Canadian Underwriter

Cunningham Lindsey U.S. operation acquires RSKCo Services

April 3, 2003   by Canadian Underwriter

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The U.S. operation of Toronto-based international claims services firm Lindsey Morden Group Inc., Cunningham Lindsey U.S. Inc., has agreed to purchase RSKCo Services.
RSKCo is a owned by CNA Financial Corp. subsidiary Continental Casualty Co. Through the signed agreement to acquire, Cunningham Lindsey U.S. will get the claims management and related business of RISKCo that is not sold with insurance products offered by CAN subsidiaries. In doing so, Cunningham Lindsey U.S. takes over business that brought in US39 million for the 12 months ending February 28, 2003.
The purchase price is 35% of revenue billed to active customers of RSKCo during the year after the sale closes, which is slated for June 2003. To account for existing claims administration obligations, Continental Casualty will pay US$17 million in cash and cash equivalents, as well as a US$12 million credit against the purchase price, for a total of US$29 million.
“RSKCo’s quality and brand are well known in the industry. This combination will allow us to expand our integrated service platform, combining the robust claims and case management, loss adjusting services and adjuster training offerings, while raising the level of service delivered to both RSKCo and Cunningham Lindsey clients,” says Stephen A. Eisenmann, newly installed chairman and CEO of Cunningham Lindsey U.S.
RSKCo head Robert R. Kulbick will join the corporate level of Cunningham Lindsey U.S.

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