Special coverage finds mutual approval. (FMR Corp. risk management vice president Judy M. Lindenmayer's new captive insurer)(1997 Risk Manager of the Year)(Cover Story)

Business Insurance, April, 1997 by Lenckus, Dave

An alternative risk-financing method that FMR Corp. officials say they never intended to publicly announce could end up bolstering the company's money market funds sales. To protect both subsidiary FMR Co. and the shareholders of the Fidelity Investments money market funds it manages against the risk of share prices falling below par, Judy Lindenmayer and her risk management team, her broker, a reinsurer and FMR Corp.'s legal office joined forces to create a captive insurer that would restore a Fidelity fund's share price to par value if the share price ever falls below $1.

The effort, which awaits approval from federal securities officials, was driven purely by the company's desire to protect itself against such a mishap, said Ms. Lindenmayer, vp-Fidelity...

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