DXC in Talks to Sell Insurance Software Unit to Eldridge for $2.4 Billion
DXC Insurance is exploring a $2.4 billion sale of its insurance software unit to Eldridge, as discussions progress over a potential transaction in the global insurance technology market.
DXC Insurance is reportedly in talks to sell its insurance software unit to Eldridge for $2.4 billion. The potential deal could mark a major shift in DXC’s insurance technology business.
NEW DELHI – DXC Technology is in advanced talks to sell its insurance software and services business to private investment firm Eldridge Industries for about $2.4 billion, Reuters reported, citing people familiar with the matter. Eldridge is discussing combining the unit with Zinnia, its technology platform for life insurance and annuity providers, according to the report, and an agreement could be reached within weeks, though nothing is final.
DXC Insurance: Why DXC may be ready to let go
DXC Insurance: The reported sale fits a company that has spent years trying to reshape itself. For fiscal 2026, DXC reported total revenue of $12.6 billion, down 4.8% year over year, and it expects organic revenue to fall another 3% to 5% in fiscal 2027. The heaviest drag has come from infrastructure services, where revenue fell 7.2% organically over the year as older contracts wound down.
The insurance unit is the odd one out. It brought in $1.279 billion in fiscal 2026, up 5.4%, but segment profit fell 20.4% to $129 million, a margin of 10.1%. The same filing shows a book-to-bill ratio of 0.76, meaning new orders trailed the revenue the unit was recognizing. Growth on the top line, then, but pressure on profit and on future order flow.
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The timing is notable. Less than two weeks ago, DXC was promoting the business. It announced that its Assure Platform had passed 275 customers, alongside new AI-enabled “Smart Apps” and fresh investment in London Market services. A sale would end that push under DXC’s own roof and move it to a new owner.
DXC Insurance: What Eldridge and Zinnia would gain
For Eldridge, the logic is scale. Zinnia is built around life and annuity insurers, while DXC’s insurance arm serves insurance, broking, reinsurance and specialty commercial companies, with software and process services across life, wealth, property and casualty. Joining the two would create a provider covering software, administration and servicing for insurers on a much larger footprint.
Zinnia already has serious momentum. It began life as the technology arm of an Eldridge insurer and was rebranded in 2022 as a platform for life and annuities. It has grown through acquisitions including Breathe Life, Policygenius and the life and annuity assets of Ebix. The company says its platform powers more than half of U.S. digital annuity volume, and it can help carriers launch annuity products in as little as three months, with straight-through processing above 95% for new business.
DXC would bring something Zinnia cannot easily build quickly: sheer installed base. More than one billion policies have been processed on DXC software. Its life and wealth outsourcing operations support 11 million policies and process more than $11 billion in payments a year across 300,000 claims. It also adds property and casualty and reinsurance, areas where Zinnia has been far less visible.
Eldridge has deep ties to the sector it would be investing in. Its insurance holding company, launched with about $74 billion in assets under management, includes the carriers Security Benefit and Everly Life. That gives it a natural understanding of what insurers need from their technology vendors.
DXC Insurance: What the deal could mean for insurers and the wider industry
If it goes ahead, the first test will be integration. Merging two platforms with different customers, products and codebases is demanding, and insurers rarely tolerate disruption to systems that handle billing, claims and regulatory reporting. Carriers currently on DXC’s platforms will want clarity on product roadmaps, support commitments and contract terms under new ownership.
The deal also points to a broader shift. Core insurance systems, once seen as back-office plumbing, are increasingly treated as a strategic battleground as AI reshapes underwriting and claims. Private capital is clearly willing to pay for scale in that market, while large IT services firms look more willing to shed specialist units that sit awkwardly inside broader outsourcing businesses.
For insurers and technology partners in fast-digitizing markets, including India, the practical questions are simple. Who will own the platform, who will support it, and how quickly will the combined group roll out AI features?
What to watch next: whether a definitive agreement is announced in the coming weeks, what DXC says about its plans for the proceeds, and how customers and regulators respond.
