Virginia-based Computer Sciences Corp. (CSC) announced that it has inked a multi-year licensing agreement with a leading life insurance carrier in the U.S. The insurance carrier is one of the top 20 insurance companies in the country as determined by A.M. Best Company, a credit rating firm focused on banking and insurance sectors. Financial terms were not disclosed.
As per the agreement, Computer Sciences has licensed its New Business Accelerator (nbAccelerator) software, which will enable the insurance carrier to manage its new business. This software enables entrepreneurs to assess risks related to new businesses and avail of industry-specific process management solutions.
Apart from nbAccelerator, the U.S. insurance company licensed Computer Sciences’ Intelligent e-App, a Web-based software aiding insurers to gather information and fill up forms, thereby ensuring accuracy and completeness. The complete application is then electronically submitted, avoiding duplicate entry. Both products will help the carrier to improve customer service, simplify workflow, reduce risk and facilitate the maintenance of records.
A few days ago, another nationally ranked (by A.M. Best Company) U.S. life insurance and annuity carrier licensed Computer Sciences’ Wealth Management Accelerator software to manage both asset accumulation and asset disbursement on a single platform. This software helps insurance companies to rapidly launch new products and enable policy owners to manage both asset accumulation and asset disbursement after maturity, on a single platform.
We remain encouraged by Computer Sciences’ insurance deals as they indicate the efficacy of its products. We look forward to similar deals, going forward, given the growing need for insurance, which is a reliable way to secure 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 #4 Rank implying a short-term Sell recommendation.
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