American based Ebix has agreed on a deal for the purchase of Brazilian insurance solutions provider, USIX Technologies. The US firm is a provider of software and e-commerce solutions to insurers, and the transaction was closed Tuesday upon being concluded. However, Ebix is yet to reveal the value of the investment, rather stating plainly that it had utilized its cash reserves to finance the deal. The transaction allows Ebix to foray into the Brazilian property, casualty and life insurance exchange market.

The Brazilian causality and life insurance market is the world’s fastest growing sector markets. This fresh acquisition adds to Ebix Latin AmericaaEUR(TM)’s processing solutions portfolio in Brazil and will subsequently turn Ebix into the one-stop enterprise solutions supplier to bigger insurers in Brazil. The deal is expected to generate value for Ebix shareholders in the short and long-terms, the US Company said.

Ebix, Inc. is a leading international supplier of On-Demand software and E-commerce services to the insurance industry. The investment agreement will see it acquire the Rio de Janeiro-based Insurance Exchange, USIX Technologies Inc. USIX was acquired by Sao Paulo based Ebix Latin America, the existing subsidiary of Ebix Singapore. It is expected to be accretive to Ebix Earnings per Share (EPS).

USIX Technologies is a provider of Exchange solutions for the insurance industry in Brazil, specializing in Internet interface solutions for insurance companies and their agents. USIX's portfolio of Exchange solutions includes; pricing, multi-quoting for brokers, underwriting, contract binding and broker system solutions. The solutions are used in the Motor, Property and Life (individual and group life) sectors of the insurance industry in Brazil.

USIX solutions are utilized by some of the largest insurance companies in Brazil including the largest insurance carrier in Latin America, Bradesco Seguros and the 2nd largest carrier, SulAmerica. USIX's customer base for its exchange solutions includes local names like Bancobras, Banrisul, Porto Seguro, Brasilveiculos Seguros, HDI Seguros, HSBC, MAPFRE Seguros, and Liberty Seguros, in addition to Bradesco and SulAmerica.

The Company also provides Internet based On-Demand solutions to purchase two-wheeler insurance at dealerships of Honda, Yamaha and Sundown Motors across Brazil. USIX is presently in the process of implementing an on-demand exchange based Broker system solution for the thousands of Brokers of Bradesco Seguros.

The solution is targeted to be deployed across 30,000 brokers of Bradesco. In total, the Brazilian insurance industry comprises around 140 companies, which range from small locally owned companies to large multi-national organizations.

29 Sep 2010.