Premium finance provider Prompt has announced that it is to take over the new business of rival company Premium Payment Plan (PPP).
Under a deal which took effect from October 1, Prompt will take on all PPP's staff along with certain fixed assets. It has not acquired the existing loan book or the company itself.
Prompt director Bob Darling said that the acquisition of PPP would "substantially increase the number" of Prompt's personal lines customers. Prompt only launched as a personal lines premium finance provider in May. The company already has in the region of 500 brokers signed up while a similar number use it regularly.
The move means a significant change of product for many brokers because PPP's was one of the only non-recourse products available on the market. Brokers will also receive increased overriders because Prompt possesses a lower credit charge.
Prompt managing director Stephen Robinson said: "This is a significant strategic acquisition for Prompt. We have seen PPP grow from a new venture to an important force in the personal lines sector.
"Whilst immediately responsible for new business, Prompt will allocate proper resources to the existing portfolio." PPP managing director Roger Brown added: "Since the launch, PPP has developed rapidly due to the exceptional support of our broker base."
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