SOURCE: IBM

July 10, 2006 11:30 ET

IBM Signs 10-Year Contract With AMB Generali

IBM to Maintain and Develop Insurance Industry Solution for One of Germany's Major Insurance Companies

DÜSSELDORF, GERMANY -- (MARKET WIRE) -- July 10, 2006 -- German insurance company AMB Generali and IBM today announced a 10-year agreement for IBM's business consultants to manage AMB's proprietary technology solution for the insurance industry.

IBM will take over the servicing, maintenance and development of the AMB Generali Informatik Services (AMGIS) IP.Suite, a software tool for rating insurance products offered by the AMB Generali Group in Germany. AMB Generali is one of the largest primary insurance companies in Germany covering life, property and causality and health.

The IP.Suite application software, developed in-house by AMGIS, facilitates shorter product development times and a swift time to market for new product offerings. It also ensures a very high level of flexibility in handling.

The contract with IBM is part of AMB Generali's restructuring program and allows the insurance giant to focus on its core business, while IBM manages one of AMB's key business processes. Crucial to the contract was to ensure the ongoing development of the important IP.Suite and to retain existing employee expertise with the solution.

The contract also provides for a variable billing model that offers AMGIS a high degree of flexibility to adjust to future market trends. "The arrangements we have agreed not only enhance our own flexibility but also enable us to benefit from the long-term safeguarding of IP.Suite know-how by a reliable partner," said AMGIS board chairman Arne Pott.

IBM is hiring 11 AMGIS employees in Munich and will leverage AMGIS expertise to help ensure continued development of the IP.Suite, which will eventually be marketed to other insurance companies in the future.

"Through our Global Services organization, IBM is dedicated to helping our customers transform their businesses, and become more innovative in using their core skills to increase business value," said Stefan Riedel, head of insurance consulting at IBM Global Business Services. "In addition, the agreement with AMB Generali is further proof of the success of our sourcing strategy."

The agreement is effective immediately.

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