What are the Disadvantages of integrated services?

Cambridge Integrated Services Group, Inc.

• I want to know the financial status/health/details of Cambridge Integrated Services Group, Inc. I would reallky like a copy of their most recent financial statements. They were a subsidiary of The Aon Group and then sold to The Scandent Group. I would like to know what if any financial interest The Aon Group retains. I need this answer as fast as possible so feel free to post information as it comes available.

• Answer:

  Dear rabid_-ga, Thank you for your question. I have attempted to gather as much financial information available on Cambridge Integrated Services Group, Inc. and am posting it as quickly as possible, given the urgency of your request. Some information below is available only through pay services, such as the Dun & Bradstreet reports. ____________________________________________ From the Aon Securities & Exchange Commission Form 10-K for the Aon Corporation, one can find some information regarding the sale of Cambridge Integrated Services Group, referred to as "Cambridge." You can find the full document here: http://www.shareholder.com/Common/Edgar/315293/1047469-05-6608/05-00.pdf Page 35: "In November2004, we sold our Cambridge Integrated Services Group,Inc. ("Cambridge") claims administration business to Scandent Holdings Mauritius Limited (SHM) for $90million in cash plus convertible preferred stock in SHM, valued at $15million. Because of our convertible preferred stock holding and other factors, we included Cambridge's results prior to the sale's effective date, as well as a pretax gain on the sale of approximately $15million, in income from continuing operations. " In the same document, Aon's decrease in revenues due to sale of Cambridge is cited on Page 53: " $19million in lower revenue from the sale of our U.S. Claims service business effective November30, 2004. The sale of our U.S. and U.K. claims services businesses more than offset the positive impact of acquisitions made by our brokerage operations. Lower claims services revenue (in continuing operations) is primarily due to the sale of Cambridge. " Aon's 10-Q statement can be found from Yahoo Business here, and contains a bit more information: http://biz.yahoo.com/e/041109/aoc10-q.html Aon maintains a minority financial interest in Cambridge. Also of potential interest, as Aon was recently the owner of Cambridge, is this rating of Aon: ""We view Aon's sale in its stake as mostly a way to avoid perceived conflicts of interests of an insurance brokers owning a stake in an insurance company, in light of NYAG's scrutiny of the property/casualty industry," Gelb wrote. "We believe Aon's actions will have implications for other brokers. For example, MMC may be pressured sell its stake in Axis Capital to avoid perceived conflicts of interest with insurers." Endurance Specialty Insurance Ltd., Endurance Reinsurance Corporation of America and Endurance Worldwide Insurance Ltd. all are rated A (Excellent) by A.M. Best Co." A.M. Best Newswire, Dec 6, 2004 pNA, Aon Sells Endurance Stake for More Than $320 Million., provided by Comtex. Aon's net income prior to the sale of Cambridge was as follows: AON has reported net income of USD 180m compared to USD 155m for the 2nd quarter - first half figures are USD 371m and USD 316m respectively. Consolidated revenues were up 6% for the 2nd quarter and 7% for the 6 months. Europe Intelligence Wire, August 5, 2004 pNA NET INCOME UP AT AON. InsuranceNewsLink.com ________________________________________________ The Yahoo finance page for Cambridge can be found here: http://biz.yahoo.com/ic/127/127501.html From this site, the company has 2,200 employees, and 