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 withCelent.

The insurance software business being sold to Genstar isdirected toward the property & casualty insurance industry withpolicy administration, claims, billing, and business intelligencesolutions.

“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 inHartford, Conn., with additional offices in Dallas; Redwing,Minn.; and Melville, N.Y., the business has approximately400 employees and serves more than 100 insurers from startups totier-one carriers.

LexisNexis will hold on to its data and analytics business asthe focus of their insurance portfolio “as we continue to helpour customers make faster, more accurate underwriting andpolicy-pricing decisions, reduce claims losses, and improve theirclient's experience,” says James M. Peck, CEO, LexisNexis RiskSolutions.

After careful review, LexisNexis decided that the insurancesoftware business would be better aligned with an organization likeGenstar, 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, according to Light.

“This is a new level of investment and involvement for them,” hesays. “They aren't strangers to insurance software, though.”

Light believes the sale is fundamentally a good thing forInsurity and their 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 it as a stand-alone business and will makeappropriate investments for that purpose. The upside potential isdifferent as they now have an owner that is much more focused onmaking them successful as an insurance software company, whereasthe previous 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.

The insurance data and analytics business for LexisNexis willcontinue to be led by Bill Madison. Peter Lynch will continue to beresponsible for the LexisNexis Insurance Exchange.

The transaction is subject to customary conditions andregulatory consents and is expected to close by the end of2011.