LexisNexis Risk Solutions has entered into a definitiveagreement to sell its insurance-software solutions business to theSan Francisco-based private-equity firm Genstar Capital. Genstar isexpected to resurrect the Insurity brand once the deal iscompleted, according to Donald Light, senior analyst with researchand advisory firm Celent.

The insurance-software businessbeing sold to Genstar is directed toward the P&C insuranceindustry with policy administration, claims, billing and businessintelligence solutions.

"The Insurity name disappeared when LexisNexis boughtChoicePoint," says Light. "They rebranded it to LexisNexisInsurance Software Solutions, which was too big of a mouthful. It'sthe same group of core systems software with the old brand."

LexisNexis Insurance Software Solutions is based in Hartford,Conn., with additional offices in Dallas; Redwing, Minn.; andMelville, N.Y. It has approximately 400 employees and serves morethan 100 insurers from startups to tier-one carriers.

LexisNexis will hold on to its data and analytics business asthe focus of its insurance portfolio "as we continueto help our customers make faster, more accurateunderwriting and policy-pricing decisions, reduce claims losses,and improve their clients' experience," says James M. Peck, CEO ofLexisNexis Risk Solutions.

Upon review, LexisNexis decided that the insurance softwarebusiness would be better aligned with an organization like Genstar,which has some experience in software and the insuranceindustry.

Light maintains this is Genstar's biggest step into insurancesoftware. The firm has a smaller portfolio in insurance software,but nothing of this scale, he says: "This is a new level ofinvestment and involvement for them. They aren't strangers toinsurance software, though."

Light believes the sale is fundamentally a good thing forInsurity and its customers.

"It was never clear that LexisNexis, being an information-basedcompany, was going to be a long-term corporate home," he says. "Thenew owners will view [Insurity] as a stand-alone business and willmake appropriate investments for that purpose. The upside potentialis different, as it now has an owner that is much more focused onmaking it successful as an insurance software company—whereas theprevious owner had many focuses. This is a small part of theLexisNexis universe."

Following completion of the transaction, Jeffrey Glazer will beleaving LexisNexis to lead the insurance-software solutionsbusiness for Genstar. Peter Lynch will continue to be responsiblefor the LexisNexis Insurance Exchange.

The transaction is subject to customary conditions andregulatory consents, and is expected to close by year's end.