Specialist insurer IGI Group has set a target of five-fold growth within three years following major investment from Iceland's leading insurance company Vátryggingafélag Íslands hf (VÍS).

The acquisition of an undisclosed number of shares by VÍS, which has a 40% share of the Icelandic market, is expected to increase IGI's gross written premium (GWP) to £100m by 2009.

IGI said that with the additional capital and fresh intelligence from VIS it intended to improve its existing lines of business in landlord property, touring caravan, warranty products, pet and legal expenses.

Keith Wardell, managing director of IGI, told Insurance Times the company would be looking to increase its presence in the London market with the expansion of its Lime Street office.

He said: "The partnership will enable IGI to become a significant player in the UK market, both through the expansion of our product lines and further investment in client service delivery, which we are absolutely committed to."

The deal will allow the Nottingham-based insurer to write 100% of its business, which is distributed through its expanding UK-wide broker network.

Increased capacity would also enable the group to develop its relationship with the 1,000 brokers that have agencies with IGI's network.

Wardell said he would not rule out setting up offices outside of the UK, but added: "We are taking baby steps at the moment, so I won't be sending a sales team out to Europe tomorrow."

VÍS offers a range of personal and commercial non-life insurance and financial service products through 51 branches throughout Iceland.