Oracle has announced that it has agreed to acquire AdminServer, a provider of insurance policy administration software. AdminServer's product offering will become a core component of Oracle's existing insurance industry software that is used by more than one thousand insurers, including 20 of the top 20 global insurance companies.
The AdminServer product line will significantly accelerate Oracle's investment in the insurance industry and be complemented by Oracle's existing insurance products such as Oracle Billing, Siebel Claims and Siebel CRM for Insurance.
The combination of Oracle and AdminServer will result in a comprehensive, end-to-end insurance policy management solution that can manage multiple insurance product lines such as life, annuities and reinsurance. Additionally, AdminServer's management and employees will form a dedicated global business unit within Oracle, which will focus on providing critical operational applications to the insurance industry.
AdminServer's CEO Rick Connors is expected to lead the business unit as general manager.
Most insurers still rely on legacy policy administration applications that are extremely inflexible and impede enterprise agility and efficiency," said Oracle president Charles Phillips. "Together, Oracle and AdminServer plan to deliver the most modern, comprehensive, standards-based and well-integrated enterprise software suite for the insurance industry."
To meet their growth and profitability goals, insurers need flexible software systems that can effectively support new product introductions, sales channel diversity and cost reduction," said AdminServer president and CEO Rick Connors. "We expect our combined solutions will deliver insurers greater business insight and increased customer loyalty."
The transaction is expected to close in the first half of 2008. Until the deal closes, each company will continue to operate independently.
Financial details of the transaction were not disclosed.