NU Online News Service, April 22, 2004, 2:16 p.m. EDT – The BISYS Group Inc., New York, says it will be hiring 30 sales reps in an effort to strengthen its struggling life insurance services unit.[@@]
BISYS sells support services to financial services companies.
Profits were up at the information services unit during the latest quarter and down slightly at the investment services unit.
Meanwhile, the BISYS insurance and education services unit posted a $10.8 million operating loss, compared with a $24.2 million operating profit for the comparable quarter in 2003.
BISYS is spending $3.1 million to deal with life insurance services division contract problems and $24.7 million to cut the estimated value of its life insurance commissions receivable portfolio.
BISYS President Russ Fradin says he is convinced that the company can turn the life services division around.
“I fundamentally believe in the value proposition of the [life services] business,” Fradin said during his company’s latest quarterly earnings conference.