At its annual meeting in Burlington, Vermont, on September 22nd, Housing Partnership Insurance Exchange made its first distribution to subscribers totaling $1 million. Launched in 2004 by the Housing Partnership Network and 17 member organizations, the insurance company has enjoyed very strong performance and now provides property and liability insurance for 40,000 affordable rental homes throughout country. HPIEx is jointly owned by the Network and participating member nonprofits.
“We’re very excited to be making our first distribution,” said Larry Swanson, executive director of ACTION-Housing in Pittsburgh and chair of the Housing Partnership Insurance Exchange board. “HPIEx clearly demonstrates what member organizations can do together through the Network—and earn rewards for superior performance. Collectively we created a business, hired a great team of business partners, and banked on our records as quality long-term owners of affordable housing.”
HPIEx has operated profitably from the start. This is largely the result of having individual and collective liability and property losses that are 30-40% lower than those of the average apartment property owner. This very strong performance has exceeded expectations. “HPIEx participants have made a deep commitment to risk mitigation,” says Tom Bledsoe, president of HPIEx, “and it’s clearly paying off. With good prevention and top-notch management, Network members have made HPIEx a leading example of a triple bottom line company that delivers strong mission impact for affordable housing communities, financial benefit for our nonprofit members, and sustainability as a social enterprise.”
Among other actions taken at the annual meeting: HPIEx selected Strategic Risk Solutions, SRS, as its new captive management company. SRS provides financial reporting, regulatory compliance and consulting services to captive insurance companies. Derick White, president of SRS, formerly with the Vermont Department of Banking, Insurance, Securities and Health Care, where he was responsible for the administration and regulation of VT domiciled captives, was also elected to the Subscribers Advisory Committee (Board of Directors) of the Exchange. Bill Kelsey was introduced as the new general manager of Housing Partnership Insurance Exchange. He recently joined the Housing Partnership Network as vice president of insurance and group buying companies and has twenty years experience in insurance and real estate development. Pamela Cote of Saslow, Lufkin & Buggy, LLP was selected as auditor for the Exchange. Kathleen Davis of Downs Rachlin and Martin, PLLC, counsel to HPIEx, provided an update on captive insurance issues.
