US data analytics provider Verisk has agreed to acquire Rulebook, a provider of business intelligence and software solutions for the London Insurance Market, in an all-cash deal worth $87m.
Headquartered in London, Rulebook, which was founded in 2002, has developed a pricing engine that can be deployed for internal pricing and underwriting.
Verisk said through the Rulebook Hub platform, the pricing engine can also be used as external distribution to serve the specialty insurance market.
The US firm further said that Rulebook’s pricing engine is used by certain carriers operating in the London specialty insurance market to develop underwriting rules for complex specialty insurance products via its easy-to-use web-based platform.
Through the platform, Rulebook offers its clients greater accuracy and better control over the pricing and distribution process, thereby enabling consistency and enhancing regulatory reporting and compliance.
Rulebook managing director Andy Galli said: “We’re very excited to join Verisk, as this will accelerate our growing business by providing greater access to global markets and Verisk’s existing international customers.
“We offer a unique value proposition that will be further enhanced by leveraging synergies and collaborating with other Verisk businesses and their data analytics.”
The UK firm has a data analytics offering as well that can be used for developing business intelligence solutions for clients to get access to historical, current, and predictive views of business operations.
Last year, Verisk acquired Sequel, a London-based insurance and reinsurance software company based in London, for £250m.
According to Sequel CEO Ian Summers, the acquisition of Rulebook will expand the current offerings of Verisk to the specialty insurance market through the addition of the UK firm’s pricing and management information engines to Sequel’s specialized software suite.
Summers said: “These enhanced offerings will provide our customers with more efficient methods of distribution and significantly improved data analytics capabilities. The complementary applications give us a unique opportunity in our sector to complete the value chain, driving data through the process from broker to underwriter and quote through to claims settlement.”
Verisk expects the transaction be completed in the fourth quarter of 2018 depending on the meeting of customary closing conditions.