Insurance Auto Auctions Accelerates Exit from Purchase Agreements

Illinois-based Insurance Auto Auctions Inc., a provider of insurance claims processing services and automotive salvage, announced it has accelerated its plan to discontinue offering the purchase agreement method of sale.

The company said it believes the more predictable returns from consignment-based business are consistent with overall operating objectives. Due to the continued under-performance of the purchase agreement contracts, Insurance Auto Auctions has accelerated its exit from that method of sale.

In addition to the poor performance of purchase agreement contracts, the company’s cost structure reflects the continuation of trends highlighted in prior quarters. These costs and expenses reflect the ongoing system development project that was announced in July and continued high branch operating costs. The company expects earnings from operations to be at or near break-even for the quarter ended Sept. 30.

Topics Auto