Polaris to double revenue from insurance vertical

CHENNAI - The city-based banking software major Polaris Software Lab hopes to double its revenue to $40 million next year from insurance vertical following the acquisition of US-based insurance product and component services player SEEC Inc., said a top company official here Tuesday.

Last November, the company’s Singapore subsidiary acquired SEEC for around Rs.370 million (Rs.37 crore).

Replying to analysts Tuesday after declaring the company’s third quarter results, Polaris chairman and managing director Arun Jain said: ‘We are entering the insurance vertical in a significant way. We have a total of 40 clients now - 20 of Polaris and 20 from SEEC.’

While modernisation of legacy systems in insurance companies will form the backbone for Polaris in the insurance vertical, it will also look at offering front office solutions, Jain added.

For the third quarter ended December, Polaris’ net profits rose 94 percent to Rs.371 million compared to Rs.191 million in the corresponding period last fiscal.

The revenue of the company grew by 32 percent to Rs.3.72 billion during the third quarter as against Rs.2.82 billion in the corresponding period last year.

Also, Polaris declared an interim dividend of 30 percent.

Meanwhile, the share price of the company rose as the scrip opened at Rs.34.95 and closed at Rs.44.35 Tuesday.

‘In the first nine months, we have recorded over Rs.1,000 crore (Rs.10 billion) revenues. Despite the tough macro economic situation, we are confident of growing over 20 percent in FY10, with our composite portfolio of products and services,’ company’s executive director and COO Arup Gupta said.

According to Jain, ‘The company will be going beyond America and Western Europe for new business.’