MISSISSAUGA, Ontario, Nov. 08, 2017 (GLOBE NEWSWIRE/Korea IT Times) -- Smart Employee Benefits Inc. (“SEB” or the “Company”) (TSXV:SEB) announces that it has made significant progress in its Benefits Division since April, 2017, signing contracts to administer over 330,000 lives and over $1 Billion in premiums. Significant developments in SEB’s Benefits Division over the past 6 months include:
- April, 2017 - AON Transaction Adds 267,000 lives: Completed the AON transaction and as of August 31, 2017 completed taking over the administration of approximately 267,000 lives for 48 of Canada’s corporate elite.
- November, 2017 – Organic Growth Adds 61,000: SEB has reached agreements that have increased the number of lives under administration by over 61,000 from both existing and new corporate clients. These new lives will be fully transitioned to SEB’s administration environment by the second quarter, 2018.
- Long Term Client Contracts: The contracts signed are typically 5-year contracts with renewable provisions. Backlog is in excess of $65.0M.
- Channel Partner Strategy: SEB’s “White Label Channel Partner” client acquisition strategy has resulted in more than 20 partner opportunities at advanced stages of completion, estimated to represent more than 3.0 million plan members.
- “Flex Plus” Administration Platform Enhanced: SEB administers the majority of its clients on its “Flex-Plus” administration platform. Flex-Plus has been significantly enhanced since being acquired in the AON transaction. Its features now include “Single Sign-On” capability that can easily integrate with any third party solution, health benefits, pension or HRIS system in the industry. Additionally, SEB now has one of the few “Flex Multi-Employer” administration platforms in the industry today in Canada. These platform improvements, among others, have contributed to attracting new client additions.
- Adjudication Platform Enhanced by Block Chain Technologies: SEB has structured a transaction to include “Block Chain Technologies” in its Adjudication Platform. This is particularly significant for “Drug Adjudication” and will provide SEB with a significant competitive advantage in providing enhanced services to its benefit clients. The upgrade is targeted for completion in early 2018.
- Online Voluntary Insurance Product Sales Platform Launched: SEB has launched its “Online Sales Platform” for selling “New Insurance Voluntary Products Solutions” to group benefit plans and to individuals. The SEB “Online Sales Platform” reduces from months to minutes the application and approval process for buying, online, select insurance solutions. SEB is in advanced discussions to deploy this platform with multiple insurers in Canada, the USA and globally. SEB’s revenue model is a “percent of premium”. The revenue stream is annuity.
- Health and Wellness Platform Launched: SEB has launched its Health & Wellness Portal. This portal is a cloud-enabled, fully automated, interactive environment, content-rich with over 80 original apps for managing health initiatives, rewards, personal health records, prevention/intervention programs, and real- time reporting and analytics. SEB’s revenue model is based on a per-user per-month charge and is priced for mass market penetration. SEB is in advanced discussions with organizations representing over 4.0 million plan members.
- NeST Joint Venture: SEB has signed a Joint Venture (“JV”) agreement with NeST Technology Group to build out SEB’s “White Label Channel Partner” business model in the USA targeting the TPA (“Third Party Administrators”) and PEO (“Preferred Employee Organization”) marketplace in the USA. NeST Technology Group will fund the growth of the USA business. SEB will own half of the JV company and receive a license fee over time of US$2.25 Million. This JV can fast track SEB’s business strategy of becoming a significant back office processing technology partner for the massive PEO and TPA market.
- Benefits Cost Structure Streamlined: SEB has reduced the cost structure in its Benefits Division by over $2.3M per annum, primarily as a result of improving business processes, transitioning technology solutions to the cloud and introducing new technology enhancements.
SEB has invested over $20 Million in its health benefits processing solutions over the past several years. The expensing of this investment has penalized consolidated EBITDA. However, as of Q4 2017, SEB’s Benefits Division is expected to be a positive contributor to cash flow and earnings, and going forward, it is expected to be a primary driver of SEB’s EBITDA growth. SEB’s target revenue per plan member, when SEB’s clients are transitioned to the SEB total processing platform, is over $250/plan member/annum. SEB’s “One Processing Environment” business model captures over 90% of processing revenues currently being spent by clients, and provides clients with real time reporting, fraud detection and analytics, among other functionalities.
Smart Employee Benefits Inc.’s global infrastructure is comprised of two operating business divisions: Technology and Benefits. The Technology Division currently serves corporate and government clients across Canada and internationally. The Benefits Division focuses on offering SaaS and BPO solutions in the Benefits Processing Sector to corporate and government clients, globally. The Benefits Division operates as a client of the Technology Division. The Technology Division is a critical competitive advantage in supporting the implementation and management of SEB’s benefits processing solutions into client environments. The Benefits Division is a high-growth specialty practice area where SEB solutions can be game changing for the client.
The core expertise of both business units is data processing. Emphasis is on automating business processes utilizing SEB’s proprietary software solutions combined with solutions of third parties through joint ventures and partnerships. SEB’s business model in the Benefits Division is “Channel Partnerships” where SEB processing solutions enable business process efficiencies which both improve cost structures and enable new revenue models for Channel Partners and clients. All SEB solutions are cloud-enabled and can be delivered in a SaaS environment.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, including statements regarding the Company’s areas of focus, other than statements of historical facts, which address the Company’s expectations, should be considered as forward-looking statements and therefore subject to various risks and uncertainties. The words “may”, “will”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “objective”, “hope” and “continue” (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements.
Such forward-looking statements are based on knowledge of the environment in which the Company currently operates, but because of the factors listed herein, as well as other factors beyond the Company's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Investors are cautioned not to put undue reliance on forward-looking statements. The Company undertakes no obligation, and does not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events, other than as required by applicable law.
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