Insurance and risk management is another significant cost component of a typical building's operating budget - averaging 10% of operating costs across our managed portfolio.
In 1997 we initiated an effort to assist our clients in managing this cost by establishing FirstService Financial. The goal of FirstService Financial is to leverage our size and expertise to bring value to our clients through creative risk management solutions that provide enhanced insurance coverage at a lower cost. As our portfolio of managed property has grown over the years the value proposition offered by FirstService Financial has increased exponentially.
Today we manage in excess of 5,600 properties in North America with an estimated insured value of $100 billion.
We have invested in creating a significant database that tracks all policy and claims related information by property managed. Further, we have commissioned actuarial reports which demonstrate that our managed properties have better long-term claims experience than the broader market - a favorable reflection on our clients but also on the extensive loss mitigation policies and procedures we have implemented across our portfolio. The size of our total portfolio combined with the attractive and diversified insurance risk profile enable us to deliver products and solutions to our clients that are unmatched in the marketplace in terms of both coverage and price. This long term investment has delivered significant value to our clients and created a tangible differentiator for us as service provider.
Each of our 5,600 North American clients have operating bank accounts and most have separate reserve and escrow bank accounts. The aggregate cash balances of these client accounts now exceed $1.8 billion. Through FirstService Financial we have maintained segregated client accounts but consolidated them into select top tier banking institutions. This creates value for your clients in several ways. Most property owners pay bank fees on their operating accounts and earn minimal returns on reserve and escrow funds. They are also subject to risk in the event their cash deposits exceed FDIC limits.
Participation in our proprietary programs generally results in zero bank fees on operating accounts and a significantly higher interest rate on reserve and escrow funds — both creating substantial value for our clients. In addition, we insure that all deposits in excess of FDIC limits are fully protected. Our bank partners value our deposits because they are consistent, long term and offer operating efficiency relative to their costly retail branch networks. As a result, these banks are prepared to offer lower costs and higher returns than our clients or competitors could otherwise secure in dealing with banks directly and individually.
Working with affiliates across North America, FirstService Financial has facilitated or assisted in loan placements in excess of $600 million for Cooperative Condominium and Homeowner Associations. As an agent for our affiliates, FFI assists Associations to fulfill their financing requirements with flexibility, certainty and simplicity. FFI solicits proposals from banks, insurance companies and other lenders to provide new financing or refinancing at the most competitive interest rates and terms currently available. FFI leverages its size and depository relationships to deliver a superior product.
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