XCHANGING SOLUTION

Xchanging provides technology-enabled business solutions to the global commercial insurance. Xchanging delivers market leading insurance software that enables business growth. It offers a comprehensive suite of products and services to the global commercial insurance industry.  

Incorporated on February 1, 2002 with operations in India, and an international presence established through subsidiaries in several countries. DXC Technology Company, ultimate holding company, is listed on New York Stock Exchange, and through its indirect subsidiaries Xchanging (Mauritius) Limited, Xchanging Technologies Services India Private Limited & DXC Technology India Private Limited, owns 75% of the outstanding share capital of the Company.

The company’s IT services comprise application implementation, custom development, testing, maintenance and support, and managed services. Their BPO services include process consulting; transaction processing, including mortgage, application, renewal, medical bill, collection, order, membership, and lead generation processing; finance and accounting services in the areas of savings and investments, credit cards, underwriting, collections, accounts payable, accounts receivable, travel and expenditures, bank reconciliation, general ledger, asset accounting, financial reporting, and financial planning and analysis; and inbound and outbound contact center services. 

In addition, the company provides claims and risk management services in the areas of workers’ compensation, general liability, auto liability, professional liability, product liability, property, personal lines, assumed/ceded reinsurance, special investigations, recoveries management, structured settlements, insurance policy set-up and administration, and managed care. They serve banking and financial services, insurance, manufacturing, and government sectors primarily in the United States, Europe, Australia, and rest of the world.

BUSINESS INFORMATION / PRODUCTS

It is the leading provider of services and technology for:

– The London insurance market

– Capital Markets

Mission-critical hubs such as London’s Gatwick Airport

• Xchanging provides technology-enabled business solutions to the global commercial insurance industry.
• It injects disruptive technology into its customers’ business processes, dramatically improving performance, adding value and reducing costs.
• By offering an enhanced range of services helps its customers compete in the digital, global marketplace.
• Xchanging’s knowledge and expertise allows it to quickly identify solutions to customers’ problems – even problems they may not yet realise they have.

Xchanging has 7,000+ employees in 48 countries including over 2,500 insurance specialists.

INSURANCE SOFTWARE

Xuber is an international software business that has been a trusted provider of innovative specialist commercial insurance software, end-to-end, for over 40 years. Xuber transforms business performance and ensures continuity for many of the largest global carriers, health insurers and London market . £120 million in ongoing development, and over 40 years’ insurance market experience.

In 2015, Xuber secured 30 new contract wins with new and existing customers, in addition to growing existing business. Customers include Aon, Ariel Re and Cigna.

Company has invested over £20m in the latest release of the Xuber. With over 160 successful implementations worldwide, Xuber is the number one insurance software product in the insurance market. Every year, Xuber is trusted to process over £80 billion of insurance premiums.

The smooth delivery of large-scale software change is what we do. Xchanging has over 130 customers in 40 countries using Xuber Insurance Software to reduce risk and improve business performance.

The only software house offering multiple deployment options to customers: on-premise traditional license model, Software as a Service (SaaS) through the cloud, privately hosted facility or we can provide complete business processing as a service for all customer types.

Xuber has created software solutions for the insurance and reinsurance markets of today – and the future.

Its insurance software sits at the heart of 200 global insurance and reinsurance companies across 46 countries, delivering critical technology – all day, every day.”

BUSINESS PROCESS SERVICE FOR THE GLOBAL INSURANCE MARKET

Company provides global services and technology developed by insurance specialists for insurance specialists. By adapting and growing with the global insurance market for over 15 years, Xchanging has been pioneering technology-enabled 

Xchanging sits at the heart of the London commercial insurance market and has been recognised as the no 1 provider of services and technology since 2001.

In just a few years, Xchanging has transformed premium and claims processing for the Lloyd’s insurance market from 100% paper to 95% electronic.

Xchanging processes over £50 billion of accounting transactions each year and delivered £131 million in savings.

Xchanging not only manages, but enhance, its customers’ complex back and middle office processes.

BUSINESS PROCESS SERVICE FOR SPECIFIC INDUSTRIES

Providing next-generation business services to the Financial Services, Real Estate, Health Care and Manufacturing industries.Leverage process automation that focuses on empowering humans with smart technologies and agile processes for faster, more intelligent 

Finance and accounting processing for the world’s largest commercial and real estate services and investment firm improving process efficiency by 32%. 

Commodity Trade Processing for a top global energy and commodities trading company governing annual cash applications worth $130B, and managing 200,000 trade settlements worth $147B.

Administering assets worth over €150M, for some of the leading international investment banks, wealth managers and asset managers, with cost effective, scalable technology and services.

