Ready to pay for peace of mind? The Warranty Group sure hopes so. The company underwrites, markets, and administers extended warranty and service contracts for product manufacturers, retailers, and distributors. It offers home warranties as well as coverage for consumer products such as automobiles, RVs, and electronics. The Warranty Group also provides travel services, unemployment insurance, and identity theft protection programs. Business services include outsourced customer relationship management and related warranty services. Established in 1964, The Warranty Group is owned by investment firm Onex.
Onex had planned spin off The Warranty Group via an IPO, but the offering has been delayed due to economic conditions. The Warranty Group's revenues were initially growing at the beginning of the recession as consumers hunted for ways to extend the lives of the products they bought. But revenues dropped by nearly 10% in 2009 as lower earned premiums, a decline in auto sales, an overall decline in consumer spending, and other factors caught up with the company. The Warranty Group's income and revenue rebounded in 2010 as the economy displayed signs of recovery. The company has targeted Latin America and the Asia/Pacific region for future growth. It believes that geographic diversity helps to mitigate regional volatility.
The Warranty Group operates under a variety of names in the US, including Resource Automotive, Virginia Surety Company, TWG Home Warranty Services, and TWG Innovative Solutions. In addition to its US offices, The Warranty Group operates in more than 30 countries in Latin America, Europe, and the Asia/Pacific region. – less