The share price of Quindell Portfolio (LSE: QPP) — a provider of software, consultancy and technology outsourcing expertise in the insurance, telecommunications and related sectors — is currently up 4%, following the announcement of a new contract win.
The new contract is with CAA South Central Ontario, an insurer and automobile association that has around 1.9 million members, with sister organisations across Canada with a combined 5.8 million members, and is for a minimum of five years. Quindell estimates that, based on a 10% to 30% telematics take-up in Canada with automobile association members, the contract has an annual revenue potential of from C$79m to C$237m .
Commenting on the new contract, Rob Terry, Founder and Executive Chairman of Quindell, said,
“The CAA South Central Ontario is the first major Automobile Association in Canada to contract with Quindell, and it represents a tremendous win for both our companies.This agreement once again validates Quindell’s significant market leading model, which we believe will continue to positively disrupt the Canadian insurance market. It also confirms our belief that the insurance market in Canada is going to exceed all our previous plans for growth in the short to medium term. “
The deal with CAA follows big contracts with Direct Line, Renault UK, Honda UK and the RAC that were announced earlier this year.
At the time of writing Quindell ‘s share price stands at 16.1p. That’s 5% down so far in 2013 — primarily due to a puzzling slump in early May — and only up around 1% on this time last year, a period during which the FTSE 100 has gained 15.6%.
