NEW YORK –
Consolidation within the warranty industry continued this month with the acquisition of third-party administrator Service Net by leading underwriter Chartis.
Financial terms were not disclosed.
The move makes Chartis an end-to-end player in the extended-warranty business while providing Service Net with the financial backing of the global insurance giant.
Service Net is being integrated into Chartis’ U.S. warranty division, which currently services more than 75 million active contracts.
“With its inclusive service management platform and customer-centric focus, Service Net is an excellent fit for the overall growth strategy of Chartis’ consumer lines business,” said Charles Williamson, president of consumer lines for Chartis U.S. and Canada. “We see tremendous opportunities to leverage these capabilities to create product differentiation and drive customer engagement across our multi-channel platform.”
James Mostofi, president of Chartis’ U.S. warranty division, said that the acquisition of Service Net “provides significant value-added services to our warranty clients by adding 24/7 multilingual call center support, cutting-edge telecommunications systems, claims adjudication, risk management, direct marketing capabilities and aftermarket services to our existing underwriting capabilities. Our ability to offer a full spectrum of insurance and service solutions will broaden our warranty opportunities here in North America.”
Service Net vice chairman and founder Lansdon Robbins added that “Chartis’ world-class clients and global strength are the perfect complement to Service Net. We are proud to be a part of this renowned organization and have the opportunity to leverage the synergies that exist between our organizations for the benefit of our current and future clients.”
Based in Jeffersonville, Ind., Service Net provides warranty/ extended-service plan administration and support services for a variety of manufacturers, retailers, buying groups and distributors, including a number of Fortune 1,000 companies.
Chartis, which was spun off by AIG in 2009, is a leading property-casualty and general insurance organization serving more than 70 million clients worldwide.