News
Letter from President: RegEd Included in Fiserv’s Sale of Insurance Business
July 2, 2008
We are truly excited about Fiserv's pending agreement with Stone Point Capital to acquire a majority stake in the Fiserv Insurance Group, of which RegEd is a part. Stone Point Capital, which has a 20-year history of successful investing in the global insurance and financial services industries, recognizes and shares our commitment to product innovation and customer and employee satisfaction. This business philosophy and culture supports the deep commitment we have always had to provide our clients with quality products and excellent service. I am confident that our partnership with Stone Point Capital is well-matched to our strategic vision and will position RegEd for continued innovation in education, training, compliance and registration and licensing solutions.
Feel free to read more about Stone Point here and to contact us with any questions. A seamless transition has been planned so that there are no interruptions in service. RegEd's leadership team will remain intact and client account management will not change.
We look forward to continuing and deepening our relationship with you in the coming years.
Warmest regards,
John M. Schobel V
Fiserv Agrees to Sell Majority Interest in its Insurance Busines
Brookfield, Wis., July 2, 2008– Fiserv, Inc. (NASDAQ: FISV), a leading provider of information technology services to the financial and insurance industries, today announced it has signed a definitive agreement with Trident IV, a private equity fund managed by Stone Point Capital LLC, in which Trident will invest approximately $205 million in equity and $335 million in debt to acquire a 51 percent majority interest in Fiserv’s insurance businesses.
Fiserv expects to receive approximately $510 million in net after-tax proceeds and to retain a 49 percent equity interest in Fiserv Insurance Solutions. The transaction is anticipated to close in July 2008, subject to regulatory approval and other customary closing conditions. The transaction will include nearly all aspects of Fiserv’s insurance segment. The current management team and employee base will continue with the company, which will be known as Fiserv Insurance Solutions, Inc.
“Stone Point Capital brings a proven track record of insurance industry success that we believe will accelerate the growth opportunities for Fiserv Insurance Solutions and its clients,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Within Fiserv, we are able to free up capital, maintain an interest in Fiserv Insurance Solutions that should increase in value, and intensify our focus on delivering products and services within the broad financial services and payments landscape.”
“We are delighted to partner with Fiserv and the management team of Fiserv Insurance Solutions,” said Chuck Davis, Chief Executive Officer of Stone Point Capital. “Fiserv Insurance Solutions is a leading player in the insurance technology and outsourcing space. We believe there are a number of exciting growth opportunities for the business, and we look forward to working with the Fiserv Insurance Solutions management team to pursue these growth initiatives as an independent company focused on serving the insurance marketplace. We are also pleased that Fiserv will be continuing its involvement, through a significant minority ownership position, which we believe will further enhance the company’s prospects for success.”
Stone Point Capital and its predecessor operations have a 20-year history of successful investing in the global insurance and financial services industries. Stone Point Capital primarily targets investments in the insurance and financial services industries, including insurance underwriting, distribution and services, benefits and healthcare, asset management and retirement savings, and banking and depository institutions.
“Stone Point Capital’s business philosophy and culture match our own,” said Mark Damico, president and CEO of Fiserv Insurance Solutions. “The entire Fiserv Insurance Solutions management team is excited to go to market with a partner with deep insurance sector expertise.Stone Point Capital recognizes our commitment to employees as well as clients and, through our partnership, we will continue to provide innovative solutions for years to come.”
“Over the last year, Fiserv has assembled a powerful combination of products and services to better serve our clients,” added Yabuki. “Going forward, we are focused on delivering unique value through innovative technology solutions and product integration. Additionally, we will seek opportunities to bolster our payments and transaction processing capabilities – organically and through acquisition – which enhance our overall market position.”
Fiserv expects to receive approximately $510 million of net transaction proceeds and expects slight 2008 earnings dilution of less than 1 percent, or $0.02 to $0.03 per share depending upon reinvestment of the net proceeds. In connection with the sale, Fiserv also affirmed its 2008 adjusted earnings per share guidance range of $3.28 to $3.40 from continuing operations. Fiserv expects the transaction to be accretive to its long-term revenue, earnings and margin growth rates.
Upon closing the transaction, Fiserv will no longer consolidate revenue and expenses from Fiserv Insurance Solutions. Due to the sale of its majority interest, the company will report its 49 percent share of net earnings in Fiserv Insurance Solutions on a single income statement line item, which is anticipated to begin in Fiserv’s third quarter earnings announcement.
In a related action, the Fiserv Board of Directors authorized the repurchase of up to an additional 10 million shares of Fiserv common stock. [See related announcement, “Fiserv Announces 10 Million Share Repurchase Authorization.”]
