Rewarding Superior Risk Management and Loss Performance

Our award-winning captive insurance company provides property and liability coverage for 45,000 affordable apartments developed and managed by nineteen of the Network's members. Launched in 2004 as the first captive insurance company owned by and operated for nonprofit affordable housing organizations, Housing Partnership Insurance Exchange (HPIEx) has operated profitably from the outset and been recognized as a leading social enterprise by the Yale School of Management-Goldman Sachs Foundation's Partnership on Nonprofit Ventures.

By pooling risk, raising investment capital, and structuring business partnerships with national insurance carriers, HPIEx enables its member-owners to fashion programs that are tailored to meet their needs and priced competitively to reflect their exceptional loss performance. The company has significantly improved insurance terms and saved partner organizations more than $1 million a year in premiums.

The members recognized the significant opportunities to achieve valuable social impact through an insurance captive. First, premiums are variable operating costs in rental properties. Increases can translate directly into higher rents that burden lower-income tenants. Controlling premiums means that rents are more stable, and revenues will not be diverted away from maintenance budgets or tenant services to pay for escalating premiums. Self-insurance also emphasizes loss control measures. Fewer insured events-damage caused by fires, in particular-translates to better living environments and healthier communities.

The company's strong performance has generated earnings that are now providing annual dividends to shareholders-HPIEx distributed $1 million each year in both 2008 and 2009. The company's key performance and financial ratios far surpass industry standards. Collective liability and property losses are 30-40% lower than those of the average rental property owner.

For more information, contact Bill Kelsey.