Back to top

Analyst Blog

Accenture (ACN - Analyst Report) will offer its Software as a Service (SaaS) solution to Berkshire Hathaway Specialty Insurance (BHSI) to improve its business process. Per the agreement, Accenture will leverage its cloud platform to streamline BHSI’s business process thereby optimizing its operating costs.

Moreover, BHSI will be using Accenture Duck Creek Suite to better serve its clients by efficient claim management techniques and billing processes.

Accenture has been serving the insurance vertical for years. Continuous insurance deal wins underscore the efficacy and popularity of its services. This has also positively impacted its revenues.

In the last reported quarter, Financial Services revenues, which combine banking, capital markets and insurance, increased 4% year over year and helped Accenture register 1% increase in revenues. Other operating segments were either down or remained flat on a year-over-year basis.

It is worth mentioning that Accenture’s foothold in the insurance solutions market was further strengthened by the acquisitions of Duck Creek (Jul 2011) and avVenta (Oct 2012). Synergizing these acquisitions has enhanced Accenture’s insurance platform, which, in turn, is helping insurance providers to adapt to the changing market conditions, gauge future requirements and run high-performance businesses.

Nonetheless, the competition in the insurance sector is also increasing with players like IBM (IBM - Analyst Report), Computer Sciences Corp. (CSC - Analyst Report) and Hewlett-Packard Co. (HPQ - Analyst Report) coming up with cost-effective solutions.

These companies have also started aggressive marketing to grab a chunk of the insurance market, with a special focus on the emerging ones. Thus, we believe that Accenture has to come up with innovative and customized solutions for its insurance customers to maintain its current position in the market.

Currently, Accenture has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%