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Indian IT company Mphasis announced that it is signing a Business Venture Agreement with UK-based insurance intermediary Ardonagh to set up Mrald Ltd, a company incorporated and registered in England and Wales. The Indian IT company will hold 51 per cent.
Ardonagh will own the remaining equity of 49 per cent.
Mrald’s inaugural service is Application Development and Maintenance (ADM) functions, with the aim to expand in two areas: insurance operations and technology capabilities; and onboarding new clients across Ardonagh and third-party clients in the insurance intermediate market.
This joint venture deal is an expansion of the previous deal signed in 2020 for its Speciality Broking Segment to transform how they engage with clients, colleagues, carriers and regulators. As a part of deal expansion in 2021, both the companies agreed to set up a shared services entity to service middle and back-office functions, while applying digital transformation, which is being done by starting Mrald.
With majority stake, Mphasis will have both operating control and full economic interest, as well as bringing their existing offshore expertise to constitute an extended global outsourcing and transformation proposition and capability.
“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,” said David Ross, Chief Executive Officer, Ardonagh Group.
Nitin Rakesh, Chief Executive Officer 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.”
He added, “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, according to Research and Markets, 2021. Together with AG’s leadership, we are uniquely positioned to take advantage of the high potential Insurance Intermediary market.”
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