OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) is referred to in
this report as “OMH” or, collectively with its subsidiaries, whether
directly or indirectly owned.
As one of the nation’s largest consumer finance companies, we:
provide responsible personal loan products;
offer credit and non-credit insurance;
pursue strategic acquisitions of loan portfolios; and
pursue acquisitions of companies and/or establish joint ventures.
As part of our acquisition strategy, on November 15, 2015, OMH, through its
wholly owned subsidiary, Independence Holdings, LLC, (“Independence”)
completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”)
from CitiFinancial Credit Company (“Citigroup”) for $4.5 billion
in cash (the “OneMain Acquisition”). OMFH, collectively with its
subsidiaries, is referred to in this report as “OneMain”. OMH and
its subsidiaries (other than OneMain) is referred to in this report as “Springleaf”.
The OneMain Acquisition brings together two branch-based consumer finance companies
with complementary strategies and locations. OneMain provides personal loans
to primarily middle-income households through a national, community-based network
of 1,139 branches as of December 31, 2015, serving nearly 1.3 million customer
accounts across 43 states. Springleaf provides high quality origination, underwriting
and servicing of personal loans, primarily to non-prime consumers. Together,
with an experienced management team, proven access to the capital markets, and
strong demand for consumer credit, we believe we are well positioned for future
growth.
Our combined network of over 1,900 branches and expert personnel is complemented
by our online consumer loan origination business and centralized operations,
which allows us to reach customers located outside our branch footprint. In
September 2015, we launched a new online consumer loan origination business
(“iLoan”) to provide our current and prospective customers the option
of obtaining an unsecured personal loan via a digital platform. We also pursue
strategic acquisitions of loan portfolios through our Springleaf Acquisitions
division, which we service through our centralized operations. We service the
loans acquired through a joint venture in which we own a 47% equity interest
(the “SpringCastle Portfolio”). In addition, we pursue fee-based
opportunities in servicing loans for others in connection with potential strategic
portfolio acquisitions through our centralized operations.
This industry’s traditional lenders have undergone fundamental changes,
forcing many to retrench and in some cases to exit the market altogether. Tightened
credit requirements imposed by banks, credit card companies, and other traditional
lenders that began during the recession of 2008-2009 have further reduced the
supply of consumer credit for non-prime borrowers. In addition, we believe that
recent regulatory developments create a dis-incentive for these lenders to resume
or support these lending activities. As a result, while the number of non-prime
consumers in the United States has grown in recent years, the supply of consumer
credit to this demographic has contracted. We believe this large and growing
number of potential customers in our target market, combined with the decline
in available consumer credit, provides an attractive market opportunity for
our business model.
We are one of the few remaining national participants in the consumer installment
lending industry still serving this large and growing population of non-prime
customers. Our centralized operations, combined with the capabilities resident
in our national branch system, provide an effective nationwide platform to efficiently
and responsibly address this growing market of consumers. We believe we are,
therefore, well-positioned to capitalize on the significant growth and expansion
opportunity created by the large supply-demand imbalance within our industry.
We originate and service secured and unsecured personal loans and offer voluntary
credit insurance and related products through our combined branch network, our
newly launched iLoan platform, and our centralized operations. Personal loan
origination and servicing, along with our insurance products, forms the core
of our operations. As a result of the OneMain Acquisition, our combined branch
operations include over 1,900 branch offices in 43 states as of December 31,
2015. In addition, our centralized support operations provide underwriting and
servicing support to branch operations.
Our insurance business is conducted through Springleaf insurance subsidiaries,
Merit Life Insurance Co. (“Merit”) and Yosemite Insurance Company
(“Yosemite”), which are both wholly owned subsidiaries of SFC, and
OneMain’s insurance subsidiaries, American Health and Life Insurance Company
(“AHL”) and Triton Insurance Company (“Triton”). Merit
and AHL are life and health insurance companies that write credit life, credit
disability, and non-credit insurance. Merit is licensed in 46 states, the District
of Columbia, and the U.S. Virgin Islands, and AHL is licensed in 49 states,
the District of Columbia, and Canada. Yosemite and Triton are property and casualty
insurance companies that write credit-related property and casualty and credit
involuntary unemployment insurance. Yosemite is licensed in 46 states, and Triton
is licensed in 50 states, the District of Columbia, and Canada.
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