New grey-market broker Castle Cover has plans to reach a customer base of 500,000 in five years, according to its chief.

Managing director Andrew Marchington said the Poole-based broker planned to extend its household business into motor over the coming two years.

"There is definitely room for a third player in the over-50 space. This market is living longer and is more affluent.

"We have an aggressive marketing plan and half a million policyholders is the target," he said.

The broker will sell household products to begin with, backed by providers AXA, R&SA and Legal & General.

It has an annual marketing budget in excess of £10m a year and will target the over-50s via national press campaigns, door drops and a website that will offer quote and buy services.Castle Cover, launched this week, is backed by a £20m investment from Asset Ventures and HSBC. Asset Ventures is the independent trust fund of Primary

Group's founder Philip James and his family. But unlike, which is wholly owned by Primary, Castle Cover is independent.