Quindell to increase ownership in telematics insurance carrier Ingenie

British telematics-based auto insurance provider Ingenie Services Ltd. announced Monday it has agreed in principle to have its majority shareholder, Quindell Portfolio PLC, buy the remaining shares of Ingenie that Quindell does not already own.

“Quindell exercising its option will also allow ingenie to rapidly pursue its strategy for international growth, starting with the launch of an ingenie young driver product in Canada,” Ingenie stated in a press release.

“Additionally, ingenie can for the first time confirm its intention to launch in the United States due to increasing demand from North American insurance partners and underwriters.”

Last year, Fareham, England-based Quindell acquired Toronto-based Iter8 Inc., which provides software-as-a-service for property and casualty brokers and agents. Quindell’s products include claims management outsourcing. Quindell currently owns 57,000 of 100,000 issued shares of London-based Ingenie, which targets 17- to 25-year-olds with its telematics-based insurance.

Quindell agreed last year to partner with Independent Broker Resources Inc. to offer telematics in Canada. IBRI is owned by the Insurance Brokers Association of Ontario. Quindell would provide the technology for all of IBAO’s telematics initiatives to IBAO’s 12,000 brokers.

“Telematics insurance systems and ingenie are at the heart of Quindell’s growth strategy in the technology sector,” Ingenie stated. “Consequently, future ingenie products are likely to benefit from Quindell’s next generation smartphone Apps and self-installable black boxes.”

For its British customers, Ingenie installs telematics devices, monitors the vehicles and then gives the policyholders a driving score out of 100. Provided they drive at leat 40 miles, Ingenie updates the driving score roughly every 10 days. It also gives feedback messages on speed, acceleration, braking and cornering. Every three months the firm reviews the customers’ premiums.

“In just over two years, we’ve built ingenie into a leading insurance brand for young drivers and proved our telematics technology and business model” Ingenie founder and chief executive officer Richard King stated in the release. “It’s now the right time to look at an investment from the right partner, as we seek to internationalise the business.”

Quindell had initially invested in Ingenie last September.

“The option to acquire, agreed in principle on 21 January 2014, would see Quindell buying the remaining 57,000 of 100,000 issued ingenie shares at a maximum rate of 3721 Quindell shares to 1 ingenie share,” ingenie stated. “This prospective arrangement is valid until 31 January 2015 with both parties expecting to proceed sooner, in line with ingenie’s international expansion into the North American market.”