TCS says insurance business has had a good start to the year

MUMBAI: Tata Consultancy Services said its insurance business has had a good start to the year, following months of lackluster commentary from the unit, spurring hopes that a turnaround in that business is underway.

TCS has been struggling in insurance mainly due to weakness in Diligenta – a platform that services the insurance industry in the UK. A slowdown in the unit has been hurting TCS’ overall results for the last four quarters.

But at Nasscom’s India Leadership Forum, TCS CEO N Chandrasekaran signaled a turnaround may be underway.

“We are seeing no weakness in the banking and financial services space. Even our insurance sector has had a good start to the year. So we expect g yood things from BFSI,” Chandrasekaran said at a media round table on Wednesday.

Last month, TCS had said it expects Diligenta to stabilize by March and to no longer be a drag on its business.