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Ebix Australia in line with profitable parent

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Insurance software specialist Ebix Australia says it is performing strongly – like its US-based parent that has just reported the best quarterly net profit in its 33-year history.

Ebix lifted net profit 41% in the second quarter this year to $US8.96 million ($10.62 million), compared with the corresponding quarter last year.

Sales for the quarter were up 26% to $US22.42 million ($26.66 million), while expenses rose 21% to $US13.16 million ($15.64 million), something the company attributes mainly to acquisitions in the US.

Ebix Australia MD Leon d’Apice says he can’t be specific about local results.

But he says the Australian operation is defying tough economic conditions, although they are less severe than in the US and UK.

“We’re still seeing new project work coming on and we’re still seeing interest in all of our products from our clients,” Mr d’Apice told insuranceNEWS.com.au.

Ebix bought Telstra’s general insurance technology operation including transaction platform Sunrise Exchange for $50 million in January last year.

In June this year the company disclosed that Sunrise Exchange now handles five million transactions annually, up 500,000 in 12 months.

Investors are snapping up Ebix shares, driving the price up 165% since March 6, to close at $US45.40 ($54.20) on the NASDAQ index last Friday.