Sapiens International (SPNS Quick QuoteSPNS - Free Report) , a leading global provider of software solutions for the insurance industry, is benefiting from its expanding international presence. The company recently announced that its long-standing client, a tier-1 bank in South Africa, is extending the usage of CoreSuite for Life & Pensions to launch the bank’s group risk business.

Sapiens CoreSuite for Life & Pensions will enable the tier-1 bank to build a complete end-to-end, future-proofed solution for managing its group risk business.

Recently, a tier-1 bank in South Africa chose Sapiens IDITSuite for Property & Casualty in Namibia as the core system for its short-term (non-Life) insurance business. The bank already uses IDITSuite for its core short-term operations in South Africa, in addition to Sapiens CoreSuite for Life & Pensions for its Life & Annuities business.

Sapiens CoreSuite for Life & Pensions also got selected by Finland-based Aktia Life, one of the country’s top life insurers with roughly 100K customers. Moreover, LocalTapiola Life, Finland’s fourth-largest life insurer, expanded its partnership with Sapiens for a ten-year period.

Sapiens is bolstering its presence in the DACH countries (Germany, Austria, and Switzerland) to drive further growth and expansion across the region.

Sapiens International Corporation N.V. Price and Consensus

Sapiens International Corporation N.V. price-consensus-chart | Sapiens International Corporation N.V. Quote

It is also benefiting from an expanding partner base that now includes Microsoft. Its strong portfolio is helping it to win market share in the insurtech domain and win new customers.

Shares of SPNS have gained 63.9% year to date, outperforming the Zacks Computer Software industry and the broader Zacks Computer & Technology sector’s return of 41.1% and 38.3%, respectively, thanks to strong top-line growth.

In second-quarter 2023, revenues increased 8.2% year over year to $128.4 million, driven by 8.2% top-line growth in North America and 5.2% growth in Europe. Moreover, in South Africa and APAC, revenues surged 25.5% year over year.

Microsoft Partnership to Expand Clientele

Sapiens has partnered with Microsoft to integrate Azure OpenAI Service, which would help it provide generative AI solutions for insurance companies.

By integrating Microsoft Azure OpenAI and Azure Power Virtual Agents, Sapiens aims to provide generative AI solutions that enable insurance companies to navigate complex documents such as policies, terms and conditions, and more. This technology will enhance customer experience by delivering instant answers across multiple domains of customer interaction in various languages.

Furthermore, it will reduce the high volume of calls typically received by live agents and relevant personnel. The integration of AI, cognitive services, and process automation should also benefit underwriters by streamlining their day-to-day activities and reducing processing time for claims and fraud detection.

Zacks Rank & Stocks to Consider

Sapiens currently has a Zacks Rank #3 (Hold).

Check Point Software (CHKP Quick QuoteCHKP - Free Report) , Freshwork (FRSH Quick QuoteFRSH - Free Report) and Splunk are some better-ranked stocks that investors can consider in the broader sector. While Check Point Software and Freshwork carry a Zacks Rank #2 (Buy) each, Splunk sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Check Point Software shares have gained 7.5% year to date. The long-term earnings growth rate is pegged at 7.57%.

Freshwork shares have gained 57.6% year to date. The long-term earnings growth rate is pegged at 30%.

Splunk shares have gained 44% year to date. The long-term earnings growth rate is pegged at 24.71%.