Outsourcer will also buy PI law firms as part of £500m expansion
Quindell is gearing up to land outsourcing contracts with two “major” UK insurers following its £200m capital injection, according to executive chairman Rob Terry.
The insurance outsourcer will also acquire more personal injury lawyers to help cope with its expansion and is expecting to announce more UK telematics deals shortly.
This morning Quindell announced that it had raised £200m by issuing £1.3m new shares. The proceeds will supply working capital for its expected pipeline of deals.
Speaking to Insurance Times after the capital raising announcement, Terry said he was expecting to bring in contracts over the next four to six months that are collectively worth between £450m and £500m of annual revenues.
He said: “Some of that volume is coming from two or three existing clients, but we now have the funding and the capability to take on two other large, major insurers in the UK.”
Quindell already works with several large UK insurers and brokers. It signed a three-year contract with Direct Line Group in October.
In addition to the organic growth, there are also more acquisitions on the cards for Quindell.
Terry said: “To cope with the growth in scale, you will probably see us acquire a couple of small personal injury claimant and defendant law firms.”
He added: “At some stage, with the amount of volume that we control and put into Scotland, it would make sense to have our own operations up there.”
Terry pointed out that while the company’s outsourcing business is growing, the technology side of the business is making an increasing contribution to profits.
One area for expansion is the provision of telematics technology. Terry said: “The growth we are seeing in telematics in the UK is very significant and you can expect us to be announcing a number of very significant deals in telematics in the UK space relatively shortly.”