Motor claims management company Accidentcare Group plans to float on the Stock Exchange's Alternative Investment Market (AIM) within six months, before possibly seeking a full stock market listing in 2002.
The goal was revealed by chief executive Sachel Singh who said: “We are planning to launch on to AIM in the spring of 2001.”
The move would be a step up from its current membership of the smaller companies stock market, Ofex. Its current market capitalisation is £4.5m.
Singh believes the market for accident claims handling is expanding rapidly: “Insurers are currently seeking long-term relationships with claims management partners to help them accommodate the peaks and troughs of demand.”
Accidentcare Group provides a package of claims-related services, including uninsured loss recovery for a mix of personal and commercial members. It has recently signed a strategic European partnership with Europ Assistance and is an agent for National Car Rental.
Its subsidiary Lumacare monitors third-party claims costs for a number of major insurers.
A very small part of its business is in credit hire, and the company is a member of the ABI's code on hire rates.
The company has prepared for the floatation by investing heavily in its core service centre operation – which has 40 staff – over the past two years. It has also built up a network of 170 independent bodyshops for repairs, soon to expand to 200.
Singh said he would like Accidentcare to grow into a provider of customer care products similar to membership services company Centrica, owner of motor assistance company, the AA, and Goldfish credit card. The company also intends to expand its membership base by forging affinity partnerships.
Singh stressed that despite the planned floatation Accidentcare Group would remain membership focused: “Our key value as a company is how many members we have, rather than how many insurers we outsource for.”
Currently, Accidentcare Group derives 75% of its business from personal motorists and 25% from commercial fleet operators.
Singh said the company planned to expand its fleet business by targeting commercial lines brokers with personal lines portfolios.
Singh, a former panel-beater, co-founded Accidentcare Group with chairman Roy Kent, in 1992, after lamenting the poor level of after-care given to accident repair clients.
