Insurance BPS player The Innovation Group has now taken 100% ownership of its subsidence business InFront Solutions Ltd after acquiring the remaining 16% in a deal worth £2.2m. The stake values the whole InFront business at c£14m.
InFront is a consultancy specialising in subsidence management, as well as personal injury claims case management and fraud profiling for the insurance sector. The business operates TIG’s subsidence claims operations with a model that offers fixed per-claim pricing, which it backs with reinsurance to provide more certainty for the insurer on its claims reserves and indemnity spend. The business is central to TIG’s largest contract, a £40m five-year deal with RBS Insurance it signed last August (see here).
TIG is issuing 10.5m new shares at 2p each to cover the investment, and said the deal would be immediately earnings accretive.