Insurers increasingly have to comply with regulations in the field of capital calculations and the ability to make an audit trail of the different risk processes. The Solvency II regulations have to be implemented by 2012. SecondFloor, together with its Canadian partner, a leading supplier of risk calculation software, has more than 4 years of experience in making Solvency II compliancy solutions. For smaller and medium sized insurers, the company offers in house developed software solutions. Today, Secondfloor serves more than ten large international insurers. The Risk Management solution which SecondFloor provided for ING won the prestigious Banking and Finance ICT Innovation Award.
Research of the renowned institute Gartner earlier this year revealed that SecondFloorâs main strength lies in providing solutions for the pillar II aspects of the Solvency II regulations, an area where the company has extensive experience with implementations among a broad array of insurers.
With Main Capital and TIIN Capital, the company gets entrepreneurial investors on board. Both investors are mainly funded by informal investors and family offices. Main and TIIN will help and advise the management where possible, in order to realize further growth of the company. This will be accomplished by participating in the board and by using the extended networks of both companies. TIIN as well as Main have elaborate experience in helping software companies with their growth expansion.
Martin Knook, CEO of SecondFloor, says: âThe fast growth of our organization, which we accomplished in recent years, has never been at the expense of the quality of our services. In order to establish this growth in combination with the roll out of the standardized solutions in a professional way, investments are needed and can be accomplished in a responsible manner with the capital of TIIN and Main. After a 12 month search, we have found a private equity firm with a good understanding of our business. We are ready to provide our knowledge and experiences on a large scale to our clients.â
Charly Zwemstra, managing partner of Main Capital Partners, states: âThis is the third software investment in a row for Main Capital partners in 2010. We have a good understanding of this particular segment (software for financial institutions). SecondFloor has proven that it is able to service large European insurers in an excellent manner. Personally, I also have great confidence in the management capabilities of Martin Knook (CEO of SecondFloor). He has the strength and vision to benefit from the rapid growth in this particular niche segmentâ. Main already has done a successful investment in the pension fund and insurers segment with the software company Actuera.
Willem van den Berg, managing partner of TIIN Capital, adds: âSecondFloor is a fast growing ICT company with great competences in the attractive solvency II market. Thanks to a very capable management, SecondFloor has all potential to turn into a leading international player. SecondFloor fits very well into our TIIN capital portfolio of ICT companies â
The Growth capital will be used to realize further international expansion of the company. SecondFloor is already active in Germany, England, France and Scandinavia.