Market leading insurance solutions provider consolidates global expansion with Eclipse SunSystems Consultancy

In the financial services sector, successful global expansion requires excellent financial control and clear regulatory compliance. Implementation of an international and standardised accounting approach, underpinned by SunSystems financial software, has been key to a successful acquisitions strategy for a global insurance organisation.

The insurance solutions provider leveraged Eclipse Group's financial services experience and proven international consultancy expertise with SunSystems to design and implement strong financial controls. This expertise is also enabling its Partners to further exploit the core functionality of the SunSystems software to deliver further benefit through improved asset management, streamlined currency calculations and faster business intelligence reporting.

Global Expansion

Eclipse Group is working with a market-leading global insurance solutions provider. As part of its bid to achieve greater diversification in its geographic reach and underwriting capacity, in July 2007, the organisation acquired another company. This acquisition gave the insurance group access to a lucrative insurance market and provided a strategic complement to existing business. In this same month, the company also went public and this acted as a catalyst to impose greater financial control.

"The third quarter of 2007 was our client's first one as a public company and the first with their new acquisition. And it was a struggle," explains Gary Waylett, CEO of Eclipse Group. "They were only allowed 45 days to complete the quarterly filings. This meant producing the consolidated figures within 20 days, to leave time to finish the reports. However, incorporating consolidated figures from their additional business put real pressure on the organisation to meet the deadline."

Whilst both businesses were already using the SunSystems financial software, the organisations were working very differently, with each organisation looking to leverage the solution to meet local reporting requirements, specifically the Financial Services Authority (FSA) regulations for one of them. As a result, information was not in a format that enabled rapid or straightforward consolidation.

Waylett confirms, "It became immediately clear that our client had to implement a standardised approach across the organisation. Without this good underlying structure not only would the organisation struggle to meet its immediate regulatory reporting requirements but it would also be impossible for the group to achieve its long term strategic goals which will undoubtedly include further acquisitions in the future."

Standard Chart of Accounts

The company decided that all subsidiaries within the group must use a defined common chart of accounts and analysis code structure, combined with a pre-determined level of standardisation around usage, automation and interfacing. With operations in numerous countries and business conducted in an estimated 50 currencies, it was essential that the group put in place a solution that could deal with both complex foreign currency requirements and the consolidation of numerous legal entities. It was also important that their approach was flexible enough to manage regular changes to the corporate structure.

A key challenge in attaining this goal was getting user buy-in to the creation of a standardised chart of accounts, and the organisation turned to Eclipse Group for advice and guidance.

Eclipse played a key role in the migration and transformation of data into the new standard structure, working in tandem with in house teams in both London and Bermuda.

Waylett explains, "One of our client's reasons for working with us was our experience; our consultants know what works and what doesn't work. We reinforced their recommendations for a consistent ledger, demonstrated the potential benefits associated with maximising the existing functionality of SunSystems and, critically, kept the project moving along."

Financial Control

Eclipse's client has recently completed phase one of this three phase project, creating the underlying structure to support a standardised approach. During the next two phases, the company will look to improve its reporting processes and then maximise the functionality of both SunSystems and the consolidated structure to drive significant improvements in productivity and information analysis.

The group chart of accounts is now providing the basis for all group companies' general ledgers. To support local reporting requirements, each reporting entity can add accounts at the sub account level only and with the authorisation of the Group Finance department or Accounting Project Manager – no amendments can be made to the group chart of accounts.

Waylett confirms, "One of the main benefits for our client is that information is now locked down. The results are transparent, the information is accessible and, critically, it can be rapidly consolidated." He continues, "The new process will reduce errors, provide consistent reporting across the company and, in time reduce the administrative overhead."

Over the coming months, the insurance solutions provider and Eclipse will work together to ensure the company's global operations are maximising the functionality of SunSystems and to further speed up consolidation and reporting.

Critically, the company will leverage SunSystems' multi-currency functionality. Waylett says, "They undertake business in many countries, in perhaps 50 currencies and SunSystems can handle all the required currency calculations. The system can also report in any number of ways, including transaction currency and base currency. Replacing spreadsheets for currency calculations within SunSystems will be one of the biggest benefits."

Extracting Value

A further benefit will be attained by the adoption of the SunSystems Fixed Asset Register. Waylett comments, "Our client's business is multi-national, meaning managing assets via spreadsheets can get complicated: for example, goods purchased in Singapore dollars can be recorded in US dollars, depreciated too much, and then a reversal is required. This process is time consuming." He continues, "SunSystems has a good Fixed Asset Register which will enable our client to automate the asset management process, delivering immediate benefits."

The insurance group also undertakes a significant volume of inter-company transactions, especially relating to underwriting. The objective is to fully automate this process and allow automatic posting to the target company's ledger with the ability to notify the recipient company of inter-company items charged to that company.

Conclusion

Eclipse's client is now in a position to review its accounting processes for consistency and look to further improve the quality of information reporting and analysis. Waylett concludes, "Through our support, our client now has a much more robust and flexible financial management platform. Moving forward, the combination of SunSystems and the consistent ledger structure will support them in accomplishing its strategic international goals."