Curtis Dee Langeberg, being first duly sworn upon oath, deposes and states as follows:
1. I have been employed by Federated sin& 1989. My positions in IS have included Associate Programmer, Programmer, Programmer/Analyst, Sr. Programmer/Analyst and Lead Systems Developer. Since 1998 I have been the IS Information Services Supervisor for Federated Mutual Insurance Company.
2 As IS Information Services Supervisor my current duties require, among other things, that I provide support to the various functions at Federated that use Federated’s Customer Service Information (CSI) system. In that capacity, and because of my 19 years of employment with Federated in the IS department, I am familiar with CSI’s development and history as well as its capabilities and functionality and the data contained within it
3. Federated’s CSI is a data system that was created “in house” at Federated. This was done because there were no "off the-shelf" systems available that would provide the information and functionality required by Federated as Federated does not predominantly use the Insurance Service Office (ISO) actuarial data for experience or pricing purposes. Because of our niche marketing and expertise in the markets we pursue, we built this system to track and subsequently use out own data for pricing considerations completely independent of industry available data (ISO). The cost to build this system in 1999 was approximately $700,000.
4. The approximate annual cost to maintain and support CSI is $50,000. To date, Federated has spent $450,000 to maintain and support CSI.
5. To date, total cost to create and maintain the CSI system is approximately $1.15 million dollars. From my interactions with various business functions it is obvious that the value of the information contained in CSI and the report generating capabilities of the system continue to justify the costs associated with maintaining it The reason for this is that ISO data is data collected by ISO on a very broad and generic business type. So for example, ISO data on Farm Equipment Dealers will provide information on every kind of equipment dealer, regardless of their unique product, specialty or specific location. Because the CSI system contains data only on Federated clients and not ISO industry-wide information, it is more accurate. Federated’s focused underwriting processes give us better than industry results and allows us to price independently from the data that ISO would yield."
I left out the link - otherwise someone might report it as spam. the whole document is posted on Silicon Investors.
=============== So Class B shareholder walks away with millions of dollars on this engineered IPO - how many other happy selling shareholders didn't even use the ISO product? Was this all taken into consideration when they set the IPO price? Did they know? What is the real value of a product that a multibillion dollar insurance company like Federated who has an employee making a claim in a sworn affidavit as being too broad and generic and they don't use it? Hey perhaps they are lying and just trying to claim the so-called "trade secret" theirs. Sure looks cheaper to do your own thing and not pay those millions in fees the other Class B shareholders were paying - although I assume with the cash out they have more then enough to continue to pay the fees and keep the price propped up.
Wow. An entire week without her off-track insinuations and contorted logic. Maybe the duck finally won this time! :)
Actually, I'd like to think Pinkoliphant helped her to realize this is just not the place for her agenda. Well done (and hopefully I'm not speaking too soon). Whatever the merits of her complaint against the other company, it says nothing about Verisk/ISO.