Following its £7m acquisition of US company Insurance Business Solutions, Policy Master has announced plans for expansion in both the UK and worldwide, writes Alaric Nightingale.

The US acquisition will see Policy Master form a new company called Policy Master Insurance Solutions. The company focuses on schemes insurance.

Chief executive Steve Verrall said: "IBS provides Policy Master with a valuable bridgehead into the US market. We expect to benefit from long-term growth in IBS's product sales as well as feeding through IBS into the US market, Policy Master's own product range."

He added that further acquisitions could be imminent in the UK, US and Europe. He said: "It is likely that we will acquire small companies providing solutions to the larger players in the market, which perhaps do not have our strength of brand, but are nonetheless big companies in their own right.

"Software companies that work within the insurance company sector need to be big because size is very important for economies of scale and research & development."

However, Verrall ruled out any acquisitions of rival software houses in the UK.