Why the FINEOS (ASX:FCL) share price is climbing this morning

The FINEOS (ASX: FCL) share price is lifting this morning on news of a new contract for its platform. Here are the details.
The post Why the FINEOS (ASX:FCL) share price is climbing this morning appeared first on The Motley Fool Australia. –

A happy businessman pointing up, inidicating a rise in share price

The FINEOS Corporation Holdings PLC (ASX: FCL) share price is rising after the company announced a new contract for its platform. At the time of writing, the insurance software company’s shares are trading at $4.05, up 4.1%.

What’s the deal?

Investors are pushing the FINEOS share price higher after digesting the company’s latest positive news.

In its announcement, FINEOS advised that it has signed a deal with American Public Life Insurance Company (APL).

Founded in 1945, APL is a leading supplemental insurance company that offers a range of customised products. This includes gap, accident, hospital indemnity, critical illness, cancer, short-term disability, dental and life insurance policies.

Under the agreement, APL will integrate FINEOS’ cloud-based platform for new business and underwriting across 8 lines of businesses. The deal will enable APL to streamline and automate quoting, rating, and underwriting processes.

This comes as APL seeks to improve its operational efficiency and roll out 3 new product lines to market. The other 5 existing product lines, expected to be licenced, will also employ the FINEOS cloud-based platform.

FINEOS noted that it had achieved outstanding success since its 2020 go-live date of its FINEOS platform. So far, 10 major carrier clients have adopted the system, including 8 installations and 7 upgrades of the FINEOS Platform for employee benefits.

The Software-as-a-Service (SaaS) contract will run for an initial period of 5 years. FINEOS said it has already factored revenue generation in its most recent guidance update announced on 24 February.

What did management say?

APL president and CEO Jerry Horton touched on the advantages of integrating FINEOS’ systems, saying:

By leveraging the FINEOS Platform, we’ll be able to improve user experience with a powerful core system that automates processes which have historically been manual for us.

This partnership will enable us to speed up quote turnaround time, improve accuracy, and reduce risk to drive our organization’s growth and strategic innovation. Our customers will benefit from better service because of our decision to move from on-prem legacy systems to the cloud-based FINEOS Platform.

FINEOS CEO Michael Kelly went on to add:

We’re thrilled about this partnership with APL and look forward to supporting them in achieving their organisational goals.

With the FINEOS Platform for New Business & Underwriting, APL will be able to provide a superior digital user experience at every touchpoint of their quoting, rating, and underwriting processes.

FINEOS share price review

Despite a wobbly start to the year, the FINEOS share price has gained just over 5% year-to-date. However, looking at a broader picture, its shares have risen almost 40% in the past 12 months.

FINEOS has a market capitalisation of around $1.1 billion at the current share price, with 301 million shares on issue.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends FINEOS Holdings plc. The Motley Fool Australia has recommended FINEOS Holdings plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the FINEOS (ASX:FCL) share price is climbing this morning appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!