Capita, the new parent company of insurance group Eastgate, this week revealed that it has set aside a £100m warchest to snap up rival insurance outsourcing firms.

Speaking to Insurance Times, Capita chief executive Paul Pindar said the FTSE-100 £4bn-capitalised group was looking for firms with significant administration services.

“We will look at anything with a big admin or outsourcing component,” said Pindar. “We have grown Capita by 40% per year over the past decade and we believe the insurance outsourcing operation is capable of the same sort of growth.”

Capita snapped up Eastgate three weeks ago, bolstering its previous 30% holding to own the company outright.

But Pindar said the group will retain all of Eastgate's core business units including its London market operations, its legal and medical expenses division, and its outsourcing division.

Pindar added that Capita will be “opportunistic” in selecting its acquisition targets but he admitted a number have been identified.