About Stone Point Capital LLC Stone Point Capital LLC (www.stonepoint.com) is a global private equity firm based in Greenwich, Connecticut. Stone Point Capital, which serves as the manager of the Trident Funds, has raised more than $10 billion of committed capital for investments in the global insurance and financial services industries.
About Fiserv Insurance Solutions, Inc. Hundreds of Life, P&C, Health, and Reinsurance carriers, managing general agents, and administrators rely on Fiserv Insurance Solutions for innovative insurance technology, professional services, and outsourcing solutions. Solutions include business process outsourcing, insurance policy and claims administration, underwriting, rating, advanced billing and collections, point-of-sale technology and straight-through processing solutions. In addition, more than 3,000 clients use the company’s market-leading financial and compliance solutions. Fiserv Insurance Solutions can be found on the Internet at http://www.fiservinsurance.com/.
About Fiserv, Inc. Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, provides information management and electronic commerce systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, electronic bill payment and presentment, investment management solutions, business process outsourcing (BPO), software, risk management and systems solutions. Headquartered in Brookfield, Wis., the company is the leading provider of core processing solutions for U.S. banks, credit unions and thrifts. Fiserv was ranked the largest provider of information technology services to the financial services industry worldwide in the 2004, 2005 and 2006 FinTech 100 surveys. In 2007, the company completed the acquisition of CheckFree, a leading provider of electronic commerce services. Fiserv reported nearly $4 billion in total revenue from continuing operations for 2007. For more information, please visit www.fiserv.com.
Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the timing of, and proceeds from, the transactions discussed herein, and the expected impact of the transaction on the company’s earnings per share, revenue, earnings and margin growth rates. Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may adversely impact the anticipated outcomes include, among others: the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement; the outcome of any legal proceedings that may be instituted against the parties or others related to the transaction agreement; conditions to the completion of the transaction may not be satisfied, or the regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule; the amount of the costs, fees, expenses and charges related to the transaction may be different than expected; the parties’ ability to meet expectations regarding the timing, completion and accounting and tax treatments of the transaction may be different than currently planned; and other factors identified in Fiserv’s filings with the SEC from time to time, including those in its annual report on Form 10-K. You should consider these factors carefully in evaluating forward-looking statements, and are cautioned not to place undue reliance on such statements. Fiserv assumes no obligation to update any forward-looking statements, which speak only as of the date of this press release.
For more information contact:
Media Contact:
Lori Stafford-Thomas, Assistant V.P. Corp. Comms.
(262) 879-5130 lori.stafford@fiserv.com
Investor Contact:
David Banks, V.P. Investor Relations
(262) 879-5055 david.banks@fiserv.com
Fiserv Honored as 2008 Microsoft Partner of the Year for Global ISV Line of Business
Brookfield, Wis., June, 17, 2008 –Fiserv, Inc. (NASDAQ: FISV), a leading provider of information technology services to the financial and insurance industries, announced today it has won the 2008 Microsoft Partner of the Year Global Independent Software Vendors (ISV) Line of Business Special Recognition award. The company was chosen from an international field of top Microsoft partners as delivering market-leading customer solutions built on Microsoft technology.
"We are honored to have been chosen by Microsoft as the first financial services partner to receive this global award," said Jeffery Yabuki, Fiserv President and Chief Executive Officer. "It is our mission to deliver differentiated technology solutions which help our clients achieve best-in-class results. We will continue to find innovative ways to extend our partnership with Microsoft to deliver value to Fiserv’s clients today, and into the future."
Awards were presented in a number of categories, with winners chosen from a pool of more than 2,000 entrants worldwide. Fiserv was recognized for superior technology and innovation in the Global ISV Line of Business. The Microsoft Global ISV Line of Business Partner of the Year Special Recognition award is given to the Global ISV partner that has demonstrated line of business application leadership excellence. The Microsoft Global ISV Line of Business Partner of the Year Special Recognition award, which recognizes the most valuable global partner in delivering Microsoft solutions to mutual customers over the past year, in coordination with Enterprise Partner of the Year Special Recognition award, acknowledges the global partner that has demonstrated leadership in driving Microsoft-based solutions and was the most valuable line of business partner to the worldwide field.
"In the last year we have seen Fiserv focus on integration of its products through Fiserv 2.0 and look for new ways to serve its clients. Their commitment to Microsoft technology provides a powerful accelerator for success in the financial services industry," said David Vander, managing director, Worldwide Financial Services, Microsoft Corporation. "Fiserv’s comprehensive solution suite is tailored to meet the extensive requirements of the financial services industry by consistently delivering innovative solutions leveraging Microsoft technology."
