Shares in Smart Employee Benefits Inc (CVE:SEB) ticked up in Toronto on Wednesday as it outlined progress made in its benefits division since April this year, signing contracts to administer over 330,000 lives and over $1bn in premiums.
The firm has two divisions - technology and benefits, the latter operating as a client of the former.
The benefits business offers SaaS solutions in the processing sector to corporate and government clients, globally.
Among the highlights of the last six months are the completion of the AON transaction and taking on the administration of 267,000 lives for 48 of Canada's corporate elite.
Organic growth has added a further 61,000 lives in November this year. These new lives will be fully transitioned to the firm's administration environment by the second quarter of 2018.
Long term contracts signed have typically been five-year contracts with renewable provisions. Backlog is in excess of $65 mln.
In addition, the group has reduced the cost structure in its benefits division by over $2.3mln per annum, primarily as a result of improving business processes.
SEB has invested over $20mln in its health benefits processing solutions over the past several years, which has penalised consolidated EBITDA (underlying earnings), it noted.
"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," the company added.
Other highlights were the launch of a health and wellness platform and an online voluntary insurance product sales platform.
Shares added 4.76% to C$0.22.