EXL Acquires P&C Underwriting Support Services Firm Overland Solutions

The deal enhances EXL’s position in the P&C industry through Overland Solutions’ domain expertise, proprietary technology and client relationships, while also expanding the firm’s onshore delivery capabilities.

(Night view of Country Club Plaza in the Kansas City metropolitan area, home to Overland Solutions. Photo credit: H.N. Grange.)

Business process solutions vendor EXL (New York) has announced the acquisition of Overland Solutions, Inc. (Overland Park, Kan.), a provider of underwriting support services, including premium audit, commercial and residential underwriting surveys and outsourced loss control services, through $53 million cash transaction.

An EXL statement asserts that the deal will enhance EXL’s position in the P&C industry through Overland Solutions’ domain expertise, proprietary technology, and client relationships which include 21 of the Top 25 P&C insurers.  The acquisition also adds to EXL’s on-shore delivery capabilities with Overland Solutions’ nationwide footprint.

Rohit Kapoor, Vice Chairman & CEO, EXL.

Rohit Kapoor, Vice Chairman & CEO, EXL.

The acquisition is consistent with EXL’s strategy of being a leader in operations management and analytics in select insurance verticals, according to the company’s vice chairman and CEO Rohit Kapoor. “Overland Solutions brings a talented team of professionals with an impressive wealth of P&C insurance knowledge,” Kapoor says. “Their products greatly enhance EXL’s suite of end-to-end BPaaS solutions for P&C insurers, and we see opportunities to develop new analytics solutions in underwriting analysis and loss control prediction.”

EXL’s overall presence in the insurance industry, as well as the firms having many clients in common, made the combination of their capabilities a compelling proposition, according to Michael Ferguson, president and CEO, Overland Solutions. “Leveraging EXL’s world-class operations management expertise will assist our clients with enhancing productivity and decreasing cost,” Ferguson comments. “We have high regard for the quality of the management team and we are excited to join EXL.”

Expanded U.S. Presence

Overland Solutions’ leverage of proprietary workflow technology along with transaction-based pricing models aligns well to EXL’s clients’ demand for P&C BPaaS outsourcing solutions, according to Vikas Bhalla, executive VP and head of insurance, EXL. . “Overland also expands EXL’s U.S. presence, and its rich data set enhances our EXLerator framework, which delivers significant business impact and a return on outsourcing, a unique delivery model in the industry,” Bhalla comments.

Overland Solutions’ Audit segment provides critical information on risk and exposures for carriers and their regulators, according to an EXL statement.  Overland’s Survey segment works with residential and commercial underwriters and managing general agents to understand underwriting risks, identify loss prevention opportunities and survey individual properties for replacement cost valuations.  By leveraging its scale and expertise to perform these services for its clients, Overland Solutions helps clients increase their revenue and manage their operational costs, the statement asserts.

A consideration of $53 million was funded from existing cash resources on our balance sheet to execute the deal, according to the EXL statement.  The transaction is expected to be immediately accretive to adjusted EPS and contribute approximately $10 million of revenue in the fourth quarter, EXL reports.

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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