Heritage to keep jobs in town

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by dick piersol

An Ohio company that has bought a Lincoln business that sells motor vehicle service contracts says it plans to keep the jobs in town.

The Lincoln business, Heritage Administration Services, employs 115 people and sold almost $2 million in premiums for vehicle service contracts in Nebraska last year, $9.3million nationwide. The jobs will stay in Lincoln, according to new management.

The businessman whose company, Car Care LLC, is buying Heritage is Haytham ElZayn, president of National Administrative Solutions Corp., a vehicle service contract company in Dublin, Ohio.

Terms were not disclosed.

Heritage markets vehicle service contracts, often called extended warranties, through to automobile dealers, who then sell them to customers.

Larry Roseberry, the new president of Heritage, spent the past week trying to close the deal, and spent Friday meeting the employees.

"I can tell you I'm excited about being here and I'm more excited after meeting the employees," he said. No layoffs are planned.

Roseberry hopes to finish his career at Heritage after 30 years in the industry, including 17 with Automotive Professionals Inc., a Travelers' agency.

"I want to go out with my head held high," he said.

ElZayn's company was not the only one interested in Heritage. Steve Brooks, chairman of Phoenix American Insurance Group, a Florida competitor, said his own bid for Heritage was rejected, but he wasn't told why. He would not reveal how much he offered for Heritage.

The purchase appears to be a way to settle issues among the owners of Heritage, founder Rod Beery and members of a board of directors including prominent local businessmen: Virgil Eihusen, retired founder of Chief Industries; Tom Smith, chairman of Smith Hayes Financial; John Daubert, president of Security First Bank of Lincoln; James Daubert, a partner in the Daubert & Butler Insurance Agency and First Concord Benefits Group; and Roger Anderson, president of Anderson Automotive Group.

Bruce Wright, an attorney for Heritage, would not comment on the deal and said the board members would not, either.

Roseberry said the Heritage board sold because they didn't want to own it and manage it, as well.

The deal may also be a way for ElZayn to replace insurance coverage on his company's vehicle service contracts. Heritage Administration Services is the primary member and owner of Heritage Warranty Insurance Risk Retention Group, which insures performance of vehicle service contracts.

Tony Wanderon, president of First Colonial Insurance, an Allstate subsidiary, said his company and ElZayn's agreed First Colonial would stop covering ElZayn's company's new business a month ago. He wouldn't say why they quit doing business.

Roseberry said he wasn't aware that replacing insurance was any part of ElZayn's motive to buy Heritage. But he expects some of National Administrative Solutions' business to be covered by Heritage insurance in the future, Roseberry said.

ElZayn did not return calls to comment on the purchase.

National Administrative Solutions had been known as a "run-off" operation, a company that specialized in closing others, not in acquiring new business, Roseberry said. ElZayn, a "premier actuary," is acquiring Heritage in part to change that reputation, Roseberry said.

"He has wanted to convert NASC's image from a run-off house to a marketing house," Roseberry said.

Heritage operates from offices at 8055 O St., and has been issuing about 100,000 service contracts a year, said Wally Poirier, the company's CEO for the past month. Almost all of the contracts sold are for motor vehicles, but it has a little business in other fields, including plumbing and air conditioning.

Reach Dick Piersol at 473-7241 or dpiesol@;journalstar.com.