Some examples of these solutions include:
- Fiserv’s next generation of the Voyager online banking product from Corillian, leverages Web 2.0 features, including Microsoft .NET 3.5 ASP.NET, and enables banks to offer a differentiated and improved user experience to grow their online customer base and improve customer satisfaction.
- Fiserv’s next generation corporate performance management portal, Intelligent Workplace, from IPS-Sendero provides banks with a single unified business intelligence ecosystem via a browser-based employee portal that takes advantage of Microsoft Office 2007 and SQL Server 2008 technology innovation that greatly enhances the ability of a financial institution to locate the right information and deliver it to the right employee at the right time.
- Utilizing Microsoft .NET and deployed on Microsoft Windows Server and SQL Server, Fiserv Aperio from Fiserv CBS is a process-centric, multi-channel sales and service solution designed expressly for financial institutions to enable a consistent customer experience across branch, call center and web channels, as well as allowing back-office processes to be rapidly re-configured to meet evolving business needs.
- Fiserv ITI’s array of SOA-based innovations, including cash management and Internet banking solutions, PremierEcorp and PremierEcom, which are used by more financial institutions than any competitor and leverage Web 2.0 features, including .NET 3.5 ASP.NET, to offer a differentiated user experience, improve customer satisfaction and grow accounts. Fiserv's business process management solution, Expedite, built entirely on .NET and SQL Server technology is used by more financial institutions to board new accounts and services through the Internet or branch.
"We are pleased that partners like Fiserv use Microsoft applications to supply the financial services industry with needed IT," said Robert Deshaies, vice president, U.S. Partner Group, Microsoft Corp. "Delivering the most up-to-date information and analyses to the right people at the right time is a shared endeavor between our companies."
The Microsoft Partner Program Awards recognize Microsoft partners that have developed and delivered exceptional Microsoft-based solutions during the last year. For more information on Microsoft (NASDAQ: MSFT) and the Microsoft Partner Awards, visit http://www.microsoft.com/Presspass/press/2008/jun08/06-16POTYFinalistsPR.mspx
About Fiserv, Inc.
Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, provides information management and electronic commerce systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, electronic bill payment and presentment, investment management solutions, business process outsourcing (BPO), software and systems solutions. Headquartered in Brookfield, Wis., the company is the leading provider of core processing solutions for U.S. banks, credit unions and thrifts. Fiserv was ranked the largest provider of information technology services to the financial services industry worldwide in the 2004, 2005 and 2006 FinTech 100 surveys. In 2007, the company completed the acquisition of CheckFree, a leading provider of electronic commerce services. Fiserv reported nearly $4 billion in total revenue from continuing operations for 2007. For more information, please visit www.fiserv.com
2008 ACM OnDemand Topics
RegEd is pleased to announce many new additions to our ACM OnDemand library! We have developed content that covers the following topics:
- 2821: Rules Surrounding Deferred Variable Annuities
- Catering to Senior Investors
- Fiduciary Responsibilities of Registered Representatives
- Truth and Accuracy in Documentation
- Customer Privacy and Identity Theft
- CIP for Clients Other than Natural Persons
- And More
As with other RegEd ACM OnDemand segments these new units run approximately 15 minutes in length, are enhanced with graphics and audio and contain a polling question at the end. We are sure you will find this information beneficial to your entire population of registered representatives and principals.
Click here to see our entire library of ACM OnDemand segments or contact us to create your meeting.
Anti-Money Laundering for the Institutional Client
RegEd is pleased to announce that anti-money laundering training is available in an online, self-study format not only for the securities and insurance industries but also for the institutional client and the futures industry.
AML for the Futures Industry (course ID 35C) is specifically designed to provide guidance on requirements and developments affecting individuals involved with the National Futures Association.
RegEd's AML Practices for Institutional Clients(course ID 35INST_A) addresses the anti-money laundering rules applicable to broker-dealers in serving the needs of institutional clients. The text provides a brief statement and discussion of each applicable rule followed by a case study demonstrating its application to a hypothetical fact pattern.
As an alternative training course RegEd also offers Money Laundering: The Institutional Broker-Dealer Perspective, Fifth Edition (course ID 35INST_5) has been updated to reflect the developments to the Anti-Money Laundering regulations over the course of the past calendar year.
For more information on RegEd’s Continuing Education offerings, click here.
