Commercial lines telephone broker Premierline is to set up a company to handle the leads it is unable to convert.

Premierline chairman and managing director Barrie Wells said: "We can get up to 130 inquiries a day that we cannot deal with."

The new company, as yet un-named, is due for launch in April and will use a panel of insurers, rather than the single insurer - Allianz Conrhill - used by Premierline.

Wells said one of the new company's first products would be for goods in transit and haulage risks.

Premierline currently produces 25% of Allianz Cornhill's SME package business and has around 13,000 policyholders.

Meanwhile, Premierline is to launch a motor trade product at the beginning of February.

Wells said the product would target garages with a turnover of under £2m.