IAT GROUP selects Sapiens INSIGHT™ for Reinsurance

Business Rules Technology solution integrates management of ceded and assumed reinsurance

November 1, 2005

RESEARCH TRIANGLE PARK, NC – OCTOBER 31, 2005 - - Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), today announced that IAT Reinsurance Company Ltd. (IAT Group) with corporate offices in Raleigh, NC signed a license agreement for Sapiens’ reinsurance administration software, Sapiens INSIGHT™ for Reinsurance.

IAT GROUP will implement Sapiens INSIGHT™ for Reinsurance in Raleigh for all its group companies including Occidental Fire & Casualty Company of North Carolina, Wilshire Insurance Company, Acceptance Indemnity Insurance Company, Acceptance Casualty Insurance Company and Harco National Insurance Company.

IAT GROUP is the first to license Sapiens INSIGHT™ for Reinsurance in North America following its launch at the Risk and Insurance Management Society (RIMS) conference in Philadelphia.

Leveraging Sapiens’ pioneering eMerge™ Business Rules Technology, Sapiens INSIGHT™ for Reinsurance is a state-of-the-art, web-based solution that streamlines and reduces the cost of handling reinsurance business functions through recovery automation and exposure management. In addition, the solution allows accounting, claims and underwriting professionals to dynamically alter the behavior of the system to manage complex reinsurance programs negotiated in response to market changes, corporate and stakeholder needs.

According to an IAT Group executive, “The company evaluated several reinsurance admin systems over the past 18 months and concluded that the Sapiens INSIGHT™ for Reinsurance product offers a significant opportunity for the IAT GROUP to dramatically improve the management of its reinsurance portfolio and processes”.

“We are very pleased to have IAT GROUP as our first reinsurance partner in the Americas. This innovative reinsurance solution will offer them a solid business platform for managing the risks inherent in today’s fast-paced, ever changing, tightly regulated marketplace,” said Steven Bessellieu, President of Sapiens Americas.

About IAT Reinsurance Company Ltd.
IAT is a privately held Bermuda domiciled reinsurer, with corporate offices in Raleigh, NC that was founded in 1986, and at June 30, 2005 had capital and surplus of approximately $900 million. IAT Re writes property and casualty reinsurance and is a direct writer of property and casualty insurance in the U.S. through its wholly-owned subsidiaries Harco National Insurance Company, Occidental Fire & Casualty Company of North Carolina, Wilshire Insurance Company, Acceptance Indemnity Insurance Company and Acceptance Casualty Insurance Company. IAT Re and all of its insurance subsidiaries are rated A- (Excellent) by A.M. Best Company.

About Sapiens INSIGHT™ for Reinsurance
Sapiens INSIGHT™ for Reinsurance supports carriers and reinsurers in the management of ceded and assumed reinsurance including proportional and non-proportional treaties, facultative contracts, and finite risk agreements. Leveraging Sapiens’ pioneering eMerge™ Business Rules Technology, Sapiens INSIGHT™ for Reinsurance is based on ACORD standards and XML technology; it supports both multi-currency and multi-lingual processing, and accommodates multi-company corporate structures. This state-of-the-art, web-enabled solution streamlines and reduces the cost of handling reinsurance business functions through automation and integration of business rules. In addition, the solution allows business users to dynamically alter the behavior of the system in response to market changes, corporate and stakeholder needs.

About Sapiens International
Sapiens International Corporation (NASDAQ and TASE: SPNS), a member of Formula Group (NASDAQ: FORTY and TASE: FORT), is a leading global provider of proven IT solutions that modernize business processes and enable insurance organizations to adapt quickly to change. Sapiens' innovative solutions are widely recognized for their ability to cost-effectively align IT with the business demands for speed, flexibility and efficiency. Sapiens operates through its subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific, and has partnerships with market leaders such as IBM and EDS. Sapiens' clients include AXA, Liverpool Victoria, Norwich Union, OneBeacon, Principal Financial Group, Prudential, Abbey National, ING, and Occidental Fire & Casualty among others.

For more information, please visit http://www.sapiens.com.

Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new product and service development, the effect of the Company's accounting policies and other risk factors detailed in the Company's SEC filings.

FOR ADDITIONAL INFORMATION
Mary Onate
Sapiens Americas
Tel: +1 919-405-1588
e-Mail: mary.o@sapiens.com