Four CE Hours for Iowa Indexed Products
The Iowa Insurance Division recently adopted rules 191-15.80 - 87 which require all producers who wish to sell fixed index life or annuity products on or after January 1, 2008 to complete a 4 credit training course. Courses must be filed and approved according to the general continuing education course approval guidelines; RegEd's Course Iowa Indexed Product Training (course #156_IA) is designed to meet this training requirement and has been approved for four credit hours.
FINRA Rule 2821
Effective May 5, 2008 FINRA is implementing Rule 2821 which covers the rules and regulations surrounding the sales, supervision and approval processes pertaining to deferred variable annuities. RegEd’s course 2821: Rules and Regulations Surrounding Deferred Variable Annuities covers the full circle of the process including client recommendation, suitability obligation, principal review and approval as well as the supervisory procedure requirements. This course is appropriate for both the registered representatives and the registered principals at your firm.
For more information on RegEd’s Continuing Education offerings, click here.
Ethics CE in Florida
The state of Florida has a requirement that all licensees complete three hours of credit in the area of ethics each license renewal period. The Florida Department of Insurance recently approved RegEd’s course Ethical Issues in the Financial Services Industry for four hours of continuing education credit. The course is a real-world view of ethical considerations that registered representatives and insurance licensees face throughout the course of their day-to-day business. This course is presented in a case studies format requiring the end-user to apply the ethical principles discussed in the study material.
For more information on RegEd’s Continuing Education offerings, click here.
Oregon Specific CE Now Available
The state of Oregon requires that all licensees complete three hours of continuing education training on the topic of state-specific laws and regulations that pertain to the insurance services industry. The Oregon Department of Insurance recently approved RegEd’s course: Oregon Insurance Laws and Regulations for three hours. This important course covers the legal ins and outs of Insurance Services in layman’s terms allowing the licensee to be aware and understand the legal aspects of their profession.
For more information on RegEd’s Continuing Education offerings, click here.
Senior Investor Awareness
Recently there has been a heightened focus on the suitability and sale of investment products to senior investors. It is important that registered representatives know their customer and assure that the investment products being sold, particularly to the senior citizen population are suitable. RegEd’s course Catering to Senior Investors covers the suitability obligation, rules and regulations surrounding senior investors and ethical principles regarding sales to the elder audience.
For more information on RegEd’s Continuing Education offerings, click here.
Primerica Selects RegEd Xchange
After a rigorous build versus buy analysis, Primerica has chosen RegEd Xchange to fully automate its registration operation. "We have used a patchwork system that automated only pieces of the compliance function,"said Cindy Mitchell, Chief Operating Officer of PFS Investments, Inc. "We were ready for end-to-end automation, with self-service, for our 23,000 FINRA licensed registered representatives. Primerica has found that with RegEd Xchange."
"Our team evaluated the products that are available in the marketplace and concluded that RegEd Xchange is the right solution for this critical compliance function considering the size and complexity of our organization," said William Kelly, President and CEO, PFS Investments, Inc.
"With Primerica’s selection, Xchange has taken one step further in becoming the platform of choice for the registration community. Primerica is the largest financial services marketing organization and we are privileged to have them as our customer," added Val Poltorak, Executive Vice President of Licensing and Registration Solutions for RegEd. "The sheer volume of Primerica reps will further drive the demand for efficiencies and help the registration community at large by providing a very effective processing platform."
Click here for more information on RegEd Xchange.
RegEd Hires Marcy Kalat
Marcy Kalat, now Senior Vice President, Sales, for RegEd, is a Financial Services industry professional with more than 15 years of experience in training, sales, marketing and enterprise software implementation. At RegEd, Marcy will use her wealth of experience to assist RegEd customers in choosing solutions that will improve their compliance and their efficiency, while increasing representative satisfaction.
"I am very pleased to join this industry leading firm. Having worked for other firms in this industry, I know how highly valued and respected RegEd products and services are. I am very excited to be representing them to customers," said Marcy.
"We are delighted to have an employee of Marcy's caliber join RegEd. We work to deliver only the best to our customers and we know that Marcy Kalat will make significant contributions to our customer satisfaction," added Lorraine Carver, Executive Vice President, Sales and Marketing for RegEd.
Marcy can be reached by phone at 919-653-6727 or by email at Marcy.Kalat@RegEd.com..
New 2008 Training Options
RegEd is pleased to provide our NEW course offerings for 2008. Our Education Services team, together with RegEd subject matter experts and RegEd’s content user group combed new industry regulations, news and events to identify the topics top representatives and agents must know. We are confident that this list represents the best new education offerings to maximize productivity, ensure compliance and increase sales effectiveness.
