to be an indicator of past or future performance. Each investment discussed in this selection has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The investments discussed herein do not represent an entire portfolio and in the aggregate may only represent a small percentage of holdings. Nothing in this presentation shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced herein.