Irish fintech Fineos on target to surpass €100m in revenues

Insurance software company Fineos is forecasting a sharp rise in full-year sales this year to more than €100 million.

The fintech said turnover is expected to be in the range of €102 million and €105 million for the 12 months to the end of June, up from €87.8 million a year earlier.

The forecast came as the company announced a 30 per cent rise in first-half revenues to €52.6 million, up from €40.4 million a year earlier.

A breakdown of turnover growth shows 20.1 per cent arose from organic growth with a further 10 per cent from acquisitions.

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Software revenues totalled €19.1 million with organic recurring subscription sales rising 35.1 per cent, or 51.5 per cent if the contribution of recently acquired subsidiary Limelight Health is included.

Service revenues were €34.4 million, with organic sales growth rising 15.9 per cent or 23.3 per cent with Limelight’s contribution.

Fineos acquired US company Limelight Health in a €63.6 million deal in August 2020.

Founded by Michael Kelly in 1993, Fineos is a provider of software solutions for global life, accident and health insurance companies. It counts seven of the top 10 group life and health carriers in the US, as well as six of the top 10 life and health carriers in Australia, among its customers.

Growing headcount

Headcount at the fast-growing company rose 40 per cent last year from 741 to 1,043, the company said.

Fineos raised about €130 million when it became the first Irish-headquartered to company to float on the stock exchange in Australia in August 2019.

The latest results show the group recorded a 20.1 per cent rise in first-half gross profit to €33.8 million with a statutory after-tax loss of €5.1 million due to higher operating costs.

“Despite a challenging year for our clients and economies globally in 2020 due to the pandemic, we achieved a strong level of organic revenue growth, said Mr Kelly, the company’s chief executive.