2005 revenues totalling $120.30 million ________________________________________________ The Hoover's page on Cambridge can be found here: http://www.hoovers.com/free/co/news/list.xhtml?ID=127501&Name=cambridge-integrated-services&Ticker= More information is available from Hoover's on a subscription basis, including their Report Builder tool, which allows you to include various data in a customized report, including financial information. ________________________________________________ Dun & Bradstreet offers multiple research reports on Cambridge, costing from $10 to $139. Here is the site: http://smallbusiness.dnb.com/company-information-product-list.asp?referrer=hoovers.com&partner=hoovers&cm_mmc=eLicensing*Hoovers*COMPANYNEWS*Free+Member&key=612047787&bhcd2=1116379287 The Comprehensive Insight Plus Report ($139 or $118.15 with subscription) includes information on payment trends, creditworthiness, etc. Details of what's included in this report can be found here: http://smallbusiness.dnb.com/credit-reports/comprehensive-insight-plus-detail.asp?addtoorder=True&country=US&cmeid=IOS200222&cm_re=company%2Dinformation%2Dproduct%2Dlist%2Easp*index%5F1*Comprehensive+Insight+Plus+Report ________________________________________________ The following is a somewhat dated (they still list that Cambridge is owned by Aon) page that may also be of some benefit, from EmployerHealth.com: http://www.employerhealth.com/EHR_sample_pages/sp6570.htm This site estimates sales volumes at $280 million. Their Case Management activities are described as follows: "Cambridge Integrated Services Group, Inc. has a total of 90 total case management employees, 43 certified case managers, 76 medical professionals that are full time, and 75 RNs. Cambridge Integrated manages over 13,795 cases. We have been managing cases since 1998. Our parent company is Aon Corp. Some of the services we provide are onsite case management, telephone case management, patient education, online case reports, outcomes measurement, specialty referral review, integrated disability management, referrals to alternative settings, absence management, and written case reports. We have 23 offices nation wide to serve you. Compensation: PEPM; per hour; per case; flat fee." ________________________________________________ Asia Africa Intelligence Wire, Dec 4, 2004 pNA, from Business Line This article from the Financial Times quotes Cambridge as being a $230 million company - slightly different than other sources. ________________________________________________ Although the terms of the sale of Cambridge were not disclosed, the purchase price has been estimated by Business Week at $175 million: "On Oct. 30, Scandent Group, an Indian-owned Singapore company with operations in Bangalore, bought Cambridge Integrated Services Group, the $230 million back-office arm of Chicago insurer Aon Corp., for an estimated $175 million. That makes Scandent the third-largest insurance back-office outfit in the U.S. While Cambridge will remain a U.S. company, Scandent plans to list it on the Indian stock exchange." Business Week, Nov 22, 2004 i3909 p58, LET THE DEALS BEGIN; As Bangalore's outsourcing industry surges, takeovers will be fast and furious. Manjeet Kripalani; Josey Puliyenthurethel. This article estimates the sale at $110 million: "In one of the biggest cross-border acquisitions in the BPO sector, the Scandent group will pay about $110m to buy a majority stake in the claims processing subsidiary of US-based Aon Corporation." Asia Africa Intelligence Wire, Oct 4, 2004 pNA Scandent buys out Aon arm for $110 mn. Bodhisatva Ganguly & R Sriram, Financial Times Ltd. ________________________________________________ A new CFO was