ADPreason 03 of 4it owns a thing that cannot be built or permitted twicederived 2026-08-20accession 0000008670-26-000030
The PEO segment bundles HR, benefits, and workers' compensation administration for small and mid-size employers who cannot replicate scale-based insurance underwriting and compliance capabilities. The reinsurance structure caps catastrophic loss exposure while ADP retains spread income. This co-employment model creates recurring, compliance-driven revenue that is difficult for clients to self-replicate.
the thesis · admitted · the reason above is the thesis, not printed twice
no findingread · nothing bore on it
It held on this filing. No finding was written because nothing in it bore on the reason — the sentences it was read against are below.
the evidence · every sentence checkedfour sentences · whole, uncut
the claims it rests on
“PEO revenues are net of direct pass-through costs of $81,123.2 million in fiscal 2026, up from $75,220.1 million in fiscal 2025”
“PEO provides workers' compensation insurance and administers state unemployment insurance”
“ADP Indemnity reinsures substantially all workers' compensation losses up to $1 million per occurrence through Chubb, paying a premium of $278.0 million for fiscal 2026 and $327.8 million for fiscal 2027”
“ADP Indemnity had total assets of $824.4 million against actuarially estimated unpaid losses of $774.3 million”