COUNTRYWIDER; COMPANY BRANCHING OUT INTO CONSUMER INSURANCE.Byline: Enrique Rivero Daily News Staff Writer Calabasas-based Countrywide coun·try·wide adv. & adj. Throughout a whole country; nationwide: launched a fundraising campaign countrywide; a countrywide search. Adj. 1. Home Loans Inc. is quietly beefing up a new, 300-person division that will sell all kinds of consumer insurance, a potentially lucrative development for the nation's largest mortgage lender. The company hasn't publicized pub·li·cize tr.v. pub·li·cized, pub·li·ciz·ing, pub·li·ciz·es To give publicity to. Adj. 1. publicized - made known; especially made widely known publicised its intentions. In fact, the insurance division results aren't even mentioned in Countrywide's latest annual report to its shareholders. But the Daily News has learned that Countrywide will soon begin a high-profile, aggressive campaign to offer a full range of insurance coverage - homeowners, life, disability and auto - to the public, including consumers who aren't Countrywide customers. In fact, the company announced a new Web site Tuesday for selling the insurance online, at www.cwinsurance.com. The company won't underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. the policies, but will serve as an agent for major insurers including Aetna, Safeco and American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. Inc., the nation's largest publicly traded insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. . AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group is the majority owner of Woodland Hills-based 20th Century Insurance Co., one of the West's largest auto and home insurers. ``This is really the first time we've decided to go to the consumer directly and really reach out to the non-Countrywide loan customers,'' said John Ingersoll, senior vice president of business development for Countrywide Insurance Services Inc., the Simi Valley-based division. With a small staff and little marketing, Countrywide already has some 250,000 to 300,000 insurance customers, Ingersoll said. Of those, about 33 percent have homeowners policies, 40 percent bought life insurance, and 5 percent to 10 percent hold auto insurance policies, he said. Many have multiple policies. Now the subsidiary is gearing up to bring more policyholders into its fold by increasing the size of its staff over the next few months. Countrywide Insurance has scheduled an open house Saturday at its Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. headquarters to fill dozens of positions for agents, analysts and managers. In July, the subsidiary moved out of Countrywide's Simi Valley loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. headquarters to a 45,000-square-foot facility nearby. The subsidiary now has about 225 employees, including 75 licensed agents, Ingersoll said. The number of agents should increase 33 percent by year's end, he said. ``We're growing so quickly that in terms of agents and analysts, we're just looking to increase our staff,'' he said. Analysts contacted by the Daily News on Monday said they knew little or nothing about the budding budding, type of grafting in which a plant bud is inserted under the bark of the stock (usually not more than a year old). It is best done when the bark will peel easily and the buds are mature, as in spring, late summer, or early autumn. business. But Countrywide's move into the insurance business appears to be evidence of the company's overall effort to move beyond its core mortgage business, said Michael Hodes, a securities analyst for Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . ``This seems to fit in with that,'' Hodes said, referring to the relatively new insurance business. ``They've definitely been trying to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. their business; they've had some success.'' Blair Sanford, an insurance analyst for Hoefer & Arnett in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , estimated that the homeowners, auto and life insurance industries collectively generate more than $500 billion a year. Auto insurance alone is ``on the order of $130 billion,'' Sanford said, adding, ``What I'm seeing in California is some intense competition.'' Besides big insurance brokers like AIG, Countrywide will be up against hundreds of independent agents as well as online insurance shopping services like InsWeb, he said. Still, Countrywide seems to be in a good position to succeed in the new business, given its daily contact with customers who are sure to be interested in various types of insurance coverage. In the insurance game, it's the underwriters, not agents, who are in the risky end of the business. Countrywide's relationship with so many consumers ``seems to me to lend itself nicely to leveraging this sort of product,'' Sanford said. For October, Countrywide funded $8.5 billion in mortgage home loans, an all-time monthly high for the company. Pipeline loans in process totaled $16.7 billion, the company said last week. Ric Hill, senior vice president of relations for 20th Century Industries, said Countrywide's venture into the insurance market is evidence of the healthy state of the industry. ``Having another player in the marketplace is good for customers as a whole,'' Hill said. AT A GLANCE A quick profile of Countrywide, including financial results for the six months ended Aug. 31. NAME: Countrywide Credit Industries Inc. HQ: 4500 Park Granada Blvd., Calabasas. DESCRIPTION: The company specializes in mortgage loans; subsidiaries are involved in insurance, loan brokering, and mutual fund management and services. REVENUES: For the six months ended Aug. 31, $932.4 million, up 29 percent from $723.8 million for the comparable year-ago period. NET EARNINGS: For the six months ended Aug. 31, $185.8 million, up 3 percent from $179.7 million. Last year's earnings included a one-time gain on the sale of a subsidiary. DILUTED EARNINGS PER SHARE diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of : $1.59, down 2 percent from $1.63. CAPTION(S): Photo, Box PHOTO (Color) John Ingersoll of Countrywide's Simi Valley division said the company is ``really reaching out to the non-Countrywide loan customers.'' Tina Gerson/Daily News BOX: AT A GLANCE (see text) |
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