Innovation Group wins outsourcing contract from major insurer

1st Oct 2013 10:59

One of the UK's largest insurers has outsourced a portion of its claims handling function to The Innovation Group (TIG) for the next seven years. Innovation Group said the contract to handle the insurer's residential home subsidence claims was worth around £75m net revenue over the course of the next seven years.Chief Executive Officer Andy Roberts said the contract was "the clearest confirmation yet of the strength of our offer".The contract, which began on October 1st, will also see the FTSE Smallcap company take over the handling of outstanding subsidence domestic claims being processed by incumbent suppliers to the insurer.Roberts claimed the company's subsidence claims management service was "unrivalled in the market". Analyst Tintin Stormont at broker N+1 Singer agreed the win was a strong endorsement of the group's capabilities and said the impact of the contract would be seen in 2014 full year results onwards. "Just a month ago, the group signed a significant contract extension with Direct Line Group covering the period to December 31st 2017, which will see them continue to handle all of DLG's newly notified subsidence claims. She noted that these contract announcements came on the back of other announced wins both in software and the business process outsourcing business. Shares in TIG were up 2.6% to 30p at 10:59 on Tuesday.OH