The FINEOS Corporation Holdings PLC (ASX: FCL) share price is rising after the company announced a new contract for its platform. At the time of writing, the insurance software company's shares are trading at $4.05, up 4.1%.
What's the deal?
Investors are pushing the FINEOS share price higher after digesting the company's latest positive news.
In its announcement, FINEOS advised that it has signed a deal with American Public Life Insurance Company (APL).
Founded in 1945, APL is a leading supplemental insurance company that offers a range of customised products. This includes gap, accident, hospital indemnity, critical illness, cancer, short-term disability, dental and life insurance policies.
Under the agreement, APL will integrate FINEOS' cloud-based platform for new business and underwriting across 8 lines of businesses. The deal will enable APL to streamline and automate quoting, rating, and underwriting processes.
This comes as APL seeks to improve its operational efficiency and roll out 3 new product lines to market. The other 5 existing product lines, expected to be licenced, will also employ the FINEOS cloud-based platform.
FINEOS noted that it had achieved outstanding success since its 2020 go-live date of its FINEOS platform. So far, 10 major carrier clients have adopted the system, including 8 installations and 7 upgrades of the FINEOS Platform for employee benefits.
The Software-as-a-Service (SaaS) contract will run for an initial period of 5 years. FINEOS said it has already factored revenue generation in its most recent guidance update announced on 24 February.
What did management say?
APL president and CEO Jerry Horton touched on the advantages of integrating FINEOS' systems, saying:
By leveraging the FINEOS Platform, we'll be able to improve user experience with a powerful core system that automates processes which have historically been manual for us.
This partnership will enable us to speed up quote turnaround time, improve accuracy, and reduce risk to drive our organization's growth and strategic innovation. Our customers will benefit from better service because of our decision to move from on-prem legacy systems to the cloud-based FINEOS Platform.
FINEOS CEO Michael Kelly went on to add:
We're thrilled about this partnership with APL and look forward to supporting them in achieving their organisational goals.
With the FINEOS Platform for New Business & Underwriting, APL will be able to provide a superior digital user experience at every touchpoint of their quoting, rating, and underwriting processes.
FINEOS share price review
Despite a wobbly start to the year, the FINEOS share price has gained just over 5% year-to-date. However, looking at a broader picture, its shares have risen almost 40% in the past 12 months.
FINEOS has a market capitalisation of around $1.1 billion at the current share price, with 301 million shares on issue.
