GREAT NECK, N. Y., May 11, 2000 — NAM Corporation (NASDAQ: NAMC), a leading global provider of Web-enabled and in-person dispute-resolution services, announced today that Insurance Services Office, Inc. (ISO) has acquired 16 percent of the company for $4 million. As part of the transaction, ISO will be issued 642,570 shares of common stock at a price of $6.225 per share. In addition, Frank J. Coyne, President and Chief Operating Officer of ISO, will be nominated to NAM's Board of Directors.
NAM's President and Chief Executive Officer Roy Israel said, "As a leading provider of information, consulting and technical services to the insurance industry, ISO serves over 2,900 insurers and reinsurers, as well as agents, brokers, risk managers, insurance regulators and other government agencies worldwide. ISO has a unique and unmatched perspective on trends in the insurance industry, and we are very pleased to have ISO as an investor in our company.
"Besides investing in NAM Corp., ISO will market our online dispute-resolution service, clickNsettle.com, which provides multiple benefits to insurance providers, in conjunction with ISO's comprehensive range of insurance industry services," said Mr. Israel. "In addition, as a former Executive Vice President of Kemper Insurance Cos. and President of General Accident Insurance Co. of America, Frank Coyne brings a wealth of industry experience and contacts to our Board."
Said Mr. Coyne, "ISO seized the opportunity to make this investment in NAM after extensively reviewing the benefits of clickNsettle.com's Web-enabled dispute-resolution service,NAM's arbitration and mediation services, and the company's extensive countrywide roster of hearing officers. NAM's established reputation as a national provider of arbitration and mediation services, and ISO's time-tested expertise in all facets of liability insurance, make this an ideal business combination.
"More important, this alliance provides ISO with a unique opportunity to leverage its role as the property/casualty industry's premier information source to help insurers put a lid on large and growing indemnity and legal costs," said Mr. Coyne.
"The rise in legal defense costs, which now account for 15 percent of insured losses, is a serious concern to liability insurers, who must anticipate those costs in the premiums they charge. Those growing costs are also a concern to policyholders who must pay higher premiums to protect their assets.
"We know from careful examination of closed insurance claims over time that the costs of legal defense and indemnity increase, the longer it takes to close a claim. By substantially shortening the time it takes to settle claims, clickNsettle.com significantly reduces legal costs, and insurers can reflect those savings in their premiums," said Mr. Coyne.
About NAM Corporation
Headquartered in Great Neck, N. Y., NAM Corporation is a full-service, international dispute-resolution services provider. In addition to its in-person arbitration and mediation services, the company operates www.clickNsettle.com, a dispute-resolution website, which features a unique, unlimited-bid, real-time negotiating format that allows two parties to settle any dispute which can be resolved with a monetary payment. Through the use of blind bid technology, the system eliminates the "posturing" associated with traditional litigation and allows disputing parties to negotiate without the fear of " Benchmarking" their position. The website features extensive user management and reporting options including settlement data by injury type and venue.
The company believes its global roster of qualified hearing officers, video-conferencing capabilities, knowledge of dispute resolution, reputation within the corporate and legal communities and Internet-based dispute-resolution programs uniquely position it to provide a comprehensive Web-enabled solution to disputing parties worldwide.
ISO is a leading source of information about property and liability risk. ISO provides statistical, actuarial, underwriting and claims information and analyses; consulting and technical services; policy language; and information about specific locations for a broad spectrum of commercial and personal lines of insurance. In the United States and around the world, ISO serves more than 2,900 insurers and reinsurers as well as agents, brokers, self-insureds, risk managers, insurance regulators and other government agencies. ISO's Internet site can be reached at www.verisk.com/iso.
The statements contained in the release contain forward-looking statements relating to such matters as anticipated financial performance, business prospects, and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the company notes that a variety of factors could cause the company's actual results to differ materially from the anticipated results or other expenditures expressed in the company's forward-looking statements. These factors include changes in the insurance and legal industries; the company's inability to retain current or new hearing officers; changes in the public court system; and the degree and timing of the market's acceptance of its clickNsettle.com website and in-person and video-conferenced arbitration and mediation programs.
Public Relations (NAM)
Adam Pockriss, Dan Klores Associates, Inc.