Last checked at 29 Apr 2013 07:00
29 April 2013
The Innovation Group plc
('Innovation Group' or the 'Group')
New Strategic Partnership with Leading Insurer
The Innovation Group plc (LSE: TIG.L), a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries, is pleased to announce a significant strategic partnership with AXA France.
Nobilas France, a subsidiary of Innovation Group in France, currently provides motor accident management services to AXA France, processing claims which generate revenue for the Group of circa €5.6m per annum. The new strategic agreement is initially targeted to increase the number of claims steered by AXA France to Nobilas France by 75% by the end of 2015.
Over the past seven years Innovation Group in France has worked closely with AXA France to achieve significant reductions in claims costs through efficient motor claims repair processing and tight control of the supply chain whilst at the same time maintaining high levels of customer satisfaction. The new strategic agreement also aims to further expand the benefits delivered by Innovation Group to AXA France in terms of quality, customer service and cost savings whilst at the same time increasing the Group's supply chain revenues through better procurement deals. This partnership is in recognition of the efficiency of the Group's combined Business Process Services and Technology Solutions.
To further strengthen the partnership, a subsidiary of AXA France has acquired a 30% shareholding in Nobilas France for a cash consideration of €3.45m. In the year to 30 September 2012 Nobilas France reported revenue and profit before tax of €14.4m and €0.8m respectively. Gross assets at 30 September 2012 were €22.1m. This transaction, which will be earnings neutral for the remainder of the current financial year is expected to be significantly earnings enhancing from 2014.
Innovation Group in France uses Insurer Enterprise, the Group's in-house developed software, to process the AXA France claims. Insurer Enterprise is critical to the efficient processing of claims and it has been recently enhanced with the integration of Innovation Connect Enterprise suite, a body shop and supply chain performance management tool. Innovation Group in France pays a transactional royalty charge to the Group for the use of this technology suite.
Welcoming the news Andy Roberts, Chief Executive Officer of The Innovation Group commented:
"This new strategic partnership with AXA France is a major step forward for our European business and is testament to our unique combination of Enterprise technology and skills of our people. Over the next two years and beyond, this partnership will secure major additional revenue growth and return for the Group."
Enquiries:
The Innovation Group plc | Tel: +44 (0) 1489 898 300 |
Andy Roberts, Chief Executive Officer | |
Jane Hall, Group Finance Director Louise Fisk, Head of Global Communications | |
FTI Consulting LLP | Tel: +44 (0) 20 7831 3113 |
Edward Bridges / Matt Dixon / Tracey Bowditch/ Elodie Castagna |
About Innovation Group:
Innovation Group (LSE: TIG) is a global provider of insurance software solutions and business process services. With revenues of £193m (US$ 302m) in 2012, it employs over 2,400 people across North America, Europe, Asia Pacific and South Africa and works with 15 of the top 20 global insurance markets, 16 of the top 20 global insurance companies and 3 of the world's top 5 fleet and lease management companies.
www.innovation-group.com