Insurance software company Sapiens International NV (Nasdaq: SPNS; TASE: SPNS) announced a contract today with LB Group, a member-owned insurance company based in Denmark, estimated to be worth over €10 million. LB Group, which has approximately 950,000 policies and more than 375,000 members, has selected the Sapiens IDIT Insurance Suite as its new core insurance system for its general lines of business.
The agreement covers the launch of 26 products over the next two years and implementation for four LB Group brands.
"The insurance market is moving fast and LB Group must be able to quickly adapt to changing demands," said LB Group CEO Anne Mette Toftegaard, "We chose Sapiens IDIT for its ability to support a fast time to market for new products and efficient maintenance and enhancement of existing products. The suite will also enable our members to interact with LB Group through innovative digital technology and will support growth from new customer groups and lines of business, while sustaining our position as the insurance company with the lowest costs in Denmark."
Key to the selection was the strategic relationship between Sapiens and LB Group, who previously selected Sapiens Reinsurance to manage its reinsurance programs and help the company comply with European regulations.
"Existing and prospective customers are increasingly engaging Sapiens in conversations about how to future-proof in relation to technology, architecture and strategy, to evolve with the business," said Raj Ghuman, vice president of sales and operations for Sapiens Europe, "We are pleased that LB Group's trust in Sapiens led to an expansion of our relationship and our footprint in the important Nordic region."
Sapiens, headed by Roni Al-Dor, is part of the Formula group, which is controlled by Polish company Asseco. It has a market cap of $630 million, after a 26% rise in ist share price since the beginning of 2016.
A month ago, Sapiens reported a $10 million contract with Israeli insurance company Menorah Mivtachim Holdings Ltd. (TASE: MORA).
In the first half of 2016, Sapiens had revenue of $103 million and a net profit of $10.2 million ($12.2 million on a non-GAAP basis). With the release of its second quarter results, Sapiens raised its annual revenue guidance but cut its guidance for operating profit. The company expects revenue of $211-215 million for 2016, representing growth of 18-20% over 2015, and a non-GAAP operating profit margin of 13.5-14%.
Published by Globes [online], Israel business news - www.globes-online.com - on October 10, 2016
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