MajescoMastek, a New York-based provider of insurance core systems and services to 80 North American insurance carriers, announced today that its parent company Mastek (Mumbai) will demerge its insurance technology business as a separate company. The proposed restructuring is subject to necessary shareholder and legal approval and expected to be fully operationalized in the second quarter of 2015.
Mastek’s board of directors has approved a proposal to consolidate its global insurance businesses into what it calls a single, distinct entity under the Majesco name. The proposal will enable Mastek to roll up the entire technology value chain under one company serving more than 100 insurers worldwide, according to a MajescoMastek statement. Majesco will be an independent, publicly listed company in India subject to regulatory approvals according to the statement.
“The world-wide insurance industry is in the midst of a once-in-a-generation modernization cycle, providing an excellent opportunity for Majesco to gain a large share in the growing market,” comments Ketan Mehta, current CEO of MajescoMastek, who will take on the same duties for the new entity. “Majesco, as an independent company, will be better positioned to pursue a domain-centric business model and make necessary investments in R&D, talent development and brand building.”
MajescoMastek identifies the following as among the key benefits of the proposed restructuring:
- Dedicated management team focused on a single business vertical.
- Independent pursuit of growth plans through organic and inorganic means.
- Ability to leverage cross border synergies between insurance clients across geographies.
- Wider spectrum of intellectual property offerings to global customers and market need.
- Providing an opportunity for shareholders to participate in the insurance business
“Majesco will be poised to be the one-stop technology solutions provider for insurance carriers globally,” adds Mehta.