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Sapiens Benefits from Expansion of International Footprint

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Sapiens International (SPNS - Free Report) is benefiting from an expanding international footprint, driven by portfolio strength and solid partner base.

In the trailing 12 months, the Israel-based company’s solutions have been selected by the likes of Hollard Group, Equitable Life of Canada, Hong Kong-based King Wai, MSV Life, The Folksam Group, Gjensidige Group, Montana-based Farmers Union Mutual Insurance Company, Dentists’ Provident, among others.

Customer wins helped Sapiens expand presence in South Africa, Canada, Malta, Thailand, Sweden, Denmark, the United States, the U.K. and Ireland.

Notably, the company generated revenues of $82.6 million in third-quarter 2019, up 12.8% year over year. While North America generated 53.7% of total revenues, Europe, the Asia Pacific and South Africa contributed 36.6%, 5% and 4.7%, respectively, to the same.

 

Sapiens’ Solutions Selected By Croatian Insurer

Croatia Osiguranje recently selected Sapiens for the digitalization of its Property & Casualty (P&C), Health insurance and claims handling segments. The company will use Sapiens’ IDIT Suite for Property and Casualty, Sapiens ReinsuranceMaster, and various other tools.

Sapiens’ solutions are expected to drive Croatia Osiguranje’s sales force and further speed up its time to market. Moreover, it will optimize Croatia Osiguranje’s operations through automation and business process simplification.

Partnerships Help Sapiens Win Customers

Strength in Sapiens’ partner base is helping it win customers in international markets. The company partnered with the likes of Lightico, Kovvr and FRISS. This enabled it to leverage emerging technologies like machine learning, IoT and blockchain.

For instance, the partnership with Kovrr, which is a predictive cyber risk modeling firm, helps Sapiens provide real-time, data-driven insight into cyber risk exposure. It also assists clients in meeting regulatory requirements and avoiding policy losses.

Moreover, Sapiens partnered with FRISS, which is an automated fraud detection and risk assessment leader in the P&C insurance sector.

Both partnerships expanded Sapiens’ product offerings and made innovative insurtech solutions easily available to its clients. This helped the company to counter competition in the Insurtech market, which per Technavio, is expected to witness a CAGR of 41% by 2023.

Notably, Sapiens raised top-line guidance for 2019, following its impressive third-quarter results. The company now expects revenues of $323-$325 million, up from the higher end of $318-$323 million range provided earlier.

Zacks Rank & Other Stocks to Consider

Sapiens currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are Baidu (BIDU - Free Report) , Marchex (MCHX - Free Report) and CommVault Systems (CVLT - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Baidu, Marchex and CommVault are currently pegged at 2.3%, 15% and 10%, respectively.

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