P&C Technology
Following the transformation of the insurance industry through technologyArchive for xChanging
More Consolidation in TPA Industry
As reported by Bloomberg, Sedgwick purchased the US assets of Xchanging for $22.7M.
According to the Bloomberg article:
“The Operations include the workers’ compensation claims, managed care, consumer claims, professional liability claims and structured settlements operations of CISGI. Virtually all of the contracts, assets, employees, current liabilities and future service obligations have been acquired by Sedgwick, although certain liabilities and non-operational assets have been retained by CISGI. CISGI and Sedgwick have also entered into a transition services agreement to facilitate a smooth handover of the Operations.
In the year ended 31 December 2010, the Operations being disposed of recorded revenue of $113.4 million*, an operating loss before interest and tax after IFRS 3 amortisation of acquired intangibles of $(8.2) million* and an operating loss before interest and tax of $(1.4) million* excluding those charges. The gross assets being transferred have a carrying value at 31 December 2010 of $14.9 million*.”
Consolidation in TPA space for comp?
Joe Paduda writes on M&A activity in TPA space/ work comp services space- consolidating due to the dropoff in the business and continued soft market.
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