Quindell expects 70% of insurers to use its credit hire model

Quindell expects 70% of the insurance market to eventually sign up to its Collaboration Model credit hire solution, the insurance outsourcer revealed in its first-half 2013 results.

Under the Collaboration Model, Quindell, which owns credit hire firm Ai Claims, works with insurers to reduce the duration of car hire, offering cash alternatives to car hire in certain cases.

The company said insurers representing roughly 29.5% of the market have either already signed up to the Collaboration Model or are at the contract stage for adoption.  

It added that insurers representing a further 28% had expressed formal interest and are moving to the “workshop stage” of adopting the model.

Continued progress

Quindell posted a profit after tax of £34.4m in the first half of 2013, up 54% on the £22.3m it reported in the second half of 2012.

Quindell opted to compare its first half of 2013 with the second half of 2012, rather than the first, because it includes acquisitions that were absent from the first half figures.

Earnings before interest, tax, depreciation and amortisation rose 44% to £47.7m (H2 2012: £33.2m) .

Exceptional items

The profit improved despite £6.3m of exceptional costs, which comprised £1.1m of acquisition costs and a £5.1m charge associated with exiting an equity swap.

The improved profitability was driven by a 78% increase in revenues to £163.3m (H2 2012: £91.9m).

Services wins

The company won several new contracts in its services division. Eight new contracts were signed in the second quarter. Quindell expects this to increase its run-rate revenue by £100m a year from July 2013.

Quindell chief executive Rob Terry (pictured) said: “The group is pleased to report the continued progress during the first half of the year. Significant multiple contract wins have been achieved across the group, with particularly strong growth in legal services and technology sales.”