Virginia-based Computer Sciences Corp. (CSC) announced that it has inked a licensing agreement with a leading life insurance carrier in Canada. Notably, the carrier is one of the top 10 insurance companies in the region as determined by A.M. Best Company, a credit rating firm focused on banking and insurance sectors. Financial terms were not disclosed.
Under the agreement, Computer Sciences has licensed its Wealth Management Accelerator software to manage the insurance company’s annuity payout business. The software expedites the launch of new products by insurance companies and provides policy owners with a single platform for both asset accumulation and asset disbursement after maturity.
A company source stated that Wealth Management Accelerator has been deployed by five insurance companies in the last four months, indicating the growing demand for the solution. Apart from this, Computer Sciences’ New Business Accelerator (nbAccelerator) software is also seeing rapidly deployment. The nbAccelerator enables insurance carriers to assess risks related to new businesses and avail of industry-specific process management solutions.
We remain encouraged by Computer Sciences’ insurance deals as they indicate the efficacy and popularity of its products. We look forward to similar deals, going forward, given the growing need for insurance, which is a reliable way of securing one’s life.
However, we are a tad apprehensive about intense competition in the IT and cloud computing space from both big and small players such as Accenture plc (ACN) and Hewlett-Packard Company (HPQ). Contract delays and foreign exchange headwinds could also have a temporary negative impact.
Currently, Computer Sciences has a Zacks Rank of #3, implying a short-term Hold recommendation.
ACCENTURE PLC (ACN): Free Stock Analysis Report
COMP SCIENCE (CSC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
Zacks Investment Research
