All this rain may be a pain for most people in the UK, but wet roads mean the number of motor insurance claims go through the roof; good news for Aim-traded technology outsourcer Quindell Portfolio. It has built a platform that cuts costs for the motor insurance industry, which is on its knees as personal injury costs soar, competition crushes margins and new legislation cuts off a key source of income.
- "Exceptionally strong" first half
- Management interest aligned with big share price upside
- Major £120m contract win
- Record sales pipeline
- Further acquisitions could dilute investors
- High risks integrating business
The rapid growth is no surprise to Rob Terry, chairman and chief executive, who, it is fair to say, has learnt how to build insurance outsourcing businesses at the school of hard knocks. He says personal injury costs now make up around half of total claim costs, which makes Quindell's aim to reduce costs for major UK insurers by 20 per cent, a compelling prospect for clients. It can do this by offering a service that can handle every aspect of a claim. The Ai Claims division, bought in April, manages the claims process including car repairs and car hire. The human side is handled by Mobile Doctors, the acquisition of which was completed at the end of 2011, which assesses any injuries and rehabilitation necessary. If there are any legal disputes, often the case, these are looked at by Silverbeck Rymer, bought in January this year.