Accenture to Acquire NaviSys, a Leading North American Life Insurance Software and Services Provider
NEW YORK; August 17, 2006 – Accenture (NYSE:ACN) has agreed to acquire NaviSys, a privately held company that specializes in software solutions for the North American life insurance industry. Terms of the transaction, which is expected to close within the next 60 days, were not disclosed.
The acquisition will give Accenture an industry-leading life insurance platform with a full spectrum of processing capabilities, from front-office sales to back-office policy administration. Accenture will maintain and enhance NaviSys’ existing services and leverage NaviSys software to develop new business process outsourcing (BPO) services for life insurers in North America.
The new BPO services will be designed to help insurers end their dependence on legacy systems, reduce their cost structures, increase operating efficiencies, and refocus their efforts on designing and delivering new products. According to research firm NelsonHall, the market demand for outsourced business processes, such as policy administration and claims processing, and third-party administration services in the North American life insurance industry is expected to triple in size by 2010, to $2.17 billion.
“The multitude of legacy core business systems in use at most carriers today is one of the most costly and problematic operational issues facing the North American life insurance industry,” said David Hollander, senior executive in Accenture’s Insurance practice. “By acquiring NaviSys, we can help insurers overcome this problem with comprehensive solutions that enable them to reduce their cost structures, increase efficiency, and accelerate new product introductions.”
NaviSys works with more than 50 leading insurance companies and insurance distributors worldwide, including 17 of the top 20 U.S. life insurers. The company will become part of Accenture’s Financial Services operating group, which serves 44 of the top 50 insurance companies worldwide. BPO services will be delivered by Accenture Insurance Services, a unit specializing in insurance BPO.
“As part of Accenture’s Insurance practice, we will enhance the services we offer clients with the resources and scalability of a major global solutions provider,” said Michael A. Roe chairman, president and chief executive officer of NaviSys. “With deep industry expertise, proven technology leadership and extensive global sourcing assets, Accenture and NaviSys together can deliver powerful innovation to the life insurance industry.”
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 133,000 people in 48 countries, the company generated net revenues of US$15.55 billion for the fiscal year ended Aug. 31, 2005. Its home page is www.accenture.com.