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Housing Partnership Insurance Exchange at a Glance

Company Name

Housing Partnership Insurance Exchange

Place of Business

40 Main Street, Burlington, VT 05401

Corporate Structure

  • Structured as a cooperatively-owned company, HPIEx was created as an association captive insurance company domiciled in Vermont. A holding company with the nonprofit owners as the sole shareholders actually owned the insurance company.
  • Effective January 1, 2008, in order to simplify governance of the entities and permit the company to enjoy the same tax advantages of their nonprofit owners, the holding and the insurance companies were converted to what is termed a "reciprocal insurance exchange."
  • As a reciprocal, which is an unincorporated association formed under a state's insurance laws and is owned by subscribers, the corporate framework is more advantageous, especially from a tax perspective, given the nonprofit status of all the subscribers.
  • All owners are members of the Housing Partnership Network.

Policy Coverage

  • More than 45,000 affordable apartments valued at more than $4.5 billion.
  • Property coverage equals the total insurable value, up to $100 million per property.
  • Casualty coverage is $1 million per occurrence per property with a $2 million aggregate limit per property.
  • HPIEx reinsures Lexington Insurance Company, a subsidiary of AIG, for the first $500,000 loss per occurrence above stated deductible.
  • Commercial reinsurers cover claims above these limits.

Business Partners

  • Lexington Insurance is the fronting carrier that issues the policies and provides reinsurance on liability coverage above the Housing Partnership Insurance's loss limits.
  • The JLT Group has arranged property reinsurance above the Housing Partnership Insurance's exposure through a Lloyd's of London insurance syndicate.
  • Merrill Lynch has pledged a letter of credit and provided loan financing for the stock purchases.
  • Claims adjuster Broadspire assesses the claims.

Financials

  • Total Capital: $8.1 million
  • Total Annual Premium: $12 million
  • Loss Reserve Fund: $11.4 million

Subscribers

  • ACTION-Housing, Inc., Pittsburgh, PA
  • Aeon, Minneapolis, MN
  • BRIDGE Housing Corporation, San Francisco, CA
  • The Caleb Foundation, Swampscott, MA
  • Charlotte-Mecklenburg Housing Partnership, Charlotte, NC
  • Community Preservation and Development Corporation, Washington, DC
  • Dallas City Homes, Dallas, TX
  • HAP, Inc., Springfield, MA
  • Hispanic Housing Development Corporation, Chicago, IL
  • The Housing Partnership Network, Boston, MA
  • The Housing Partnership, Louisville, KY
  • LINC Housing Corporation, Long Beach, CA
  • Mid-Peninsula Housing Coalition, Redwood City, CA
  • National Community Renaissance, Rancho Cucamonga, CA
  • Preservation of Affordable Housing, Boston, MA
  • REACH Community Development, Inc., Portland, OR
  • Rocky Mountain Communities (RMC), Denver, CO
  • Settlement Housing Fund, New York, NY
  • South Shore Housing, Kingston, MA
  • Southwest Minnesota Housing Partnership, Slayton, MN

Management

  • Strategic Risk Solutions (Burlington, VT) serves as captive manager responsible for financial management and compliance with Vermont regulations.
  • IMA Financial Group (Denver, CO) manages HPIEx's insurance contracts and acts as the program underwriter.
  • Downs Rachlin Martin (Burlington, VT) is legal counsel.
  • The Housing Partnership Network (Boston, MA) acts as general manager and oversees the third-party contractual arrangements.

Board Composition

  • Alan Arthur, President, Aeon (Minneapolis, MN)
  • Thomas A. Bledsoe, President, The Housing Partnership Network (Boston, MA)
  • Larry Christensen, Chief Financial Officer, Rocky Mountain Communities (Denver, CO)
  • Carol Lamberg, Executive Director, Settlement Housing Fund (New York, NY)
  • Sue Perkins, Vice President and CFO, Mid-Peninsula Housing Coalition (Foster City, CA)
  • Laura Selby, Vice-President and CFO, Hispanic Housing Development Corporation (Chicago, IL)
  • Lawrence A. Swanson, Executive Director, ACTION-Housing, Inc. (Pittsburgh, PA)
  • Harry Thompson, Chief Financial Officer, Community Preservation and Development Corporation (Washington, DC)
  • D. Kemp Valentine, Chief Financial Officer, BRIDGE Housing Corporation (San Francisco, CA)
  • Derick White, President, Strategic Risk Solutions (Burlington, VT)
  • Richard J. Whittingham, Chief Financial Officer, National Community Renaissance (Rancho Cucamonga, CA)

Launch Date

April 1, 2004

  
 
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