Building on their recently established relationship, The Ardonagh Group and Mphasis, an IT solutions provider specialising in cloud and cognitive services, have agreed to setup a shared service entity for middle and back-office functions while applying digital transformation.
Last year, Mphasis entered into a deal with the Specialty Broking Segment of Ardonagh to transform how they engage with clients, colleagues, carriers, and regulators.
Expanding on the 2020 deal, the pair have signed a Business Venture Agreement which sees Mphasis acquire 51% in Mrald Limited, with 49% of the equity remaining with Ardonagh.
Mrald’s inaugural service is Application Development and Maintenance (ADM) functions, with the aim to expand in both insurance capabilities and new clients across the Ardonagh and third-party clients in the insurance intermediate market.
An announcement on the deal states that Mrald’s mission is to deliver innovation combined with operational, technological, and service excellence.
Mphasis holds a majority share in the entity with both operating control and full economic interest, as well as bringing their existing offshore expertise to constitute an extended global outsourcing & transformation proposition.
David Ross, Chief Executive Officer (CEO) of The Ardonagh Group, commented: “In Mphasis, we have found a partner with capital, expertise, and assets to accelerate our focus on enhancing our digital broking capabilities. This expansion of our existing and long-term relationship is an important step forward in accelerating our shared ambitions.”
Nitin Rakesh, CEO and Managing Director, Mphasis, said: “Having successfully executed at least half a dozen similar transformational partnerships in this industry, we are confident of building a service model for the future and ensuring a ‘client-first’ approach. Enhancing Broker-Client relationship and experience powered by data driven insights is core to AG.
“We have been working with AG since 2016 to strengthen their servicing, infrastructure, and client engagement platform. We are excited to elevate our relationship to support future growth by helping augment their operating agility, flexibility and jointly create a service delivery model for the future.
“This also opens up opportunities for the business venture to attract and service other clients in this space. The global insurance brokers market is expected to grow from $88.16 billion in 2020 to $113.99 billion in 2025*. Together with AG’s leadership, we believe we are uniquely positioned to take advantage of the high potential Insurance Intermediary market.”
