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Strong third quarter for Ebix

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Global insurance technology specialist Ebix has recorded a 120% increase in cashflows to $US22.1 million ($21.7 million) for the third quarter ending September 30.

This compared to the 2010 third-quarter cashflows of $US10 million ($9.8 million).

In the nine months ending September 30, Ebix generated $US 51.9 million ($51.1 million) of cashflows, up 53% on the corresponding period last year.

Net income for the third quarter declined slightly from $US16.6 million ($16.3 million) in 2010 to $US16.5 million ($16.2 million) in the 2011 third quarter.

The results for Ebix Australia – which owns major IT platform Sunrise Exchange and dominant broking systems CBS and WinBEAT – were not broken out of the parent’s results.

But Ebix Australia MD Leon d’Apice says US trading conditions are tough at present.

“It is a good result on the back of difficult trading conditions in the US,” he told insuranceNEWS.com.au. “Locally we are tracking well due to the slightly stronger market sentiment.”

Mr d’Apice says many insurance projects in the US are being delayed or cancelled due to the weaker position of the industry.

“Here it is the opposite. We have a number of strategic projects under way because there’s still confidence in the Australian insurance market.

“We are still seeing modest increases in transaction volumes, but the pressure is on for us to do better in the next quarter.”

Ebix CEO Robin Raina says the cashflow figures for the group show it can grow despite tough market conditions.

“Our results for the quarter validate our efforts to add more sales people as we work to create a global institutional account management structure,” he said. “We feel our greatest opportunity is to maximise the value of our existing relationships and we are making that investment with the rewards to be seen in 2012.”