US-based insurance technology specialist Ebix has reported a 24% increase in revenue to $US265.5 million ($373 million) for last year.

The electronic exchange channel – including its Australian operation Sunrise Exchange – continues to be Ebix’s largest revenue-earner, accounting for 72% of income. 

Exchange revenue was up 13% to $US190.7 million ($268 million) last year.

Ebix’s strongest revenue growth came from Risk Compliance Solutions, up 156% to $US55.9 million ($78.5 million).

The US-based insurance technology specialist reported a 19% decline in Broker Systems revenue to $US14.4 million ($20.2 million) for last year.

Total operating expenses for the year were $US176.7 million ($248.3 million), up from $US134.6 million ($189.1 million) in 2014.

Ebix faces a $US20.5 million ($28.8 million) one-off payment to the US Internal Revenue Service after an audit of tax returns from 2008-12. Despite this, net after-tax income was up 25% to $US79.5 million ($111.7 million). 

Ebix Australia MD Leon d’Apice told insuranceNEWS.com.au the results reflect “the success of our growth strategy both internationally and in the local market”. 

“The potential acquisition of (UK-based services company) Xchanging is now off the table allowing us to focus on core activities and further growth through accretive acquisitions,” he said.

“Closer to home our new mobility and customer self-service solutions are gaining momentum and we continue to add new features into our business systems. 

“We remain committed to providing the best possible solutions to the 10,000-plus insurance professionals who log into an Ebix broking system each day.”

Ebix Chairman and CEO Robin Raina says last year ended well, with a strong fourth quarter.

“With our revenues and operating margins heading in the right direction, and the company evaluating a number of material deals at present, we feel we are well positioned for a record

2016. Our team remains very focused on balancing revenue growth with delivering strong operating margins and cashflows.”

Mr Raina says acquisitions are a growth driver, but Ebix remains “extremely disciplined in our acquisition criteria and [we] are never shy in abandoning a prospective acquisition, whatever the stage”.

Noting Ebix’s decision not to move forward on acquiring Xchanging, Mr Raina says he “liked the economics very much [but] the uncertainty of the debt markets where we intended to fund the bulk of the transaction proved to be too great a risk to proceed”.

Mr Raina says Ebix’s cash reserves and available credit positions it to fund a larger acquisition this year.