DXC in advanced talks to sell insurance software unit for $2.4 billion
Key Facts
DXC Technology is in advanced talks to sell its insurance software unit for $2.4 billion, according to a report published by Investing, citing Reuters. The talks concern a potential sale of the insurance software business as the company continues to develop products for insurers. The report follows revenue growth in the insurance software and services segment in fiscal 2026, according to the company's filing with the U.S. Securities and Exchange Commission. Segment revenue totaled $1,279 million that year, up 5.4% year on year. On an organic basis, revenue rose 3.6%, according to the annual filing covering the insurance software and services segment.
Despite annual revenue growth, segment profit for the insurance business fell to $129 million in fiscal 2026, according to the same filing. Segment profit declined 20.4% year on year, moving in the opposite direction to the business's sales growth over the period. In the first quarter of fiscal 2027, the insurance segment recorded revenue of $319 million, according to Investing's coverage of the company's results. Organic revenue growth for the segment was 1.4% in that quarter, compared with the annual organic growth recorded in the previous fiscal year. In July, the company's shares fell about 9.1% from the previous close following the results announcement, according to the website, in a move that preceded the report of sale talks.
The company's insurance presence spans platforms serving insurers, brokers and third-party administrators, according to a presentation DXC published on its business. The company says these platforms have 1,100 clients across those categories, including insurance providers and firms handling brokerage or administration. The platforms are linked to annual insurance premiums ranging from $5 trillion to $7 trillion, according to the company's description of their use across the industry. As for the Assure platform, DXC said in its October announcement that more than 275 clients had adopted it. In the same month, it announced expanded platform capabilities aimed at accelerating insurance modernization and innovation as part of the development of its technology offerings for the sector.
DXC announced in April the launch of Assure intelligent applications, built on the ServiceNow platform, to support insurers' transformation using artificial intelligence. The applications include Claims Assistant, Interaction Assistant and Underwriting Assistant, according to the company's statement on the new products. The applications aim to reduce manual work and speed up processing, according to the benefits the company outlined when announcing them. DXC said insurers could use them to "reduce manual processes by 30–40% and cut processing time by up to 30%". The company presented these figures as capabilities of its new products for insurance operations in its April launch announcement.
On leadership, DXC announced in July the appointment of Paul Taylor as company president as part of changes aimed at accelerating its shift toward artificial intelligence. Taylor succeeded Raul Fernandez as president, according to the company's statement on the leadership appointments. Fernandez remained chief executive after the president's role passed to Taylor. DXC said in its statement that "Paul Taylor has been appointed president of the company, taking over from Raul Fernandez, who continues as chief executive". The leadership changes came after the insurance applications announcement in April and before the announcement of the Assure platform expansion in October.
In its October announcement, DXC also outlined the scale of its business services operations for life insurance and wealth. It said these operations support 11 million insurance policies as part of its services in this area. The operations process more than $11 billion in annual payments, according to the same statement on the development of its insurance business. The company described the business as supporting "11 million policies and processing more than $11 billion in annual payments". In its October announcement, it identified accelerating insurance modernization and innovation as the goal of the new capabilities added to the Assure platform.