Reliance Insurance Company Philadelphia

Now, an official of Reliance Insurance Company (liquidation), known as the Reliance Insurance Company, founded in Philadelphia in 1817, and took place in recent years, many corporate makeovers. October 3, 2001, the liquidation of the company.

History

1817-1968

Reliance 5 and 11 engine fire hose companies.Upon was founded by Philadelphia Fire Association was officially founded in 1820, including in 1817, is an independent volunteer fire departments the first successful organization, and most of the time opponents equipment destroyed and the fire brigade to attack opponents of expanded engaged in unproductive competition. underwriting fire insurance, to solve the problems of the past, the association, its members, who served as a mediator between the motor and hose companies. for the association's first policy of its three-storey building was purchased by Samuel Bleight. One of the company at the beginning of a permanent character coiled hose and both sides initials F.A. sign featuring a fireplug fire.

Association on March 27, 1820 by the Governor of Pennsylvania, wrote in the same year, and made 29 policy regulations. 44, 1844, and wrote the policy of 1832 by an association of 583 member companies. In 1850, he was in Philadelphia, all lost in the Great Fire, there was a surplus of $ 100,000. reliable, but their reputation and for the expansion of all claims paid as a result. Philadelphia, the city fire department in 1871. In return, they are a reliable insurance company and Philadelphia started out to write a policy measure under the new charter has chosen to continue as a joint stock company.

With the development of an area of ​​agents across the country continued to grow over the next ten years, Reliance Insurance Company was one of the car insurance and various forms of expanded coverage, including the formation of branches established in 1920, . In 1950, the Association of the parent company and its subsidiaries were merged on January 1, 1958, Philadelphia Fire Association officially changed the name of Reliance Insurance Company. the purchase of the company's growth and the establishment of branches. In accordance with General Casualty Company of Wisconsin, Midwest and West to provide the company with a strong presence, in May 1967, acquired in 1956 and the Pacific Insurance Company. Eureka insurance company's name was changed to the insurance company in 1963, Planet started in 1959 and in 1976, wrote believe the commercial mass-marketing business.

1968-1998 "Saul Steinberg Era"

In 1968, Carter, Berlin & Weill ( "Carter Berliner") in the insurance brokerage firm and strong balance can be used for other things outside of work, plus a surplus, there are a lot of insurance companies, according to the professional . These are but a few insurance companies, and eventually, because of its strong financial position as the most attractive candidate for the largest share of Reliance shares of the target company and Carter in Berlin owned by institutional customers, because so, they concluded a . near, and Laurence Tisch, like many other financiers in Berlin after it was rejected by the Carter Phillip Saul Steinberg presented the idea to sell Reliance.

Mr. Tan was born in 1939 in Brooklyn, NY, August 22, 1961 in the Wharton School of Finance at the University of Pennsylvania in 1959. He received a Bachelor of Science degree in Economics Leasco Data Processing Equipment Corporation, IBM computer to rent a small office data processing equipment Company. the company grew rapidly expanded its capacity and sought to diversify the company in 1965, Steinberg, public.As grew Leasco. Leasco in 1968 bought 91% of Reliance Insurance Company and its affiliates (Steinberg winter to buy the balance of the company in 1981). A year later, in 1969, Steinberg did not, then one of the nation's largest financial institutions.The attempt to cross the $ 9 billion through the Chemical Bank Steinberg against the New York financial community and a reputation for brashness. Mr. Tan, "I always knew I was an institution. I just thought it was part of a" tissue Fifteen years later, Steinberg said the US authorities had raided the legendary Walt Disney Co. He is also able to offer, but its shares to "greenmail" forced Disney to pay him $ 60 million.

Steinberg, the leadership of the trust and its corporate parent Leasco early 1970s, the structure and performance of significant changes. Reliance Group Holdings, the holding company through a holding company and its subsidiaries and sister companies owned, which organized the event. Leasco in 1973, especially financial services and insurance services associated with computers to reflect the corporate strategy of Reliance Group, Inc., and changed his name. New insurance subsidiaries Commonwealth Land Title Insurance Company (c. 1976), Reliance Insurance Company of New York (1978), Reliance Lloyds (1980), including the selected specialty lines, including the company expansion was spawned. In 1980, the expansion includes a number of new life insurance companies. During this period of expansion and diversification of Reliance Insurance Company, including personal automobile and homeowners a lot of people are familiar with the standard lines of insurance, the most busy.

In 1981, Steinberg, Chairman of the Board and Chief Executive Officer, Reliance Group, Inc. As a result, the company is now private Steinberg and his family purchased all of the outstanding shares. In 1986, however, the company again Steinberg, a public sale of its shares by almost 20%, and save the rest of his family.

the value of the company's stock due to the 1987 stock market crash affected by the hurricanes in 1980, the vast majority of claims arising from its underwriting results and a decline following the 1989 San Francisco earthquake. All, however, believe that the growth strategy and surety reinsurance, including more and more into the insurance markets continued to expand. Beyond the expansion of its insurance market, the Reliance Group developed in other areas of the business; Among them, Reliance Development Group, Inc. real estate operations, and Reliance Consulting Group, energy, the environment and natural resources for consulting services. The company expanded through the purchase of start-up and the area was soon sold off other interests. 1989 Days Corporation, the owner of the Days Inn hotel chain, the company's sales, more than its initial investment in 1984.

