LexisNexis® Risk Solutions today announced it has entered into a definitive agreement to sell its Insurance Software Solutions business to the San Francisco-based private equity firm Genstar Capital.
The Insurance software business is a provider of policy administration software for the property and casualty (P&C) insurance industry. Based in Hartford, Conn., with additional offices in Dallas, Redwing, Minn. and Melville, N.Y., the business has approximately 400 employees and serves more than 100 insurers from startups to Tier 1 carriers.
"The data and analytics business is the focus of our Insurance portfolio as we continue to help our customers make faster, more accurate underwriting and policy-pricing decisions, reduce claims losses and improve their client's experience," said James M. Peck, CEO, LexisNexis Risk Solutions. "After careful review, we have decided that the insurance software business, which provides and creates policy administration software, would be better aligned with an organization like Genstar, which has extensive experience in software and the insurance industry."
In recent years, Genstar has built an extensive portfolio of businesses focused on bringing insurance and other vertical software solutions to the market. By joining the Genstar portfolio, Insurance Software Solutions will be able to leverage a wide range of specialist resources and operating expertise to support its future expansion and development.
Following completion of the transaction, Jeffrey Glazer, CEO, Insurance will be leaving LexisNexis to lead the Insurance Software Solutions business, which Genstar expects will be renamed Insurity. The insurance data and analytics business will continue to be led by Bill Madison and Peter Lynch will continue to be responsible for the LexisNexis Insurance Exchange. Both Mr. Madison and Mr. Lynch are 20-year veterans of the insurance industry with distinguished careers, and they will now report directly to Mr. Peck.
The transaction is subject to customary conditions and regulatory consents and is expected to close by the end of 2011.