DELA and Lilas Insurance Unite with Support from CSC
- Support successful integration of two insurance companies
- Implement new processes and technologies to help increase profitability
- Convince stakeholders of the viability of rationalization strategy
- Conduct thorough analysis of business processes and business model
- Adapt processes to facilitate integration; carry out business-rationalization plan
- Engage CSC to lead a program to implement new technology and streamlined processes
- Integration completed on time and on budget
- Market position strengthened
- Successful expansion of services to the French-speaking region of Belgium
DELA Insurance turned to CSC when the funeral insurance company needed a business partner to support its integration with Lilas Insurance. The result was a smooth integration that doubled the company’s insurance portfolio while meeting its business targets.
In 2012, DELA sought to expand its customer base to include the French-speaking region of Belgium. The company had 300,000 clients before the integration and 600,000 after, making it one of the largest insurance companies of its kind in Belgium.
Go with what you know
“One of our biggest challenges was to make the new company profitable again, and we wanted to do that by cutting costs and downsizing the staff,” says Guy Boncher, CIO, DELA Belgium.
Downsizing is never a pleasant process. However, Boncher says, “CSC did all the analyzing of the business model and delivered us the needed figures to convince the staff and the unions that it was the only way to go through the process.”
Boncher says that, in an integration situation, the buyer tends to retain familiar processes and stay with familiar people. He explains that managers often lose sight of deriving value from what is being purchased.
CSC is well equipped to provide the technical expertise and business acumen to help companies negotiate the often-difficult task of dealing with mergers and acquisitions. Having supported hundreds of deals, we draw on our core competencies in consulting, systems integration and outsourcing to provide clients worldwide the business knowledge required to achieve success.
DELA needed an outside company with expertise in business processes. What CSC provided was an external viewpoint — a company that could come in and analyze the business situation, make suggestions on what course of action to take, and lead the integration. “That’s where CSC was very useful and helped us to go farther out and to improve our business,” he says.
On time and on budget
Mergers and acquisitions provide companies with a chance to undergo a radical transformation, create new business models and develop new market opportunities. CSC’s strategy is to take a pragmatic approach driven by client needs and sharply focused on delivering business results.
When DELA joined forces with Lilas Insurance, Boncher says the integration went smoothly and was completed on time and on budget. “CSC did a very good job in managing and leading the project,” he says. A key to the success of the project was that CSC has extensive experience in the insurance industry. “People are very important in these kinds of projects, and they have to fit, at one end, into the DELA culture. On the other hand, they have to be experienced in merging.”
DELA emerged from the integration in a much stronger position in Belgium’s funeral insurance marketplace. Because the project involved communicating and implementing change, being effective in collaboration was essential. “Considering the success of this collaboration, it’s obvious that in the future when we have other projects to run, CSC will be our preferred partner,” Boncher concludes.