MajescoMastek, which provides an array of core insurance software and services to more than 80 insurance carriers in North America, will consolidate its global insurance businesses into a separate new company.
To be called Majesco, the new entity will be an independent publicly listed company in India, subject to regulatory approvals. The move will enable MajescoMastek to offer its entire menu of insurance technology, software and services under a single company that serves more than 100 insurance companies worldwide. These include systems for policy administration, product modeling, new business processing, billing, claims, producer lifecycle management, and incentive compensation.
The proposed consolidation is expected to be completed by the second quarter of 2015, pending necessary shareholder and legal approval.
“The worldwide insurance industry is in the midst of a once in a generation modernization cycle, providing an excellent opportunity for Majesco to gain a large share in the growing market,” says Ketan Mehta, CEO of MajescoMastek, who will become CEO of Majesco Ltd. “Majesco, as an independent company, will be better positioned to pursue a domain-centric business model and make the necessary investments in R&D, talent development and brand building. Majesco will be poised to be the one-stop technology solutions provider for insurance carriers globally.”
Some benefits Majesco expects to derive from the consolidation are:
* A dedicated management team that concentrates solely on the insurance industry
* The freedom to independently pursue growth plans both organically and via acquisition
* The ability to leverage synergies among insurance clients across geographies
* A broader portfolio of intellectual property offerings for global customers
* An opportunity for investors to participate in the insurance business
Majesco’s array of software and services for the insurance industry includes property and casualty software; life, annuity, and health systems, and a variety of IT services, including business intelligence and data warehousing.
For property and casualty carriers, Majesco offers the STG Insurance Suite, which includes the STG Policy Administration system. Similarly, for the life and annuity businesses, the company offers its Elixir suite of software. Majesco IT services include application development, integration, maintenance, and support.
MajescoMastek operates a network of more than 3,600 people with operations in North America, the U.K., and Asia.
