Quindell increases stake in Ingenie to 43%

Quindell has increased its shareholdings in Ingenie to approximately 43% from 19% at a value of 17.5p a share, valuing the telematics company at £50m.

Quindell has also invested £8m cash in two newly formed Ingenie subsidiaries, giving the technology firm a 40% stake in each company. Ingenie UK has been set up to offer telematics policies to over 25s in the UK and Ingenie Canada will offer telematics to drivers in Canada.

Discussions have already started for potential partners with major UK brands that represent over a quarter of drivers in the UK. Ingenie, backed by ex-footballer Gary Lineker, has also started negotiations with a number of Canadian players including the Insurance Brokers Association of Ontario (the “IBAO”), whose members distribute approximately 60% of insurance in Ontario, Canada.

Quindell founder and executive chairman Rob Terry said: “With Ingenie significantly profitable already and approaching a run rate of £50m of gross written premium, all within two years of start-up, it’s a natural time to increase Quindell’s shareholding. The low cost of customer acquisition that Ingenie’s digital model offers has always been attractive, but now provides incentive to help this business realise its full potential.

“We are also thrilled to be increasing our stake as Ingenie broadens its business beyond young drivers. Quindell is looking forward to helping the Ingenie team drive growth, not least through new potential partnerships in the UK and beyond. We firmly believe that the success we have seen to date in the UK market for both our software and technology enabled outsource solutions has great potential internationally, and these two sets of investments will help us achieve this.”

Ingenie founder and chief executive Richard King (pictured) said: “I’m delighted that we are able to take the natural next step for Ingenie with our partners Quindell. Expanding the brand to over 25s and launching our first international operation in Canada allows us to rapidly grow our community of drivers, whom we aim to provide with cheaper insurance while helping them become safer on the road.

“Since we launched in the UK two years ago, Ingenie has achieved fantastic growth as consumers increasingly recognise the benefits of telematics insurance. We look forward to replicating and continuing our success through this further investment from Quindell.” 

IBAO chief executive Randy Carroll said: “We are pleased to welcome Ingenie to Canada and are excited about the potential of partnering with them. Given the current challenges the industry is facing as it relates to the cost of insurance, we are confident that our partnership will go a long way towards lowering rates for consumers.

“Road safety and education for young drivers is one of the key objectives of our members. Ingenie brings a wealth of knowledge and proven capability to help us achieve this goal.”