Private equity firm Hellman & Friedman is exploring a sale of Chicago-based insurance software provider Applied Systems that could value the company at up to $10 billion, people familiar with the matter said. The firm is working with JPMorgan and Goldman Sachs, and the process has drawn interest from prospective buyers. Applied Systems provides software for insurance agencies and brokerages, including customer relationship management, policy administration and other workflows. The company generates more than $550 million in annual EBITDA (earnings before interest, taxes, depreciation and amortization), one source said. Hellman & Friedman bought Applied Systems from Bain Capital for approximately $1.8 billion in early 2014. A transaction would be among the largest software buyout processes this year and would test investor demand for mature software assets. The discussions come as software-sector sale activity has increased in recent weeks, following a quieter period and other potential sponsor-led exits.