For insurance intermediary sector through ‘Mrald’
London, United Kingdom, 23 December 2021
Mphasis, (BSE: 526299; NSE: MPHASIS), an Information Technology (IT) solutions provider specialising in cloud and cognitive services, in 2020 announced a deal with the Specialty Broking Segment of The Ardonagh Group (“Ardonagh”) – the UK’s largest independent insurance intermediary, to transform how they engage with clients, colleagues, carriers and regulators. This project entailed digital transformation, data, automation and managing back- office Operations.
Expanding on this, in 2021, Mphasis and Ardonagh agreed to set up a shared services entity to service middle and back-office functions, while applying digital transformation. To execute on this, Mphasis and Ardonagh, today signed a Business Venture Agreement wherein, Mphasis acquires 51% in Mrald Limited, a company incorporated and registered in England and Wales, with 49% of the equity remaining with Ardonagh. Mrald’s inaugural service is Application Development and Maintenance (ADM) functions, with the aim to expansion in two areas:
- Insurance operations and technology capabilities; and
- New clients across the Ardonagh and 3rd party clients in the insurance intermediate market.
Mrald’s mission is to deliver innovation combined with operational, technological, and service excellence. Mrald is focused on enhancing broker – client relationships through data-driven insights while allowing brokers to scale for increased client engagement. Benefits to clients include:
- Enhanced end customer experience and cost-efficiency.
- Best practices in systems, processes, management, offices, and work from home; and
- Reduced costs of operations by realising real economies of scale.
Mphasis holds a majority share (51%) with both operating control and full economic interest, as well as bringing their existing offshore expertise to constitute an extended global outsourcing & transformation proposition and capability that can be harnessed to personalise and to meet individual UK customer needs.
“In Mphasis, we have found a partner with capital, expertise, and assets to accelerate our focus on enhancing our digital broking capabilities. This expansion of our existing and long-term relationship is an important step forward in accelerating our shared ambitions. said David Ross, Chief Executive Officer, Ardonagh Group.
“Having successfully executed at least half a dozen similar transformational partnerships in this industry, we are confident of building a service model for the future and ensuring a ‘client-first’ approach. Enhancing Broker-Client relationship and experience powered by data driven insights is core to AG. We have been working with AG since 2016 to strengthen their servicing, infrastructure, and client engagement platform. We are excited to elevate our relationship to support future growth by helping augment their operating agility, flexibility and jointly create a service delivery model for the future,” said Nitin Rakesh, Chief Executive Officer and Managing Director, Mphasis. He added, “This also opens up opportunities for the business venture to attract and service other clients in this space. The global insurance brokers market is expected to grow from $88.16 billion in 2020 to $113.99 billion in 2025*. Together with AG’s leadership, we believe we are uniquely positioned to take advantage of the high potential Insurance Intermediary market”.
* Source: Research and Markets, 2021
Safe Harbor:
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, intense competition in IT services, wage increases in India, our ability to attract and retain highly skilled professionals, our ability to manage our international operations, reduced demand for technology in our key focus areas, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies, and general economic conditions affecting our business and industry. We may, from time to time, make additional written and oral forward-looking statements. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.
