Client Profile – Industrial Insurance Company

 The Need

  • The Client engaged Warbird for assistance in planning for the resolution of any troubled processes.  Warbird was selected in large part because of the work it is doing for a large Government agency.

The Solution

  • Warbird suggested revisions to the Client’s Type II Special Examination procedure.  This tool was used to gather information for planning a receivership and potential acquisition of assets.  Most of the recommended additions related to asset specific information not captured in the call report and additional detail on operational issues.
  • Recommendations were made on procedures and information needs for a bidders’ conference.  The bidders’ conference would be held just prior to the appointment of the receiver with the goal of arranging for another institution to acquire the assets of the failing entity.  This approach minimizes disruption to borrowers and keeps assets in a viable entity rather than in the hands of a receiver.
  • Warbird created an initial strategic and staffing plan for resolution of a $500 million institution through liquidation or by acquisition.  This plan was designed to provide background on the failing institution to all personnel involved in managing the resolution and set initial priorities.  It also defined staffing requirements for either scenario.
  • Lists of activities were by function for key aspects of a liquidation or acquisition.

The Results

  • In each of these tasks, Warbird used the same approach that has been applied over several receiverships at the Government Client with modification to reflect the unique characteristics of this insurance Client.
  • In addition, processes were streamlined where ever possible and designed to allow the Client to leverage its very small staff.
  • The overall approach envisioned Warbird as a general contractor arranging for any specialized services as needed.