PHH Arval Vehicle Accident Services outperforms national benchmarks

Subrogation team recovers more money, more quickly for clients

June 25, 2007 – PHH Arval’s Vehicle Accident Services division compared its own performance against a national benchmarking survey conducted by The National Association of Subrogation Professionals (NASP). In key categories, PHH Arval, a subsidiary of PHH Corporation [NYSE: PHH ], consistently outperformed the industry. NASP survey was designed to gauge the effectiveness of subrogation programs; participating companies included 27% of the total US automobile insurance industry.

Recovery as a percentage of spend: The NASP benchmark study indicates that personal/commercial automobile insurance companies recover 29% of their indemnities paid. PHH Arval recovers 38% of its clients’ total spent on physical damage, rentals, and fees related to all accidents. In addition, PHH recovers 95% of all amounts it attempts to collect.

Cycle time: The industry average of cycle time for a personal automobile claim is 199 days. The PHH Arval average is 118 days. This translates into funds returned to the client 81 days faster. Cycle time starts with the day the subrogation process begins until the check is received in-house and includes the days for arbitration claims as well as payment plans for uninsured motorists.

Arbitration

• For every $1 that PHH Arval paid in filing fees to Arbitration Forums, its clients were awarded $62.09 via arbitration decisions. The national average for 2006 was $41.61.
  
• For the total amount of files PHH Arval sent to arbitration, its clients were awarded 61.33% of the total dollars demanded, which is significantly better than national averages.

Pamela Walinski, Vice President, Vehicle Accident Services, says, “Each of these key categories has an impact on the costs our clients are paying for their fleet drivers’ accidents. We’re pleased that our results for subrogation recovery compare so favorably to benchmarking studies put together by national organizations like the NASP and Arbitration Forums.” 

PHH Arval’s Vehicle Accident Services division is one of the largest collision management providers in North America. Their comprehensive program helps companies manage driver safety and vehicle accidents. When a fleet driver is in an accident and another party is at fault, PHH Arval’s subrogation team aggressively pursues cost recovery for that client. In 2006, PHH Arval recovered over $30 million for corporate clients through subrogation of vehicle collision claims.

Derived from statistics from the 2005 NASP study and Arbitration Forums, a provider of intercompany arbitration services. For more information about NASP, visit www.subrogation.org or call (800)574-9961. For more information about Arbitration Forums, Inc., visit www.arbfile.org.

About PHH Arval
PHH Arval is a leading fleet management services provider in the United States and Canada. PHH Arval provides outsourced fleet management solutions to corporate clients, including nearly one-third of the Fortune 500 companies, and government agencies. Through consultative expertise, flexible customer service, and award-winning Internet technology, PHH Arval helps clients reduce costs and increase productivity. For more information, visit www.phharval.com, or call 800-ONLY-PHH.

About PHH Corporation
Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading outsource provider of mortgage and vehicle fleet management services.  Its subsidiary PHH Mortgage is one of the top ten retail originators of residential mortgages in the United States(1). Its subsidiary, PHH Arval, is a leading fleet management services provider in the United States and Canada. For additional information on the company and its subsidiaries please visit www.phh.com.

(1) Inside Mortgage Finance, Copyright 2006