Quindell wins new insurer contracts and buys claims firm

Insurance outsourcer Quindell has signed multiple contracts with the direct operation of “one of the UK’s largest insurers”.

Quindell did not name the firm.

It has also bought claims management company Crusader Assistance Group.

New contracts

Quindell expects the new insurer contracts, which initially last for up to three years, to generate revenue approaching £20m. Under the contracts, Quindell will provide the insurer with a range of services, including medical reporting and rehabilitation, credit hire and deployment of repair.

This will be underpinned by Quindell’s software as a service technology.

The latest contract win follows a deal announced last week with a “leading UK broker” and a contract with breakdown recovery firm RAC at the beginning of April.

Crusader purchase

Quindell is also buying claims management firm Crusader for an initial amount of 34.3 million shares and £1m in cash. It will make two further £1m payments if Crusader hits profit and cash flow targets over the next two years.

As part of the deal, Crusader has warranted that it will make a minimum profit after tax of £1.5m and operating cash flow of £1.5m for each of the two years ending 31 December 2014.

Crusader provides claims management services to UK motor insurance brokers.

Quindell said the acquisition would generate £6m of revenue and £15m of “synergistic revenue” – which is generated from the outsourcing work that Crusader can provide to the group – a year.

Crusader will operate as a division of Quindell’s outsourcing division.