LexisNexis Risk Solutions said it is selling its property/casualty insurance software business to a San Francisco-based private equity firm, Genstar Capital.
The division being sold provides policy administration software for the property/ casualty 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, according to LexisNexis.
LexisNexis is not selling the Insurance Exchange, its highly-touted collaborative insurance risk placement platform and proposal software for agents, brokers, wholesalers and carriers. That is considered part of its data and analytics operations.
“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,” Peck said.
The insurance products being sold include ones for policy decisions for both commercial and personal lines, claims, billing, Insurance Enterprise View as well as hosting/ASP services.
Following completion of the transaction, Jeffrey Glazer, who presently serves as CEO, Insurance, will be leaving LexisNexis to lead the insurance software business for Genstar. Genstar said it hopes to call the business Insurity, the name of the original insurance software firm founded by Glazer and assumed by LexisNexis.
The insurance data and analytics business that LexisNexis is retaining will continue to be led by Bill Madison. Peter Lynch will continue to be responsible for the LexisNexis Insurance Exchange. Both Madison and Lynch will now report directly to Peck.
The transaction is expected to close by the end of 2011. No terms were disclosed.
Glazer, who presently serves as CEO, Insurance, LexisNexis, stated that he is “thrilled to be reunited with the Insurity team and excited to be providing new capabilities to their strong and premier customer base.”
This is not Genstar’s first investment in the insurance market. Since 2008 the firm has been building Confie Seguros into a national insurance distribution company focused on Hispanic consumers. In addition, Genstar in 2010 invested in Granite Global Solutions, a Canadian provider of risk mitigation services to insurance and corporate clients.
LexisNexis is owned by Reed Elsevier, a global publishing firm.