Ebix Enters Latin American Market with Acquisition of Brazilian Firm MCN

Atlanta-based e-commerce software and services provider Ebix has acquired Sao Paolo-based MCN Technology & Consulting (MCN), effective Jan. 15, 2010. The companies signed a binding agreement Jan. 11. MCN was acquired by Ebix Latin America, a newly formed subsidiary of Ebix Singapore.

MCN's key product area is exchanges for pension and annuities, among a wide array of IT products and services, including specialized enterprise integration products, e-business transactional portals and specialized consulting, implementation and support services to the insurance industry in Latin America, according to an Ebix source. MCN's flagship Exchange for Annuities is the first exchange initiative between Brazilian Life insurance companies and is today used by 40 Life insurers in Brazil, for transfer of annuities between them, the Ebix source reports. FENAPREVI, the National Federation of Life and Retirement Annuities Insurance Companies, charges each insurer for every portability requested on the Annuity Exchange while MCN in turn charges FENAPREVI for all portabilities transacted.

In total, the Brazilian insurance industry comprises roughly 140 companies, which range from small locally owned companies to large multi-national organizations. Currently, the total insurance market revenue is over $57 billion. This industry has been presenting a significant growth ratio over the last 5 years, with a 12%-15% growth a year on average. The Life and Retirement Annuities sector alone has grown at an average rate of 25% per annum.

"The acquisition of MCN provides us with a solid relationship base in the Latin American insurance markets," comments Robin Raina, Chairman, President and CEO, Ebix. "We see this as an entry point for Ebix to cross-sell its exchanges and back-end systems in Latin America. Brazil was a natural choice as our Latin American headquarters since it accounts for 40% of the region's insurance revenues. MCN has strong relationships with leading Life insurance and P&C companies in Latin America and we intend to develop those relationships further."

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio