Accenture Eyes a Big Opportunity in the Insurance Market

AccentureTechnology outsourcing and consulting giant Accenture (ACN) has seen its stock shoot up over 50% in the past year and now trades close to an all-time high of $63.66 per share. Accenture's stock performance has been on par with that of IBM (IBM), which recently surpassed Microsoft (MSFT) to become the second largest tech firm by market cap. (See Big Blue Heads for $200 on Double Digit Revenue Growth) Below we take a look at the new additions to Accenture's offerings in the insurance business.

We maintain a Trefis price estimate of $54.40 per share for Accenture's stock, which is roughly 5% below the current market price.

Insurance Market Opportunity

Over the past few weeks, Accenture has made significant new additions to its offerings. On July 14, the firm announced the agreement to acquire Duck Creek Technologies, a privately held company that specializes in software solutions for the property and casualty insurance industry, which will ramp up its offerings in the insurance sector.

Accenture has been serving the insurance sector for years. The firm has won a series of insurance deals in the past few months indicating the popularity of its services. In a recent survey on insurance customer satisfaction, Accenture identified a "significant gap between expectations and reality" and saw a potential business opportunity.

The Duck Creek acquisition is likely to give both Accenture's technology consulting, as well as its technology outsourcing, business divisions a boost. Together, those segments make up about 42% of our price estimate for Accenture.

See our complete analysis of Accenture.

Trefis is an online investment research platform targeted towards individual and professional investors. Trefis also includes a community of users that can create and share their models and analysis on trefis.com.

Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.


Increase your money and finance knowledge from home

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

Intro to Retirement

Get started early planning for your long term future.

View Course »

Add a Comment

*0 / 3000 Character Maximum

2 Comments

Filter by:
Elsa

While I was looking for a cheap health insurance my friend told me that there are sites, where people can compare prices from many providers.These sites are the only one way to save money on your insurance, because once you register many companies will make you different offers.The site he suggested me was:

---NationalHealthInsurance.info---

I tried them and I saved more than 30%.Try it.Just register and get free quotes!

January 12 2012 at 4:02 AM Report abuse rate up rate down Reply
Abigail Henry

Keep on watching the rich get even more of my money? I don't think so. I have paid enough in taxes for a lifetime.



I know how to get some back.



Google the term "SIMPLE STOCK CASH" and click the very first site. Sign up for the free newsletter to find out what the rich do not want you to know.




Check it and you will learn what many are hiding. Well worth the read.

August 03 2011 at 5:46 PM Report abuse rate up rate down Reply