1998-2001 "collapse"

This time out, though, the brother of Saul Steinberg, Robert Steinberg, and his financial empire in 1995, Active control of a stroke. Reliance on insurance changes towards more targeted had been established, and for a while it looked as if it was the heyday of the company. a long time ago grew weary, Saul Steinberg approval of the company. RGH stock record. In March 1999, the filing of its 1998 annual financial statement capital of the company in a $ 1.7 billion surplus, the largest in the history of the profit for this year and $ 585 million.Within less than three years, however, liquidation of the Commonwealth Court of Pennsylvania Reliance order of the court. The company Reliance only $ 359 million dollars in the stock Leucadia National agreed to be purchased by early 2000, another $ 198 million in 2000, net income of $ 177 million in 1999 and lost. Price to believe he reached the top of the market value of $ 2.3 billion.The deal, but since the middle of 1998 to $ 1.941 billion, market capitalization of damage representative of Leucadia National backed out of concerns over the financial health of trust because when you fell through.

Pennsylvania insurance regulators in 2001 in an effort to save the company, but by October 3, 2001 after the terrorist attacks of September 11 of that year, the financial markets are weakening, Pennsylvania Insurance Commissioner Diane origin, contact the company liquidated. According to the Insurance Information Institute, the largest insurance company in US history, the end.

In turn, such as the volume and speed of the collapse of confidence in the morning hours as an insurance rating agencies, causing uncertainty insurer A (Strong) rating in June 2000 as a (good) A- and Standard & Poor's `reefs financial strength of the best Co.,. [5] rating agencies, however, played an integral role in the company's collapse. once in the morning the best part of the parent company's senior debt, downgraded the rating of trust in June 2000, Reliance Group Holdings, Inc., Reliance ability to attract and retain business caused by the sudden collapse of an inevitable factor blow.Another treatment complex insurance pool Unicover called workers' compensation policy, which is very expensive failure. Unicover, however, will eventually lead to the death of the company's corporate mentality and philosophy is just one example of the dangers. expansion and growth of his passion, cheaper policies; excessive dividends paid shareholders (mainly Steinberger themselves); and the company was mismanaged. [4] As a result, he failed.

2001 - the current "termination"

October 3, 2001, the liquidation order of the court, the Pennsylvania Insurance Department, the full extent of the distribution of the company's liabilities and the solvent is a long, complex process and trust estate, control over its assets. At the same time, the fall of the legal activities of the company for negligence and breach of their duties of guardian against former officers and directors of the company. a precedent-setting nature of the efforts of faith in order to offset the obligations of the company and contributed to a better understanding of what the problems of settlements, as well as about $ 100 million.

a lot of claims against the policy of liquidation of the company's performance in various state insurance guarantee funds, the provisions of the charter. [8] a claim responsibility for a state guarantee association depend on several factors insurance companies licensed to do business in the state and not particularly helpful. for the loss of other insurance [9] the amount of the assets of the policy, the claim date and other variables also play a role accept the claim of a guarantee fund. a guarantee of payments made by the association as a result of their value for the measurement of almost any policyholders.By insurers licensed to do business in the state will be assessed against the objections was the liquidation of the largest in the history of the Reliance Insurance:

Companies

Reliance Insurance Company in 1968 and changed her name Leasco in 1973 to help a group Leasco. Reliance Insurance Company, in addition to various times owned by Reliance Group, the following corporations:


Commonwealth Land Title Insurance Company
Commonwealth Mortgage Assurance Company
Commonwealth Relocation Services, Inc.
General Casualty Insurance Companies
Herbert W. Davis & Company
RCG International, Inc.
RCG / HAGLER Bailly
RCG / Moody Tottrup
RCG / Human Sciences
RCG / Vectron
Reliance Development Group, Inc.
Reliance Direct Insurance Company
Reliance National Insurance Company
Reliance Reinsurance Corporation
Reliance Standard Life Insurance Company
Reliance surety company
Telemundo Group, Inc.
Transamerica Insurance Company
United Pacific Financial Services
United Pacific Life Insurance Company
United Pacific Reliance Life Insurance Company of New York
Werner International, Inc.

Advertising and Marketing

for many years to believe the company's slogan "Quality is our policy. However, the activities of independent insurance agents, brokers, aimed at the public via the company engaged in relatively little advertising for the most part. Therefore, as a result of the company undertake more mass marketing of equal size are known as some of the other insurers. in 1970 the trade publication ran a Reliance, so sexist by today's standards it was fun to be back. (You can choose to rhinitis in the figure) Insurance agents a full page ad, featuring the catch phrase "We have a girl for you!" and the attractive young woman, described "claims service representative." the woman's anatomy to direct the reader to a wide variety of materials and approve any help dealing with claims agent. focused on the woman's forehead line caption, "in the brain. Our girls will be more than just a pretty face. They're all well trained. "Reads the caption line aimed at his ankles." You are not afraid of that ankle, but it is beautiful to look at. ", Reads the ad, 'If you have an accident, you did? A beautiful girl was not destined to chat with, think about this. " insurance agent will continue to encourage that, but I believe it just was not true, but every time the insurer, the insurance claims are often volatile and challenging business environment What was composed of mostly young women workers. The agent hands "more feminine", but only to maintain a relatively low wage costs.