recently named at Cambridge. Here are some excerpts from AsiaPulse News, Dec 8, 2004 pNA CAMBRIDGE INTEGRATED SERVICES NAMES ROBERT J. FECHTMANN CFO. "Cambridge Integrated Services Group, Inc., a leading claims and loss cost management company, today announced that Robert J. Fechtmann, C.P.A., 51, has been named chief financial officer, a newly created position, which is based in Greenwich, Connecticut, United States. Fechtmann reports to Tracey Carragher, chief executive officer. As CFO, Fechtmann oversees financial control and expense management of the expanding international organization, including newly integrated ProcessMind, which provides business process outsourcing (BPO) for insurance, financial services and healthcare industries. On Nov. 30, Cambridge Integrated Services Group, now also a Scandent Group company, had announced that it inducted Scandent Group's ProcessMind subsidiary, creating one of the largest BPOs, with offices throughout North America, Europe, Australia and Asia, including India." ... "Instrumental in delivering high profitability margins and driving competitive business performance for international organizations, Fechtmann most recently served as executive vice president and CFO of Draft, Inc., a global marketing communications company, which is the largest direct and promotions agency in the U.S., and is a member company of the Interpublic Group, Inc., (NYSE:IPG), one of the largest conglomerates of advertising agencies and marketing-services companies." ________________________________________________ The following is an excerpt from the InfoUSA.com Business Directory via Hoover's Company Records found with Lexis-Nexis: May 17, 2005 Cambridge Integrated Services Group, Inc. 4B Cedar Brook Dr. Cranbury, NJ 08512 United States * * * * * * * * * * COMMUNICATIONS * * * * * * * * * * TELEPHONE: 609-655-8383 FAX: 609-655-0503 URL: http://www.cambridgeintegrated.com * * * * * * * * * * COMPANY IDENTIFIERS * * * * * * * * * * HOOVER ID: 127501 * * * * * * * * * * COMPANY INFORMATION * * * * * * * * * * LEGAL STATUS: Private EMPLOYEES: 2,200 (As of 2005) * * * * * * * * * * EXECUTIVES * * * * * * * * * * OFFICERS: Tracey Carragher, Chairman Robert J. Fechtmann, CFO James Robertson, Managing Director, Sales and Marketing * * * * * * * * * * DESCRIPTION * * * * * * * * * * Cambridge Integrated Services offers risk management services including liability claims, managed care, anti-fraud investigations, and recovery services for insurance, financial services, and health care businesses. With about 90 offices throughout the US and the UK as well as operations in Asia and Australia, the company is one of the largest third party business process outsourcing (BPO) providers. Formerly a division of brokerage giant Aon , Cambridge Integrated Services was acquired by Singapore-based technology consultant Scandent Group in 2004.RETURN HOOVER INDUSTRIES: Insurance Risk Management * * * * * * * * * * MARKET AND INDUSTRY * * * * * * * * * * COMPETITORS: ChoicePoint ISO Marsh & McLennan * * * * * * * * * * FINANCIALS * * * * * * * * * * FISCAL YEAR DATE: 2005 * * * * * * * * * * INCOME STATEMENT * * * * * * * * * * SALES: $120,300,000 LOAD-DATE: May 17, 2005 ------------------------------------------------------------------------------------------------------------------------------------ * * * * * * * * * * FINANCIALS * * * * * * * * * * FISCAL YEAR DATE: 2005 LOAD-DATE: May 10, 2005 CAMBRIDGE INTEGRATED SVC GROUP 17 DUNHILL LN NORTH BARRINGTON, IL 60010-6978 UNITED STATES TEL: 847-381-4132 ABI-NO: 238876627 COUNTY: 17097 LAKE POPULATION: 1 - 24,999 AA CARRIER-CODE: R010 PRI-SIC: 641112 INSURANCE LOC-SALES: 1,000 - 499,999 AA COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 1 - 4 OFFICE-SIZE: 1 PERSON AA CREDIT: VERY GOOD LOAD-DATE: April 25, 2005 ---------------------------------------------------- CAMBRIDGE INTEGRATED SVC GROUP TAMPA, FL 33619 UNITED STATES TEL: 813-628-8811 ABI-NO: 260907175 COUNTY: 12057 HILLSBOROUGH POPULATION: 250,000 - 499,999 EE PRI-SIC: 641110 INSURANCE-CLAIM PROCESSING SERVICES LOC-SALES: 500,000 - 999,999 BB LOC-EMPLOYEES: 1 - 4 CREDIT: UNKNOWN LOAD-DATE: April 25, 2005 ------------------------------------------------- CAMBRIDGE INTEGRATED SVC 9200 KEYSTONE XING # 320 INDIANAPOLIS, IN 46240-7601 UNITED STATES TEL: 317-816-6500 FAX: 317-816-6514 ABI-NO: 414035436 COUNTY: 18097 MARION POPULATION: 500,000 PLUS FF CARRIER-CODE: C025 PRI-SIC: 641112 INSURANCE LOC-SALES: 5,000,000 - 9,999,999 EE COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 42 CREDIT: VERY GOOD LOAD-DATE: March 14, 2005 ----------------------------------------------- CAMBRIDGE INTEGRATED SVC 622 BANYAN TRL # 100 BOCA RATON, FL 33431-5612 UNITED STATES TEL: 561-322-7600 ABI-NO: 259147874 COUNTY: 12099 PALM BEACH POPULATION: 50,000 - 99,999 CC CARRIER-CODE: C037 PRI-SIC: 738999 BUSINESS SERVICES NEC LOC-SALES: 1,000,000 - 2,499,999 CC LOC-EMPLOYEES: 20 EXECUTIVES: DENISE DAVENPORT, PRESIDENT CREDIT: SATISFACTORY LOAD-DATE: March 14, 2005 ------------------------------------------ CAMBRIDGE INTEGRATED SVC GROUP 10500 SAN PEDRO AVE SAN ANTONIO, TX 78216 UNITED STATES TEL: 210-348-1300 ABI-NO: 583150958 COUNTY: 48029 BEXAR POPULATION: 500,000 PLUS FF PRI-SIC: 641112 INSURANCE LOC-SALES: 500,000 - 999,999 BB COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 1 - 4 OFFICE-SIZE: 1 PERSON AA CREDIT: VERY GOOD LOAD-DATE: February 16, 2005 ----------------------------------------------- CAMBRIDGE INTEGRATED SVC 1228 LOVERS LN TALLAHASSEE, FL 32317-8424 UNITED STATES TEL: 850-219-1300 ABI-NO: 253635635 COUNTY: 12073 LEON POPULATION: 100,000 - 249,999 DD CARRIER-CODE: R076 PRI-SIC: 641112 INSURANCE LOC-SALES: 500,000 - 999,999 BB COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 1 - 4 OFFICE-SIZE: 1 PERSON AA CREDIT: VERY GOOD LOAD-DATE: February 16, 2005 ------------------------------------------------ CAMBRIDGE INTEGRATED SVC 7324 SOUTHWEST FWY # 700 HOUSTON, TX 77074-2033 UNITED STATES TEL: 713-296-5900 FAX: 713-296-5999 ABI-NO: 557466489 COUNTY: 48201 HARRIS POPULATION: 500,000 PLUS FF CARRIER-CODE: C015 PRI-SIC: 641112 INSURANCE 2ND-SIC: 641104 INSURANCE CONSULTANTS & ADVISORS LOC-SALES: 5,000,000 - 9,999,999 EE COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 50 OFFICE-SIZE: 1 PERSON AA EXECUTIVES: JACKIE LOGINO, MANAGER CREDIT: VERY GOOD LOAD-DATE: February 16, 2005 --------------------------------------------------- CAMBRIDGE INTEGRATED SVC PO BOX H WHIPPANY, NJ 07981-0407 UNITED STATES TEL: 973-515-6400 ABI-NO: 581331550 COUNTY: 34027 MORRIS POPULATION: 1 - 24,999 AA CARRIER-CODE: B002 PRI-SIC: 641112 INSURANCE LOC-SALES: 1,000 - 499,999 AA COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 1 - 4 OFFICE-SIZE: 1 PERSON AA ADDRESS: 100 S JEFFERSON RD WHIPPANY, NJ 07981 CREDIT: VERY GOOD LANGUAGE: ENGLISH LOAD-DATE: January 12, 2005 ------------------------------------------------- CAMBRIDGE INTEGRATED SVC 12301 NE 10TH PL # 300 BELLEVUE, WA 98005-2487 UNITED STATES TEL: 425-453-7620 FAX: 425-637-8617 ABI-NO: 713359362 COUNTY: 53033 KING POPULATION: 100,000 - 249,999 DD CARRIER-CODE: C067 PRI-SIC: 641112 INSURANCE LOC-SALES: 1,000,000 - 2,499,999 CC COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 8 OFFICE-SIZE: 1 PERSON AA EXECUTIVES: JULIE MC CALLUM, MANAGER CREDIT: VERY GOOD LANGUAGE: ENGLISH LOAD-DATE: November 9, 2004 -------------------------------------------------- CAMBRIDGE