Irish financial services software company Allfinanz has reached an out-of-court settlement in a major patent infringement lawsuit filed against it a year ago by US insurance giant Lincoln National Risk Management.

The Irish company, whose registered name is FM Systems Limited, was targeted by Fort Wayne, Indiana-based Lincoln after discussions on possible strategic alliances between the two broke down last year. Both companies compete to offer software that automates the lengthy process of evaluating a person for life insurance.

Under the terms of the settlement, Allfinanz will be granted a licence to the disputed patent and the two companies will continue to pursue strategic alliances together. The two wish to offer a service for underwriting and issuing life insurance policies online.