Allianz Cornhill is to launch a mid-net worth product run by third party administrator Home & Legacy.

In what is thought to be the first deal of its kind for Allianz Cornhill, the insurer will use a specialist wholesale broker to run the policy.

Allianz Cornhill director of underwriting and operations Andy Beddall said: "It is an area where we don't have the expertise or the infrastructure.

"Home & Legacy has the knowledge to select underwriting risks better than a main line underwriter."

The new policy will be available through over 4,000 brokers in both the Allianz Cornhill and Home & Legacy networks from 3 November. The companies are hoping to generate a gross written premium of around £2m in the first year.

Beddall said: "To justify setting up our own operation we would have to be looking at a gross written premium of £50m plus per year.

"It is much more economical to build on an existing infrastructure."

The product will cover buildings, contents, fine art and annual travel, offering 20% to 30% commission depending on volume and performance. Home & Legacy will run every aspect of the policy, liaising with brokers and customers on sales, renewals and claims.

Home & Legacy managing director Gary Burke said: "Business deals like this prove that outsourcing is a viable business decision. We believe that mid-net worth is going to grow enormously in the next few years."

The deal moves the company closer to its aim of increasing its business from £20m to £50m in three years and should be the first of a number of similar ventures to be announced over the next few months.

It comes a month after Home & Legacy raised £20m by selling 35% of the company to Sand Aire Private Equity.