INTEGRATED SVC 350 S WARMINSTER RD HATBORO, PA 19040-3430 UNITED STATES TEL: 215-443-0404 ABI-NO: 811305010 COUNTY: 42091 MONTGOMERY POPULATION: 1 - 24,999 AA CARRIER-CODE: C024 PRI-SIC: 641112 INSURANCE LOC-SALES: 2,500,000 - 4,999,999 DD COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 30 OFFICE-SIZE: 1 PERSON AA CREDIT: VERY GOOD LANGUAGE: ENGLISH LOAD-DATE: November 9, 2004 ---------------------------------------------------- CAMBRIDGE INTEGRATED SVC 87 S COMMERCE WAY BETHLEHEM, PA 18017-8928 UNITED STATES TEL: 610-807-3200 ABI-NO: 596920439 COUNTY: 42095 NORTHAMPTON POPULATION: 50,000 - 99,999 CC CARRIER-CODE: R015 PRI-SIC: 641112 INSURANCE LOC-SALES: 5,000,000 - 9,999,999 EE COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 40 OFFICE-SIZE: 1 PERSON AA EXECUTIVES: BARBARA BROWN, MANAGER BARB BROWN, VP FINANCE LLOYD HUBER, VP HUMAN RESOURCES CREDIT: VERY GOOD LOAD-DATE: November 9, 2004 ---------------------------------------------------- CAMBRIDGE INTEGRATED SVC PO BOX 17 MARION, IA 52302-0017 UNITED STATES TEL: 319-373-2277 FAX: 319-373-2922 ABI-NO: 215396714 COUNTY: 19113 LINN POPULATION: 25,000 - 49,999 BB CARRIER-CODE: B001 PRI-SIC: 641112 INSURANCE LOC-SALES: 1,000 - 499,999 AA COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 1 OFFICE-SIZE: 1 PERSON AA EXECUTIVES: KAREN LIKENS, EXECUTIVE DIRECTOR CREDIT: VERY GOOD LOAD-DATE: August 16, 2004 -------------------------------------------- CAMBRIDGE INTEGRATED SVC GROUP 4 CEDARBROOK DR # B CRANBURY, NJ 08512-3612 UNITED STATES TEL: 609-655-8383 FAX: 609-655-0503 ABI-NO: 400341533 COUNTY: 34023 MIDDLESEX POPULATION: 1 - 24,999 AA CARRIER-CODE: R006 PRI-SIC: 641112 INSURANCE 2ND-SIC: 641104 INSURANCE CONSULTANTS & ADVISORS LOC-SALES: UNKNOWN LL COMPANY-TYPE: PUBLIC - SUBSIDIARY HEADQUARTER LOC-EMPLOYEES: 40 OFFICE-SIZE: 1 PERSON AA EXECUTIVES: NICOLE JOBLONAK, VP FINANCE CREDIT: VERY GOOD LOAD-DATE: August 16, 2004 ------------------------------------------------ CAMBRIDGE INTEGRATED SVC 7369 SHERIDAN ST # 301 HOLLYWOOD, FL 33024-2776 UNITED STATES TEL: 954-602-5900 FAX: 954-964-9450 ABI-NO: 595110453 COUNTY: 12011 BROWARD POPULATION: 100,000 - 249,999 DD CARRIER-CODE: C025 PRI-SIC: 641112 INSURANCE LOC-SALES: 2,500,000 - 4,999,999 DD COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 21 OFFICE-SIZE: 1 PERSON AA EXECUTIVES: MIRIAM GRIFFIN, MANAGER MIRIAM GRIFFIN, VP FINANCE CREDIT: VERY GOOD LOAD-DATE: August 16, 2004 -------------------------------------------------- CAMBRIDGE INTEGRATED SVC 9450 BRYN MAWR AVE # 500 ROSEMONT, IL 60018-5274 UNITED STATES TEL: 847-671-9200 FAX: 847-671-0067 ABI-NO: 859529935 COUNTY: 17031 COOK POPULATION: 50,000 - 99,999 CC CARRIER-CODE: C016 PRI-SIC: 641112 INSURANCE 2ND-SIC: 641104 INSURANCE CONSULTANTS & ADVISORS LOC-SALES: 2,500,000 - 4,999,999 DD COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 26 OFFICE-SIZE: 1 PERSON AA CREDIT: VERY GOOD LOAD-DATE: June 14, 2004 ------------------------------------------------- CAMBRIDGE INTEGRATED SVC 4341 B ST ANCHORAGE, AK 99503-5912 UNITED STATES TEL: 907-762-6400 FAX: 907-563-5328 ABI-NO: 877757187 COUNTY: 02020 ANCHORAGE POPULATION: 250,000 - 499,999 EE CARRIER-CODE: C032 PRI-SIC: 641102 INSURANCE ADJUSTERS LOC-SALES: 5,000,000 - 9,999,999 EE COMPANY-TYPE: PUBLIC - BRANCH LOC-EMPLOYEES: 44 CREDIT: VERY GOOD LOAD-DATE: June 14, 2004 -------------------------------------------------------------------------------------- I imagine that the Dun & Bradstreet report mentioned above would be the best source of financial analysis beyond what I have provided here. I hope this information is useful. I will post any additional information I can locate. Please feel free to request clarification. -welte-ga