Innovation Group PLC (LSE: TIG.L) has announced the signing of a major contract with RBS Insurance (LON: RBSI) the leading UK insurer. The contract, which commences with immediate effect and covers the period to 31 December 2014, will see the Group handle all of RBSI's newly notified subsidence claims, in a deal worth £40m.
Based upon anticipated transaction volumes and assuming normal weather conditions, the Group estimates that the contract will contribute approximately £40 million to Group revenue over its three-and-a-half year lifespan, further underpinning Group confidence in its expectations for the 2012 financial year and beyond.
"I am delighted to announce this highly significant piece of new business for The Innovation Group. After a substantial evaluation process, we are delighted to be working with RBSI. Our offering in the UK subsidence market is sophisticated and particularly attractive to insurers as it provides them with certainty over claims costs. Today's announcement is one of the clearest signs yet of the progress we have made in developing our solutions and proving our ability to impress even the largest of blue-chip insurers," said Andy Roberts, chief executive officer of Innovation Group.
“This is a major win for Innovation Group. Through a combination of investment in innovation, technical expertise and first class service, we are able to offer insurers a tremendous proposition which enhances their service to customers and reduces costs,” said Robert Thomson, managing director for UK and Ireland at Innovation Group.