KUALA LUMPUR (Oct 13): LEAP Market-listed DynaFront Holdings Bhd (KL:DYNAFNT) said its wholly-owned subsidiary, DynaFront Systems Sdn Bhd, has secured a Phase I Discovery Agreement with an established life insurance company in Indonesia to replace the insurer’s core life insurance system.

In a Bursa Malaysia filing Tuesday, the group said DynaFront Systems was selected as the appointed vendor following the customer’s evaluation process.

The first phase involves assessing the insurer’s business and functional requirements against DynaFront Systems’ existing PrecentiaLife system, identifying gaps and determining the modifications needed for implementation.

The discovery phase is expected to take about five months from its commencement date.

The proposed new system is intended to improve operational efficiency, integrate business processes and provide a scalable technology platform to support the insurer’s future needs and digital transformation.

DynaFront said the second phase is expected to cover full system implementation and data migration, subject to the customer’s formal confirmation and the signing of relevant agreements. However, this phase has not been contracted.

The group did not disclose the customer’s identity or the value of the discovery agreement due to confidentiality arrangements.

The agreement is not expected to have any material impact on DynaFront’s share capital, net assets or gearing for the financial year ending June 30, 2027, but is expected to contribute positively to earnings for the same financial year.

The group said the agreement is subject to normal operational and project execution risks, which it will take appropriate measures to manage.