Five Pointe Professional Liability Insurance Company Co Wilmington Trust

Nonprofit profile at a glance

EIN
204191006
IRS 990 coverage
2009–2024
Forms available
Form 990 2024
Location
Wilmington, DE, USA
Phone
8028645599
Rating
63
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Single Organization Support

Reported finances

Revenue
$129,405,688
Expenses
$101,422,527
Assets
$482,884,030
Liabilities
$352,336,195

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

12 people listed

Executive titles in this filing

  • DIANNE P SALTER (Secretary (Beginning 2/19/25) / Five Pointe President)
  • JOHN J LYNCH III (Director / President & CEO MLH)

Highest reported compensation

  • JOHN J LYNCH III (Director / President & CEO MLH): $3,302,622 total reported compensation
  • John Mordach (Treasurer (Through 2/18/25) / CFO JH): $2,905,617 total reported compensation
  • THOMAS MARCHOZZI (Director (Beginning 2/19/25) / Executive VP JH): $2,134,545 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The company is a non-profit sponsored captive insurance company organized and operated exclusively for the charitable purposes for the benefit of its member organizations. The corporation serves as an integral part of and furthers the exempt purposes of its members, charitable hospitals and related healthcare organizations by providing "self-insurance" professional liability coverage for certain hospitals and healthcare entities described in irc section 501(c)(3). The members are main line hospitals, inc., riddle memorial hospital, thomas jefferson university hospitals, inc., and magee rehabilitation hospital.

What it reported doing in 2024

Five pointe professional liability insurance company provides reinsurance to mountain laurel risk retention group, inc. ("mlrrg"), a related party through common ownership that provides general liability and professional liability insurance to its shareholders that are the tax exempt members of five pointe. The reinsurance coverages assist with the management and funding of the professional liability risk thereby essentially functioning as a self-insurance vehicle for the tax exempt member hospitals and healthcare organizations. A sponsored captive insurance company in the state of Delaware has the ability to establish and maintain separate protected cells within the company whereby the assets and liabilities of any one cell are financially and legally protected from the assets and liabilities of other cells. The company insures the risks of the members pursuant to membership agreements, and segregates such risks into protected cells. Each protected cell is accounted for separately on the books and records of the company. The assets and liabilities of the company are segregated into cell assets and liabilities and general assets and liabilities. The general assets and liabilities of the company comprise the assets and liabilities that are not assets and liabilities of any one of the protected cells. The activities representing the general assets and liabilities of the company are referred to as "the core."

Operating model

Revenue model
Other-operating. 100% of the money available for current operations came from other operating revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and program spending has grown recently. A relatively small share of voting board members are independent and few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 41
  • Accountability: 32
  • Sustainability: 76
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 98.6%; rating input score 99
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Scored; rating input score 0
  • Grant itemization coverage: Scored; rating input score 0
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 0%; rating input score 0; 4th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 21.6%; rating input score 88; 88th percentile among comparable filings
  • Total-asset coverage ratio: 4.76; rating input score 84; 84th percentile among comparable filings
  • Liabilities to assets ratio: 0.73; rating input score 20; 20th percentile among comparable filings
  • Officer compensation ratio: 1.6%; rating input score 64; 64th percentile among comparable filings

Growth

  • Program expense growth: 17.7% per year; rating input score 100; 90th percentile among comparable filings
  • Revenue growth: 2.9% per year; rating input score 100; 21st percentile among comparable filings
  • Asset growth: 3.2% per year; rating input score 100; 22nd percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 98.6% of spending went to programs
  • Governance: 0 of 10 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $100M in reported program spending
  • Leadership: top reported pay $3.3M · 12 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $1.1M reported
  • Consistency: 21 of 21 current checks pass
  • Schedules: 6 filed schedules · includes foreign activity and executive pay
  • Filing history: 16 filing years from 2009 to 2024
  • Contacts: How to reach this organization
  • Related organizations: 111 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Accountability: Independent voting board scored 0/100.
  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Transparency & Controls: Foreign activity oversight scored 0/100.
  • High — Transparency & Controls: Grant itemization coverage scored 0/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Liabilities to assets ratio scored 20/100.