NIIT: Non-life insurance foray
Emkay Research recommends a “buy” on NIIT. The company recently acquired a controlling interest in ROOM Solutions, a $ 25 million, UK-based insurance solutions provider.
The report states the acquisition gives NIIT entry in the non-life insurance domain. ROOM’s clientele include few of the largest insurance and re-insurance providers such as AIG, Munich Re, Swiss Re and Thomas Miller.
ROOM has its own platform, Subscribe, to process policy administration. NIIT intends to use this platform to enhance its BPO offerings.
ROOM Solutions is focused on the commercial insurance market and its offerings include IT solutions to the customers of Lloyd’s, which has a substantial share in the re-insurance market in London.
NIIT derives around 35 per cent of its revenues from the BFSI space, with 15-20 per cent coming from the insurance segment.