Accenture plc (ACN) recently sealed a deal with Navy Mutual Aid Association. Financial details of the deal were not disclosed.
Under the terms of the deal, Accenture will provide support to the life insurance and annuity business of Navy Mutual. For this purpose, Accenture will license and implement its life insurance policy administration solution to the association’s computing systems.
Founded in 1879 by some sea-service members, Navy Mutual is a nonprofit, federally tax-exempt, mutual benefit Veterans Service Organization, providing life insurance and annuities to members and families of the United States Navy, Marines, Coast Guard, Public Health Service (PHS), National Oceanic and Atmospheric Administration.
With the help of Accenture’s insurance solution, the association intends to replace its traditional policy administration system. The solution should make product innovation and process improvement more flexible. Overall, the solution will help Navy Mutual to reduce its operating costs as well as create and launch new products at the same time.
Accenture’s proven expertise in delivering cost-effective and easy-to-deploy solutions prompted Navy Mutual to deploy its services. We believe that success in Navy Mutual’s arena could attract more deals from the insurance vertical.
In April, Royal Sun Alliance (“RSA”), one of the oldest insurance companies in the UK, extended a business process outsourcing deal. As per the original deal, RSA outsourced certain back-office operations comprising sales and services, claims settlement and some commercial and administrative functions to Accenture.
Accenture has been successful across various industrial sectors as well as geographical regions. Recently, the company announced that it will collaborate with Anheuser-Busch InBev (BUD) on a digital merchandising service targeted to help the brewer’s point-of-sale activities.
It also won a five-year consulting and outsourcing services contract from CEVA Logistics and a two-year information technology services contract from Israel Electric Corporation. Moreover, Accenture’s core banking solution has been deployed by Banco Bilbao Vizcaya Argentaria S.A.’s (BBVA) U.S. banking subsidiary.
Although Accenture was hit hard by the recession, it now appears to be bouncing back. This is evident from a healthy growth in revenue and bookings in its recently concluded third quarter of 2011. However, the economic turmoil in Europe and competitive pressure from IBM Inc. (IBM) could considerably rationalize Accenture’s growth prospects.
Accenture has a Zacks #3 Rank, implying a short-term Hold recommendation.
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