• Finance & Accounting – Company’s capabilities span the full suite of Finance & Accounting BPO services across the entire finance value chain.
• Procurement Services – Deploying people, technology and processes to manage the complete procurement function.
• Financial Services – Expertise to help banks and financial institutions comply with regulations including securities and derivatives processing and investment & fund accounting.
• Global Trade Management – Streamline the entire lifecycle of global trade across order, logistics and settlement activities.
• Real Estate Services – A wide range of solutions that augment finance and accounting including service charge management, lease maintenance & abstraction, rent rolls and analytics.
• Health Care Services – Capabilities that span the entire spectrum of the healthcare industry including bill review, referrals management and vendor screening.

TECHNOLOGY

Company offers next-generation technology solutions that drive business growth. Company’s technology not only underpins the London insurance market but also insurers from the United States to SE Asia. It is a trusted provider of mission-critical technology across the globe. It provides services to customers as diverse as London’s Gatwick Airport and Singapore’s court 

Strong expertise in Insurance, Manufacturing, Real Estate, Financial Services, Logistics, and Public Sector. Company’s customers range from large multinationals to small and medium sized enterprises.

Not only does Company deliver point solutions for its customers, it also deliver end-to-end solutions from development to hosting to operation, change and support.

Company has a proven record of delivering complex, multinational implementations. 

A pool of 2,000+ dedicated technology employees based in multiple countries optimised to deliver cost effective solutions efficiently.

WHAT DOES THE COMPANY DO

• Application Services – Custom application software for specific business needs, maintenance and support for existing and legacy application infrastructure, and outsourced product development, managing and testing for platform applications.
• Infrastructure Management Services – Offers fully managed bespoke or complex hosting, platform, cloud and network services.
• Insurance software – Designing and delivering Xchanging’s market leading insurance software solutions as well as deploying custom, third-party software.
• Procurement as a Service – PaaS combines people, technology and expertise as a managed service, accelerating the entire procurement lifecycle. Offerings are supplemented by in-depth spend analytics.
• Data Integration – Specialising in managed networks, managed cyber-security services and mobility solutions.

DXC TECHNOLOGIES

DXC Technology is an American multinational corporation that provides B2B IT services. DXC helps global companies run their mission critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. With around $20 billion in annual revenues and nearly 6,000 customers in more than 70 countries, DXC is uniquely positioned to lead business transformations .

Services of DXC Include

• Analytics
• Applications
• Business Process Services
• Cloud
• Consulting Services
• Enterprise and Cloud Applications
• IT Outsourcing
• Modern Workplace and
• Security

DXC serves various Industries such as

• Healthcare Providers
• Life Sciences
• Insurance
• Travel, Transportation and Hospitality
• Banking and Capital Markets
• Aerospace and Defense
• Automotive
• Manufacturing
• Consumer and Retail
• Energy, Utilities, Oil and Gas
• Technology, Media & Entertainment, Telecommunications and
• Public Sector

Financials

For Qtr ended December 2020

• Net Sales at Rs 44.78 crore in December 2020 down 2.46% as compared to Rs. 45.91 crore in December 2019.
• Quarterly Net Profit at Rs. 15.01 crore in December 2020 up 141.32% as compared to Rs. 6.22 crore in December 2019.
• EBITDA stands at Rs. 15.47 crore in December 2020 up 63.7% as compared to Rs. 9.45 crore in December 2019.
• Xchanging Sol EPS has increased to Rs. 1.35 in December 2020 as compared to Rs. 0.56 in December 2019.

Other Key Aspects

• Company had CAGR Profit of 44% and 27% over 3 and 5 year period.
• Company has registered highest ever Operating Profit margin in March 2020.
• Although sales have remained steady over past several years there has been significant increase in the Net profit of the company over past 3 years.
• Company is completely debt free.
• It has cash and equivalents of around Rs 300+ crores.
• Promoter shareholding stands at around 75%.
• Company has reveres of about Rs 385 crores.

DELISITING

Promoters had earlier tried to delist the shares via tender purchase of shares from the investors back when the promoters held 92% of the shares in the company. However the buyback didn’t go through and as per SEBI Guidelines company had to bring back public shareholding to 25% thereby decreasing promoter shareholding. 

CONCLUSION

Xchanging solutions a completely debt free with operations spread across the globe, backed by a strong parent DXC Technologies and American multination company with revenues of about $20 billion, also has cash and equivalents of more than Rs  300 crores as of march 2020 balance sheet is thus worth exploring for long term. 

Other Notes-:

Details of material contracts or arrangement or transactions at arm’s length basis 

1. Name(s) of the related party and nature of relationship: Xchanging Solutions USA Inc, Wholly owned subsidiary of the Company
2. Nature of contracts / arrangements/transactions: ITeS off-shore Services 
3. Duration of the contracts / arrangements / transactions: Ongoing 
4. Salient terms of the contracts or arrangements or transactions including the value, if any: Xchanging Solutions Limited has been providing ITeS off-shore services to Xchanging Solutions USA Inc as per the terms in the agreement.
5. Date(s) of approval by the Board, if any: NA 
6. Amount paid as advances, if any: Nil