WTG.L Regulatory News (WTG)

RNS Release Embargoed until 7.00 am 9 May 2012

Quindell Portfolio Plc

("Quindell" or the "Group")

£120 Million Contract Win Validating Quindell Group Strategy

Quindell Portfolio Plc (AIM: QPP.L), the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their Related Sectors, is pleased to announce that the Group has won a major core contract and a number of other related contracts with one of the UK's largest insurance intermediaries. 

The services to be provided to this intermediary, which come into immediate effect and cover the three year period to February 2015, see Quindell providing a broad range of services to policyholders of more than half of the top ten UK insurers including legal services, medical reporting, rehabilitation, accident management, credit hire, replacement vehicles and credit repair. The services have been agreed with this key intermediary through a combination of the Group's own central sales activities and those of the recently announced acquisitions.

It is now generally recognised by the major outsource providers that in order to be able to secure long term business during this period of significant change within the UK general insurance market it is essential for companies to offer Alternative Business Structures that provide a combination of service propositions, including those necessary to address personal injury, that can still operate post the banning of referral fees. Traditional loose partnership approaches between the various supply chain entities are no longer credible to the major insurance sector providers as the referral fees that underpin these partnerships have either been banned or are under challenge from the UK government and cannot be relied upon to facilitate long term relationships.

Through the use of its own core technology and the combination of its recently announced acquired businesses, Quindell has created a Group strategy that provides a unique combined proposition for the handling of motor claims and the management of its associated supply chain. This enables Quindell to be able to address and help reduce the cost of claims, including personal injury, which incorporates legal services, medical reporting and rehabilitation accounting for nearly 50 per cent. of all motor claims costs. The signing of this deal clearly demonstrates the attractiveness of Quindell's strategy to major sector players within the insurance industry.

Based upon the agreed minimum proportion of the intermediary's business to be run through the Group together with the historic and anticipated transaction volumes, and assuming weather and general market conditions for motor claims remain in line with the downturn experienced in 2011, the Group estimates that the value of services to be provided by the Group to this intermediary for its combination of businesses will contribute approximately £120 million to Group revenue over the next three years, further underpinning the Board's confidence in its targets for FY 2012 and beyond.

Announcing this significant contract win Rob Terry, Chairman and Group Chief Executive of Quindell said: "We are delighted to have concluded this deal that we see as an excellent example of the validation of Quindell's strategy for lowering the cost of claim for the UK insurance industry whilst operating ethically, protecting consumer rights and delivering service excellence.

This contract win, which is one of a number we hope to announce this year, is one of the clearest signs yet of the progress we have made in proving our ability to win long term contracts of significant value with the largest blue chip insurance sector providers during this period of significant change for the insurance industry.

The fact that we have been chosen after extensive due diligence and that we shall now be demonstrating the value of our combined proposition to more than half of the UK's top ten insurers via the contract win announced today provides the Group with further confidence in its ability to close additional significant business with a number of these insurers directly within the second half of 2012."

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Notes to Editors:

About Quindell Portfolio Plc

Quindell Portfolio Plc is a provider of sector leading expertise in Software, Consulting and Technology Enabled Outsourcing in its key markets being Insurance, Telecommunications and their Related Sectors.

Quindell joined the market through Mission Capital Plc, now renamed Quindell Portfolio Plc. The Company was readmitted to the market on 17 May 2011 following the acquisition of Quindell Limited prior to the immediate acquisition of Quindell's technology and outsourcing partners. In December 2011, Mobile Doctors Group Plc was acquired increasing 2012 run-rate revenue to over £50 million. On the 1 April 2012, Ai Claims Solutions Plc became a subsidiary of Quindell, increasing run rate revenue to over £150 million. With the acquisition of Silverbeck Rymer due to be completed on 1 July 2012, subject only to SRA approval, proforma run rate revenues will exceed £200 million and staff levels, including off-shore resources, increase to circa 1,250.

Our Industry Sectors

In today's digital world the line between traditional industry sectors continues to blur, however the focus on tight service management is common to them all. We believe that excellent customer service, tight cost control and integrated supply chain management is not the prerogative of any single industry sector and with our solutions in multiple industry sectors savings of over 20% against industry norms are being delivered to the bottom line.

Our Solutions

The pressures on an organisation can come simultaneously from multiple directions including the need to add customers, increase wallet share, reduce costs and improve customer satisfaction. At Quindell we have the People, the Processes and the Supply Chains, underpinned by our sophisticated Champion and Challenger Business Process Management Technology Platform and Industry Solutions to help our customers tackle these efficiently and effectively.

With a clear understanding that having the best products and services on offer is not always enough and that getting your customers to use or adopt them is key, effective conversion lies at the core of our unique Champion and Challenger tools and techniques. Using these solutions Quindell has helped its customers achieve sales and service conversion rates ranging from 75% to 90%, way above industry norms. But life does not stand still, and complacency can kill any business, so the embedded Champion and Challenger continual improvement focus of our Learning Solutions is at the heart of all we offer. Using our industry insight and expertise, Quindell takes the holistic view of our client's challenges.

For example, when considering the Insurance industry today where 50% of the cost of an auto claim is associated with Personal Injury, including legal services, medical reporting and rehabilitation, it is clear that an organisation will not be able to achieve the levels of savings and customer satisfaction desired without addressing the injury to the driver as well as the repair of the vehicle. This is why at Quindell we have designed our insurance solutions and supply chains to address the full end to end cycle, with the ability and expertise to treat an injured party as well as repairing their vehicle. This makes Quindell a truly unique proposition for the insurance industry today.

Our Customers

Quindell Portfolio's companies have worked with over 2000 brands from Small to Medium Enterprises and Blue-chip organisations around the globe. Today we count a number of the world's top Insurance and Telecommunications blue chip companies within our client base, as well as hundreds of customer centric organisations working in both the distribution and supply of their services.

Our award winning Business Transformational, Software, Consulting and Outsourcing Solutions are recognised as delivering significant savings and additional sales to our customers every year.

For further information, please visit www.quindell.com