Formula Ventures, Direct Insurance creating a financial products software house - TheStreet

Formula Ventures

, The Direct Insurance company and enterprise company Venture Nest have agreed to establish a joint company, Earnix.

Earnix will develop and market financial products pricing software and demand curve analysis software. The software is designated for companies that sell directly to the financial sector.

The new company is to be managed by Sami Krikler. Company president and CTO will be Yoni Cheifetz, today the CEO of

Venture Nest

, an Israeli company that coaches and invests in young technology ventures, and of

Demantra

, a developer of Internet-enabled demand-driven management solutions. Venture Nest is affiliated with Formula Ventures.

The scope of the investment in the new company comes to half a million shekels.

Earnix's software is based on advanced statistical methods. Direct Insurance will be testing the beta product. At the second stage, Earnix intends to market its know-how and technology in overseas markets through Idit Technologies, a subsidiary of Direct Insurance.

Direct Insurance CEO Shai Fogel said the investment in Earnix furthered company strategy to develop advanced pricing devices for insurance and financial products. He foresees the products improving Direct Insurance's ability to analyze demand data in the insurance market.

Zur Shamir Holdings owns Direct Insurance. Zur Shamir is Israel's leader in agent-free insurance policy sales. The company provides chiefly life insurance, car insurance and home insurance.

Direct Insurance recently acquired Personal Direct Insurance for NIS 85 million in cash and stock. Direct Insurance ended the first nine months of 2000 with net profit of NIS 15.7 million, compared with a net NIS 16.1 million in the corresponding period of 1999. The company's stock trades on the Tel Aviv Stock Exchange at a market cap of NIS 220 million.