As you may know, RegEd is always happy to create custom courses to meet our clients’ specific needs. If you require a course that is not in our comprehensive catalog, give us a call. Financial Services Education is our business.
Click here to download a PDF of our 2008 training options.
Do some of your Life/Health Producers need Long Term Care CE?
Our aging population and the increasing sale of Long Term Care insurance has caused states to create specific requirements, for training and CE, for this type of insurance. As you know, the requirements are not the same in every jurisdiction and do not apply to every Life/Health agent. That’s why experts at RegEd have studied the requirements, outlined the rules by state, and developed a new course, Long Term Care – An In Depth View. This course is being approved in every state for an average of 8 hours of training and/or CE. In addition, it has been approved by PACE and CFP for 16 hours.
Long Term Care – An In Depth View will give professionals selling Long Term Care insurance the essential foundation required to be effective in the sale of this insurance. This RegEd course has already been approved in the majority of states, with approval pending and expected in the remaining jurisdictions.
Getting Your CE Just Got Easier!
RegEd is pleased to announce new and improved course ordering features to our Course System. These changes will be available in late August. This new design was influenced by recommendations from clients with the primary intent to ensure that the user can easily order courses that will fulfill their requirements, whether it is firm element or Insurance CE.
The CE Course Selection List will now ensure those users who have decided to order Insurance CE or Professional Designation credits order the associated CE with the course. Therefore, the CE Credit box will be automatically checked when the course is selected. When the course is deselected the Insurance or Professional Designation credit will also be deselected.
The Online Affidavit process contains built in reminders ensuring the proctor and the examinee certify their affidavits after completing the exam. Warning messages are displayed prior to starting the exam and after completing the exam.
More Flexible Searches now Available in AdTrax
RegEd’s advertising review and tracking product, AdTrax, has been enhanced to allow searching on all custom fields within the application. This is a significant enhancement to the data analysis and reporting capabilities within AdTrax. Previously, only standard fields such as Title, Tracking Number and Submit Date were searchable. By building on the existing capability to customize fields to more closely match business needs, clients now have the ability to search on those custom fields and then export the results to Excel for further sorting and data analysis.
For example, rather than simply being able to search for all brochures, AdTrax now provides the means to search for all annuities brochures with the general public as its intended audience. In short, more flexible searches deliver valuable information faster, allowing you to spend less time gathering information and more time acting on it.
AdTrax is web-based application that manages the entire process for advertising and marketing material. Developed to streamline and automate the approval process, AdTrax provides a centralized solution to improve efficiency and effectiveness for everyone involved in the submission and approval process: compliance officers, marketing staff, legal departments and outside vendors. AdTrax eliminates paper and provides detailed tracking and follow-up to minimize risk, ensure compliance and deliver messages to market.
RegEd Expands Insurance Education Product Line with Insurance Pre-Licensing from ABLE Incorporated
Morrisville, North Carolina: February 8, 2007 - RegEd, the leading education and training provider in the securities and insurance industry, is pleased to announce an expansion of its insurance education product line. After thorough investigation and analysis of offerings currently available in the marketplace, RegEd has chosen to partner with ABLE Incorporated to deliver the industry’s finest insurance pre-licensing education.
“ABLE has the same commitment to employing technology to deliver a superior learning experience that RegEd has demonstrated with its NASD exam preparation, Firm Element and Insurance CE product lines”, said Debra Freitag, Executive Vice President of Business Development. “ABLE’s offerings are excellent in terms of content, technology and delivery. Like RegEd’s training products, ABLE’s insurance pre-licensing usually increases student pass rates by double digit margins. Multi-media e-learning offers a medium that suits every type of learner. The strength of ABLE’s e-learning platform, and their commitment to technology-enabled learning, made them a natural partner for RegEd.”
PatrickWall, National Sales Director, ABLE Incorporated explains, “This alliance allows ABLE Incorporated to expand and grow our business within the financial services markets. Pairing our innovative technology and deep experience in insurance training, with an industry leader in NASD exam prep and compliance solutions, provides customers with a centralized way to manage their national training program. We are pleased to be working with RegEd to offer a comprehensive solution.”
RegEd, a unit of Fiserv, Inc. (Nasdaq:FISV), is one of the leading providers of compliance solutions in the securities and insurance industries and has established itself as one of the foremost regulatory education resources. RegEd is driven by technology innovation and has developed a line of intelligent Internet-based products for clients to efficiently handle compliance regulations. These include an automated audit tracking system, online compliance questionnaires, customer compliance tracking tool and an advertising review module, among other innovative applications.
