Bankers Insurance selects Sapiens for core system modernization

ST. PETERSBURG - Bankers Insurance Group, a specialty commercial carrier, has selected Sapiens International Corporation’s (NASDAQ:SPNS) CoreSuite for Property & Casualty to modernize its core systems, according to a press release issued Wednesday.

The Florida-based insurer plans to implement the technology platform initially for its builder’s risk and business owner’s policy products, with additional product launches to follow. The implementation is part of Bankers’ strategy to expand into new states and product lines. While Sapiens’ stock appears overvalued according to InvestingPro’s Fair Value analysis, the company maintains strong fundamentals with 11 consecutive years of dividend payments and an excellent financial health score.

"This transformation is about enabling our people and empowering our trading partners, not just upgrading systems," said Walt Sykes, President of Bankers Insurance Group, in the statement.

The company aims to transition from its legacy system to Sapiens’ cloud-native SaaS solution, which is designed to reduce manual processing and improve service levels. The platform includes automated decision-making, reinsurance, data analytics, and digital applications.

Roni Al-Dor, President and CEO of Sapiens, stated that the company’s solution "will deliver agility, ongoing innovation, and access to next-generation insurtech ecosystems."

Bankers Insurance Group, a subsidiary of Bankers Financial Corporation, specializes in managing the impacts of hurricanes and flooding in the Southeastern United States. The company reports having navigated over 40 significant catastrophic events since its founding in 1976.

Sapiens International Corporation provides SaaS-based software solutions to more than 600 insurance customers across 30 countries, according to the press release. With annual revenue of $549 million and a "GREAT" financial health rating from InvestingPro, the company demonstrates strong market positioning. Investors can access detailed analysis and 12 additional ProTips about Sapiens through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

In other recent news, Sapiens International Corporation announced an acquisition agreement with Advent, a private equity firm, in an all-cash transaction valued at approximately $2.5 billion. This deal offers Sapiens shareholders $43.50 per share, a 64% premium over the company’s previous closing price. Following the announcement, Needham downgraded Sapiens’ stock rating from Buy to Hold. Additionally, reports surfaced that Formula Systems, Sapiens’ parent company, is in advanced talks to sell its controlling stake at a valuation of about $2 billion.

Sapiens also received a reaffirmation of its long-term issuer rating of "ilAA-" with a stable outlook from Ma’alot S&P Global. This rating extends to the company’s Series B Debentures traded on the Tel Aviv Stock Exchange. Furthermore, Sapiens introduced an upgraded version of its CoreSuite policy administration system for life insurance, incorporating AI-powered features to enhance operational efficiency for insurers. These developments mark significant milestones for Sapiens in recent times.

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